Section 8 Fair Market Rent (FMR) for ZIP 21921 - 2027

Investment Score for ZIP 21921

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,410
1 Bedroom	$1,520
2 Bedrooms	$1,820
3 Bedrooms	$2,170
4 Bedrooms	$2,390
5 Bedrooms	$2,772
6 Bedrooms	$3,105
7 Bedrooms	$3,353
8 Bedrooms	$3,521

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,820	$259,690	0.7%	D
3BR	$2,170	$333,870	0.65%	D
4BR	$2,390	$448,086	0.53%	F
5BR	$2,772	$551,488	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 21921 (Elkton, PA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 21921 is set by HUD for 2026 and ranges from $1400 for a zero-bedroom unit to $2440 for a four-bedroom unit. Specifically, the FMR for a two-bedroom unit is $1820. However, the actual rental market in Elkton, PA, is significantly higher. The Zillow median price for a two-bedroom home is $255,512, which translates into a monthly rent of approximately $2129 based on typical rental yields. This means that the actual rent for a two-bedroom unit exceeds the FMR by about $309 per month. This discrepancy creates significant constraints for voucher holders. They must find landlords willing to accept a lower rent than the market rate, which can be challenging given the high demand and limited supply of affordable housing. Additionally, the occupancy rate of 93.7% suggests that there is little room for vacancy, making it even harder for voucher holders to secure housing within their budget. #### Affordability & Renter Profile The median household income in ZIP code 21921 is $85,775, and 30.2% of the population are renters. Given that the FMR for a two-bedroom unit is $1820, which represents 25.5% of the median income, it indicates that renting is relatively affordable compared to the overall income levels. However, the high price-to-FMR ratio of 11.7x suggests that the market is tight, with rents far exceeding the FMR. The high occupancy rate further supports the notion that the market is tight, as only 6.3% of units are vacant. This implies that there is strong demand for rental properties, but the supply is not keeping up with the demand, especially for affordable units. Consequently, renters in this area are likely to be middle-income individuals who can afford the higher rents, but those relying solely on Section 8 vouchers will face difficulties finding suitable housing. #### Investor Angle From an investor perspective, the ZIP code 21921 presents a mixed picture. While the actual rents are higher than the FMR, the tight market conditions suggest that there could be opportunities for cash flow-positive investments if the investor can secure properties below the market rate. However, the high price-to-FMR ratio of 11.7x indicates that the purchase price of properties is much higher than what would be considered affordable based on the FMR. To determine the investment grade, we need to consider the potential returns and risks. If an investor purchases a property at the median price of $255,512 and rents it out at the FMR of $1820, the annual rent would be $21,840. Assuming a conservative mortgage rate of 5%, the annual mortgage payment would be around $15,332, leaving a net cash flow of approximately $6,508 annually or $542 per month. This is positive cash flow, but the initial investment is substantial relative to the FMR. Moreover, the high price-to-FMR ratio suggests that the investment may not be highly leveraged, meaning the investor might not benefit from significant rental increases due to the already inflated purchase price. Therefore, the investment grade is moderate, with potential for positive cash flow but also significant upfront capital requirements. #### Specific Actionable Insights 1. **Target Properties Below Market Rate**: Investors should focus on acquiring properties that are priced below the median of $255,512. For example, a property purchased at $220,000 would have an annual mortgage payment of approximately $13,200, allowing for a higher net cash flow of $8,640 annually or $720 per month when rented at the FMR of $1820. 2. **Consider Short-Term Rentals**: Given the high occupancy rate, short-term rentals such as vacation homes or Airbnb listings could provide additional revenue streams. These options can help offset the higher purchase costs and provide flexibility in managing cash flows. 3. **Engage with Local Landlords**: Building relationships with local landlords who are willing to accept Section 8 vouchers can be beneficial. This approach ensures a steady stream of tenants and reduces the risk of vacancy, which is crucial given the tight market conditions. #### Bottom Line For Section 8-focused investors, the ZIP code 21921 (Elkton, PA) presents a moderately attractive opportunity. The market is tight, with strong demand for rental properties, but the high price-to-FMR ratio means that initial investments will be substantial. The recommendation is to **Hold** this ZIP code, focusing on securing properties at below-market rates and engaging with local landlords to ensure steady tenant flow. While the potential for positive cash flow exists, the investment requires careful consideration of the high purchase costs relative to the FMR.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.