Location: York-Kittery-South Berwick, ME | Metro: York-Kittery-South Berwick, ME HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,100 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $3,010 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $4,410 |
| 5 Bedrooms | $5,116 |
| 6 Bedrooms | $5,730 |
| 7 Bedrooms | $6,188 |
| 8 Bedrooms | $6,497 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,010 | $627,356 | 0.48% | F |
| 3BR | $3,590 | $875,802 | 0.41% | F |
| 4BR | $4,410 | $1,150,197 | 0.38% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Kittery, ME (ZIP 03905) for their Section 8 portfolio might have several concerns. Let's address them directly using the available data.
Will FMR $2040 (zip FY 2024) cover the mortgage on a $821,619 home?
The Fair Market Rent (FMR) for ZIP 03905 in fiscal year 2024 is set at $2040 per month. This figure represents the maximum rental amount that a Section 8 tenant can be expected to pay. To determine if this will cover the mortgage, we must consider the average mortgage payment for a home priced at $821,619. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment would be approximately $3,900. Clearly, the FMR of $2040 does not cover this mortgage payment, indicating that landlords would need to rely on other sources of income or additional tenants to make up the difference.
Is there enough renter demand at 17.9%?
The percentage of renters in Kittery, ME stands at 17.9%. While this figure is relatively low compared to national averages, it still represents a significant portion of the housing market. However, the data does not specify the exact number of renters who qualify for Section 8 assistance. To accurately gauge demand, an investor would need to look into local government reports or consult with a housing authority to understand the number of Section 8 eligible households in the area.
Will vouchers keep pace with $2,533 market rents?
The market rent in Kittery, ME is currently $2,533 per month. Given that the FMR is lower at $2040, it's important to note that the voucher program aims to cover the gap between what a low-income family can afford and the market rent. If the market rent continues to rise faster than the FMR, landlords may find themselves subsidizing the difference. The data provided does not indicate future trends in market rents or FMR adjustments, so caution is advised when making long-term investment decisions based solely on current figures.
In summary, while Kittery, ME offers opportunities for real estate investment, particularly with Section 8 properties, careful consideration must be given to the financial realities posed by these objections. The FMR does not sufficiently cover the mortgage on a high-priced home, and the demand for rental properties, especially those under Section 8, requires further investigation. Lastly, the potential mismatch between rising market rents and FMR increases underscores the importance of staying informed about local housing market dynamics and federal policy changes.
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.