Location: York County, 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 | $1,940 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,530 |
| 4 Bedrooms | $3,980 |
| 5 Bedrooms | $4,617 |
| 6 Bedrooms | $5,171 |
| 7 Bedrooms | $5,585 |
| 8 Bedrooms | $5,864 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,150 | $399,898 | 0.54% | F |
| 2BR | $2,570 | $712,093 | 0.36% | F |
| 3BR | $3,530 | $1,067,104 | 0.33% | F |
| 4BR | $3,980 | $1,358,268 | 0.29% | F |
| 5BR | $4,617 | $1,814,101 | 0.25% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 03907, Ogunquit, ME, might raise several concerns regarding the feasibility of investing in properties here under the Section 8 program. Let's address these objections directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $2010 (for zip FY 2024) cover the mortgage on a $903,866 home?
The Fair Market Rent (FMR) of $2010 per month for a single-family home in Ogunquit, ME, is unlikely to fully cover the mortgage payment on a property valued at $903,866. To illustrate, assuming a typical interest rate of 4% and a 30-year fixed mortgage, the monthly mortgage payment would be approximately $4,337. This amount far exceeds the FMR, indicating that the rental income through Section 8 would not suffice to meet the mortgage obligations alone. However, it's important to note that this analysis does not account for potential tax benefits, subsidies, or other financial incentives that could offset some of the mortgage costs.
Objection 2: Is there enough renter demand at 5.7%?
The percentage of renter-occupied housing units in ZIP 03907 stands at 5.7%, which is relatively low compared to national averages. This suggests that the demand for rental properties, particularly those under the Section 8 program, may be limited. However, the data does not specify the exact number of Section 8 participants in the area, making it challenging to determine if there is sufficient demand for subsidized housing. Investors should consider conducting further research to understand local tenant preferences and the availability of Section 8 vouchers in the region.
Objection 3: Will vouchers keep pace with market rents?
The data provided does not include specific information regarding the growth rates of voucher amounts relative to market rents in Ogunquit, ME. This lack of data makes it difficult to predict whether future increases in voucher values will match the rise in market rents. Typically, voucher programs aim to reflect market conditions, but discrepancies can occur. Investors should monitor local housing trends and consult with local housing authorities to stay informed about any changes in voucher policies that could affect their investment.
In summary, while ZIP 03907 presents some challenges for Section 8 investors, particularly around covering mortgage payments and ensuring adequate renter demand, the absence of certain data points limits a comprehensive assessment. Careful consideration and additional research are advised to make an informed decision.
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.