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 | $1,490 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $3,330 |
| 5 Bedrooms | $3,863 |
| 6 Bedrooms | $4,327 |
| 7 Bedrooms | $4,673 |
| 8 Bedrooms | $4,907 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $365,381 | 0.45% | F |
| 2BR | $2,140 | $591,067 | 0.36% | F |
| 3BR | $2,550 | $779,726 | 0.33% | F |
| 4BR | $3,330 | $1,022,281 | 0.33% | F |
| 5BR | $3,863 | $1,514,688 | 0.26% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 03909, York, ME, presents a robust landscape for both short-term and long-term investment strategies. With a median home value of $755,538, the area is positioned at a premium level, indicative of strong demand and limited supply. The fact that only 0.1% of listings have seen price reductions suggests that sellers maintain considerable pricing power. This dynamic, combined with an unreported median days on market (DOM), points to a highly competitive market where homes are selling quickly and often at or above asking price.
On the rental side, the Federal Market Rent (FMR) for ZIP 03909 is set at $1,840 for fiscal year 2024, whereas the current market rent, according to Census ACS, stands at $1,513. This gap signals an opportunity for landlords to increase rents, aligning them more closely with the FMR without risking vacancy. The upward pressure on rental rates can be expected to continue, driven by the overall cost of living and the premium valuation of homes in the area.
For long-hold investors, the setup in ZIP 03909 supports a realistic appreciation thesis. The high median home value coupled with the minimal percentage of price reductions indicates a stable and appreciating market. As the area continues to attract buyers due to its desirability, the underlying value of properties is likely to rise. This appreciation, however, should be viewed through the lens of gradual growth rather than rapid spikes, reflecting the steady demand and limited new construction in the area.
In summary, the combination of a high median home value, low listing reduction rate, and favorable rent-side dynamics creates a compelling environment for real estate investments in ZIP 03909. Landlords and small-portfolio investors can expect to benefit from both capital appreciation and rental income growth, positioning their assets for sustained value over the next 12 to 24 months.
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.