Location: York-Kittery-South Berwick, ME | Metro: York-Kittery-South Berwick, ME HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 03911 for Section 8 investment, follow these steps:
If the FMR does not clear the debt service, the answer is No. Do not proceed with the purchase. The FMR must be sufficient to ensure that you can meet all financial obligations related to the property.
If the market rent is above $1840, it indicates a strong local rental market where Section 8 might not be the most profitable option. In this case, the answer is It Depends. Consider the potential for higher returns through market-rate rentals.
If the market rent is exactly at $1840, the FMR matches the market conditions precisely. This scenario suggests a stable investment but with limited upside potential beyond what Section 8 offers. The answer is Yes, but only if you prioritize stability over growth.
If the market rent is below $1840, then Section 8 can provide a guaranteed income stream that exceeds the local market rates. The answer is Yes. Proceed with the purchase as Section 8 can offer better returns than the average market rent.
The ZIP code has 31.0% of its residents as renters. This percentage is moderate and suggests a decent level of demand. However, the Days on Market (DOM) figure is missing. DOM is critical to understanding how quickly properties are rented out. If DOM is low, indicating quick turnover, combined with the 31.0% renter rate, the answer is Yes. There is sufficient demand to support a Section 8 investment.
If DOM is high, suggesting slower rental rates, the answer is No. High DOM implies lower demand, which could lead to prolonged vacancies and reduced profitability.
In summary, the decision to invest in ZIP 03911 for Section 8 properties hinges on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the balance of demand indicators such as renter percentage and DOM. Ensure you have all necessary data points before making a final decision.
Data Sources: FMR data from HUD (2027). 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.