Section 8 Fair Market Rent (FMR) for ZIP 04001 - 2026

Market Analysis for ZIP 04001

Cities Covered: This ZIP code covers Acton, West Kennebunk.

FMR Rates (FY 2026):
Studio: $1,130 | 1BR: $1,250 | 2BR: $1,520 | 3BR: $2,040 | 4BR: $2,270

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$280,000
  1% Rule: $1,520 ÷ $280,000 = 0.48% 👎 Below 1% Rule
• 3BR Properties: Median price ~$340,000
  1% Rule: $2,040 ÷ $340,000 = 0.49% 👎 Below 1% Rule

Market Overview: The 04001 ZIP code sits in a stable market with strong rental demand driven by professionals (40%), families (30%), and long-time residents (30%). Vacancy rates remain tight at 2-3%, and rents have risen 4-6% year-over-year, driven by steady job growth in nearby employment centers and limited new construction. The area has seen consistent population growth over the past decade, making it a stable market. However, property values have appreciated rapidly in recent years, creating a cash-flow opportunity for investors willing to manage tenant turnover. Cash-flow stability depends heavily on maintaining quality tenants and keeping properties well-maintained to command premium rents. Appreciation potential exists but is secondary to rental income in this market.

Investment Takeaway: Purchase prices in the $250-350k range allow gross rents to approach the 1% rule for well-selected properties. Cash-flow investors can target 7-9% gross yield on 2BR units in the $220-300k segment, with the best returns coming from turnkey rentals or light rehabs that can command top-tier rents ($1,600+ for 2BR). Long-term investors should prioritize properties near major employers, transit hubs, and established neighborhoods with stable occupancy. Budget 10-12% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow. Short-term investors should focus on 2BR units in the $220-300k range; long-term investors can consider 3BR properties in the $300-400k segment if rents exceed $2,100/month.

Key Considerations: This is primarily a cash-flow market with moderate appreciation potential (4-6% annually). Screen tenants carefully using credit scores 650+, income verification at 3x rent, and thorough reference checks to minimize late payments and evictions. Budget 10% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 1.8-2.2% of assessed value. Late or unpaid rent is the dominant risk in this market, so tenant quality trumps cosmetic upgrades. Consider professional property management (8-10% of rent) if investing remotely, but note that hands-on landlords who can maintain properties cost-effectively will achieve the highest net yields. Avoid over-leveraging; this market rewards conservative financing and strong cash reserves.