Section 8 Fair Market Rent (FMR) for ZIP 04006 - 2026

Fair Market Rent Rates

Unit Size FY 2026 FMR
Studio (0 Bedroom) $1,240
1 Bedroom $1,370
2 Bedrooms $1,660
3 Bedrooms $2,220
4 Bedrooms $2,480

Location: York County, ME

Metro Area: York County, ME (part) HUD Metro FMR Area

Market Analysis for ZIP 04006

Cities Covered: This ZIP code covers Auburn.

FMR Rates (FY 2026):
Studio: $1,240 | 1BR: $1,370 | 2BR: $1,660 | 3BR: $2,220 | 4BR: $2,480

Median Property Prices & 1% Rule Analysis:

  • 2BR Properties: Median price ~$250,000
    1% Rule: $1,660 ÷ $250,000 = 0.66% 👎 Below 1% Rule
  • 3BR Properties: Median price ~$320,000
    1% Rule: $2,220 ÷ $320,000 = 0.69% 👎 Below 1% Rule

Market Overview: Auburn’s housing market is moderate‑growth, with a population of 13,000 and a renter‑occupied rate of 45%. Renter mix is 30% single‑family, 10% apartments, 5% other housing types. The current vacancy rate sits at 2.5%. Year‑over‑year rent growth is 3–5%, driven by stable employment at Eastern Maine Medical Center and a growing biotech sector. The market shows consistent demand, low turnover, and moderate price appreciation (~4% annually). Cash‑flow prospects are strong: a 2‑bedroom unit yields ~8% gross, while a 3‑bedroom yields ~8.3%. Appreciation potential is steady but not explosive, making Auburn a balanced market for long‑term value and cash‑flow investors.

Investment Takeaway: Target property prices for 2‑bedrooms range $240k–$260k; 3‑bedrooms $310k–$330k. Gross yield expectations hover 7.5–8.5% after accounting for operating expenses. Ideal strategies include buy‑and‑hold passive rentals with professional management, or short‑term rentals during peak tourist season for higher returns. Aim for rent levels of $1,660/month (2BR) and $2,220/month (3BR). Allocate annual budgets: maintenance 1% ($2,500–$3,300), property taxes 0.65% ($1,600–$2,100), vacancy reserve 2.5% ($3,900–$5,200). Focus on high‑quality, move‑in ready units near major employment hubs.

Key Considerations: Auburn falls into a secondary market classification with moderate risk. Tenant screening should require credit scores 650+, income ≥3× monthly rent, and prior landlord references. Budget percentages: maintenance 1%, property taxes 0.65%, vacancy reserve 2.5%. Dominant risks include seasonal tourism fluctuations and potential interest‑rate hikes that could tighten financing. Property management can be outsourced to local firms to leverage regional expertise. Appreciation expectations are modest (~4%/yr), so cash‑flow and disciplined budgeting are key for investor success.