Location: York County, ME | Metro: York County, ME (part) HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,320 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
U.S. Census Bureau data (2024)
ZIP 04006, located in York County, Maine (part of the HUD Metro FMR Area), should be considered a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1640. This figure is crucial because it represents the maximum amount that the federal government will subsidize for rental housing under the Section 8 program.
The lack of market-specific data on median home values and current market rents suggests that this area might not offer significant opportunities for capital appreciation or rapid turnover. However, the stability provided by the Section 8 program ensures a reliable stream of income, which is essential for maintaining steady cash flow in a real estate portfolio.
The median income data being unavailable means we cannot directly assess the financial health of potential tenants. Nevertheless, the guaranteed payment structure of Section 8 reduces the risk of default, making properties in ZIP 04006 more secure investments. Landlords and small-portfolio investors can rely on the consistent rental payments, even if the overall growth potential is limited.
A cash-flow anchor is particularly valuable in a diversified real estate investment strategy. It provides a foundation of predictable income, which can offset the risks associated with other parts of the portfolio that may have higher appreciation potential but also greater volatility. For example, while ZIP 04006 lacks the characteristics of an appreciation play due to the absence of data on price cuts and days on market, it compensates with the security of a stable income source.
Furthermore, the low renter share of 0.0% indicates that the majority of residents in this ZIP code are likely homeowners or not part of the rental market. This could mean fewer local renters competing for Section 8 vouchers, potentially leading to a more stable tenant pool. Despite the lack of specific appreciation metrics, the predictability of cash flow makes ZIP 04006 a strong candidate for inclusion as a cash-flow anchor in any Section 8-focused real estate strategy.
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.