Location: Cumberland County, ME | Metro: Cumberland County, ME (part) 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 | $1,340 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $347,542 | 0.49% | F |
| 3BR | $2,150 | $418,216 | 0.51% | F |
| 4BR | $2,820 | $555,761 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 04009, Bridgton, Maine, reveals some interesting insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in FY 2024 is set at $1340 per month, while the Census ACS indicates a market rent of $1,188 per month for the same type of unit.
To derive the implied gross yield, we first annualize these figures. For the FMR scenario, multiplying $1340 by 12 gives an annual rental income of $16,080. Given the median home value in the area is $405,076, the implied gross yield based on the FMR would be approximately 3.97%. This is calculated as follows: $16,080 / $405,076 = 0.0397, or 3.97%.
For the market rent scenario, multiplying $1,188 by 12 yields an annual rental income of $14,256. Using the same median home value, the implied gross yield based on the market rent would be about 3.52%. This calculation is straightforward: $14,256 / $405,076 = 0.0352, or 3.52%.
Given the 17.3% renter density in Bridgton, it is evident that the majority of residents prefer homeownership, which could impact the demand for rental properties, including those participating in the Section 8 program. However, the N/A-day Days on Market (DOM) suggests that there is no standard time frame for how long rental units typically remain vacant before being leased, indicating either a stable rental market or insufficient data to draw conclusions about vacancy rates.
Between the two scenarios, the FMR-based gross yield of 3.97% appears more realistic. Landlords participating in the Section 8 program can expect higher rental income due to government subsidies, making the 3.97% gross yield a more achievable figure compared to the market rent-based yield of 3.52%. This difference highlights the financial advantage of accepting Section 8 tenants over market-rate rentals in this area.
Investors should consider these gross yields when evaluating the potential profitability of rental properties in Bridgton, particularly those eligible for the Section 8 program. While the market rent scenario offers a lower gross yield, the FMR scenario provides a clearer indication of the financial benefits that can be realized through participation in the Section 8 housing assistance program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.