Location: Portland, ME | Metro: Portland, ME HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,630 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
The market analysis for Section 8 investors targeting ZIP code 04013 in Portland, Maine, reveals that the HUD Fair Market Rent (FMR) for FY 2024 is set at $1940. This figure represents the maximum amount landlords can charge for rent under the Section 8 program. However, due to the lack of current market rent data, it's challenging to directly compare the FMR against typical rental prices in the area. Despite this, the median home value data also being unavailable means we cannot calculate an exact rent-to-price ratio for the area.
Given the absence of specific market rent figures, it's reasonable to infer that voucher tenants will likely cashflow at the FMR rate, assuming that the FMR is set close to the average market rent. This inference is based on the general understanding that HUD sets FMRs to reflect the average rents in an area, thus allowing landlords to break even or make a modest profit. In the case of ZIP 04013, landlords should expect to cover their costs and possibly generate a slight profit without relying on premium units, although this depends on the individual property's expenses and the local rental market conditions.
The dynamics between renting and buying are significant but cannot be fully assessed without knowing the median Days on Market (DOM) and the percentage of homes that experienced price cuts. These metrics would provide insight into how quickly properties sell and at what price, which can influence the attractiveness of rental versus ownership investments. Nevertheless, the strong investor angle in ZIP 04013 appears to be stability. The consistency of the FMR provides a reliable income stream, which is particularly valuable given the uncertainties surrounding the exact market rent and home values.
Data Sources: FMR data from HUD (2027).
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.