Location: Portland, ME | Metro: Portland, ME 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 | $1,330 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,500 | $343,443 | 0.44% | F |
| 2BR | $1,920 | $422,559 | 0.45% | F |
| 3BR | $2,340 | $466,365 | 0.5% | F |
| 4BR | $2,540 | $583,027 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 04015 in Casco, ME, 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 $1680 annually, while the market rent based on Census ACS data is $1,395 per month, annualizing to $16,740.
To derive the gross yield, we'll compare these rents to the median home value of $433,950. For the Section 8 scenario, using the annualized FMR of $1680, the gross yield would be approximately 0.39%. This is calculated by taking the annual rent ($1680) and dividing it by the median home value ($433,950).
In contrast, the market rent scenario with an annualized figure of $16,740 provides a much higher gross yield of about 3.86%. This is determined by dividing the annual market rent ($16,740) by the median home value ($433,950).
Given that only 10.0% of residents in ZIP 04015 are renters, the likelihood of consistently achieving market rents is low. The average days on market (DOM) being listed as N/A suggests there might be limited data on how quickly rental properties are typically leased in this area, further complicating the ability to predict market performance accurately.
The lower gross yield associated with Section 8 participation reflects the trade-off between guaranteed stable income and the lower rental rates. While the gross yield of 0.39% is significantly less than the 3.86% achievable through market rents, the security and predictability of Section 8 payments can outweigh the need for higher immediate yields in certain investment strategies.
Landlords and small-portfolio investors must weigh the benefits of stable, government-backed income against the potential for higher yields through market rents. In ZIP 04015, where the rental market is thin and competition is likely minimal, the Section 8 option offers a reliable, if modest, return on investment.
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.