Location: York County, ME | Metro: York 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 | $1,310 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $348,806 | 0.5% | F |
| 3BR | $2,390 | $411,652 | 0.58% | F |
| 4BR | $2,690 | $457,929 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 04020 (Cornish, ME) reveals a significant disparity between the Federal Market Rent (FMR) and the market rent when compared to the median home value. For a two-bedroom property, the annualized FMR for FY 2024 is $1410, while the Census ACS reports a market rent of $1196.
To calculate the gross yield, we first need to annualize these figures. The annualized FMR for a two-bedroom unit is $1410 x 12 = $16,920. Dividing this by the median home value of $389,143 gives an implied gross yield of approximately 4.3%. On the other hand, the annualized market rent is $1196 x 12 = $14,352. This yields an implied gross yield of about 3.7%.
The 4.3% gross yield based on the FMR is higher than the 3.7% gross yield based on the market rent. However, the latter scenario is more realistic given the context of Cornish, ME. With only 17.9% of residents being renters, the demand for rental properties is relatively low. Additionally, the lack of data on the number of days on market (DOM) suggests that rental listings may not be turning over quickly, further supporting the idea that the market rent is a more accurate indicator of potential income.
In conclusion, while the FMR offers a higher gross yield, the actual market conditions in ZIP 04020 point towards a more conservative estimate based on the market rent. Landlords and small-portfolio investors should anticipate a gross yield closer to 3.7% rather than 4.3%, reflecting the true economic landscape of Cornish, ME.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.