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 | $2,080 |
| 1 Bedroom | $2,370 |
| 2 Bedrooms | $2,990 |
| 3 Bedrooms | $3,690 |
| 4 Bedrooms | $3,930 |
| 5 Bedrooms | $4,559 |
| 6 Bedrooms | $5,106 |
| 7 Bedrooms | $5,514 |
| 8 Bedrooms | $5,790 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,990 | $493,651 | 0.61% | D |
| 3BR | $3,690 | $675,128 | 0.55% | F |
| 4BR | $3,930 | $888,491 | 0.44% | F |
| 5BR | $4,559 | $1,106,326 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 04021, located in Cumberland, ME, reveals a market that offers moderate potential for both yield and stability. The Fair Market Rent (FMR) for a unit renting at $2000 is slightly below the market rate of $2,579, indicating a yield that is not exceptionally high but still competitive. However, the median home value of $698,147 suggests a relatively affluent area, which can support higher rental rates over time.
On the stability axis, the market shows some mixed signals. With only 5.4% of residents being renters, the demand for rental properties is limited, potentially leading to lower occupancy rates and increased vacancy periods. This figure is critical in assessing the stability of the rental market, as it implies a smaller pool of potential tenants.
The median household income of $172,468 provides a strong underpinning for the local economy, suggesting that most residents have the financial capacity to pay rent. This economic strength contributes positively to the stability of the rental market, as it indicates a robust ability among residents to afford housing costs.
While the days on market (DOM) is listed as N/A, which could be due to insufficient data or recent changes in the market, the other indicators point towards a zone that is not purely high-yield/low-stability nor a steady-cashflow area. Instead, it leans towards a middle-ground scenario where the potential for steady cash flow exists, albeit with some challenges regarding the limited rental market size.
To summarize, ZIP 04021 presents an opportunity for landlords and small-portfolio investors seeking a balance between yield and stability. Although the FMR is below the market rate, the high median income supports a stable tenant base. The low percentage of renters, however, poses a risk to consistent cash flow, making it necessary for investors to carefully manage their properties to maintain occupancy levels.
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.