Section 8 Fair Market Rent (FMR) for ZIP 04032 - 2027

Location: Cumberland County, ME | Metro: Portland, ME HUD Metro FMR Area

Investment Score for ZIP 04032

Monthly Rent (2BR)

$2,270

Median Price (2BR)

$472,088

1% Rule

0.48%

Annual Yield

5.77%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,580
1 Bedroom	$1,800
2 Bedrooms	$2,270
3 Bedrooms	$2,800
4 Bedrooms	$2,980
5 Bedrooms	$3,457
6 Bedrooms	$3,872
7 Bedrooms	$4,182
8 Bedrooms	$4,391

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,800	$472,853	0.38%	F
2BR	$2,270	$472,088	0.48%	F
3BR	$2,800	$706,196	0.4%	F
4BR	$2,980	$944,023	0.32%	F
5BR	$3,457	$1,205,585	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

8,802

Median Household Income

$107,326

Housing Units

4,249

Renter Percentage

22.4%

Occupancy Rate

88.6%

Renter Occupied

842

The town of Freeport, Maine, represented by ZIP code 04032, is a vibrant coastal community known for its blend of rural charm and urban amenities. Home to numerous retail outlets, including L.L. Bean's flagship store, it attracts tourists and offers residents a high quality of life. The local real estate market reflects these qualities, with a mix of rental properties and homeownership opportunities.

The Fair Market Rent (FMR) for a two-bedroom apartment in Freeport for fiscal year 2024 is set at $2,150, providing a baseline for affordable housing standards.
The market rent, as measured by Zillow's ZORI index, stands at $2,648 for a similar-sized rental unit, indicating that the local rental market slightly exceeds the government-set FMR.
The median home value in Freeport is $677,379, reflecting the overall cost of homeownership in the area and positioning it as a relatively expensive market compared to other parts of Maine.
Renters make up 22.4% of the population, suggesting a moderate demand for rental properties but also a strong preference for homeownership among residents.
The median household income in Freeport is $107,326, which is higher than the national average, supporting a robust local economy and consumer spending power.

Investors looking to enter the Freeport real estate market should focus on rental properties, given the premium that market rents command over the FMR. The town’s high median income supports a stable tenant base, though competition with homeownership remains significant due to the high median home value. With a moderate renter share, there is potential for growth in the rental sector, especially if targeting second-home buyers or seasonal renters. Overall, Freeport presents a balanced opportunity for both rental and investment properties, with strong economic fundamentals driving demand.

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.