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 economics of Section 8 housing in ZIP code 04033, located in Portland County, Maine, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1940 per month for fiscal year 2024. This SAFMR rate is specifically tailored for this ZIP code, reflecting local rental conditions more accurately than broader regional averages.
A landlord participating in the Section 8 program receives a monthly subsidy from the government to cover part of the rent. The amount of this subsidy is based on the SAFMR, but it's not the only factor. Tenants contribute a portion of their income towards the rent, typically around 30%. For example, if a tenant's monthly income is $1600, they would pay approximately $480 towards the rent ($1600 x 0.3 = $480).
The remainder of the rent is covered by the housing authority, up to the SAFMR limit. In our scenario, the housing authority would pay $1460 to the landlord ($1940 - $480 = $1460). Additionally, there are utility allowances that vary depending on the number of bedrooms and other factors. For a two-bedroom unit, the utility allowance might be around $300 per month, which is also paid by the housing authority.
This means that the total monthly payment a landlord can expect from the housing authority for a two-bedroom apartment under a Section 8 voucher is the sum of the rent subsidy and the utility allowance. In this case, that would be $1760 ($1460 + $300 = $1760).
Given that the SAFMR for a two-bedroom apartment is $1940, and the typical reimbursement from the housing authority is $1760, there is a $180 shortfall between the SAFMR and the actual reimbursement received by the landlord. This gap represents the difference between the market rent allowed by the SAFMR and the combined payments from the tenant and the housing authority.
To summarize, landlords in ZIP 04033 can expect a Section 8 voucher to cover the majority of the rent for a two-bedroom apartment, but there will be a consistent $180 per month gap between the SAFMR and the actual reimbursement received. This gap must be considered when deciding whether to participate in the Section 8 program for this ZIP code.
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.