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 | $1,540 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,750 | $392,117 | 0.45% | F |
| 2BR | $2,210 | $443,029 | 0.5% | F |
| 3BR | $2,730 | $556,297 | 0.49% | F |
| 4BR | $2,900 | $670,724 | 0.43% | F |
| 5BR | $3,364 | $681,801 | 0.49% | F |
U.S. Census Bureau data (2024)
The market dynamics in ZIP 04038, Gorham, Maine, indicate a scenario where demand is closely aligned with supply, but leans slightly towards favoring tenants. This inference is drawn from the Federal Market Rent (FMR) set at $1850 for fiscal year 2024, which is notably lower than the market rent indicated by Zillow's ZORI (Zestimate of Rent Index) at $2,650. The gap between these two figures suggests that there is a segment of the rental market where properties are being rented below their potential market rate, possibly due to competition or the presence of subsidized housing options.
A further indication of this balanced yet tenant-favorable market is the low price-cut share of just 0.1%, reflecting that property owners are generally not having to reduce asking prices to attract buyers. Additionally, the days on market (DOM) figure of 18 days shows that homes are selling relatively quickly, implying a healthy level of interest among buyers. However, this does not necessarily mean that demand significantly outpaces supply, as it could also be indicative of a well-managed inventory of homes for sale.
The median home value of $534,999 provides insight into the overall affordability and desirability of the area. While this figure can be considered high relative to the FMR, it aligns with the broader economic conditions and the cost of living in Gorham, Maine.
The 18.5% renter share highlights an important aspect of the local housing market. A higher percentage of renters typically signals ongoing housing pressure, as a significant portion of residents are unable to purchase homes either due to financial constraints or other factors. This dynamic can exert long-term pressure on the housing market, maintaining or even increasing the demand for rental properties. It also implies that a substantial number of households are sensitive to changes in rental costs, which could influence future market behavior if economic conditions shift.
In summary, ZIP 04038 presents a market where demand meets supply effectively, with slight advantages for renters due to the disparity between FMR and market rent rates. The quick sales and low price-cut share suggest a steady flow of interested buyers, while the renter share indicates enduring pressures that could shape future housing trends.
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.