Location: Oxford County, ME | Metro: Cumberland 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 | $1,140 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $376,029 | 0.44% | F |
| 3BR | $2,150 | $460,820 | 0.47% | F |
| 4BR | $2,740 | $647,919 | 0.42% | F |
U.S. Census Bureau data (2024)
A landlord considering Section 8 properties in ZIP code 04040, Harrison, ME, must evaluate several key factors before making an investment decision. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1340. This figure serves as the first critical benchmark: does it cover the debt service on a property valued at $404,418? To determine this, calculate the monthly mortgage payment based on the property value and compare it against the FMR.
If the FMR of $1340 exceeds the monthly debt service, the answer is a clear Yes; investing in Section 8 properties in this ZIP code would be financially viable. However, if the monthly debt service is higher than the FMR, then the answer is a definitive No; the rental income would not sufficiently cover the costs associated with owning the property.
The second factor to consider is the relationship between the FMR and the market rent. According to Census ACS data, the average market rent in ZIP 04040 is $890. Compare this to the FMR of $1340. If the market rent is below the FMR, which it is in this case, then landlords can expect to potentially charge the higher FMR rate for Section 8 tenants, making it more attractive compared to market-rate rentals.
The third and final factor is demand. In ZIP 04040, 9.6% of residents are renters, but the days on the market (DOM) data is marked as N/A, indicating insufficient data to assess how quickly units are typically rented out. Despite this lack of clarity, the percentage of renters suggests a modest demand for rental properties. Given that the FMR is significantly higher than the market rent, there might still be sufficient interest among potential Section 8 tenants.
It Depends: While the FMR being higher than the market rent makes Section 8 properties more attractive, the limited demand data introduces uncertainty. If the landlord can secure a steady stream of Section 8 tenants, the financials could work out favorably. Conversely, if the property struggles to find tenants due to low demand, the investment may not be as profitable. Landlords should also consider the administrative overhead and tenant turnover rates typical in Section 8 programs when making their decision.
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.