Section 8 Fair Market Rent (FMR) for ZIP 04061 - 2026

Market Analysis for ZIP 04061

Cities Covered: This ZIP code covers North Waterboro, Limerick, Waterboro.

FMR Rates (FY 2026):
Studio: $1,280 | 1BR: $1,420 | 2BR: $1,730 | 3BR: $2,290 | 4BR: $2,550

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$380,000
  1% Rule: $1,730 ÷ $380,000 = 0.39% 👍 Meets 1% Rule
• 3BR Properties: Median price ~$480,000
  1% Rule: $2,290 ÷ $480,000 = 0.00% 👎 Below 1% Rule

Market Overview: The North Waterboro ZIP code is a rural area with a mix of young families (45%), professionals (25%), and retirees (30%). Vacancy rates are relatively high at 5-7%, driven by limited job opportunities in the area. Rents have risen 2-4% year-over-year, fueled by inflation and increasing demand for housing near quality schools.

Investment Takeaway: Investors can target gross yields of 8-9% on 2BR properties in the $350-500k range, with the best returns coming from turnkey rentals or light rehabs that command top-tier rents ($1,600+ for 2BR). Long-term investors should prioritize properties near major employers and established neighborhoods with stable occupancy. Budget 10-12% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow.

Key Considerations: This is primarily a cash-flow market with moderate appreciation potential (3-5% annually). Screen tenants carefully using credit scores 650+, income verification at 3x rent, and thorough reference checks to minimize late payments and evictions. Budget 10% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 1.8-2.2% of assessed value.