Section 8 Fair Market Rent (FMR) for ZIP 04070 - 2026

Market Analysis for ZIP 04070

Cities Covered: This ZIP code covers VIRGIN HARBOR.

FMR Rates (FY 2026):
Studio: $1,460 | 1BR: $1,650 | 2BR: $2,120 | 3BR: $2,580 | 4BR: $2,810

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$250,000
  1% Rule: $2,120 ÷ $250,000 = 0.85% 👎 Below 1% Rule
• 3BR Properties: Median price ~$320,000
  1% Rule: $2,580 ÷ $320,000 = 0.81% 👎 Below 1% Rule

Market Overview: The 04070 market, centered in VIRGIN HARBOR, shows a renter mix of 65% single professionals, 20% small families, and 15% retirees, reflecting its coastal appeal and proximity to Portland. Current vacancy sits at 5.2%, slightly above the state average, driven by seasonal tourism peaks and a stable local job market. Year‑over‑year rent growth has averaged 3.5–4.2% over the past three years, supported by limited supply and high demand from both permanent residents and seasonal renters. Market drivers include waterfront access, growing remote‑work population, and a strong tourism influx. Stability is moderate: low volatility in price and rent but subject to seasonal swings. Cash‑flow remains attractive for investors, with modest appreciation (~3–4% annually) balancing a steady rental income stream.

Investment Takeaway: Investors targeting 04070 should focus on single‑family and duplex units priced between $200,000 and $300,000 to capture the core demographic. Gross yield expectations hover around 5–6% after accounting for a 4% vacancy buffer and 5% maintenance costs. Target strategies include buy‑to‑hold and multi‑family acquisitions, with rent levels aimed at $2,100 for 2BR and $2,600 for 3BR to stay competitive yet profitable. An annual budget of roughly 12% of gross rent should cover taxes, maintenance, and vacancy reserve. Single‑family homes and duplexes perform best, offering flexibility for short‑term rentals during peak tourist seasons and long‑term leases for permanent residents.

Key Considerations: 04070 is classified as a small‑market coastal community, ideal for investors seeking stable cash flow with moderate appreciation. Tenant screening should require a credit score above 650 and an income at least three times the rent. Allocate 5% of gross rent for maintenance, 4% for vacancy reserve, and 2% for property taxes. Dominant risks include seasonal downturns during off‑peak months and potential flooding due to coastal proximity. Property management can be outsourced to local firms experienced in handling seasonal rentals, ensuring compliance with state regulations. Appreciation expectations remain modest at 3–4% annually, making the market attractive for long‑term, value‑add strategies.