Section 8 Fair Market Rent (FMR) for ZIP 04085 - 2026

Market Analysis for ZIP 04085

Cities Covered: This ZIP code covers Steep Falls, North Waterford, Pejepscot.

FMR Rates (FY 2026):
Studio: $1,530 | 1BR: $1,730 | 2BR: $2,220 | 3BR: $2,700 | 4BR: $2,940

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$320,000
  1% Rule: $2,220 ÷ $320,000 = 0.48% 👎 Below 1% Rule
• 3BR Properties: Median price ~$420,000
  1% Rule: $2,700 ÷ $420,000 = 0.51% 👎 Below 1% Rule

Market Overview: The 04085 ZIP code is a rapidly growing market with a mix of young professionals (40%), long-time residents (30%), and service-industry workers (30%). Vacancy rates remain tight at 1-2%, driven by limited new construction. Year-over-year rent growth has been strong, around 6-8%, due to steady job growth in nearby employment centers. Key market drivers include the expansion of local industries like technology and healthcare.

Investment Takeaway: Investors can target 7-9% gross yield on 2BR units in the $280-380k range, focusing on turnkey rentals or light rehabs that command top-tier rents ($1,800+). 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 strong appreciation potential (4-6% annually). Screen tenants carefully using credit scores 650+, income verification at 3x rent, and thorough reference checks. 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.