Section 8 Fair Market Rent (FMR) for ZIP 04096 - 2026

Market Analysis for ZIP 04096

Cities Covered: This ZIP code covers Yarmouth, Freeport.

FMR Rates (FY 2026):
Studio: $1,650 | 1BR: $1,860 | 2BR: $2,390 | 3BR: $2,910 | 4BR: $3,160

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$380,000
  1% Rule: $2,390 ÷ $380,000 = 0.61% 👍 Meets 1% Rule
• 3BR Properties: Median price ~$460,000
  1% Rule: $2,910 ÷ $460,000 = 0.00% 👎 Below 1% Rule

Market Overview: The 04096 ZIP code is a affluent area with a high percentage of renters who are professionals and families. The demographic breakdown shows 60% renters are professionals, followed by families (25%), students (5%), and service workers (10%). Vacancy rates remain low at 1-2%, while rents have increased 8-10% year-over-year due to strong demand and limited supply. Market drivers include the nearby Freeport outlet shopping district and expanding tourism sector.

Investment Takeaway: Purchase prices in the $400-500k range offer gross yields of 9-11% on 2BR units, while 3BR properties in the $500-600k segment can achieve 10-12%. Turnkey investors should target rent levels above $2,000 for 2BR and $2,500 for 3BR. Budget 15-18% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow.

Key Considerations: This is a high-growth market with strong appreciation potential (8-12%). Screen tenants carefully using credit scores 750+, income verification at 4x rent, and thorough reference checks. Budget 10% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 2.0-2.5% of assessed value.