Location: Portland, ME | Metro: Portland, ME 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 | $1,690 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,920 | $472,594 | 0.41% | F |
| 2BR | $2,420 | $717,239 | 0.34% | F |
| 3BR | $2,980 | $883,625 | 0.34% | F |
| 4BR | $3,180 | $996,996 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 04101 in Portland, ME, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1990, while the Zillow Observed Rent Index (ZORI) indicates that the market rent stands at $2256. This creates a gap of $266, representing approximately 13.4% of the FMR.
In Portland, where 77.3% of the population are renters and the median income is $63,880, the lower FMR compared to the market rent suggests that landlords might incur a financial loss if they solely rely on Section 8 vouchers to cover their rental costs. The median home value in the area is $653,878, indicating a relatively stable housing market but also high property values which can drive up rental costs.
The cost of housing voucher tenants below open-market rates means that landlords must accept a subsidy that is less than what the market demands. In ZIP 04101, this difference of $266 per month could significantly impact the profitability of a rental property, especially when considering maintenance, property management, and other operational costs.
Despite the financial gap, Section 8 properties remain attractive to some investors due to the guaranteed income and low turnover rates associated with the program. However, the analysis clearly shows that to maintain a positive cash flow, landlords need to carefully manage their expenses and possibly seek additional revenue streams or incentives offered by the government.
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.