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 | $1,630 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,850 | $373,153 | 0.5% | F |
| 2BR | $2,340 | $453,017 | 0.52% | F |
| 3BR | $2,890 | $561,851 | 0.51% | F |
| 4BR | $3,080 | $698,734 | 0.44% | F |
| 5BR | $3,573 | $1,313,227 | 0.27% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 04102 in Portland, ME, can be analyzed using the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI) figures provided. For a two-bedroom apartment, the annualized FMR is $1990 multiplied by 12, totaling $23,880. The ZORI market rent figure for a two-bedroom unit is $2,214 per month, which annualizes to $26,568.
To derive the gross yield for both scenarios, we use the median home value of $544,099. For the FMR scenario, the gross yield is calculated as follows:
In contrast, the gross yield based on the market rent figure is:
Given the 49.3% renter density in ZIP 04102, it's clear that there is a substantial demand for rental properties. However, the N/A-day DOM (days on market) indicates incomplete data, which might affect the accuracy of our analysis. Despite this, we can still draw some conclusions.
The gross yield derived from the FMR of 4.39% is lower compared to the yield based on market rent at 4.88%. This discrepancy highlights the difference between government-set rental rates and the actual market conditions. For small-portfolio investors and landlords, the market rent scenario is likely more realistic due to the higher demand for rentals and the competitive nature of the housing market in Portland, ME.
Investors should consider these gross yields when evaluating potential returns on investment properties in ZIP 04102. While the Section 8 program provides stability and guaranteed payments, the lower gross yield means a smaller profit margin compared to renting at market rates. The decision to participate in Section 8 versus renting at market rates should be made considering the investor's risk tolerance and financial goals.
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.