Section 8 Fair Market Rent (FMR) for ZIP 04105 - 2027

Location: Portland, ME | Metro: Portland, ME HUD Metro FMR Area

Investment Score for ZIP 04105

Monthly Rent (2BR)

$3,200

Median Price (2BR)

$629,933

1% Rule

0.51%

Annual Yield

6.1%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,230
1 Bedroom	$2,540
2 Bedrooms	$3,200
3 Bedrooms	$3,950
4 Bedrooms	$4,210
5 Bedrooms	$4,884
6 Bedrooms	$5,470
7 Bedrooms	$5,908
8 Bedrooms	$6,203

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$3,200	$629,933	0.51%	F
3BR	$3,950	$833,699	0.47%	F
4BR	$4,210	$1,144,529	0.37%	F
5BR	$4,884	$1,623,888	0.3%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

12,755

Median Household Income

$150,919

Housing Units

5,283

Renter Percentage

15.6%

Occupancy Rate

94.4%

Renter Occupied

776

The ZIP code 04105, located in Falmouth, Maine, is a desirable coastal area known for its natural beauty and proximity to outdoor recreational activities. This affluent region attracts a mix of permanent residents and seasonal visitors, making it an interesting market for real estate investors.

Fair Market Rent (FMR): For fiscal year 2024, the FMR for a two-bedroom apartment in ZIP 04105 is set at $2,670, indicating a high demand for rental properties in this area.
Market Rent: According to recent Census ACS data, the average market rent for a similar-sized property is $2,120, which is lower than the FMR but still reflective of a robust rental market.
Median Home Value: The median home value in ZIP 04105 is $890,399, showcasing the premium that the local real estate market commands due to its attractive location and amenities.
Renter Share: Only 15.6% of the population are renters, suggesting that the majority of residents own their homes. This could imply a competitive rental market with limited inventory.
Days on Market (DOM): Data on days on market is currently unavailable, which might indicate that listings are either sold quickly or that the market is relatively stable with few fluctuations.
Median Income: The median household income in ZIP 04105 is $150,919, significantly higher than the national average. This economic strength supports both rental and homeownership markets, providing a solid foundation for investment.

In summary, ZIP 04105 presents a unique opportunity for real estate investors, particularly those interested in the rental market. With a median income well above the national average, the area sustains a strong demand for housing. However, the low renter share suggests that competition for rental units may be fierce. Despite this, the Fair Market Rent being notably higher than the actual market rent indicates potential for rental growth. Given the high median home values, investments in both rental and single-family homes can be lucrative, especially if targeted towards high-income tenants or buyers. Overall, while the market is competitive, the economic health of the area provides a promising outlook for strategic investments.

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.