Section 8 Fair Market Rent (FMR) for ZIP 04106 - 2026

Market Analysis for ZIP 04106

Cities Covered: This ZIP code covers South Portland.

FMR Rates (FY 2026):
Studio: $1,630 | 1BR: $1,850 | 2BR: $2,370 | 3BR: $2,880 | 4BR: $3,140

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$380,000
  1% Rule: $2,370 ÷ $380,000 = 0.46% 👎 Below 1% Rule
• 3BR Properties: Median price ~$480,000
  1% Rule: $2,880 ÷ $480,000 = 0.54% 👎 Below 1% Rule

Market Overview: The South Portland area within the 04106 ZIP code sees moderate demand from families (40%), young professionals (30%), and retirees (30%). Vacancy rates are higher at 5-7%, driving down rents by 2-4% year-over-year. Key market drivers include its proximity to downtown Portland, excellent schools, and growing job markets in nearby industrial areas. The market is stable with steady population growth, making it an attractive area for long-term investors.

Investment Takeaway: Investors can target properties in the $300-500k range for 2BR units, offering a gross yield of 7-9%. Focus on light rehabs or value-add opportunities to command top-tier rents ($1,400+). Consider professional property management (8-10% of rent) if investing remotely. Budget 12-15% of purchase price annually for maintenance, property taxes, and vacancy reserves.

Key Considerations: This market is primarily driven by cash-flow, with moderate appreciation potential (2-4%). Screen tenants using credit scores 700+, 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.