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 | $2,340 |
| 1 Bedroom | $2,660 |
| 2 Bedrooms | $3,360 |
| 3 Bedrooms | $4,140 |
| 4 Bedrooms | $4,420 |
| 5 Bedrooms | $5,127 |
| 6 Bedrooms | $5,742 |
| 7 Bedrooms | $6,201 |
| 8 Bedrooms | $6,511 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,360 | $652,317 | 0.52% | F |
| 3BR | $4,140 | $850,949 | 0.49% | F |
| 4BR | $4,420 | $1,229,553 | 0.36% | F |
| 5BR | $5,127 | $1,709,487 | 0.3% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 04107, which encompasses Cape Elizabeth, ME, and part of Cumberland County, are driven by the SAFMR (Small Area Fair Market Rent) rates established by the U.S. Department of Housing and Urban Development (HUD). For fiscal year 2024, the SAFMR for a two-bedroom apartment in this ZIP code is set at $2,420. This figure represents the maximum amount HUD will reimburse landlords for rental units under the Section 8 program.
Local market rents, as reported by the Census Bureau's American Community Survey (ACS), average $2,185 for a similar two-bedroom unit. This indicates that the SAFMR rate is slightly above the local market rate, providing landlords with a margin that can be favorable when compared to the general rental market.
A landlord participating in the Section 8 program should understand that the total reimbursement comes from a combination of the tenant's contribution and the utility allowance. Typically, the tenant contributes 30% of their adjusted income toward rent. If we assume an average adjusted income for a Section 8 household of $2,000 per month, the tenant would contribute $600 towards rent. This leaves $1,820 to be covered by the voucher, which is the difference between the SAFMR and the tenant's portion.
Utility allowances are also factored into the overall reimbursement but vary based on the season and the region. In ZIP 04107, these allowances are designed to cover a reasonable estimate of heating, cooling, and other utilities. For simplicity, let’s consider an average utility allowance of $200. This brings the total reimbursement close to the SAFMR rate, but it's important to note that the exact amount can fluctuate depending on the specifics of the utility usage and the season.
In Cape Elizabeth, the typical reimbursement gap or surplus for a two-bedroom apartment is a surplus of $235. This is calculated by subtracting the local market rent ($2,185) from the SAFMR rate ($2,420). Therefore, landlords in this ZIP code can expect a slight overpayment compared to the standard market rate, making participation in the Section 8 program financially viable.
To summarize, the economics of Section 8 in ZIP 04107 work as follows: the landlord receives $600 from the tenant plus the voucher payment up to $2,420, which includes utility allowances. Given the local market rent of $2,185, the landlord ends up with a surplus of $235, indicating a positive financial outlook for those willing to participate in the program.
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.