Location: Portland, ME | Metro: Portland, ME HUD Metro FMR Area
| 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 |
ZIP 04116 encompasses the city of South Portland, ME, a thriving suburban community with a total population of 44,116 residents. This area is characterized by a working-class earning profile, with a median household income of $49,116, which is notably 100.1% above the state average.
The median home value in South Portland stands at $183,300, reflecting an affordable housing market that is still 100.6% higher than the state average. However, the median rent is $1,364, which is also 100% above the state average. The Fair Market Rent (FMR) for ZIP 04116 in fiscal year 2024 is set at $1,940, indicating a significant gap between the FMR and the actual market rent.
Given the data, South Portland, ME is well-suited for both hands-off voucher operators and hands-on value-add buyers. The FMR is substantially higher than the median rent, suggesting a favorable environment for Section 8 landlords. For those looking to manage properties actively, the potential exists to increase rents closer to the FMR, while still offering affordability to tenants.
However, the decision should be informed by the local job market and economic indicators. With a robust employment rate of 94.7%, the area supports a stable tenant base. Additionally, the cost of living index of 59 is below the national average, meaning that your dollar stretches further here. This can translate to higher disposable income, easier savings, and improved quality of life for residents.
In conclusion, South Portland, ME offers a balanced opportunity for Section 8 investors. The combination of an affordable housing market, a strong employment rate, and a favorable cost of living makes it a viable option for both passive and active management strategies.
Data Sources: FMR data from HUD (2027).
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.