Location: Lewiston-Auburn, ME | Metro: Lewiston-Auburn, ME MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
The economics of Section 8 in ZIP code 04228, located in Lewiston-Auburn County, Maine, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1110 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the local rental market conditions.
To understand what a landlord receives from a Section 8 voucher, it's essential to break down the components. The voucher payment covers the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their adjusted income. Additionally, there are utility allowances that vary based on the size of the unit and the region.
In ZIP 04228, the utility allowance for a two-bedroom unit is $379 per month. Therefore, the total amount a landlord can expect from a voucher is the sum of the tenant's portion and the utility allowance, capped at the SAFMR of $1110. If a tenant's portion is less than $731 ($1110 - $379), the landlord will receive the remaining balance to reach $1110, ensuring they are paid the full SAFMR.
The reimbursement gap or surplus arises when comparing the SAFMR to the actual market rent. However, since the local market rent data is currently unavailable, we cannot determine if there is a surplus where the SAFMR exceeds the market rent or a gap where the market rent is higher than the SAFMR. To make an informed decision, landlords should research current market rents in ZIP 04228 to assess whether participating in the Section 8 program will be financially beneficial.
For instance, if the market rent for a two-bedroom apartment is $1200, the landlord would face a $90 monthly shortfall ($1200 - $1110 = $90). Conversely, if the market rent is $1000, the landlord would have a $110 monthly surplus ($1110 - $1000 = $110).
Landlords must also consider that the tenant's portion of the rent is based on their income, and this can fluctuate annually. Therefore, while the SAFMR provides a stable base, the overall financial picture depends on the market rent and the individual tenant's income.
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.