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 04230, located in Lewiston-Auburn County, Maine, revolve around the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1110. This figure represents the maximum amount that a Section 8 housing voucher will cover for rent.
To understand what a landlord can expect from a voucher, it's crucial to factor in both the tenant's portion and any utility allowances. Typically, tenants contribute 30% of their adjusted income toward rent. If we assume an average adjusted income of $2000 per month, the tenant would pay $600. Therefore, the remaining $510 would be covered by the voucher program, assuming the total rent does not exceed the $1110 limit.
In addition to the rent contribution, the voucher also includes utility allowances. These vary based on the type of unit and the number of occupants but generally aim to cover a reasonable estimate of utility costs. For a two-bedroom unit, the allowance might be around $200-$300 monthly, depending on factors such as heating costs and electricity usage.
The SAFMR rate being specific to ZIP 04230 means that landlords must adhere to this rate if they wish to participate in the Section 8 program. This rate is not influenced by broader metro or county-level averages but is tailored to reflect the rental market conditions in this particular area.
Given the SAFMR of $1110, landlords should expect a reimbursement gap or surplus when comparing this rate to the actual market rent. Since the local market rent data is currently unavailable, it's important for landlords to research current listings in ZIP 04230 to determine if their properties are priced above or below the SAFMR. If the market rent is higher than $1110, landlords will experience a reimbursement gap, meaning they won't receive the full market rent from the voucher program. Conversely, if the market rent is lower, landlords will have a surplus, receiving more from the voucher program than the market demands.
To conclude, landlords in ZIP 04230 participating in the Section 8 program can expect a maximum reimbursement of $1110 for a two-bedroom apartment, with the tenant contributing approximately $600 based on the assumed income level. Utility allowances will further adjust the total reimbursement. Landlords must assess whether this SAFMR aligns with their property's market value to determine if there is a financial gap or surplus.
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.