Section 8 Fair Market Rent (FMR) for ZIP 04240 - 2027

Location: Lewiston-Auburn, ME | Metro: Lewiston-Auburn, ME MSA

Investment Score for ZIP 04240

D
Monthly Rent (2BR)
$1,650
Median Price (2BR)
$268,383
1% Rule
0.61%
Annual Yield
7.38%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,190
1 Bedroom$1,260
2 Bedrooms$1,650
3 Bedrooms$2,080
4 Bedrooms$2,420
5 Bedrooms$2,807
6 Bedrooms$3,144
7 Bedrooms$3,396
8 Bedrooms$3,566

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,650 $268,383 0.61% D
3BR $2,080 $313,929 0.66% D
4BR $2,420 $347,747 0.7% D
5BR $2,807 $389,140 0.72% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
38,324
Median Household Income
$55,393
Housing Units
17,105
Renter Percentage
48.8%
Occupancy Rate
94.1%
Renter Occupied
7,863

The Fair Market Rent (FMR) for ZIP code 04240, which includes Lewiston, ME, is set at $1110 for fiscal year 2024. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program, meaning it's the maximum amount the government will pay toward your tenant's rent. However, it does not represent the actual rent you can charge.

In comparison, the typical market rent for Lewiston is around $1436. This is known as the Zillow Observed Rental Index (ZORI), and it reflects the average rent that tenants are paying in the area. Given this, landlords who join the Section 8 program should be aware that they might receive less than the market rate for their property.

Lewiston has a significant number of renters, with approximately 48.8% of residents being renters. This indicates a strong demand for rental properties, including those that could potentially participate in the Section 8 program. The high percentage of renters suggests that there is a steady pool of potential tenants who may benefit from such assistance.

When considering acquiring a property in Lewiston for a Section 8 rental, the median home value is around $296,121. This is the price point you should expect when looking to purchase a property suitable for a Section 8 tenant. It's important to note that the acquisition cost does not directly correlate with the rental income you will receive through the program.

Before deciding to take the plunge into Section 8 rentals, verify that your property meets all the necessary quality standards set by the housing authority. These include basic safety and habitability requirements, ensuring that the property is in good condition and ready for occupancy. This step is crucial to avoid any delays or complications in the approval process.

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.