Section 8 Fair Market Rent (FMR) for ZIP 04254 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,030
1 Bedroom	$1,100
2 Bedrooms	$1,430
3 Bedrooms	$1,850
4 Bedrooms	$2,080
5 Bedrooms	$2,413
6 Bedrooms	$2,703
7 Bedrooms	$2,919
8 Bedrooms	$3,065

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,102

Median Household Income

$45,843

Housing Units

1,739

Renter Percentage

34.0%

Occupancy Rate

88.5%

Renter Occupied

523

Housing Authorities Serving ZIP 04254

Lewiston Housing Authority (Lewiston, ME) - 1,585 Section 8 vouchers
Auburn Housing Authority (Auburn, ME) - 595 Section 8 vouchers

The analysis of ZIP code 04254, Livermore Falls, ME, reveals a unique balance between yield and stability that is neither purely high-yield/low-stability nor a classic steady-cashflow zone. Let's break down the key figures.

On the yield axis, the Fair Market Rent (FMR) for 2024 stands at $960, while the market rent is slightly lower at $856. This indicates a decent rental yield, especially when compared to the median home value of $207,763. The gap between FMR and market rent suggests potential for modest rental increases without being overly aggressive.

Moving to the stability axis, 34.0% of residents are renters, which is a moderate figure. Unfortunately, the average days on market (DOM) is not available, but we can look at the median household income of $45,843 to gauge financial stability. This income level supports a steady stream of tenants who can afford the rent, contributing to long-term occupancy rates.

To further clarify, let's consider the following:

Rental Yield: With a median home value of $207,763, a property could be purchased for approximately $208,000. At a market rent of $856 per month, the annual rental income would be $10,272. This translates to an annual yield of about 5%, calculated as ($10,272 / $208,000) * 100. A 5% yield is solid but not exceptionally high, indicating a middle-ground market.
Tenant Stability: The 34.0% renter rate is not extremely high, suggesting that there is a mix of homeowners and renters, which can be beneficial for long-term investment stability. The median household income of $45,843 provides a reasonable buffer against economic downturns, ensuring that tenants have the means to pay rent consistently.

In conclusion, ZIP 04254 presents a market that leans towards a steady cash flow rather than a high-yield/low-stability flip-style environment. The figures point towards a balanced approach where landlords and small-portfolio investors can expect reliable returns without the volatility associated with higher-risk investments.

Data Sources: FMR data from HUD (2027). 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.