Location: Lewiston-Auburn, ME | Metro: Lewiston-Auburn, ME MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,340 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,350 | $324,764 | 0.72% | D |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 04256 for Section 8 properties, follow this decision tree based on the provided data.
1) Does the Fair Market Rent (FMR) of $1400 cover the debt service on a $296,782 property?
Yes: The FMR of $1400 is sufficient to clear the debt service on a $296,782 property. This indicates that the rental income can support the mortgage payments and other financial obligations associated with owning the property.
No: The FMR of $1400 does not cover the debt service on a $296,782 property. This means the rental income would be insufficient to meet the financial requirements of ownership, making it an unwise investment for Section 8 purposes.
2) How does the market rent of $1,076 compare to the FMR?
Above FMR: If the market rent is higher than the FMR, landlords might consider whether they can find tenants willing to pay the higher market rate, which could lead to higher profitability outside of Section 8.
At or Below FMR: With the market rent at or below the FMR, landlords will likely need to rely on the FMR to ensure they cover their costs. This scenario aligns well with Section 8 investments.
3) Is there enough demand given 20.2% of residents are renters and the Days on Market (DOM) is not available?
It Depends: At 20.2%, the percentage of renters in ZIP 04256 suggests moderate demand. However, without specific DOM data, it's challenging to gauge how quickly properties are rented out. If the DOM is short, indicating quick turnover, then demand is strong enough to support Section 8 investments. Conversely, if the DOM is long, it may indicate difficulty in finding tenants, even with a 20.2% rental rate.
The key to deciding whether to buy in ZIP 04256 for Section 8 lies in understanding these factors and their implications on profitability and occupancy rates. Landlords must ensure that the FMR covers their debt service and consider whether the market rent offers additional opportunities. Lastly, the availability of renters and the speed at which properties are leased are crucial for maintaining a steady cash flow.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.