Location: Oxford County, ME | Metro: Oxford County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
U.S. Census Bureau data (2024)
The ZIP code 04257, located in Oxford County, Maine, presents an interesting opportunity for inclusion within a Section 8 portfolio strategy. It is best categorized as a cash-flow anchor. This designation is based on the significant spread between the Fair Market Rent (FMR) set at $1,280 for the metro area in fiscal year 2026 and the current market rent of $1,027. The difference means that properties in this ZIP can be leased to tenants under the Section 8 program at a rate higher than what the market would otherwise bear, thus providing a stable and predictable cash flow.
To further illustrate, the median home value in ZIP 04257 is $175,705. This figure is relatively low compared to many other areas, which makes the acquisition of rental properties in this region financially attractive for investors looking to maximize their returns through Section 8 subsidies. The higher subsidy rates ensure that the landlord receives the full FMR amount, effectively covering the mortgage payments and maintenance costs while still generating profit.
The ZIP code's characteristics also support its role as a cash-flow anchor. With a 23.0% renter share, there is a notable demand for rental housing, and the median income of $55,727 suggests that a portion of the population could qualify for the Section 8 program. While the data does not provide specific percentages for price-cut shares or days on the market (DOM), the lower median home value indicates that property values are less likely to appreciate rapidly, making it a steady, reliable part of the portfolio rather than a speculative investment.
In conclusion, ZIP 04257 serves as a solid cash-flow anchor within a Section 8 portfolio strategy due to the favorable spread between FMR and market rents, along with the affordability of properties in the area. This ZIP code ensures a consistent revenue stream, which is crucial for maintaining financial stability and growth in real estate 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.