Location: Kennebec County, ME | Metro: Kennebec County, ME
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 | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $349,391 | 0.44% | F |
| 3BR | $1,970 | $378,003 | 0.52% | F |
| 4BR | $2,410 | $422,554 | 0.57% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 04259 (Monmouth, ME) on the yield and stability axes reveals a unique market scenario. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,510, while the market rent stands at $1,249. This indicates that properties in this ZIP code can potentially attract tenants willing to pay above the market rate, up to the FMR threshold. Given the median home value of $354,172, the potential rental yield is relatively strong, especially if one considers the possibility of leveraging higher-than-market rents.
On the stability axis, the market shows signs of both strength and uncertainty. With 22.0% of residents being renters, the demand for rental properties is moderate but not overwhelming. The lack of available data on the number of days on market (DOM) suggests that there might be limited turnover, which could imply a stable tenant base once occupied. However, it also points to a less liquid rental market, which could affect the ability to quickly adjust to changing conditions. The median household income of $83,919 provides a solid financial foundation for the local economy, supporting the likelihood that tenants can sustain their rent payments over time.
Combining these factors, ZIP 04259 appears to be a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The ability to command rents slightly above the market average due to the FMR ($1,510 vs $1,249) suggests a moderate upside in terms of yield. However, the lower percentage of renters (22.0%) and the absence of DOM data indicate a market that favors long-term investment strategies over quick flips. The strong median income figure supports the stability aspect, ensuring that tenants have the financial capability to maintain consistent rent payments. Therefore, for landlords and small-portfolio investors looking for a balance between yield and stability, ZIP 04259 presents a viable option, particularly if they are willing to invest in properties that can achieve or approach the FMR rental rates.
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.