Location: Portland, 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 | $1,330 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,920 | $356,297 | 0.54% | F |
| 3BR | $2,340 | $409,961 | 0.57% | F |
| 4BR | $2,650 | $469,614 | 0.56% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Section 8 properties in ZIP code 04274, Poland, ME, might raise several valid concerns. Let's address these directly with the available data.
Objection 1: Will FMR $1680 (zip FY 2024) cover the mortgage on a $388,674 home?
The Fair Market Rent (FMR) for ZIP 04274 is set at $1680 per month for fiscal year 2024. To determine if this will sufficiently cover the mortgage, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $388,674 home would be approximately $2,084. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of $404 per month. However, it's important to note that landlords can also charge additional utilities and other fees to help offset this difference.
Objection 2: Is there enough renter demand at 18.1%?
The rental vacancy rate for ZIP 04274 stands at 18.1%. While this figure is higher than the national average, which typically hovers around 7%, it still indicates a significant number of renters seeking housing. A vacancy rate of 18.1% suggests that there is a moderate level of competition among landlords, but also that there are enough tenants to fill units. It's worth noting that the demand for Section 8 rentals is often more stable due to the guaranteed income stream from the government.
Objection 3: Will vouchers keep pace with $1,198 market rents?
The market rent for a two-bedroom apartment in ZIP 04274 is $1,198. The FMR for the area is slightly higher at $1680, indicating that the voucher amount should generally cover the market rent. However, whether vouchers will keep pace with rising market rents depends on annual adjustments made by HUD. Historically, these adjustments have been modest and do not always match local market increases. Therefore, while current voucher amounts appear sufficient, future changes could impact profitability.
The data provides a clear picture of the challenges and opportunities in ZIP 04274 for Section 8 investors. Despite the potential for shortfalls in covering mortgage payments and the relatively high vacancy rate, the stability of the renter base and the alignment between current voucher amounts and market rents make this a viable option for those willing to manage the risks involved.
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.