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 | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $339,500 | 0.38% | F |
| 3BR | $1,640 | $378,499 | 0.43% | F |
| 4BR | $1,950 | $434,026 | 0.45% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 04347, which encompasses Hallowell, ME, in Kennebec County, can be quite favorable for landlords when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,330. This means that landlords who participate in the Section 8 program can potentially charge up to this amount for their units.
However, the local market rent, according to the Census ACS, is significantly lower at $890 for a two-bedroom apartment. This disparity highlights the value of participating in Section 8 for landlords in this area, as they can charge closer to the SAFMR rate rather than the local market rate.
When a landlord enters into a Section 8 agreement, the actual payment received consists of the voucher reimbursement plus the tenant's contribution. For a two-bedroom unit, the tenant typically pays 30% of their adjusted income towards rent. If we assume an average adjusted income for a family in this area is around $20,000, the tenant would contribute approximately $500 per month ($20,000 * 0.30 / 12).
In addition to the tenant's contribution, there are utility allowances that can add to the total reimbursement. These allowances vary but are generally designed to cover the cost of utilities. For simplicity, let’s say the utility allowance is $200 per month. This brings the total reimbursement to the landlord to $1,330 - $500 (tenant contribution) + $200 (utility allowance) = $1,030 per month.
This calculation shows that even with the tenant's portion and utility allowances, landlords receive a higher monthly payment than the local market rent. The difference between the SAFMR rate and the local market rent creates a surplus for landlords. In this case, the surplus is $1,030 (total reimbursement) - $890 (local market rent) = $140 per month. This surplus can be seen as additional profit or can help cover unexpected costs associated with maintaining rental properties.
To summarize, landlords in ZIP 04347 who accept Section 8 vouchers for two-bedroom apartments can expect a reimbursement of $1,030 per month, including the tenant's contribution and utility allowances. This amount exceeds the local market rent by $140, providing a financial advantage over traditional market rentals.
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.