Location: Lincoln 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 | $1,100 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,750 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,750 | $366,399 | 0.48% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 04353 in the Lincoln County, ME metro area reveals a clear opportunity for positive cash flow. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $1,250, which is significantly higher than the market rent reported by the Census ACS, currently at $895. This means that voucher tenants will cashflow at FMR, providing landlords with a substantial buffer above the typical rental rates.
To further understand the investment potential, consider the median home value in ZIP 04353, which stands at $329,117. Using the market rent of $895, we can calculate a rent-to-price ratio of approximately 0.33%, indicating that the rental income is relatively low compared to the purchase price of homes in the area. However, when comparing this to the HUD FMR of $1,250, the rent-to-price ratio increases to about 0.47%. This higher ratio suggests that properties rented to voucher holders could offer better returns relative to their purchase price.
The dynamics of days on market (DOM) and the percentage of price cuts are not applicable (N/A) for this analysis, but it's important to note that the stability of the Section 8 program offers consistent income for landlords, unlike the volatility often seen in private rental markets.
In conclusion, the strongest investor angle in ZIP 04353 is cashflow, given the significant difference between the HUD FMR and the actual market rent. Landlords can expect to see positive cash flow with voucher tenants, making this an attractive option for those looking to secure steady rental income.
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.