Location: Waldo County, ME | Metro: Lincoln 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 | $1,110 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $396,468 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 04354 is situated in a small-town setting, primarily comprising the town of Freeport, Maine. With a population of 1,473, it's a community where the majority of residents own their homes, with only 8.8% being renters. The median household income in this area stands at $89,095, indicating a relatively affluent demographic. This is further supported by the median home value of $348,669, which suggests a high standard of living and property investment.
Moving into the economic landscape of rental properties, the Fair Market Rent (FMR) for ZIP 04354, as determined by the U.S. Department of Housing and Urban Development for metro areas in fiscal year 2026, is set at $1,410. In contrast, the actual market rent, according to Census ACS data, is $1,235. This discrepancy between the FMR and market rent can be advantageous for landlords who participate in the Section 8 program, as they can potentially charge closer to the FMR rate, thereby increasing their revenue streams compared to the average market rent.
Given these figures, ZIP 04354 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR rate provides a stable and predictable income, especially in a low-renter environment where demand for affordable housing is limited but still present. On the other hand, value-add buyers can leverage the discrepancy between the FMR and market rent to renovate and upgrade properties, then charge closer to the FMR rate, thus benefiting from both increased rents and the Section 8 subsidy.
Investors should consider the local economy and job market, which can influence the demand for subsidized housing. However, with the median income and home values being relatively high, there's a strong likelihood that the town attracts individuals and families who could benefit from the Section 8 program, making it a viable investment opportunity for both types of investors.
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.