Location: Kennebec County, ME | Metro: Sagadahoc County, ME HUD Metro FMR Area
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 | $1,260 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $315,609 | 0.5% | F |
| 3BR | $2,170 | $352,900 | 0.61% | D |
| 4BR | $2,620 | $390,540 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 04357 in Richmond, ME, presents an interesting balance between yield and stability. With a Fair Market Rent (FMR) of $1,220 for fiscal year 2024, compared to the market rent of $1,077, there's a notable gap indicating potential for higher rental yields. The FMR is set by HUD and represents the maximum amount of rent that can be charged for a property participating in the Section 8 program. Given the discrepancy between the FMR and market rent, landlords could potentially see a significant increase in their rental income if they participate in the Section 8 program.
However, the median home value in the area is $331,031. This suggests that while rental yields might be attractive, the capital investment required for properties in this ZIP code is substantial. For small-portfolio investors, the initial outlay could be a deterrent, especially when considering the cost of acquiring and maintaining a property at this price point.
Moving to stability, the ZIP code has a renter population comprising 30.1% of the total housing units. While this figure is not exceptionally high, it does indicate a reasonable level of demand for rental properties. Unfortunately, the data does not provide the number of days on market (DOM), which would have been useful in assessing how quickly properties are leased. However, the median household income in the area is $65,854, which is a positive indicator for stability. This income level suggests that tenants have a relatively stable financial situation, making them more likely to maintain consistent rental payments.
In conclusion, ZIP 04357 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The higher FMR compared to market rent supports a decent yield, but the substantial median home value and the lack of day DOM data suggest a more conservative approach to investment. The presence of a moderate renter population and a stable median income indicates a reliable tenant base, which is crucial for long-term rental investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.