Location: Penobscot County, ME | Metro: Penobscot County, ME (part) HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 04410 in Rhode Island reveals an interesting contrast between federal rental assistance and market rents. For the fiscal year 2024, the Fair Market Rent (FMR) for a 2-bedroom apartment is set at $990 per month. This translates into an annualized figure of $11,880. In comparison, the Census American Community Survey (ACS) indicates that the market rent for a similar unit is $742 per month, or $8,904 annually.
To calculate the implied gross yield, we need the median home value, which is unfortunately not available for ZIP 04410. However, we can still provide insights based on the given data points. The gross yield is calculated by dividing the annual rent by the property value. Without the median home value, we cannot compute exact yields, but we can discuss the implications of these rental figures.
The FMR-based annual rent of $11,880 is significantly higher than the market rent of $8,904. This difference suggests that properties receiving Section 8 vouchers could potentially generate a higher gross income compared to those rented at market rates. However, the reality of this scenario depends heavily on the actual property values in the area.
Given the 13.2% renter density, it's clear that a majority of the population in ZIP 04410 owns their homes rather than renting. This low percentage of renters might indicate that finding tenants willing to accept Section 8 vouchers could be challenging. Additionally, the Days on Market (DOM) being listed as N/A suggests either a very competitive or a very slow-moving rental market, making it difficult to gauge how quickly a property might be leased under either scenario.
In conclusion, while the potential for higher gross income exists with Section 8 tenants paying $990 per month versus the market rate of $742, the feasibility of achieving this higher income is uncertain due to the low renter density and unknown DOM. Landlords and investors should consider these factors carefully when deciding whether to participate in the Section 8 program for ZIP 04410.
Data Sources: FMR data from HUD (2027). 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.