Location: Penobscot County, ME | Metro: Penobscot County, ME (part) 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 | $1,390 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,730 | $367,189 | 0.74% | D |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 04419 reveals a significant gap between the Fair Market Rent (FMR) set at $1420 for fiscal year 2024 and the actual market rent of $1276, based on Census ACS data. This gap amounts to $144, representing an approximately 11.4% difference between the two figures. The higher FMR compared to the market rent indicates that properties rented to voucher tenants can offer a better yield for landlords and small-portfolio investors.
In the broader context of Rhode Island (RI), where 12.1% of residents are renters, the median home value stands at $316,758, and the median income is $82,188. These figures suggest that the rental market in 04419 is relatively affordable when compared to the state's overall housing costs and income levels. However, the discrepancy between the FMR and the market rent highlights a strategic opportunity for landlords who can leverage the higher payment rates from Section 8 vouchers to achieve a higher return on investment.
The fact that FMR exceeds market rent means that landlords can potentially charge the higher FMR rate through voucher programs without pricing themselves out of the local market. This makes it financially advantageous to accept Section 8 tenants, as it allows landlords to earn more than what the open market would typically bear. Moreover, this scenario reduces the risk of vacancy since the demand for affordable housing is high among low-income families in RI, who often rely on such assistance programs.
However, it's crucial to note that accepting Section 8 tenants also comes with administrative burdens and potential maintenance costs, which must be weighed against the financial benefits. Despite these considerations, the gap between FMR and market rent in ZIP 04419 suggests that the area is well-suited for a yield-focused strategy, particularly for those who understand the nuances of working with government-subsidized housing programs.
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.