Location: Penobscot County, ME | Metro: Penobscot County, ME (part) HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The classification of ZIP code 04430 in Rhode Island hinges on its financial metrics and the composition of its rental market. With a Fair Market Rent (FMR) of $1050 for fiscal year 2024, the area stands out compared to the local market rent of $449. This significant gap suggests a high-yield potential for landlords and small-portfolio investors.
The median home value in ZIP 04430 is $166,833, which, when combined with the FMR figure, indicates a strong opportunity to generate above-average rental income relative to property values. This characteristic aligns with a high-yield market, where the rental income can substantially exceed the cost of ownership, including mortgage payments, maintenance, and other expenses.
Stability, however, is a different matter. The ZIP code has a relatively low percentage of renters at 20.7%, which could imply that the market might not be as stable as one with a higher proportion of tenants. Additionally, the lack of data on days on market (DOM) for rentals makes it challenging to assess how quickly properties can be leased, further impacting stability.
Income levels in the area average at $42,011, which is below the national average and could suggest that tenants might face financial challenges in maintaining consistent rental payments. This lower income level adds another layer of instability to the market, as it could affect the ability of residents to afford higher rents.
In summary, ZIP 04430 presents itself as a high-yield but low-stability market. The disparity between the FMR and market rent signals a potentially lucrative opportunity for investors willing to manage the risks associated with a less stable tenant base and lower average incomes.
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.