Location: Waldo County, ME | Metro: Waldo County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
U.S. Census Bureau data (2024)
In ZIP code 04438, which is located in Rhode Island, the economics of Section 8 housing vouchers can be quite different from the local market rent. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,480. This figure represents the maximum amount that HUD (Department of Housing and Urban Development) will pay for a two-bedroom unit in this specific area. In contrast, the local market rent for a similar unit, according to the Census ACS (American Community Survey), averages around $850.
The SAFMR is the total amount available to cover the rent, but it's important to understand how this payment is structured. When a tenant uses a Section 8 voucher, they are responsible for paying approximately 30% of their adjusted income toward rent. The remainder, up to the SAFMR limit, is covered by the government. However, this coverage does not include utilities unless the landlord agrees to a utility allowance, which is typically separate from the base rent.
To walk through an example, let’s assume a tenant’s portion of the rent is $444, which is 30% of a hypothetical adjusted income of $1,480. This leaves $1,036 to be paid by the government towards the base rent. If the landlord chooses to include a utility allowance, this would be on top of the base rent reimbursement. For ZIP 04438, the utility allowance for a two-bedroom apartment is generally around $300. Therefore, the total reimbursement from the government could be $1,336 ($1,036 base rent + $300 utilities).
This means that if you charge the SAFMR rate of $1,480, there would be a reimbursement gap of $144 per month, since the government would only cover up to $1,336. On the other hand, if you charge closer to the local market rate of $850, you would receive a surplus of $486 from the government, making Section 8 a potentially lucrative option compared to market rates.
In summary, landlords in ZIP 04438 should consider the reimbursement structure carefully when setting rent for Section 8 tenants. While the SAFMR sets the ceiling at $1,480, the actual reimbursement may fall short due to the tenant’s contribution and the utility allowance. Conversely, charging below the market rate of $850 could result in a significant surplus, benefiting both the landlord and the tenant by ensuring affordability.
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.