Location: Penobscot County, ME | Metro: Bangor, ME HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 04450 in Rhode Island for fiscal year 2024 is set at $1,200. This figure represents the payment standard used by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 program, which means it is the maximum amount HUD will pay landlords for renting out units under this program. It's important to note that this is not necessarily the amount you would charge tenants as rent; it is the reimbursement ceiling.
To put this into perspective, the average rent in ZIP 04450, based on the latest Census American Community Survey (ACS), is $1,033. This indicates that the FMR is slightly above the market average, offering landlords a potentially higher reimbursement rate compared to typical rents in the area.
The FMR also helps gauge the potential demand for Section 8 rentals. With a renter share of 16.6%, there is a significant portion of the population who might be interested in Section 8 housing. This can translate to a steady stream of applicants, making it easier to fill vacancies and maintain occupancy rates.
When considering the acquisition cost of properties in ZIP 04450, the median home value is around $222,645. This suggests that purchasing a property to use as a Section 8 rental could be feasible for many small-portfolio investors, especially if they are looking to enter the market without a large initial investment.
Before deciding to participate in the Section 8 program, one crucial step is to verify that your property meets the required standards. HUD has specific criteria for habitability, health, and safety, and failing to meet these can result in penalties or disqualification from the program. Ensure your rental unit complies with all inspection requirements to avoid any issues.
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.