Location: Penobscot County, ME | Metro: Bangor, ME 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 | $1,120 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $222,032 | 0.68% | D |
| 3BR | $1,920 | $257,523 | 0.75% | D |
U.S. Census Bureau data (2024)
ZIP 04457, located in Lincoln, ME, and part of the Penobscot County, ME (part) HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This ZIP code stands out as a cash-flow anchor. The primary reason for this classification is the significant spread between the Fair Market Rent (FMR) set by HUD and the actual market rent.
In FY 2024, the FMR for ZIP 04457 is $950. However, the current market rent is only $663. This means that landlords participating in the Section 8 program can expect to receive a higher rental income than what they would typically get from the private market. This discrepancy ensures a stable and reliable cash flow, which is crucial for maintaining financial stability in a portfolio.
The median home value in this area is $212,697, indicating that while property values are not exceedingly high, they are still reasonable. This makes it an attractive location for investment, especially when considering the guaranteed rental income from the Section 8 program. Landlords can leverage this higher-than-market rental income to cover mortgage payments, maintenance costs, and other expenses associated with property ownership, ensuring a positive cash flow.
While ZIP 04457 does not offer strong potential for price appreciation—its 0.1% price-cut share and N/A-day days on market (DOM) suggest limited growth in property values—it excels as a cash-flow anchor. The high renter share of 26.2% and median income of $56,645 further support the idea that there is a steady demand for affordable housing in this area, making it a reliable choice for long-term investment.
For small-portfolio investors, including properties in ZIP 04457 can provide a solid foundation for their investment strategy, ensuring consistent cash flow and reducing the risk of vacancy. This ZIP code should be considered a key component for those looking to build a Section 8 portfolio focused on stability and predictable returns.
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.