Location: Bangor, 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 | $1,170 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $201,379 | 0.76% | D |
| 3BR | $1,970 | $255,880 | 0.77% | D |
| 4BR | $2,230 | $285,832 | 0.78% | D |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 04461 (Milford, ME) for Section 8 should follow a decision tree based on the following criteria:
1) Does the Fair Market Rent (FMR) of $1320 cover the debt service on a property priced at $218,377?
Yes: The FMR of $1320 is sufficient to cover the debt service on a property valued at $218,377. This indicates that the rental income will meet the financial obligations associated with owning the property.
No: The FMR of $1320 does not sufficiently cover the debt service on a property priced at $218,377. This means the rental income would be insufficient to meet the financial obligations, making it a poor investment choice for Section 8 participation.
It Depends: The sufficiency of the FMR to cover debt service can depend on the interest rate and loan terms. However, with an FMR of $1320, it's unlikely to cover the debt service unless the mortgage terms are highly favorable. Typically, properties under Section 8 require a balance where the FMR comfortably exceeds debt service costs.
2) How does the market rent of $943 compare to the FMR?
Above FMR: If the market rent were above $1320, it would indicate a strong local rental market. However, the actual market rent of $943 is below the FMR, suggesting that the local market is less competitive and might not support higher rents.
At FMR: Not applicable in this case, as the market rent is below the FMR.
Below FMR: The market rent of $943 is below the FMR of $1320, indicating that the local market may struggle to support higher rents. Landlords should consider whether they can realistically charge the FMR or if they need to adjust their expectations.
3) Is there enough demand with 12.1% renters and N/A-day days on market (DOM)?
Yes: With 12.1% of the population renting, there is a steady demand for rental properties. However, the lack of specific DOM data makes it difficult to assess how quickly units might be rented. Assuming a reasonable DOM, the percentage of renters suggests that demand is sufficient to fill vacancies.
No: If the DOM is excessively long, it could indicate difficulty in filling vacancies, even with a 12.1% rental rate. Without specific DOM data, this cannot be definitively determined, but a high DOM would likely discourage investment.
It Depends: The answer hinges on the DOM data. A short DOM would suggest strong demand and ease of finding tenants, whereas a long DOM would imply challenges in renting out units. Given only the 12.1% rental rate, the decision to invest is contingent upon the DOM being within a reasonable range.
In summary, the FMR of $1320 is unlikely to cover the debt service on a property valued at $218,377, unless the mortgage terms are extremely favorable. The market rent of $943 is below the FMR, indicating that landlords may face challenges in setting higher rents. Lastly, the demand for rentals is present with 12.1% of the population renting, but the lack of DOM data leaves uncertainty about how quickly units can be filled. Therefore, the recommendation to invest in ZIP 04461 for Section 8 is no, due to the low likelihood of covering debt service and the potential difficulties in setting appropriate rents.
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.