Location: Somerset County, ME | Metro: Piscataquis County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 04478, located in Rhode Island, are governed by specific financial mechanisms designed to support affordable housing. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2026 is set at $1,270. This figure represents the maximum amount that the federal government will pay towards the rent for a unit of this size in this specific ZIP code.
To understand how much a landlord can expect from a voucher, it's important to break down the components. The voucher system is structured so that the tenant pays a portion of their income towards rent, typically around 30%. The remaining balance, up to the SAFMR limit, is covered by the housing authority. Additionally, there are utility allowances that vary based on the type of unit and its location. These allowances are paid directly to the landlord and are meant to cover the tenant's share of utilities.
Let's assume a tenant's monthly adjusted income is $2,000. At a 30% contribution rate, they would be responsible for $600 towards rent. If we consider an average utility allowance of $200, the total reimbursement to the landlord would be $800 plus whatever portion of the SAFMR is not covered by the tenant's payment. In this case, the housing authority would pay the difference between the tenant's $600 contribution and the SAFMR of $1,270, which is $670. Therefore, the landlord would receive a total of $1,070 ($800 from the tenant and utilities, and $270 from the housing authority).
The SAFMR of $1,270 is a fixed rate set for this ZIP code, meaning it does not fluctuate based on local market conditions. Local market rents are currently unavailable, but if they were higher than the SAFMR, landlords might face a gap where the voucher amount is insufficient to cover the full market rent. Conversely, if local market rents are lower, landlords could see a surplus where the voucher amount exceeds the typical rental price.
In ZIP 04478, given the SAFMR of $1,270, landlords should anticipate a reimbursement gap if the local market rent is higher than this amount. For instance, if the market rent for a similar 2BR unit is $1,400, the landlord would have a shortfall of $330 per month. However, if the market rent is below $1,270, the landlord would receive the full SAFMR amount, effectively covering the market rent and possibly leaving a surplus.
Landlords must carefully consider these economic factors when deciding whether to participate in the Section 8 program. While the SAFMR provides a consistent baseline for expected payments, understanding the local market dynamics is crucial for assessing the financial impact on your property portfolio.
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.