Location: Penobscot County, ME | Metro: Penobscot County, ME (part) HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 04488, which encompasses parts of Penobscot County, ME, reveals several key points for potential Section 8 landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 04488 in fiscal year 2024 is set at $1200. However, the Census ACS data indicates that the current market rent stands at $800. This means that the FMR significantly exceeds the market rate, offering a substantial incentive for landlords participating in the Section 8 program. The higher FMR provides a buffer that can cover maintenance costs and other expenses, making it financially viable for landlords.
Regarding the affordability of acquisitions, the median home value in ZIP 04488 is $259,802. While the average number of days on the market (DOM) and the percentage of homes needing a price cut are not available, the median home value suggests that purchasing properties could be within reach for many investors. The lack of DOM and price-cut data makes it challenging to assess how competitive the local real estate market is, but the median home value is a reasonable starting point for evaluating investment opportunities.
The third question concerns tenant demand. With a total population of 1,151, the ZIP code has a relatively low number of residents. However, the renter share is 12.1%, indicating that there are approximately 140 renters in the area. Given the size of the population, this represents a significant portion of potential tenants who might be interested in Section 8 housing. The limited number of renters means that competition among landlords for these tenants could be high, but it also suggests that the demand is stable and predictable.
Verdict: ZIP 04488 presents an opportunity for landlords due to the favorable rent math, where the FMR exceeds the market rent by $400. This discrepancy can help cover operational costs and provide a margin for profit. Although the median home value is relatively high at $259,802, the absence of DOM and price-cut data prevents a full assessment of the acquisition costs. Tenant demand is modest but steady, with a 12.1% renter share in a small population. Landlords should be prepared for a potentially competitive rental market, but the financial incentives make this ZIP code worth considering for Section 8 investments.
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.