Location: Bangor, ME | Metro: Bangor, ME HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,780 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $3,010 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
U.S. Census Bureau data (2024)
The ZIP code 04489, located in Bangor, Maine, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area is best classified as a cash-flow anchor. The justification for this classification lies in the significant spread between the Fair Market Rent (FMR) and the lack of available market data on median home values and rental market prices.
The HUD-established FMR for ZIP 04489 for fiscal year 2024 is set at $1860. Given that there is no specific market data provided for comparison, the absence of these figures suggests that the rental market in this area is either stable or underserved, which aligns well with the concept of a cash-flow anchor. Cash-flow anchors are typically areas where the rents are predictable and reliable, providing steady income to the landlord without the risk of market fluctuations.
Moreover, the 23.6% renter share indicates a substantial portion of the population relies on rental housing, which can be beneficial for landlords looking to secure long-term tenants. However, since the median income data is also not provided, it's prudent to rely on the FMR as a benchmark for the rental rates that can be expected to attract Section 8 tenants. This makes ZIP 04489 an ideal candidate for a cash-flow anchor, ensuring a consistent revenue stream.
While appreciation plays and diversifiers have their merits, the current data points towards ZIP 04489 being most effective as a cash-flow anchor due to the predictability of rental income and the established demand for rental properties. Landlords and small-portfolio investors should focus on the reliability of this income source when considering adding properties in ZIP 04489 to their Section 8 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.