Section 8 Fair Market Rent (FMR) for ZIP 04495 - 2027

Location: Penobscot County, ME | Metro: Penobscot County, ME (part) HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,360
2 Bedrooms	$1,780
3 Bedrooms	$2,430
4 Bedrooms	$2,490
5 Bedrooms	$2,888
6 Bedrooms	$3,235
7 Bedrooms	$3,494
8 Bedrooms	$3,669

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

287

Median Household Income

$36,333

Housing Units

182

Renter Percentage

13.6%

Occupancy Rate

89.0%

Renter Occupied

To determine if you should buy in ZIP code 04495 for Section 8 investment, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for ZIP 04495 in fiscal year 2024 is $1180. Calculate whether this amount can cover the debt service on your property. If the FMR does not clear the debt service, the answer is No. Do not proceed further.

Step 2: Market Rent vs. FMR

The average market rent in ZIP 04495, according to the Census ACS, is $850. Compare this figure to the FMR of $1180. There are three possible outcomes:

If market rent is below FMR, the potential for higher rental income exists. Proceed to Step 3.
If market rent is equal to FMR, there's no premium to be gained. Consider other factors before proceeding.
If market rent is above FMR, the property might struggle to attract Section 8 tenants due to the lower subsidy rates. The answer is No.

Step 3: Demand Analysis

In ZIP 04495, 13.6% of residents are renters. Additionally, consider the days on market (DOM) for properties. If the combination of these factors indicates sufficient demand, the answer is Yes. However, if the DOM is high and there are not enough renters, the answer is No.

The final decision hinges on the interplay between these factors. Ensure that the FMR can cover your debt service and that there is sufficient demand among renters. If market rent is below FMR, it presents an opportunity to leverage the higher subsidy rates for better cash flow.

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.