Location: Aroostook County, ME | Metro: Penobscot County, ME (part) HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 04497 in Rhode Island reveals a unique balance between yield and stability, making it an interesting market for real estate investors. The Fair Market Rent (FMR) for the fiscal year 2024 stands at $1,180, significantly higher than the market rent of $950. This discrepancy suggests a potential opportunity for landlords to achieve above-average rental yields, especially if they can position their properties competitively within the local market.
However, the stability of this market is somewhat lower. With only 19.1% of residents being renters, the pool of potential tenants is relatively small, which could lead to increased competition among landlords. Additionally, the median household income in the area is $48,958, which is a key factor in assessing the financial stability of the tenant population. While this income level is not exceptionally low, it does indicate that there might be limitations on how much tenants can afford to pay in rent, potentially affecting long-term occupancy rates.
The lack of data on days on market (DOM) makes it difficult to assess the speed at which properties are rented out. However, the combination of a higher FMR compared to the market rent and the smaller percentage of renters suggests a market that leans towards being a high-yield/low-stability environment. Landlords should be prepared for a more dynamic and potentially challenging market, where achieving higher rental yields requires careful management and possibly some risk-taking.
To summarize, ZIP 04497 presents a scenario where the potential for higher-than-average rental income exists, but it comes with the caveat of a less stable tenant base due to the smaller proportion of renters and moderate household incomes. Investors looking to capitalize on this yield should consider the market dynamics and be ready to implement strategies that mitigate the risks associated with lower stability.
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.