Location: Lincoln County, ME | Metro: Lincoln County, ME
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $422,005 | 0.31% | F |
| 3BR | $1,800 | $543,441 | 0.33% | F |
| 4BR | $1,870 | $735,943 | 0.25% | F |
| 5BR | $2,169 | $969,077 | 0.22% | F |
U.S. Census Bureau data (2024)
The ZIP code 04538, located in Boothbay Harbor, ME, exhibits characteristics that position it between a high-yield/low-stability flip-style market and a steady-cashflow zone. The analysis is based on key metrics including Fair Market Rent (FMR), median home value, renter population percentage, and median household income.
On the yield axis, the FMR for the metro area in fiscal year 2026 is set at $1,440, which is notably higher than the market rate of $1,058. This suggests a potential opportunity for landlords to secure higher rental incomes compared to what might be expected from typical market rates. However, the median home value stands at $565,000, indicating a significant investment cost for property acquisition. Given these figures, the yield in this market is moderately high, driven by the disparity between the FMR and the market rate, but tempered by the relatively high cost of property ownership.
Regarding stability, the ZIP code shows a 27.0% renter population. While this percentage is not exceptionally low, it does imply a smaller pool of potential tenants relative to areas with higher percentages of renters. Additionally, the median household income of $56,500 suggests a moderate economic base for residents, which can support consistent rental payments but does not indicate an exceptionally robust or volatile market. The lack of data on days on market (DOM) makes it challenging to assess short-term fluctuations in rental demand, but overall, the stability appears to be moderate.
In summary, ZIP 04538 offers a balance between yield and stability. Landlords can expect to achieve rental rates above the market average, leveraging the FMR to their advantage. However, the market is not characterized by extreme volatility or instability, making it suitable for those seeking a blend of solid returns and relative predictability. The high median home value means that while the upside potential exists, so does a greater risk due to the substantial capital required for entry into this market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.