Location: Knox County, ME | Metro: Knox 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 | $1,290 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $342,048 | 0.48% | F |
| 3BR | $2,150 | $428,357 | 0.5% | F |
| 4BR | $2,210 | $477,740 | 0.46% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 04547, located in Friendship, ME, on the yield and stability axes reveals a unique real estate investment scenario. On the yield axis, the area shows potential, with a metro Fair Market Rent (FMR) of $1,790 for fiscal year 2026, compared to a market rent of $1,370. This indicates that there is a possibility of securing higher rents through Section 8 participation. However, the median home value in the area is relatively low at $377,570, suggesting that while rental yields might be attractive, the overall property values are modest.
Moving to the stability axis, the metrics paint a picture of an unstable market. Only 8.9% of the population are renters, which is a very low percentage, indicating a strong preference for homeownership among residents. The lack of data on days on market (DOM) further suggests volatility in the rental market, as it is difficult to predict how quickly properties can be rented out. Additionally, the average household income of $75,625 is lower than what might be expected in a stable rental market, where higher incomes often correlate with greater demand for rentals.
Given these figures, ZIP 04547 leans towards being a high-yield/low-stability market. The disparity between the FMR and market rent suggests opportunities for higher returns through Section 8 subsidies. However, the low percentage of renters and the limited data on DOM indicate a volatile environment, making it challenging to achieve consistent cash flow. The lower median home value also means that any appreciation in property value will likely be modest compared to other areas.
Investors considering this ZIP code should weigh the potential for higher rental yields against the risks associated with low stability. While the financial incentives are present, the market conditions suggest a need for careful management and possibly a shorter-term investment strategy rather than a long-term hold.
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.