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 | $1,210 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $410,610 | 0.34% | F |
| 3BR | $1,830 | $596,386 | 0.31% | F |
U.S. Census Bureau data (2024)
ZIP code 04551, located within Lincoln County, ME, exhibits unique characteristics when compared against the broader county metrics. The Fair Market Rent (FMR) for ZIP 04551 is set at $1,530 for the fiscal year 2026, which is a critical figure for landlords participating in the Section 8 program. This FMR is established by HUD to reflect the rental market's conditions and serves as an upper limit for rental subsidies.
Notably, the market rent for ZIP 04551 is currently not available. However, the median home value stands at $462,126, indicating a relatively high property cost in the area. This suggests that landlords and small-portfolio investors might face higher acquisition costs for properties within this ZIP code.
The renter share in ZIP 04551 is 6.4%, which is lower than what might be considered typical for urban areas but could be on par with rural settings like those found in Lincoln County. This low percentage implies a smaller demand for rental housing, which could affect the number of potential tenants interested in Section 8 housing.
To determine whether ZIP 04551 represents a value pocket, a mid-tier neighborhood, or a premium sub-market within its metro, we must consider the FMR in relation to the home value. Given that the FMR is significantly lower than the median home value, it suggests that the rental market in this ZIP code is not as expensive as the property market. This could make it a challenging area for landlords who rely solely on rental income to cover mortgage expenses, especially if the market rent is also high.
The lack of market rent data makes it difficult to draw a direct comparison between the two, but the existing figures imply that ZIP 04551 leans towards being a mid-tier neighborhood rather than a premium sub-market. The high median home value contrasts with the lower FMR, suggesting that while property ownership is costly, rental subsidies may not fully compensate for the high purchase price. This situation might not present the ideal scenario for maximizing returns through Section 8 participation alone.
However, the divergence between the high home value and the low renter share does not necessarily signal a Section 8 sweet spot. Typically, a high renter share with below-average home values would indicate such a scenario, but ZIP 04551 does not exhibit this pattern. Therefore, landlords and investors should carefully evaluate their goals and consider the broader economic context of Lincoln County, ME, before making decisions about investing in this ZIP code.
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.