Location: Sagadahoc County, ME | Metro: Sagadahoc County, ME HUD Metro FMR Area
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 | $1,160 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $402,234 | 0.41% | F |
| 3BR | $2,220 | $504,073 | 0.44% | F |
| 4BR | $2,730 | $689,652 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 04562, Phippsburg, ME, presents a unique opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $1,130, which is significantly higher than the average market rent of $1,022 reported by the Census Bureau's American Community Survey (ACS).
This disparity means that landlords accepting Section 8 vouchers can expect positive cash flow on typical units without requiring premium upgrades. The HUD FMR provides a buffer of approximately $108 per month over the current market rate, allowing investors to cover expenses and generate a modest profit.
To further analyze the investment potential, consider the median home value in the area, which stands at $472,842. This figure yields a rent-to-price ratio of roughly 0.24%, indicating that rental income represents a small percentage of the total property value. While this suggests that appreciation might play a larger role in overall returns, the stable cash flow from Section 8 vouchers still offers significant value.
The dynamics between renting and buying in Phippsburg do not appear to be heavily influenced by the days on market (DOM) or the percentage of price cuts, as these metrics are noted as N/A. This lack of data implies that the market is relatively stable, with fewer fluctuations in pricing and time to lease or sell properties.
The strongest investor angle in ZIP 04562 is stability. Landlords can rely on consistent cash flow from Section 8 tenants while also benefiting from the potential for long-term appreciation in property values. This combination makes it an attractive market for those seeking a reliable and predictable investment strategy.
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.