Location: Lincoln County, ME | Metro: Lincoln County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,400 for ZIP 04564 in Round Pond, ME will sufficiently cover the mortgage on a home. Given that the average home value in this ZIP code is $578,500, securing a mortgage at a competitive interest rate would likely result in monthly payments exceeding the FMR. This suggests that relying solely on Section 8 tenants may not be financially viable without additional income sources.
The investor could also express doubt about the level of renter demand in this area, which stands at 9.5%. However, with only 252 households in ZIP 04564, the total number of renters is relatively low. Despite this, the high median household income of $132,604 indicates that there is financial stability among residents, which can be beneficial for maintaining consistent rental income.
Another concern is whether housing vouchers will keep pace with the local market rents. Unfortunately, the data does not provide a direct comparison between voucher amounts and market rents for ZIP 04564. However, given the significant gap between the FMR and the average home value, it is prudent to assume that voucher amounts may lag behind market rates, potentially making it challenging to find suitable properties for Section 8 tenants.
To summarize, while ZIP 04564 presents some attractive features such as a stable economy and high median income, the skepticism regarding mortgage coverage and voucher adequacy is justified based on the available data. Landlords and small-portfolio investors should carefully consider these factors before investing in this area.
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.