Location: Hancock County, ME | Metro: Hancock County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,360 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 04616 in Maine provides a clear picture of potential rental income versus property value. Using the Fair Market Rent (FMR) for a 2-bedroom apartment at $1,840 per month (annualized to $22,080 for FY 2026), and the Census ACS reported market rent of $1,236 per month (annualized to $14,832), we can derive the implied gross yields.
The median home value in ZIP 04616 is $429,370. Based on the annualized FMR, the implied gross yield for a Section 8 property would be approximately 5.1%. This is calculated by dividing the annualized FMR ($22,080) by the median home value ($429,370).
In contrast, using the market rent figure, the implied gross yield drops to about 3.5%, calculated by dividing the annualized market rent ($14,832) by the median home value ($429,370).
The 15.6% renter density suggests that there is a moderate demand for rental properties in the area. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly a property could be rented out under either scenario. Given the higher guaranteed rent through the Section 8 program, the 5.1% gross yield is more stable and predictable compared to the market rent yield of 3.5%.
Investors should consider the stability of the Section 8 program over the volatility of market rents when deciding between these two options. The higher gross yield from Section 8 rentals, while lower than typical investment returns, offers a consistent revenue stream that aligns well with the current rental market conditions in ZIP 04616.
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.