Location: Washington County, ME | Metro: Washington 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 | $930 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,640 | $182,754 | 0.9% | C |
U.S. Census Bureau data (2024)
ZIP code 04623 is located in a small town setting typical of Southern Maine. With a population of just 1,173 residents, it offers a quiet, rural environment where approximately 18.5% of the residents are renters. The median household income in this area stands at $50,163, which is slightly above the national average, indicating a relatively stable economic base. The median home value in ZIP 04623 is $160,688, reflecting an affordable housing market that is accessible to many families.
The Federal Market Rent (FMR) for ZIP 04623 is set at $1,260 for the fiscal year 2026, which is significantly higher than the current market rent of $869 as reported by the Census Bureau's American Community Survey. This discrepancy suggests a potential opportunity for landlords who can offer quality housing that meets the standards required for Section 8 tenancy. The difference between the FMR and the market rent implies that properties in this ZIP code could benefit from improvements that would justify higher rents, aligning more closely with the FMR.
For hands-off voucher operators, ZIP 04623 presents a straightforward investment scenario. The low population density and high FMR compared to the market rent mean that there is less competition for rental properties, making it easier to find tenants without the need for extensive property management. However, for those looking to actively manage their investments and add value, the potential to increase rents by improving property quality is evident. This strategy could yield higher returns over time as the improved properties command closer to the FMR rates.
In summary, ZIP 04623 offers a niche market for both hands-off and hands-on Section 8 investors. The stable local economy and the significant gap between FMR and market rent provide a solid foundation for investment, whether the goal is passive income or active property management aimed at maximizing returns.
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.