Location: Hancock County, ME | Metro: Hancock County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,360 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
U.S. Census Bureau data (2024)
In ZIP code 04642, the economics of Section 8 housing can be quite different from what you might expect based on national averages. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP is set at $1,790 per month for fiscal year 2026. This figure is crucial because it determines the maximum amount that the Housing Choice Voucher program will pay towards rent for a two-bedroom unit in this area.
However, the local market rent for a similar two-bedroom unit runs significantly lower at $1,320 per month, according to the latest Census ACS data. This discrepancy between the SAFMR and the actual market rent is important for landlords to understand, as it affects the overall economics of renting to Section 8 tenants.
When a tenant uses a voucher, they are responsible for paying approximately 30% of their adjusted monthly income toward rent. The remaining amount is subsidized by the government up to the SAFMR limit. For example, if a tenant's monthly income is $1,000, they would pay $300 toward rent. The government would then cover the difference between the tenant's payment and the SAFMR, which in this case would be $1,490 ($1,790 - $300).
The voucher also includes utility allowances. These allowances vary but typically cover a portion of the tenant's utility costs. Let's assume the utility allowance for a two-bedroom apartment is around $200 per month. This means the total reimbursement a landlord could receive for a two-bedroom unit is the sum of the tenant's contribution, the government subsidy, and the utility allowance.
In our example, the landlord would receive $300 from the tenant plus $1,490 from the government, totaling $1,790. If the local market rent is $1,320, this leaves a surplus of $470 per month for the landlord. This surplus can be used to cover various expenses such as property maintenance, insurance, and other operational costs.
It's important to note that while the SAFMR is $1,790, the actual reimbursement will depend on the tenant's income and any adjustments made by the local housing authority. In ZIP 04642, landlords can expect a reimbursement that covers the entire local market rent, with an additional surplus of $470 per month for a two-bedroom unit.
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.