Location: Hancock County, ME | Metro: Hancock County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
U.S. Census Bureau data (2024)
The median home value in ZIP 04650, located in Little Deer Isle, Maine, is $334,300 according to recent data. This figure provides a basis for calculating the potential gross yield for properties in this area.
In the context of Section 8, the annualized Fair Market Rent (FMR) for a 2-bedroom unit is $18,000 ($1,500 per month). To derive the gross yield, we compare this income to the median home value. The implied gross yield for a property valued at $334,300 under the Section 8 program would be approximately 5.4%, calculated as follows:
$18,000 / $334,300 = 0.0538 or 5.4%
Note that the market rent for a 2-bedroom unit in ZIP 04650 is currently not available. However, considering the 7.0% renter density and the median days on market (DOM) being unavailable, it's important to recognize that the actual market rent could potentially be higher than the FMR, thus affecting the gross yield.
Given the limited data on market rent, the Section 8 scenario provides a clear and calculable gross yield. While market rents might offer a higher gross yield, the predictability and stability of Section 8 payments can be more appealing to landlords and small-portfolio investors. Therefore, the 5.4% gross yield derived from the FMR is a reliable starting point for investment analysis in ZIP 04650.
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.