Location: Hancock County, ME | Metro: Hancock 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 | $1,220 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $668,288 | 0.23% | F |
| 3BR | $2,150 | $791,044 | 0.27% | F |
| 4BR | $2,310 | $1,204,883 | 0.19% | F |
| 5BR | $2,680 | $2,989,732 | 0.09% | F |
U.S. Census Bureau data (2024)
ZIP code 04660 encompasses a portion of Mount Desert, Maine, known for its natural beauty and proximity to Acadia National Park. This area is characterized by a small, tight-knit community with a total population of 1,072 residents. Only 7.9% of the population are renters, indicating a predominantly owner-occupied neighborhood where property values stand at a median of $830,697. The median household income here is robust, sitting at $78,646, which suggests a relatively affluent environment.
The economic landscape for rental properties in this ZIP code is defined by the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR, set at $1,570 for the fiscal year 2026, represents the maximum amount that a landlord can charge for a Section 8 voucher. In contrast, the Census ACS data shows that the average market rent is significantly lower at $1,213 per month. This gap highlights an opportunity for landlords who are willing to operate hands-on, potentially improving their properties to command rents closer to the FMR threshold.
Given these parameters, ZIP 04660 would likely be a better fit for a hands-on value-add buyer rather than a hands-off voucher operator. The high median home value and strong median income indicate that there is potential for enhancing property quality to attract higher-paying tenants. For those looking to manage properties with minimal intervention, the current market conditions may not offer the best return on investment due to the relatively low market rent compared to the FMR. However, for investors willing to invest time and resources into property improvements, the potential exists to capture a higher rental rate, aligning closely with the FMR and thus maximizing the benefits of the Section 8 program.
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.