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 | $1,750 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,300 |
| 5 Bedrooms | $3,828 |
| 6 Bedrooms | $4,287 |
| 7 Bedrooms | $4,630 |
| 8 Bedrooms | $4,862 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,080 | $504,833 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 04677 provides a clear picture when comparing the Federal Market Rent (FMR) and the actual market rent figures. The annualized FMR for a 2-bedroom apartment is set at $2,250, while the market rent stands at $1,696 according to the Census ACS data.
To derive the gross yield, we first calculate the implied annual income based on these figures. For the FMR scenario, the annual income would be $2,250 multiplied by 12 months, equating to an annual rental income of $27,000. When this is compared to the median home value of $528,528, the implied gross yield is approximately 5.11%. This is calculated by dividing the annual rental income by the median home value: $27,000 / $528,528 = 0.0511, or 5.11%.
In contrast, using the market rent figure of $1,696 per month, the annual rental income drops to $20,352. Applying this to the median home value, the gross yield is significantly lower at about 3.85%. This calculation is straightforward: $20,352 / $528,528 = 0.0385, or 3.85%.
The more realistic scenario depends on the local rental market dynamics. Given that only 16.2% of the population are renters, the demand for rental properties, especially those participating in the Section 8 program, may be limited. Additionally, the N/A-day DOM (Days on Market) suggests that there is either insufficient data or the property turnover rate is irregular, which can affect the predictability of rental income.
Considering these factors, the FMR-based gross yield of 5.11% is likely more optimistic and less reflective of the actual market conditions. Landlords and small-portfolio investors should lean towards the market rent-based gross yield of 3.85%, which aligns more closely with the observed rental behavior and the limited rental market presence in ZIP 04677.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.