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 | $950 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $284,888 | 0.44% | F |
| 3BR | $1,690 | $335,734 | 0.5% | F |
U.S. Census Bureau data (2024)
Investors considering properties in ZIP code 04680, located in Steuben, Maine, often have several concerns that need addressing before making an informed decision. One of the primary objections raised is whether the Fair Market Rent (FMR) of $1,150 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a median-priced home of $268,935. To clarify, the FMR represents the maximum amount that a landlord can charge for a Section 8 rental unit. However, the mortgage coverage depends on factors such as interest rates and loan terms. Assuming a fixed-rate mortgage at a conservative interest rate of 4%, the monthly payment on a $268,935 home would be approximately $1,300, which means the FMR does not fully cover it. This highlights the importance of additional income sources or a lower purchase price.
The second concern is the level of renter demand, measured at 10.6%. While this percentage might seem low, it is important to understand what it represents. The 10.6% indicates the share of households that are renters, suggesting a modest but steady demand for rental properties. Although the demand is not as high as in urban areas, the stability of the local economy and the presence of industries like healthcare and education provide a consistent tenant base. Moreover, the percentage alone does not tell the whole story; the number of actual renter households and their ability to pay must also be considered.
A third objection is the adequacy of voucher payments to keep pace with market rents, currently at $678. Section 8 vouchers are designed to cover a significant portion of the rent, but they do not always match the full market rent. In ZIP 04680, the voucher amount is likely to be less than the $678 market rent, which could affect profitability. However, the advantage of accepting vouchers lies in the guaranteed payment and the reduced risk of unpaid rent. Landlords should consider the trade-off between the slightly lower rent and the security of timely payments.
To summarize, while the FMR of $1,150 does not fully cover the mortgage on a $268,935 home, there are strategies to mitigate this issue, such as securing a lower interest rate or finding a property below the median price. The 10.6% renter demand suggests a stable but not booming rental market, suitable for those seeking a predictable investment environment. Lastly, although voucher payments may fall short of covering the full $678 market rent, they offer financial security and a reliable source of income for landlords willing to participate in the program.
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.