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)
To determine if you should buy in ZIP code 04693 for Section 8 investment, follow this decision tree:
1) Does FMR $1,500 (metro FY 2026) clear debt service on a $325,193 property?
If your answer is yes, proceed to the next question. To clear debt service, the Fair Market Rent (FMR) must cover the mortgage payment, property taxes, insurance, and other costs associated with owning the property. At an FMR of $1,500, you need to ensure that this amount exceeds the total monthly debt service cost of the property. If it does, then the property is financially viable under Section 8.
2) Is market rent $818 (Census ACS) above, at, or below FMR?
If market rent is below the FMR of $1,500, then the property is undervalued in the market, making it a good candidate for Section 8 investment. However, if the market rent is above the FMR, then the property might be better suited for market-rate tenants rather than Section 8. If market rent equals the FMR, the property is appropriately priced, and you can proceed to the next question.
3) Are 19.8% renters + N/A-day DOM enough demand?
If the percentage of renters in the area is sufficient and the days on market (DOM) is low, indicating strong demand, then the answer is yes. With 19.8% of the population being renters, there is a reasonable demand for rental properties. However, since the DOM is not available, you need to assess the local rental market dynamics. If the rental vacancy rate is low, and there is a high turnover of tenants, this suggests strong demand and stability for Section 8 investments.
Yes: If all conditions align—FMR clears debt service, market rent is below or equal to FMR, and there is strong tenant demand—then buying in ZIP 04693 for Section 8 is advisable.
No: If any condition fails—market rent exceeds FMR, FMR does not cover debt service, or demand is weak—then it is not recommended to invest in this ZIP code for Section 8.
It depends: If market rent equals FMR and you are uncertain about the demand, you should conduct further research into the local rental market, including vacancy rates and tenant demographics. This will provide a clearer picture of whether the investment is worthwhile.
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.