Location: Aroostook County, ME | Metro: Penobscot County, ME (part) HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 04733 reveals a unique balance between yield potential and market stability, making it an intriguing option for real-estate investors, particularly those focused on Section 8 properties.
The Fair Market Rent (FMR) for ZIP 04733 in fiscal year 2024 is set at $1,180. This figure is crucial because it represents the maximum amount that a landlord can charge for a Section 8 rental unit. However, the absence of market rent and home value data suggests a limited private market activity, which could indicate a higher reliance on government-assisted housing programs. This reliance increases the yield predictability for landlords who are willing to participate in the Section 8 program.
Regarding stability, the ZIP code has a relatively high percentage of renters at 27.6%. While this figure is significant, it does not necessarily imply instability. Instead, it indicates a substantial portion of the population relies on rental housing, which can be beneficial for landlords who are committed to long-term investments. The median household income in ZIP 04733 is $59,050, which is a key indicator of the financial health of potential tenants. A moderate income level suggests that while there might be some financial stressors, the majority of residents are likely able to maintain consistent rental payments.
The lack of data on days on market (DOM) makes it challenging to assess the speed at which properties are rented out. However, given the high percentage of renters and the presence of the Section 8 program, it is reasonable to assume that the demand for rental units is steady, though not necessarily rapid.
In conclusion, ZIP 04733 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The predictability of the FMR and the substantial number of renters support this classification. Investors should focus on the long-term benefits of steady cash flows over speculative high yields. Engaging with the Section 8 program can provide a reliable source of income, but it requires adherence to government guidelines and a willingness to serve a specific demographic.
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.