Location: Aroostook County, ME | Metro: Aroostook 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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $140,269 | 0.79% | D |
| 3BR | $1,510 | $179,697 | 0.84% | C |
| 4BR | $1,570 | $206,571 | 0.76% | D |
U.S. Census Bureau data (2024)
In ZIP code 04736 located in Caribou, Maine, there are several factors that could pose challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the disparity between the market rent of $757 and the Federal Market Rent (FMR) of $1,140 for fiscal year 2026. This difference indicates a potential struggle to find tenants willing to pay the higher FMR rates required by Section 8 vouchers, leading to increased turnover and associated costs.
Vacancy exposure is another critical issue. With an average Days on Market (DOM) being N/A, it suggests a lack of consistent data which could indicate either very quick sales or rentals, or an underactive real estate market. In either case, the uncertainty around vacancy periods can be risky for landlords who need steady cash flow.
The deferred-maintenance exposure is also noteworthy. Given the typical home value of $156,789 and the median household income of $54,368, many homeowners might delay necessary repairs and upgrades due to financial constraints. For landlords, this could translate into higher maintenance costs, especially when managing older properties that attract lower-income tenants.
However, these risks must be weighed against the substantial 24.4% share of renters in the area. High renter density often correlates with a greater demand for rental housing, including those supported by Section 8 vouchers. This demand can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.