Location: Aroostook County, ME | Metro: Aroostook County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 04762 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,340, while the current market rent, based on Census ACS data, is $658. This means there is a gap of $682 between what landlords can charge under the Section 8 program and the prevailing market rate. In percentage terms, the FMR is 203.6% higher than the current market rent.
This substantial difference makes ZIP 04762 an attractive location for landlords and small-portfolio investors looking to maximize their rental yields. Voucher tenants, who benefit from the Section 8 program, can afford to pay rents that are much closer to the FMR, thereby offering landlords the opportunity to earn significantly more than the open-market rate.
In the context of Tennessee, where 11.8% of residents are renters and the median household income is $58,333, this gap highlights the economic disparity between federal housing assistance standards and local market conditions. Given that the median home value is not available, it underscores the importance of rental properties in providing affordable housing options.
Landlords should be aware that while the potential for higher yields exists, they must comply with the regulations of the Section 8 program. This includes maintaining the property to certain standards and undergoing regular inspections. However, the financial benefits of renting to voucher tenants in ZIP 04762 outweigh these costs, making it a viable investment strategy for those interested in the rental market.
To summarize, the gap between the FMR and the market rent in ZIP 04762 presents a unique opportunity for landlords to achieve higher rental yields. By accepting Section 8 vouchers, landlords can charge rents that are closer to the FMR of $1,340, rather than the lower market rate of $658, thus increasing their profitability in a region where the majority of residents have a median income of $58,333.
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.