Location: Aroostook County, ME | Metro: Aroostook County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
U.S. Census Bureau data (2024)
The ZIP code 04768, located in Tennessee, presents a unique scenario for real-estate investment, particularly within the context of Section 8 properties. With a Fair Market Rent (FMR) of $1,600 for the fiscal year 2026, this area offers a significant opportunity for rental income. However, when compared to the market rent of $1,100, it becomes evident that Section 8 properties can command a premium, making this a potentially high-yield market.
The median home value of $187,244 provides a baseline for property acquisition costs. Given the FMR, landlords can expect a higher rental income than the market average, which could translate into substantial profits if managed correctly. The discrepancy between the FMR and market rent highlights the potential for leveraging Section 8 contracts to secure higher yields.
On the stability axis, the data reveals a mixed picture. Only 6.3% of the population are renters, indicating a relatively low demand for rental properties overall. This suggests that while there might be opportunities within the Section 8 program, the broader rental market is less robust. The absence of data regarding days on market (DOM) indicates an incomplete picture of rental property turnover, but it's likely that this figure would align with the low percentage of renters. The average household income of $60,000 suggests a moderate financial stability among residents, which is crucial for maintaining consistent rental payments.
Given these factors, ZIP 04768 appears to be a market that leans towards high-yield but with lower stability due to the limited number of renters. It is not ideal for a flip-style market given the low percentage of renters, nor does it qualify as a steady cash flow zone because of the same reason. Instead, it represents a niche opportunity for those specifically interested in Section 8 properties, where the FMR of $1,600 can provide above-market returns. For small-portfolio investors, focusing on securing Section 8 contracts can mitigate some of the risks associated with the lower general rental demand.
To summarize, the key figures driving this assessment are the FMR of $1,600, which is notably higher than the market rent of $1,100, and the low percentage of renters at 6.3%. These elements suggest a specialized investment strategy focused on Section 8 contracts to achieve higher yields, while acknowledging the inherent instability in a market with fewer overall renters.
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.