Location: Aroostook County, ME | Metro: Aroostook County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The market in ZIP 04787, located in Tennessee, presents a dynamic environment characterized by the interplay between supply and demand. With a Fair Market Rent (FMR) set at $1,240 for the fiscal year 2026, this figure represents the threshold above which rental units are considered unaffordable for low-income families receiving federal assistance. In contrast, the current market rent, according to the Census ACS data, stands at $950, indicating that rental prices are currently below the FMR. This suggests a scenario where demand might be somewhat lower than supply, as rents have not risen to the federally determined fair market level.
The significant gap between the FMR and the actual market rent also points to potential opportunities for landlords and small-portfolio investors who can offer competitive pricing without sacrificing profitability. However, it's important to note that the lack of data on price-cut share, days on market (DOM), and median home value leaves certain aspects of the market's health and trends unclear. Despite these gaps, the 17.3% renter share provides valuable insight into the long-term housing pressures faced by the area. A relatively low percentage of renters compared to homeowners indicates a strong preference for owning property over renting, which could suggest limited long-term rental demand growth.
However, this does not necessarily mean that the rental market is stagnant. The presence of federal assistance programs and the gap between FMR and market rent could attract a segment of tenants seeking affordable housing options. Landlords should consider the local economy, employment rates, and population growth to understand the underlying forces driving the rental market. By focusing on providing quality, cost-effective rental properties, landlords can capitalize on the existing demand while preparing for any shifts in the market's dynamics.
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.