Location: Knox County, ME | Metro: Knox 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 | $1,110 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,150 | $252,320 | 0.46% | F |
| 2BR | $1,380 | $305,258 | 0.45% | F |
| 3BR | $1,790 | $363,686 | 0.49% | F |
| 4BR | $1,880 | $424,250 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 04841, located in Rockland, Maine, highlights 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 $1,390, while the market rent, as indicated by Zillow's ZORI, stands at $1,985. This results in a difference of $595 per month, or approximately 42.7%, between what Section 8 vouchers cover and the prevailing rental rates.
In Rockland, where 38.0% of residents are renters, the median home value is $340,316 and the median income is $56,533. Given these figures, landlords and small-portfolio investors should understand that accepting Section 8 tenants means renting below the open-market rate. This discrepancy can affect the profitability of rental properties and requires careful consideration of the financial implications.
When FMR is lower than the market rent, as it is in ZIP 04841, landlords must evaluate whether the reduced rental income aligns with their investment goals. While the federal government guarantees payment of the voucher amount, landlords may face challenges such as higher vacancy rates or increased maintenance costs. However, the stability provided by the government-backed payments can be a compelling factor for some investors looking to mitigate risk.
To illustrate the impact, consider a property rented at the FMR of $1,390. Compared to the market rent of $1,985, the landlord would miss out on $595 per month. Over a year, this amounts to $7,140 less in rental income. For investors focused on cash flow, this shortfall needs to be offset by other factors, such as tax benefits or lower turnover rates associated with Section 8 tenants.
Moreover, landlords should factor in the overall economic context of Rockland. With a median income of $56,533, many residents rely on assistance programs like Section 8 to afford housing. Therefore, offering affordable options can contribute positively to the community while also ensuring steady occupancy and predictable income through government support.
In conclusion, the decision to participate in the Section 8 program in Rockland, ME, involves balancing the gap between FMR and market rents against the benefits of guaranteed income and stable occupancy. Landlords and investors must weigh these factors carefully to determine if this strategy fits their broader investment objectives.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.