Location: Knox County, ME | Metro: Knox County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,530 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,610 |
| 5 Bedrooms | $3,028 |
| 6 Bedrooms | $3,391 |
| 7 Bedrooms | $3,662 |
| 8 Bedrooms | $3,845 |
U.S. Census Bureau data (2024)
ZIP code 04855, located in Knox County, Maine, offers a unique opportunity for Section 8 portfolio inclusion. This area serves primarily as a cash-flow anchor within your investment strategy. The justification lies in the significant spread between the Fair Market Rent (FMR) and the current market conditions.
The FMR for ZIP 04855 in the fiscal year 2026 is set at $2,110. However, the current market data for this ZIP code is not available, indicating a potential gap between what the government will reimburse for rental income and the actual market rates. This gap allows you to secure a steady cash flow that is less susceptible to market fluctuations, providing a reliable foundation for your portfolio.
Despite the lack of specific market and median home value data, the absence of these figures suggests that the local real estate market may be relatively stable or underdeveloped, which can work in favor of a Section 8 investment strategy. In such environments, the guaranteed rental income from Section 8 vouchers can be a stabilizing factor, ensuring consistent returns even if market rents do not rise significantly.
The median income figure of $250,001 is noteworthy but does not directly impact the decision to include ZIP 04855 in a Section 8 portfolio. Instead, it highlights the area's economic profile, which may influence the types of properties that are suitable for Section 8 tenants. Given the high median income, it's likely that the demand for affordable housing is driven by specific demographics or economic factors unique to the region, making Section 8 properties a targeted yet necessary segment of the market.
The low renter share of 0.0% indicates that homeownership is prevalent in this area. This statistic further supports the notion that ZIP 04855 should serve as a cash-flow anchor, as it suggests that the local economy is robust enough to support homeownership, thereby reducing the risk associated with rental property investments. Additionally, the high median income suggests that there is a strong local economy that can sustain rental subsidies, ensuring the stability of the Section 8 program in this region.
In conclusion, ZIP 04855 is best suited as a cash-flow anchor within a Section 8 portfolio due to the guaranteed rental income provided by the government reimbursement, which exceeds the current market rates. This strategic placement ensures a solid financial base, particularly in an area where homeownership is dominant and the local economy supports the viability of the Section 8 program.
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.