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 | $1,280 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $429,216 | 0.43% | F |
| 3BR | $2,410 | $619,211 | 0.39% | F |
| 4BR | $2,420 | $813,262 | 0.3% | F |
| 5BR | $2,807 | $1,500,033 | 0.19% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 04856, located in Rockport, ME, within the Knox County metro area, does not align favorably. The Fair Market Rent (FMR) for the fiscal year 2026 is set at $1,750, while the actual market rent stands at $1,194 according to Census ACS data. This discrepancy suggests that landlords may face challenges in covering costs, especially those associated with higher-end properties, unless they can significantly reduce their expenses or find ways to increase rental income.
Acquisition in this ZIP code is moderately priced, with a median home value of $586,543. However, the lack of available data on days on market (DOM) and the low percentage of homes that have had their prices cut (0.1%) indicate a stable but potentially less dynamic market. Landlords and small-portfolio investors should be cautious about overpaying for properties, given the limited volatility and the need to balance acquisition costs with the lower-than-expected rental yields.
Tenant demand is relatively low in ZIP 04856. With a total population of 3,675 and only 15.5% of residents being renters, the pool of potential tenants is smaller compared to areas with higher renter shares. This demographic characteristic could lead to increased competition among landlords for a limited number of tenants, further pressuring rental rates and occupancy levels.
Verdict: While the acquisition cost in ZIP 04856 is reasonable, the mismatch between the FMR and actual market rents, coupled with the low tenant demand, presents significant challenges for landlords and small-portfolio investors. The current market conditions suggest that generating a profit through rental income alone may be difficult, necessitating a careful assessment of property expenses and potential rental increases. Investors should proceed with caution and consider diversifying their portfolio to include other ZIP codes with stronger tenant demand and more favorable rental yield environments.
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.