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 | $1,210 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,920 | $369,892 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 04861, located in Knox County, Maine, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,380, while the Census ACS reports the current market rent at $1,262. This indicates that the FMR is $118 higher than the market rent, representing an 8.8% premium.
This gap makes ZIP 04861 a compelling opportunity for landlords and small-portfolio investors interested in maximizing their rental yields. The higher FMR means that voucher holders can pay up to $1,380 per month, which exceeds the typical market rate. Consequently, landlords who accept Section 8 vouchers can potentially earn more than they would from traditional market-rate tenants.
In the context of Thomaston, ME, where 26.1% of residents are renters, the median home value stands at $335,903, and the median household income is $56,435. These figures highlight the economic landscape where affordable housing plays a crucial role. Accepting Section 8 vouchers not only fills a need for low-income families but also allows landlords to benefit from the federal subsidy that covers the difference between the market rent and what the tenant can afford.
Landlords should be aware of the administrative requirements associated with accepting vouchers, including periodic inspections and compliance with HUD standards. However, the financial upside of renting at FMR levels rather than below-market rates makes it a viable strategy for increasing cash flow and maintaining property values in a competitive rental market.
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.