Location: Lincoln 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 | $1,160 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,770 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $376,846 | 0.37% | F |
| 3BR | $1,770 | $408,993 | 0.43% | F |
| 4BR | $1,880 | $477,081 | 0.39% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 04862 (Union, ME, Knox County) can be explained through a comparison of the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $1,360. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code.
In contrast, the local market rent for a two-bedroom unit, based on Census ACS data, is $1,125. This indicates the average rent price that landlords might typically charge in the Union area.
When a landlord participates in the Section 8 program, they receive a voucher payment that covers most of the tenant's rent. The tenant is responsible for paying approximately 30% of their income towards rent. Additionally, there are utility allowances that vary but are typically around $300-$400 per month, depending on the number of bedrooms and the region.
To illustrate, let’s assume a tenant’s portion of the rent is $350, which is a common figure. The voucher would then cover the remainder of the rent up to the SAFMR of $1,360. Therefore, the voucher payment would be $1,010 ($1,360 - $350).
If we factor in a utility allowance of $300, the total monthly reimbursement to the landlord would be $1,310 ($1,010 + $300).
Given that the local market rent is $1,125, participating in the Section 8 program in ZIP 04862 would result in a surplus for the landlord. The surplus is calculated by subtracting the local market rent from the total reimbursement, which in this case is $185 ($1,310 - $1,125).
This means landlords who accept Section 8 vouchers for two-bedroom units in Union, ME, can expect to earn more than the typical market rent, thereby increasing their profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.