Location: Somerset County, ME | Metro: Kennebec County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 04927, located in Somerset County, Maine, reveals several key points for potential landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the Maine metro area for fiscal year 2026 is set at $1,550. However, the current market rent, according to Census ACS data, is significantly lower at $1,177. This suggests that landlords may find it challenging to achieve rents that meet or exceed the FMR without offering competitive amenities or maintaining high standards of property management.
Regarding the affordability of acquisitions, the median home value in ZIP 04927 is $247,437. Unfortunately, the average days on market (DOM) and the percentage of homes needing a price cut to sell are not available. This lack of data makes it difficult to assess how quickly properties can be sold and if adjustments to asking prices are typically necessary. Despite this limitation, the median home value indicates that purchasing properties could be within reach for many investors, though they should prepare for potentially lower-than-FMR rental income.
The third point concerns tenant demand. ZIP 04927 has a total population of 3,385, with only 4.9% being renters. This low renter share implies a limited pool of potential tenants, which could make it harder to fill vacancies and maintain consistent cash flow. Landlords would need to ensure their properties stand out in a market where homeownership is predominant.
In conclusion, while the median home value in ZIP 04927 is reasonable for acquisition, the discrepancy between the FMR and the actual market rent suggests that achieving higher rental rates will require strategic property enhancements and management practices. Additionally, the low renter share poses a challenge in finding tenants, necessitating a focus on attracting and retaining the smaller pool of renters. Overall, the ZIP presents an opportunity for cautious investors who can manage properties effectively and are willing to adapt to the local rental market dynamics.
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.