Location: Franklin County, ME | Metro: Franklin 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 | $910 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $247,520 | 0.53% | F |
| 3BR | $1,800 | $296,428 | 0.61% | D |
| 4BR | $2,170 | $346,026 | 0.63% | D |
U.S. Census Bureau data (2024)
The rental landscape in ZIP code 04938, located in Farmington, Maine, presents a clear affordability gap for residents. The median household income stands at $55,704, which means that the market rate rent of $914 per month represents a significant portion of their earnings. In fact, this amount equates to roughly 19% of the annual income, assuming no other financial obligations.
Comparatively, the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development for the metro area in fiscal year 2026 is $1,360. This figure is notably higher than the current market rate, indicating that Section 8 vouchers could potentially offer a more stable and higher income stream for landlords. However, it also highlights a substantial difference between what the typical resident can afford and what the government deems as fair market value.
In a community where 39.0% of the 10,542 population are renters, the disparity between median income and both market rate and voucher rates suggests strong competition among landlords. Landlords who accept vouchers might secure longer-term tenancy and a guaranteed income source, albeit at a fixed rate. On the other hand, those focusing on cash-paying tenants may find a more volatile market, with greater fluctuations in occupancy and rent collection.
The takeaway for landlords is clear: accepting Section 8 vouchers can provide a steady and reliable income, despite the lower percentage of residents capable of affording the $1,360 FMR. For those prioritizing immediate higher returns, attracting cash-paying tenants will be challenging given the current economic conditions. Balancing these considerations, landlords should weigh the benefits of long-term stability against short-term financial gains.
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.