Location: Somerset County, ME | Metro: Somerset County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 04943 reveals a specific picture regarding the potential returns on investment for Section 8 properties compared to market rents. Using the annualized Fair Market Rent (FMR) for a two-bedroom apartment at $1,150 per month for fiscal year 2026, the implied gross yield can be calculated. With a median home value of $181,475, the annual rental income would be $13,800. This translates into a gross yield of approximately 7.6% ($13,800 / $181,475).
On the other hand, considering the market rent figure of $911 per month, the annual rental income drops to $10,932. This results in a gross yield of about 6.0% ($10,932 / $181,475). The difference between these two yields is significant, indicating that Section 8 properties could offer a higher return based solely on rental income.
The 17.3% renter density in ZIP 04943 suggests a relatively low demand for rentals compared to owner-occupied homes. However, this does not necessarily diminish the attractiveness of Section 8 properties, as they are often sought after due to their guaranteed income stream and government backing. The N/A-day Days on Market (DOM) indicates incomplete data, possibly due to limited turnover or sales activity, which can skew the typical market indicators used by investors.
In conclusion, the Section 8 scenario with an annualized FMR of $1,150 provides a stronger gross yield of 7.6% compared to the market rent scenario at 6.0%. Given the specific characteristics of ZIP 04943, including its lower renter density, the Section 8 option offers a more stable and predictable income source, making it a more attractive proposition for landlords and small-portfolio investors seeking consistent cash flow.
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.