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 | $1,080 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,150 | $612,139 | 0.35% | F |
U.S. Census Bureau data (2024)
The first objection is whether the Fair Market Rent (FMR) of $1,570 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a home priced at $546,340. To evaluate this, we need to consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment for a $546,340 home would be approximately $2,670. Clearly, the FMR does not cover this mortgage cost. However, it's important to note that the median home value in ZIP 04947 is $246,900, which is significantly lower than the assumed purchase price. This suggests that the $546,340 figure might represent a higher-end property, and such properties often command higher rents. Therefore, while the FMR alone won't cover the mortgage, there is potential for higher rental income if the property is positioned correctly.
The second objection concerns the level of renter demand, which stands at 8.3%. This percentage indicates the proportion of households that are renters. While this figure might seem low compared to some urban areas, it's crucial to understand the local context. ZIP 04947 is a rural area with a median age of 53.5 years, which is considerably older than both the state and national averages. Older populations tend to own their homes rather than rent, which naturally reduces the rental market share. Despite this, the demand for rentals still exists, particularly among seasonal workers and tourists, given the area's proximity to outdoor recreational activities.
The third objection questions whether voucher programs will keep pace with the market rents of $943. Voucher programs are typically adjusted annually based on the Consumer Price Index (CPI) and other economic factors. However, the specific data on how these adjustments correlate with the local market rents in ZIP 04947 is not provided. Generally, voucher amounts can lag behind market rents, especially in areas experiencing rapid inflation or growth in tourism. Landlords should be prepared to assess individual tenant situations and possibly supplement voucher income with additional rental sources.
In summary, while the FMR alone cannot cover the mortgage on a high-priced property, there is potential for higher rental income due to the area's unique characteristics. Renter demand, though low, still exists and can be capitalized upon. Lastly, voucher programs may not always align perfectly with market rents, necessitating careful management of rental properties.
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.