Location: Somerset County, ME | Metro: Somerset 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 | $1,210 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $213,807 | 0.68% | D |
| 3BR | $1,970 | $243,050 | 0.81% | C |
| 4BR | $2,030 | $235,418 | 0.86% | C |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1,520 for ZIP 04950 (Madison, ME) in metro FY 2026, landlords can expect a solid baseline for rental pricing. The market rent stands at $906 according to Census ACS data, indicating a significant premium landlords could potentially charge through Section 8 participation. In terms of property values, the median home value in the area is $214,158, which provides a clear picture of the local real estate landscape. Given that 45.4% of residents are renters, there's a substantial demand for rental properties, making it a viable market for landlords. However, the median income of $61,747 suggests that many tenants may be price-sensitive, further highlighting the appeal of Section 8 contracts. Despite the lack of specific data on days on market (DOM) and the percentage of homes with price cuts, the disparity between the FMR and market rent points to an opportunity for landlords to capture higher rents. Moreover, the relatively low median income supports the argument that Section 8 vouchers will continue to play a crucial role in facilitating tenancy in Madison. Therefore, for landlords and small-portfolio investors looking to enter or expand in ZIP 04950, Section 8 remains a strategic option to ensure steady occupancy and income.
Section 8 Verdict: Suitable for landlords seeking stable rental income in a moderately priced rental market.
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.