Section 8 Fair Market Rent (FMR) for ZIP 04955 - 2027

Location: Somerset County, ME | Metro: Franklin County, ME

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$950
1 Bedroom	$1,050
2 Bedrooms	$1,370
3 Bedrooms	$1,900
4 Bedrooms	$2,290
5 Bedrooms	$2,656
6 Bedrooms	$2,975
7 Bedrooms	$3,213
8 Bedrooms	$3,374

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,550

Median Household Income

$63,889

Housing Units

736

Renter Percentage

9.8%

Occupancy Rate

82.1%

Renter Occupied

To determine if you should buy in ZIP code 04955 for Section 8 purposes, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $1,520 cover the debt service on a property priced at $248,977?

If yes: Proceed to Step 2.
If no: Do not invest in this ZIP code for Section 8 purposes. The FMR does not sufficiently cover the debt service, making it financially unviable.

Step 2: How does the market rent of $961 compare to the FMR?

If market rent is below FMR: This indicates that Section 8 tenants can afford to pay the market rate, which is beneficial. Proceed to Step 3.
If market rent is equal to or above FMR: This suggests limited upside potential, as the rents are already at or near the FMR level. The decision to invest would depend on other factors such as location desirability and competition.

Step 3: Is there sufficient demand with 9.8% of residents being renters and an unknown number of days on the market (DOM)?

If yes: There is a clear demand for rental properties, making ZIP 04955 a viable investment for Section 8 landlords. The percentage of renters suggests a steady stream of potential tenants.
If no: The lack of data on DOM makes it difficult to assess the demand accurately. However, given that 9.8% of residents are renters, there might still be some demand, but it's not strong enough to warrant a definitive "yes". It depends on further investigation into the local rental market conditions and competition.

In summary, if the FMR of $1,520 clears the debt service on a $248,977 property and market rent is below the FMR, then the answer is yes, you should consider buying in ZIP 04955 for Section 8. If market rent equals or exceeds the FMR, the decision becomes more nuanced and depends on other factors. Lastly, if the demand from renters is sufficient, despite the lack of DOM data, this ZIP code remains a reasonable investment option for Section 8 landlords.

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.