Location: Somerset County, ME | Metro: Kennebec 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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $312,835 | 0.41% | F |
| 3BR | $1,640 | $348,876 | 0.47% | F |
| 4BR | $1,990 | $414,739 | 0.48% | F |
| 5BR | $2,308 | $458,778 | 0.5% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP code 04963 (Oakland, ME) for a Section 8 investment must evaluate several key factors. The first step is to determine if the Fair Market Rent (FMR) of $1,420 can cover the debt service on a property valued at $333,564. This requires calculating the expected monthly mortgage payment, including principal, interest, taxes, and insurance.
If the monthly debt service is less than $1,420, then the answer is yes. The FMR would comfortably cover the expenses, allowing for potential profit. However, if the debt service exceeds $1,420, the answer is no, as the FMR would not be sufficient to meet financial obligations.
The second consideration is comparing the market rent of $948 to the FMR. If the market rent is below the FMR, which it is in this case, the landlord has two options:
If the landlord can find properties where the debt service is below $948, they can still achieve a positive cash flow. In this scenario, the answer is yes.
If the debt service is higher than $948, but lower than $1,420, the landlord might consider adjusting the property's value or finding a way to reduce costs. The answer here is it depends on their ability to manage costs effectively.
If the debt service is higher than $1,420, the answer is no. Even at the FMR, the income would not cover the expenses.
The third factor involves assessing the demand. ZIP 04963 has 20.1% of its population as renters. While this percentage is relatively low, it does not necessarily mean there is insufficient demand. Additionally, the Days on Market (DOM) data is marked as N/A, indicating that either the information is not available or the market is stable with quick turnover.
If the DOM data were available and indicated a quick turnover, this would suggest strong demand, making the answer yes. However, given the lack of DOM data, we must rely solely on the rental percentage. With only 20.1% of the population renting, the demand is modest. Therefore, the answer is it depends. Landlords should consider the size of their portfolio and their tolerance for risk. A small portfolio might benefit from diversifying into areas with higher rental percentages, while a larger portfolio could afford to take on the modest demand of ZIP 04963.
In conclusion, investing in ZIP 04963 for Section 8 purposes hinges on the interplay between FMR, market rent, and the landlord's ability to manage costs and tolerate modest demand. Careful analysis of these factors will guide the decision.
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.