Location: Somerset County, ME | Metro: Penobscot County, ME (part) HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP 04965 centers around the significant gap between the Fair Market Rent (FMR) set by HUD, which is $1,500 for FY 2026, and the actual market rent of $733 as reported by the Census ACS. This gap amounts to $767, representing a 105% increase over the current market rent.
In ZIP 04965, where only 17.4% of residents are renters, the median home value stands at $236,246, and the median income is $60,543. Given these figures, the disparity between the FMR and the market rent makes this area a prime yield play for landlords and small-portfolio investors. Voucher tenants provide a guaranteed income stream that aligns closely with the FMR, ensuring that landlords receive payments that are significantly above the open-market rates.
The high FMR relative to market rents means that landlords can secure higher returns on their investments without facing the risk of vacancy that might occur with non-subsidized rentals. Moreover, the consistent nature of Section 8 payments reduces financial uncertainty, making it a stable source of income in a region where homeownership is prevalent and market rents are low.
However, the cost of housing voucher tenants below open-market rates must be considered. While the FMR ensures higher payments, landlords must also adhere to the Housing Quality Standards (HQS) set by HUD. This requires maintaining properties to a certain standard, which can incur additional costs. Nonetheless, the premium paid by the Section 8 program often offsets these expenses, making it a financially viable option for those willing to comply with HUD regulations.
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.