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 | $1,050 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $266,872 | 0.48% | F |
| 3BR | $1,710 | $318,807 | 0.54% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 04978, which encompasses Smithfield, ME, within the Somerset County metro area, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1,230 per month for the fiscal year 2026, while the Census ACS reports the market rent at $1,109. This indicates that voucher tenants will typically cashflow at the FMR rate, providing a buffer for landlords against potential market fluctuations.
To further understand the investment landscape, consider the median home value in the area, which stands at $275,995. Using this figure, we can derive the rent-to-price ratio, an important metric for evaluating the attractiveness of rental investments. With a monthly rent of $1,230, the annual rent would be $14,760, resulting in a rent-to-price ratio of approximately 5.35%. This ratio suggests that the rental income generated in this area is relatively high compared to the property values, making it an attractive option for those seeking strong cash flow from their investments.
In terms of the dynamics between renting and buying, the median Days on Market (DOM) and the percentage of properties that have undergone price cuts are not applicable in this context. However, these metrics are crucial for understanding the broader real estate market trends. Given the current data, the focus should remain on the solid cash flow opportunities presented by the Section 8 program in ZIP 04978.
The strongest angle for investors in this market is the consistent cash flow potential, particularly when considering the difference between the HUD FMR and the actual market rent. This gap ensures that landlords can maintain profitability even when dealing with subsidized housing, making it a reliable investment choice.
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.