Location: Franklin County, ME | Metro: Franklin County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 04982 provides insights into potential rental yields for landlords and small-portfolio investors. For a two-bedroom property, the Fair Market Rent (FMR) under Section 8 for fiscal year 2026 is set at $1,350 per month. This translates to an annualized income of $16,200.
In contrast, the market rent based on Census ACS data is $767 per month, equating to an annualized income of $9,204. Given that the median home value for ZIP 04982 is not available, we must rely on other metrics to infer the gross yield.
The renter density in ZIP 04982 is 50.6%, indicating a significant portion of residents are renters. However, the Days on Market (DOM) figure being not available suggests we cannot directly assess the market's absorption rate for rental properties. Despite this limitation, we can still compare the two scenarios to provide a general understanding of potential yields.
When considering the Section 8 FMR of $1,350 per month, the implied gross yield is higher due to the guaranteed payment structure and lower vacancy rates typical of government-assisted housing programs. Landlords can expect a stable cash flow without the risk of market fluctuations.
On the other hand, the market rent scenario of $767 per month reflects the actual demand and supply dynamics within the local rental market. While it offers a lower gross yield, it might be more realistic if the landlord aims to compete with other rental properties in the area. The lower rent could attract a broader range of tenants, potentially increasing occupancy rates.
To summarize, the Section 8 FMR scenario implies a higher gross yield compared to the market rent scenario. The choice between the two should consider the landlord's risk tolerance and investment goals. With 50.6% of the population renting, there is a substantial market for rental properties, making both options viable depending on the investor's preference for stability versus market-driven returns.
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.