Location: Franklin County, ME | Metro: Franklin County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 04984 reveals some interesting insights into potential investment opportunities. For a two-bedroom property, the Fair Market Rent (FMR) set by the government for fiscal year 2026 is $1,200 per month. This translates to an annual rental income of $14,400. The median home value in this area stands at $235,183. Based on these figures, the implied gross yield for a Section 8 property would be approximately 6.13%, calculated as follows: ($14,400 / $235,183) * 100 = 6.13%.
However, if we consider the market rent, which is recorded at $1,458 per month according to the Census ACS data, the annual rental income would increase to $17,496. This results in a higher implied gross yield of around 7.44%, calculated by: ($17,496 / $235,183) * 100 = 7.44%.
Given that only 7.3% of the population in ZIP 04984 are renters, it's important to note that the demand for rental properties, including those under the Section 8 program, might be limited. Additionally, the N/A-day Days on Market (DOM) indicates incomplete data regarding how long properties typically remain on the market before being rented, which could suggest either very quick or very slow turnover rates, depending on the underlying reasons for the missing data.
In practice, the $1,200 monthly FMR is more likely to be the relevant figure for Section 8 properties, given the strict guidelines and limitations imposed by the program. The market rent of $1,458, while appealing, may not reflect the reality of the rental market for subsidized housing units. Therefore, the 6.13% gross yield is the more accurate representation for potential Section 8 investments in this ZIP code. Investors should also consider the lower renter density when evaluating the feasibility of such investments, as it suggests a smaller pool of potential tenants.
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.