Location: Waldo County, ME | Metro: Kennebec County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 04988 in Utah might have several concerns regarding the feasibility of investing in the area through the lens of Section 8 housing. Let's address these concerns head-on using the available data.
Will FMR $1,390 (metro FY 2026) cover the mortgage on a $281,083 home?
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,390. This figure represents the average rent for a standard two-bedroom apartment. To determine if this amount can cover a mortgage on a $281,083 home, we must consider typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly payment on a $281,083 home would be approximately $1,350, excluding property taxes and insurance. Therefore, the FMR does cover the mortgage payment, leaving a small buffer for additional costs.
Is there enough renter demand at 27.0%?
Renter demand in ZIP 04988 stands at 27.0%. This percentage indicates that nearly one in four households are renters. While this figure is lower than some metropolitan areas, it still suggests a significant portion of the population seeking rental properties. The challenge lies in ensuring that the demand for Section 8 rentals specifically matches the supply. The data does not provide a breakdown of the rental market by subsidy type, so we cannot definitively say how much of this demand is for subsidized housing. However, given the overall renter demand, there appears to be a reasonable chance of finding tenants.
Will vouchers keep pace with $873 market rents?
The current market rent for a two-bedroom apartment in ZIP 04988 is $873. The question here is whether Section 8 vouchers will cover this amount. Historically, voucher amounts have been adjusted annually based on inflation and other economic factors. In ZIP 04988, the FMR is higher than the current market rent, indicating that vouchers should theoretically cover the $873 rent. However, the actual payment standard set by HUD may be lower than the FMR, which could mean landlords might need to accept less than the market rent. The data provided does not specify the exact voucher amount, but it suggests that vouchers are likely to remain competitive with market rents.
In summary, while the data presents a mixed picture, it leans towards a positive outlook for Section 8 investments in ZIP 04988. The FMR covers the mortgage payments, there is a notable level of general renter demand, and vouchers appear to keep pace with market rents. However, investors should be cautious about relying solely on these figures and should seek additional local market insights before making investment decisions.
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.