Bangor, ME Cap Rate: 4.56% — Rental Property Analysis
Bangor is a mid-range market in the Northeast with a small but investable metro of 32,000. At a 4.56% estimated cap rate, this is a moderate market where rents of $1,560/mo lag behind home prices. With a median home price of $265,000 and population is roughly stable, Bangor offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $265,000 median price and $1,560/mo median rent
Est. Cap Rate
4.56%
1% Rule
0.59%
Fails
GRM
14.2x
Price / Income
6.2x
Market Data
Median Home Price$265,000
Median Monthly Rent$1,560
Property Tax Rate1.32%
Population32,000
Population Growth0.2% / yr
Median Household Income$42,800
Vacancy Rate5.5%
Annual Appreciation2.4%
2026 Market Update: Bangor
Bangor's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $265,000, the $1,560/mo rent produces only $1,006/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($53K at 7%) would result in approximately $-404/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 19% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Bangor a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Cap Rate Calculator — Bangor
Pre-filled with Bangor medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
1.32% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.68%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,758
net operating income
Gross Rent Multiplier
14.2x
Good (<15)
1% Rule
0.59%
✗ Fails
Monthly Cash Flow
$813
before debt service
Annual Breakdown
Gross Rental Income$18,720
Less Vacancy−$1,030
Effective Income$17,690
Less Operating Expenses−$7,932
Net Operating Income$9,758
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Factor in financing to see your actual return on invested capital in Bangor.
$
$66,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.32%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$74,200
$66,250 down + $7,950 closing
Monthly Mortgage
$1,296
on $199K loan
Monthly Cash Flow
$-391
after all expenses
Annual Cash Flow
$-4,688
before taxes
Cash Flow Breakdown
Monthly Rent$1,560
Less Expenses−$655
Less Mortgage−$1,296
Monthly Cash Flow$-391
Is Bangor a Good Place to Invest in Rental Property?
Bangor, ME has a population of 32,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $265,000 paired with median rents of $1,560/mo produces an estimated cap rate of 4.56%.
Property taxes at 1.32% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 6.2x, homes cost about 6.2 times the local median income of $42,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Bangor presents moderate opportunities. Cap rates near 4.56% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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