4 Maine cities ranked by estimated cap rate. The average cap rate across Maine markets is 3.5%, with median home prices averaging $351K and rents averaging $1,685/mo. Bangor leads with a 4.6% cap rate at a $265K median price. Property taxes average 1.30% across Maine markets.
Maine offers 4 investable rental markets tracked by CapRateCity. The state average cap rate of 3.5% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Maine home prices average $351K, which is 5% above the national average of $333K. Rents average $1,685/mo.
Taxes and costs: Property taxes average 1.30% across Maine, above the 1.08% national average — investors should model tax expense carefully. Lewiston has the lowest rate at 1.28%.Vacancy averages 5.1%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Maine averages 0.30% per year, led by Portland at 0.6%. Home values are appreciating at 2.6% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Maine is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.