Skowhegan is home to the best residential real estate investment market in Maine.
The 04976 zip code in Skowhegan presents the greatest opportunity for investors among the 276 individual real estate markets in Maine we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
Top 5 Maine residential real estate markets
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Skowhegan | 100 | 4.2 | 87.78% |
| 2 | Gardiner | 98.5 | 4.2 | 83.25% |
| 3 | Farmington | 98.1 | 4.8 | 80.43% |
| 4 | Oakland | 96.8 | 4.6 | 87.49% |
| 5 | Rumford | 94.2 | 3.8 | 114.58% |
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1. Skowhegan
We've identified the 04976 zip code in Skowhegan as Maine's best real estate investment market. Here's why.
🔎 Key data about Skowhegan
| Data point | Value | Rank in state (of 276 markets) |
|---|---|---|
| Zip code | 04976 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $222,187[1] | 6th lowest |
| Five-year appreciation | 87.78%[2] | 5th highest |
| Household income | $53,453[3] | 59th highest |
| Affordability ratio | 4.2 | 9th most affordable |
| Five-year population growth | 3.2%[4] | 38th highest |
| Unemployment rate | 3.8%[5] | 37th lowest |
| Property taxes | $1,816[6] | 4th lowest |
| Educational attainment | 23%[7] | 56th highest |
Skowhegan (zip code 04976) is the best residential real estate investment market in Maine. It has the 5th highest property value appreciation among markets we evaluated, with a 87.78% appreciation of the typical property over the last five years.
Skowhegan is the 9th most affordable market among the 276 Maine markets we evaluated, with an affordability ratio of 4.2.
2. Gardiner
The 04345 zip code in Gardiner is Maine's second-best residential real estate investment market.
🔎 Key data about Gardiner
| Data point | Value | Rank in state (of 276 markets) |
|---|---|---|
| Zip code | 04345 | N/A |
| InvestScore | 98.5 | 2nd highest |
| Typical property value | $295,682[8] | 18th lowest |
| Five-year appreciation | 83.25%[9] | 10th highest |
| Household income | $70,194[10] | 40th highest |
| Affordability ratio | 4.2 | 11th most affordable |
| Five-year population growth | 8.3%[11] | 6th highest |
| Unemployment rate | 5%[12] | 52nd lowest |
| Property taxes | $2,296[13] | 14th lowest |
| Educational attainment | 26.6%[14] | 49th highest |
The 04345 zip code in Gardiner features a typical property value of $295,682, the 18th lowest in the state.
Property values have appreciated 83.25% over the past five years, the 10th highest increase among evaluated markets in the state. Gardiner homes have an affordability ratio of 4.2, the 11th most affordable in the state.
3. Farmington
The 04938 zip code in Farmington comes in at No. 3 in our ranking of residential real estate investment markets in Maine.
🔎 Key data about Farmington
| Data point | Value | Rank in state (of 276 markets) |
|---|---|---|
| Zip code | 04938 | N/A |
| InvestScore | 98.1 | 3rd highest |
| Typical property value | $253,650[15] | 10th lowest |
| Five-year appreciation | 80.43%[16] | 14th highest |
| Household income | $52,471[17] | 61st highest |
| Affordability ratio | 4.8 | 22nd most affordable |
| Five-year population growth | 5.9%[18] | 16th highest |
| Unemployment rate | 3.1%[19] | 23th lowest |
| Property taxes | $2,272[20] | 12th lowest |
| Educational attainment | 34.4%[21] | 36th highest |
With a typical property value of $253,650, Farmington's 04938 zip code features the 10th lowest property values in the state.
Farmington homes have an affordability ratio of 4.8, the 22nd most affordable among the markets we evaluated.
4. Oakland
The 04963 zip code in Oakland ranks No. 4 among Maine's residential real estate investment markets.
🔎 Key data about Oakland
| Data point | Value | Rank in state (of 276 markets) |
|---|---|---|
| Zip code | 04963 | N/A |
| InvestScore | 96.8 | 4th highest |
| Typical property value | $321,219[22] | 23rd lowest |
| Five-year appreciation | 87.49%[23] | 6th highest |
| Household income | $70,346[24] | 6th highest |
| Affordability ratio | 4.6 | 18th most affordable |
| Five-year population growth | 1.5%[25] | 53rd highest |
| Unemployment rate | 1.7%[26] | 4th lowest |
| Property taxes | $2,281[27] | 13th lowest |
| Educational attainment | 28.3%[28] | 46th highest |
Property values in Oakland's 04963 zip code have seen the 6th highest increase among evaluated markets in the state, with an appreciation of 87.49% over the past five years.
Oakland's affordability ratio of 4.6 makes it the 18th most affordable among the 276 markets we evaluated.
5. Rumford
The 04276 zip code in Rumford rounds out our top five residential real estate investment markets in Maine.
🔎 Key data about Rumford
| Data point | Value | Rank in state (of 276 markets) |
|---|---|---|
| Zip code | 04276 | N/A |
| InvestScore | 94.2 | 5th highest |
| Typical property value | $163,946[29] | 3rd lowest |
| Five-year appreciation | 114.58%[30] | the highest |
| Household income | $42,845[31] | the highest |
| Affordability ratio | 3.8 | 6th most affordable |
| Five-year population growth | 2.5%[32] | 47th highest |
| Unemployment rate | 6.1%[33] | 59th lowest |
| Property taxes | $1,829[34] | 5th lowest |
| Educational attainment | 16.9%[35] | 66th highest |
Property values in Rumford's 04276 zip code rose 114.58% over the last five years, ranking the city the highest among evaluated markets in Maine.
Rumford homes have an affordability ratio of 3.8, the 6th most affordable among the markets we evaluated.
How we rank residential real estate markets in Maine
We evaluated 276 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Maine.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
