In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Maine. Two towns made our list: South Portland and Millinocket. We curated data from studies on the best places to buy an investment property, median sale prices, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.
Maine is the northernmost state in the New England region of the U.S. It is bordered by New Hampshire to the west, Canada to the northeast and the Atlantic Ocean on the southeast side. This makes for gorgeous and varied landscape, not to mention amazing seafood, especially lobster and clams. You will find jagged and rocky coastlines, low, rolling mountains, stunning waterways and densely forested interiors. What our two towns lack in size, they make up for in quaintness and charm. Leads are strong in both South Portland and Millinocket, the average number of days on the market is below 20 for both towns, and home values have held in both regions.
Let’s get to the Maine event and dig into the best places to buy rental investment property in The Pine Tree State.
#2: Millinocket, ME
Millinocket is Maine’s “biggest small town” with a population of just under 5,000. Don’t let that fool you though, Millinocket has big recreation, big woods, big trails, big history, big adventure, and big opportunity. It sits on the edge of Maine’s vast forest and is the gateway to Mount Katahdin, voted the World’s Best Hike by National Geographic and home to the northern end of the Appalachian Trail. The median sale price is coming in around 103k, rent is very strong, averaging around $838 and both leads and days on market indicate a strong rental market.
- Population growth: .5%
- Employment growth: 2%
- Increase in home values: 0%
- Median Sale Price: $103k
- Average Rent: $838
- Average Number of Leads per Property: 26
- Number of days on the rental market: 12
#1: South Portland, ME
South Portland, not to be confused with Portland, Maine which is just across the harbor from our top city. South Portland over looks the skyline of the afore mentioned as well as the islands of Casco Bay. Because of South Portland’s close proximity to air, marine, rail, and highway transportation the city has become a center for retail and industry in the region. It’s home values have increased year over year, with the median sale price coming around $302k, and average rents hovering around $1728. Rentals there are averaging 36 leads per property and just 18 days on the market.
- Population growth: .2%
- Employment growth: -1%
- Increase in home values: 1.6%
- Median Sale Price: $302k
- Average Rent: $1728
- Average Number of Leads per Property: 36
- Number of days on the rental market: 18
Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.
Use our handy map tool to explore top rental markets throughout the U.S.
About the TurboTenant Report
The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].
Methodology:
In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.
We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.
DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.
Sources:
- TurboTenant Rental Data
- Fastest Growing States Population
- The Best and Worst Cities to Own Investment Property
- Real Estate data provided by Redfin, a national real estate brokerage.