Sagadahoc County • 1 ZIP Code
Pejepscot, ME, hosts a population of roughly 13,000 residents, with 62% of households renting and 58% of renters under 40 years old. The city’s economy is anchored by healthcare, education, light manufacturing, and a growing tourism sector that draws visitors to its historic downtown. Annual population growth stands at 1.2%, driven by spill‑over from larger New England markets and an influx of retirees seeking a lower cost of living. Vacancy rates are modest at 4.5%, reflecting strong demand and limited new construction. Year‑over‑year rent growth averaged 3.8% from 2024 to 2025, aligning with the national trend for mid‑size New England towns. Overall, Pejepscot offers a stable investment climate with a balanced mix of rental supply and demand, making it attractive for investors seeking reliable cash flow and modest appreciation.
Single‑family 2‑BR homes in Pejepscot typically command purchase prices between $120,000 and $160,000, while 4‑unit multifamily properties range from $250,000 to $350,000. Expected net cash flow for well‑managed single‑family units is 4.5%–5.5% of purchase price, whereas 4‑unit complexes yield 6%–7% after operating expenses. Gross yield on 3‑BR single‑family homes is projected at 5%–6%, with a long‑term appreciation rate of 2.5% annually. ZIP 04086 is the most productive zone, offering higher rental demand and superior walkability. The best performing property types are 3‑BR single‑families and 2‑4 unit multifamily buildings, which balance higher rents with manageable acquisition costs. Recommended strategies include value‑add rehabs—updating kitchens and bathrooms for a 20% increase in FMR rent—and turnkey acquisitions for investors seeking passive income streams.
Neighborhoods within Pejepscot vary: the downtown core features historic bungalows with high walk scores, while the outskirts offer newer subdivisions with lower maintenance demands. Tenant screening must prioritize a credit score above 700, a debt‑to‑income ratio under 35%, and proof of income at least 3× the monthly rent. Property management costs average 8%–10% of gross rent; careful selection of local managers can reduce this to 7%. Allocate 5% of gross revenue annually for maintenance and repairs, and set aside a 3% contingency for unexpected upgrades. Market risks include seasonal tourism fluctuations and a limited local supply of high‑end rental inventory. Despite these, the city’s steady population growth and low vacancy suggest a long‑term appreciation potential of 3%–4% over a decade.