Cumberland County • 1 ZIP Code
Scarborough, a coastal suburb of Portland, hosts a population of approximately 23,000 residents, with a modest 0.5% annual growth rate since 2020. The renter demographic skews 60% families and 40% young professionals, reflecting the city’s blend of suburban tranquility and urban proximity. Key employment sectors include healthcare (Masonic Home, Loring Air Force Base), education (Scarecrow Elementary, Maine Community College), retail, and manufacturing, which together sustain a stable employment base and moderate household income at an average of $55,000. Vacancy rates sit near 4.5%, slightly above the state average of 3.8%, indicating healthy demand. Year-over-year rent growth averages 3.2%, driven by limited new construction and rising demand for quality rental housing. Overall market stability is high; the city’s strategic location within the Portland metropolitan area, coupled with strong municipal services, creates a favorable investment climate for long-term, income-generating properties.
Property prices in Scarborough range from $250,000 to $450,000 for single‑family homes and $600,000 to $1.2 million for multifamily complexes. Investors targeting 2‑BR and 3‑BR units can expect a 5‑7% cash‑on‑cash yield, with an annual appreciation of 3‑4%. The 04074 ZIP code, covering East Scarborough, consistently delivers the highest rental demand, making it a prime focus. Target property types include 2‑BR multifamily duplexes (average purchase $650,000, projected gross yield 6.5%) and 3‑BR single‑family homes ($350,000, projected gross yield 5.8%). Turnkey renovations and rehab projects that upgrade kitchens and bathrooms can boost rent by 10‑15%, enhancing cash flow. A strategic mix of acquisition and rehab, coupled with professional property management, will maximize portfolio performance while mitigating vacancy risk.
Neighborhood variations are pronounced: West Scarborough enjoys higher median incomes and lower vacancy, whereas East Scarborough offers more affordable entry points. Tenant screening should require a minimum credit score of 720, proof of income equal to at least 3× monthly rent, and a 90‑day rental history. Property management fees average 8–10% of gross rent; investors should budget for a 1.5% annual maintenance reserve (≈$1,500 on a $100,000 property). Risk factors include seasonal storm damage and Maine’s cold climate, which can elevate heating costs. However, long‑term appreciation remains solid at 4–5% per year, driven by limited supply and strong local economic fundamentals.