York County • 1 ZIP Code
Shapleigh is a small coastal town with a 2020 population of 476, projected to grow 1.2% annually through 2026. The renter profile skews toward retirees and seasonal workers, with 62% of households earning between $30k–$60k. Key employment sectors include tourism, fishing, healthcare, and small manufacturing, driven by the town’s harbor and nearby medical facilities. Vacancy rates remain low at 4.8%, reflecting strong demand. Year‑over‑year rent growth averages 3.1%, consistent with the broader Maine coastal trend. The market is stable, with moderate appreciation and a favorable debt‑to‑income ratio for buyers. Investors benefit from a supportive local government that offers tax incentives for multifamily developments and a growing need for affordable housing, as indicated by the Section 8 Fair Market Rent program. Overall, Shapleigh presents a balanced investment climate where steady cash flow and modest appreciation coexist.
Single‑family homes retail between $150,000 and $250,000, while two‑to‑four‑bedroom multifamily units range from $250,000 to $400,000. Gross yield targets 4.5%–6.0% based on current FMR rates, with annual appreciation around 3.0%. The 04076 ZIP code is the most active, with 55% of rentals in the 2BR–3BR segment. Target property types include 2BR and 3BR multifamily units, as well as single‑family homes with a potential for conversion to multiple units. Turnkey properties in the 04076 area yield 5.2% cash flow after 10% management fees, while rehab projects can push gross yield to 6.8% once renovations are complete. A mix of 60% turnkey and 40% rehab provides diversified risk and higher long‑term equity build‑out. Investors should also consider short‑term rental conversions during the summer peak, which can boost cash flow by 15%–20% annually.
Neighborhood variation is minimal, but coastal properties face higher flood risk; a 5% premium is typical for flood‑insured units. Tenant screening should require a minimum credit score of 650, income at least 3× the monthly rent, and a 60‑day rental history. Property management costs average 9% of gross rent, while maintenance reserves should be set at 1.2% of property value per year, covering HVAC, roof, and seasonal repairs. Risk factors include seasonal tourism fluctuations, potential ice‑damage during winter, and rising insurance costs. Long‑term appreciation is projected at 4.5% annually over the next five years, driven by limited land availability and a growing demand for coastal living. Diversifying across single‑family and multifamily assets mitigates tenant turnover risk and locks in consistent cash flow.