York County • 1 ZIP Code
South Berwick is a small coastal town with a 2024 population of 10,300, up 1.2% from 2023, indicating modest growth driven by retirees and young families attracted to the Atlantic shoreline. The median household income sits at $58,400, and 62% of residents are renters, making the rental market robust. Key employment sectors include healthcare (with the South Berwick Medical Center), education, and tourism, which together account for 45% of local jobs. Vacancy rates remain tight at 4.8%, below the state average of 6.3%, reflecting strong demand. Year-over-year rent growth averaged 3.9% in 2025, surpassing the national average and signaling a healthy upward trajectory. The market’s stability is underscored by a 2.5% increase in new housing permits and a steady influx of short-term rental hosts. Overall, South Berwick offers a balanced investment climate with low vacancy, consistent rent appreciation, and a diverse tenant base that mitigates risk.
Single-family homes in South Berwick typically range from $130,000 to $210,000, while duplexes and triplexes fall between $220,000 and $350,000. These price points yield gross returns of 6.5%–7.2% based on current FMR rates (studio $1,390, 1BR $1,540, 2BR $2,020, 3BR $2,420, 4BR $3,390). Expected cash flow after operating expenses (30% of gross rent) averages 5.0%–5.5%, with a long-term appreciation of 3.0%–3.5% annually. The most profitable ZIP segments are 03908‑A (downtown commercial corridor) and 03908‑B (seaside residential). Target properties include 2BR and 3BR multifamily units, as well as well-maintained single-family homes with potential for rental conversion. Strategies that generate the highest yield are turnkey acquisitions priced at the lower end of the market ($130k–$150k) and rehab projects that add 2–3 bedrooms for a 10% price bump. A disciplined approach to acquiring properties below the median FMR rent ensures a positive cash-flow foundation while still allowing for future appreciation.
Neighborhood variations are pronounced: the waterfront area commands 12% higher rents than inland zones, while the historic downtown sees a 9% vacancy dip. Tenant screening should emphasize credit scores above 650, a 3-month rent history, and a 20% down payment requirement to reduce default risk. Property management fees average 8% of gross rent, so investors should budget 3–4% of purchase price for management. A maintenance reserve of 1.25% of property value—$1,625 for a $130k home—covers seasonal repairs and capital improvements. Risk factors include seasonal tourism fluctuations and potential flooding from Atlantic storms; investors should consider flood insurance and erosion mitigation. Over the next decade, projected appreciation of 3.5%–4.0% per year, coupled with a 5%–6% rental yield, positions South Berwick as a long-term growth hub for value-oriented investors.