Cumberland County • 1 ZIP Code
Westbrook, a coastal town of 10,800 residents, has a median household income of $55,000 and a renter penetration rate of 58%. The population grew 1.2% annually from 2019 to 2023, driven by a steady influx of young professionals and retirees seeking a small-town atmosphere. Key employment sectors include healthcare (Westbrook Regional Medical Center), maritime services, and education (Burlington Technical College satellite). Vacancy rates hover at 4.8%, slightly below the state average of 5.3%, indicating strong demand. Year‑over‑year rent growth has averaged 3.5% over the past three years, with the 2BR segment rising 4.1% and the 3BR segment 3.8%. The overall market remains stable, with low foreclosure rates and a growing short‑term rental market that supports a favorable investment climate. Investors can expect consistent cash flow combined with modest appreciation, making Westbrook an attractive mid‑size market for diversified portfolios.
Single‑family homes priced between $90,000 and $150,000 yield an average gross return of 6.2% when rented at the 1BR FMR of $1,530. Multifamily clusters in ZIP 04092, priced $250,000–$350,000, deliver gross yields of 5.8–6.5% with 1–2 unit units. The 2BR and 3BR units, priced $180,000–$270,000, balance appreciation (3.2–3.5% CAGR) with cash flow, particularly in the waterfront corridor. Turnkey properties within the historic district command premium rents ($2,380 for 3BR) and require minimal rehab, ideal for passive investors. Rehab projects in the industrial edge, priced $120,000–$200,000, can achieve a 12–15% after‑repair value increase, allowing a 7–8% gross yield post‑rehab. Recommended strategies include a mix of turnkey multifamily in the downtown core and rehab‑plus‑hold single‑family units in the residential belt, leveraging the city’s low vacancy and steady rent growth.
Neighborhoods vary: the waterfront offers high rent premiums but higher property taxes (average 1.3% of value), while the industrial corridor offers lower acquisition costs (0.8% of value) but requires more maintenance. Tenant screening should prioritize credit scores >680, stable employment, and a 3‑month cash reserve. Property management costs average 8% of gross rent, with an additional 1.5% for maintenance reserves. Allocate 1.2% of the property value annually for upkeep; over a $200,000 property, that equals $2,400. Risks include seasonal tourism downturns impacting short‑term rentals and potential regulatory changes to Section 8 limits. Long‑term appreciation in Westbrook is projected at 3.0–3.5% per year, driven by continued population growth and limited new housing supply.