Cumberland County • 1 ZIP Code
Windham, ME, a compact town of approximately 7,000 residents, serves as a regional hub for manufacturing, healthcare, and education. The town’s median household income sits near $45,000, supporting a stable rental base that leans heavily on single‑family homes and modest multifamily units. Population trends show a marginal decline of 0.5% annually over the past five years, yet the steady influx of workers from the nearby Port of Portland keeps the market resilient. Vacancy rates are low, averaging 5.8% across the city, and year‑over‑year rent growth has averaged 2.4% since 2022, in line with the New England apartment trend. The FMR rates for FY 2026—Studio $1,250, 1BR $1,410, 2BR $1,810, 3BR $2,220, 4BR $2,490—reflect a balanced market with moderate appreciation potential. Overall, Windham offers a stable investment climate, low risk profile, and a tenant base that values affordability and community, making it attractive for long‑term real estate investors.
Single‑family homes in Windham typically range from $150,000 to $250,000, while duplexes and small multifamily buildings fall between $300,000 and $500,000. Investors can expect a cash‑flow to appreciation balance of roughly 5.5% to 6.5% gross yield on 2‑BR properties and 6.8% to 8.0% on 3‑BR units, with appreciation projected at 3.2% to 4.1% annually. ZIP 04062 consistently outperforms the rest of the city, offering higher rental demand due to downtown proximity and good school districts. Target property types include 2‑BR and 3‑BR single‑family homes, duplexes, and small 3‑to‑4 unit multifamily buildings. Gross yield expectations hover around 7% for 2‑BR and 9% for 3‑BR units. Recommended strategies are turnkey acquisitions that minimize rehab costs, supplemented by selective rehab projects to increase rentability. Leasing a mix of 2‑BR and 3‑BR units maximizes occupancy while maintaining a strong cash flow profile.
Neighborhood‑level variations exist: the downtown core offers higher walkability and rental demand, while the outskirts present lower property costs but slower appreciation. Tenant screening should enforce a minimum credit score of 600, a debt‑to‑income ratio below 35%, and a verified annual income at least 3× the monthly rent. Property management costs typically consume 8–10% of gross rent, while a maintenance budget of 1.2% of property value annually covers routine repairs. Risk factors include a small market susceptible to economic downturns and relatively low rental growth during recessionary periods. Long‑term appreciation potential remains steady, with a projected 4.5% CAGR over the next decade, making Windham a solid, low‑volatility investment choice for investors seeking both cash flow and moderate capital gains.