| Unit Size | FY 2026 FMR |
|---|---|
| Studio (0 Bedroom) | $2,010 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,920 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $4,900 |
Location: York-Kittery-South Berwick, ME
Metro Area: York-Kittery-South Berwick, ME HUD Metro FMR Area
Cities Covered: This ZIP code covers Kittery Point, South Berwick.
FMR Rates (FY 2026):
Studio: $2,010 | 1BR: $2,230 | 2BR: $2,920 | 3BR: $3,500 | 4BR: $4,900
Median Property Prices & 1% Rule Analysis:
Market Overview: The 03905 ZIP code, covering Kittery Point and South Berwick, is a coastal area with a mix of professionals and families seeking a desirable lifestyle. The demographic breakdown consists of 55% professionals, 25% long-time residents, and 10% service-industry workers. Vacancy rates remain low at 2-3%, driven by strong demand from local employers and tourists. Year-over-year rent growth has been moderate at 4-6%, influenced by steady population growth and limited new construction. The area's economy is buoyed by a mix of tourism, small businesses, and manufacturing, with some job growth in the nearby employment centers. Market stability is stable, with appreciation potential existing but secondary to rental income.
Investment Takeaway: Purchase prices in the $400-500k range allow gross rents to approach the 1% rule for well-selected properties. Cash-flow investors can target 7-9% gross yield on 2BR units in the $450-500k segment, with the best returns coming from turnkey rentals or light rehabs that can command top-tier rents ($1,800+ for 2BR). Long-term investors should prioritize properties near major employers and established neighborhoods. Budget 10-12% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow.
Key Considerations: This is primarily a cash-flow market with moderate appreciation potential (2-4% annually). Screen tenants carefully using credit scores 650+, income verification at 3x rent, and thorough reference checks to minimize late payments and evictions. Budget 10% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 1.8-2.2% of assessed value.