Real Estate Investing in Falmouth, Massachusetts (02540)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 02540 (Falmouth, MA)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 35.3% of homes vacant — above national norms.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 48.0 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Falmouth, MA (02540)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 02540 Falmouth
ZIP 02540 in Falmouth, MA carries a healthy set of headwinds. Home values near $1.1M and rents of $1,908/mo sit inside a market where underwriting has to be tight.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 02540 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within MA, ZIP 02540 trails on several market indicators that neighboring Barnstable County submarkets outperform. The gap is real and significant enough to shape underwriting.
In practical terms, 8,354 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
Distressed ZIPs reward experience. durable returns are possible in 02540, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Falmouth:
Property Strategy for 02540
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $543,289 | $1,610 | 2.1% | +9.2% | $543,289 |
| 2BR | $705,126 | $2,120 | 2.2% | +9.1% | $352,563 |
| 3BR | $1,019,373 | $2,600 | 1.8% | +10.5% | $339,791 |
| 4BR | $1,272,544 | $2,980 | 1.7% | +11.3% | $318,136 |
| 5BR | $1,967,258 | — | — | +11.9% | $393,452 |
Market Trends
Home Value History (with trend line)
📊 How Does 02540 Compare?
| Metric | 02540 | Falmouth | Barnstable Town, MA | Massachusetts |
|---|---|---|---|---|
| Home Value | $1,098,982 | $1,113,640 | N/A | $645,115 |
| 5-Year CAGR | 5.9% | 6.8% | N/A | 7.0% |
| Avg Rent | $1,908 | $2,041 | N/A | - |
| Cap Rate | 1.4% | 1.6% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 02540 (Falmouth, MA). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 02540 (Falmouth, MA)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $1,098,982 |
| Monthly Rent | $1,908 |
| Price-to-Rent | 48.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.1% |
| Cap Rate | 1.4% |
| 5-Year IRR | 7.2% |
📈 Home Appreciation
| 1-Year | +5.0% ▲ |
| 3-Year CAGR | +3.7% ▲ |
| 5-Year CAGR | +5.9% ▲ |
| 10-Year CAGR | +7.5% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (1.4%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 02540
Population: 8,354
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 02540
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
Do landlords face vacancy issues in Falmouth, MA?
Vacancy in Falmouth, MA is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,908/mo.
Should investors consider Falmouth, MA?
Our data puts Falmouth, MA at 3.0/5 for investability. Home prices of $1.1M and rents around $1,908/mo create a solid backdrop for investor activity.
Are homes affordable in Falmouth, MA?
Homes in Falmouth, MA typically sell near $1.1M. Prices have moved at a 0.0% 5-year CAGR, which measured long-term demand.
Is Falmouth, MA landlord-friendly?
Rental owners in Falmouth, MA deal with a tenant-protective legal framework. Most standard eviction processes run on reasonable timelines.
Is the tenant base reliable in Falmouth, MA?
Falmouth, MA draws a measured base of working renters. Demand at the $1,908/mo rent level is reasonable for standard single-family and small multi rentals.
You know 02540 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 02540 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 02540 ranks in Barnstable Town, MA
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 02540 (Falmouth)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 02540 (Falmouth, MA).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.