Real Estate Investing in Palermo, Maine (04354)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 04354 (Palermo, ME)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 39.6% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Palermo, ME (04354)?
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Market Analysis: 04354 Palermo
This part of Waldo County is not an easy win. The 04354 ZIP records softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The 04354 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
The gap between 04354 and stronger Palermo ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Demographically, 04354 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The right play in 04354 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Palermo:
Market Trends
Home Value History (with trend line)
📊 How Does 04354 Compare?
| Metric | 04354 | Palermo | Maine |
|---|---|---|---|
| Home Value | $369,922 | $369,922 | $401,109 |
| 5-Year CAGR | 6.1% | 6.1% | 8.6% |
| Avg Rent | $1,269 | $1,269 | - |
| Cap Rate | 2.7% | 2.7% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 04354 (Palermo, ME). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $369,922 |
| Monthly Rent | $1,269 |
| Price-to-Rent | 24.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.1% |
| Cap Rate | 2.7% |
| 5-Year IRR | 8.7% |
📈 Home Appreciation
| 1-Year | +3.9% ▲ |
| 3-Year CAGR | +4.9% ▲ |
| 5-Year CAGR | +6.1% ▲ |
| 10-Year CAGR | +8.1% ▲ |
🏠 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 (2.7%). 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 04354
Population: 1,420
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 04354
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
Is Palermo, ME a good market for buy-and-hold investors?
Investors tracking Palermo, ME will find a 3.0/5 rating supported by $370K median home values and $1,269/mo rents. That profile suits long-term holders targeting even-keeled returns.
Should investors worry about vacancy in Palermo, ME?
Palermo, ME sees elevated vacancy, which is reasonable relative to the broader ME rental market.
Is rental property easy to operate in Palermo, ME?
Landlord-friendliness in Palermo, ME is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
What is the typical renter like in Palermo, ME?
Tenant quality in Palermo, ME ranks as solid. Landlords generally report stable occupancy at market rents of $1,269/mo.
What is the typical rental rate in Palermo, ME?
The typical rental in Palermo, ME commands about $1,269/mo monthly. That rent profile consistent cash flow against the $370K purchase basis.
You know 04354 now. You don’t know where it ranks.
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