1st Advantage MortgageA DSCR loan in Scarborough turns on rent versus payment. Citywide medians from the Census are $1,956 a month for rent, $551,900 for home value and $5,978 a year for real estate taxes.
Local data for Scarborough investors
Renters who pay cash rent in Scarborough have a median gross rent of $1,956 a month, well above the Maine median of $1,139, while owner-occupied homes carry a median value of $551,900. The gross rent-to-value ratio for Scarborough works out to 4.3% (twelve months of median rent divided by median value), a lean ratio that leaves little room for taxes, insurance and dues. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | Maine | Scarborough | Difference |
|---|---|---|---|
| Persons per household | 2.26 | 2.29 | |
| Share in 2-4 unit buildings | 10.1% | 6.8% | -33% |
| Share of homes detached | 70.0% | 69.4% | -1% |
| Long commuters, 45 min plus | 14.5% | 6.0% | -58% |
| Degree holders, age 25+ | 36.2% | 57.7% | +59% |
| Workers on their own account | 13.0% | 15.1% | +16% |
| Renters paying 30%+ of income | 48.4% | 51.9% | +7% |
| Units sitting vacant | 20.6% | 10.1% | -51% |
| Typical construction year | 1977 | 1988 | |
| Tax as a share of home value | 1.02% | 1.08% | +6% |
| Annual property tax bill, median | $3,036 | $5,978 | +97% |
| Household income, median | $74,733 | $133,558 | +79% |
| Typical owner-occupied value | $296,600 | $551,900 | +86% |
| Typical monthly rent | $1,139 | $1,956 | +72% |
| Residents (Census estimate) | 1,387,817 | 23,215 |
The renter share of 22.6% (about 12% below the Maine median of 26%) tells you most neighbors are owners, so rental demand is real but narrower than in a renter-heavy city. Against a median household income of $133,558 (well above the Maine median of $74,733), 52% of renters report rent at or above 30 percent of income.
Property types and condition in Scarborough
About 69% of Scarborough's housing is detached single-family, which means a typical rental purchase is a house with its own roof, yard and repair schedule. The median home was built in 1988, a middle-aged stock where roofs, HVAC and water heaters are the main repair items.
About 10% of Scarborough's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 3.3%.
What the data means for Scarborough buyers
A gross yield of 4.3% means Scarborough is a market where purchase prices run ahead of rent, so a 1.0 ratio generally takes a larger down payment or a property priced below the local median. Mid-aged stock (median built 1988) means many roofs and HVAC units are near the end of their lives, so ask for installation dates. Because only 23% of households rent, vacant units can take longer to lease, and location relative to employers or campuses matters more.
Taxes, insurance and hazards in Scarborough
The Census reports median real estate taxes paid of $5,978 in Scarborough, well above the Maine median of $3,036. Against the median value that is an effective rate of roughly 1.08%, compared with 1.02% for Maine as a whole. Compared with annual median rent, the tax line is about 25%.
For hazards, FEMA's National Risk Index puts Cumberland County at a relatively low overall rating, and its top-ranked hazards are winter weather (very high), ice storms (very high) and lightning (relatively high).
| Hazard in Cumberland County, FEMA index | Level |
|---|---|
| Hurricanes exposure | Relatively Moderate |
| Lightning exposure | Relatively High |
| Ice storms exposure | Very High |
| Winter weather exposure | Very High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Low |
Flood risk in Scarborough is parcel by parcel: check the address on FEMA's flood map service, because a mapped high-risk zone means required flood cover and a heavier payment.
Running the numbers in Scarborough
Try the math at the medians. With rent at $1,956 and taxes near $498 a month, a 1.00 DSCR leaves $1,458 for everything else in the payment, a 1.20 ratio leaves $1,132, and a 1.25 ratio leaves $1,067. Any real property will differ, but the exercise shows how little room insurance and dues can take.
Rental rules for Scarborough, ME
We have not confirmed a city-specific rental registration or nightly-stay permit program for Scarborough, so check with the city and with Cumberland County before you buy, and look at any HOA or condominium rules that can be stricter than the city's. Nightly stays carry state tax in Maine. Maine applies its sales tax to rentals of living quarters, including short-term vacation rentals, and a single unit rented fewer than 15 days in a calendar year is generally exempt unless a professional manager collects the rent.
Maine gives a landlord 30 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist. On rent control, No statewide cap on the amount of rent; state law regulates notice and bars increases while the unit is uninhabitable.
Where Scarborough sits among nearby places
Looking across the table, values run from $383,300 (Westbrook) up to $489,600 (Portland), and Scarborough lands at $551,900.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Westbrook | 39% | $4,005 | $383,300 | 20,775 | $1,392 |
| Portland | 53% | $5,601 | $489,600 | 68,854 | $1,577 |
| Saco | 27% | $4,807 | $413,100 | 20,819 | $1,249 |
| South Portland | 42% | $4,359 | $441,200 | 26,930 | $1,812 |
| Scarborough | 23% | $5,978 | $551,900 | 23,215 | $1,956 |
Workforce and demand drivers in Scarborough
15.1% of employed residents work for themselves, which matters here because DSCR lending does not ask for tax returns or pay stubs. On the workforce side, government workers are about 14% of employment, 58% of adults hold a bachelor's degree or higher and 6% of commuters travel 45 minutes or more.
Next steps for a Scarborough purchase
Run the Scarborough rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Maine markets
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- Every market we cover
References
- 2020 to 2024 ACS data used for Scarborough
- FEMA National Risk Index
- Wikipedia: Scarborough, Maine
- Maine landlord deposit rules, 14 M.R.S. §§ 6032, 6033, 6034, 6038, 6022-A
- Maine Revenue Services, rental of living quarters
Census figures are 2020 to 2024 ACS five-year estimates for Scarborough and carry margins of error. Landlord rules for Scarborough rest on Maine statutes and the CC BY 4.0 RedFlagLease dataset. Last reviewed October 2026; the city and county have the final word on Scarborough rules.
Pre-offer checklist
Before you commit on a Scarborough deal, confirm the rent with the lease or a market estimate, price the insurance for the exact address, and check how the taxes may change after the sale, so the ratio you run matches the one the lender calculates.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent do DSCR lenders use for a Scarborough rental?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Scarborough median rent is $1,956.
How is the DSCR figure built for a Scarborough property?
They do. Rent of $1,956 divided by 1.25 gives about $1,565 as the payment ceiling, and $498 of that is spoken for by the median Scarborough tax bill.
What do Scarborough owners pay in real estate taxes?
The Census reports a median of $5,978 a year for Scarborough owners, about 1.08% of median value against 1.02% for Maine. The county reassesses after a sale, so ask the tax office for an estimate on your purchase price.
What about VRBO or Airbnb income on a Scarborough purchase?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Scarborough and any HOA permit stays under 30 days, and that you can register for Maine lodging tax.
What does Maine law say about deposits at a Scarborough rental?
Under 14 M.R.S. §§ 6032, 6033, 6034, 6038, 6022-A: The deposit is due back within 30 days of move-out. Check the statute and your lease before collecting.
Should I worry about hazards at a Scarborough property?
The National Risk Index gives the county an overall relatively low rating. Use that as a prompt to get quotes, not as a verdict on one Scarborough street.
Do I need an LLC to buy a rental in Scarborough?
You do not need one, and many investors close in an entity. If you use an LLC, the lender asks for formation documents and usually a personal guaranty. Talk to your attorney and accountant about structure for a Maine property.