Market Overview: Maine Housing Mid-Range
Maine ranks as a mid-range housing market, with a median home price of $400,000. The state's effective property tax rate of 0.98% is above the national average of 0.90% (about 9% higher than the average state), and annual homeowners insurance averaging $1,077 falls below the US average of $1,492 (about 28% lower than the average state).
These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in Maine. Below we break down a realistic purchase scenario using state-specific data.
📊 How Maine Compares to the Other 50 States
Rank 1 is the cheapest. Every row below uses the same 20% down, 6.5% APR and 30-year term as the rest of this page.
| Measure | Maine | Rank | Lowest of the 51 |
|---|---|---|---|
| Median home price | $400,000 | #29 of 51 | West Virginia ($225,000) |
| Effective property tax rate | 0.98% | #33 of 51 | Hawaii (0.29%) |
| Average homeowners insurance | $1,077/yr | #9 of 51 | Oregon ($893/yr) |
| Est. monthly payment | $2,439/mo | #31 of 51 | West Virginia ($1,326/mo) |
The same $2,439/month would cover the median-priced home in 30 other states, including West Virginia ($1,326/month) and Florida ($2,420/month).
Within the Northeast region, Maine has the #2 lowest median-price monthly payment of the 9 states there.
📍 Maine's Largest County: Cumberland County
Everywhere else on this page Maine is one set of numbers — one median price, one tax rate, one insurance premium. The U.S. Census Bureau's American Community Survey publishes the same kind of measures for individual counties, so here is Maine's most populous county — Cumberland County — from the 2020–2024 ACS 5-year estimates release.
| Cumberland County — 2020–2024 ACS 5-year estimates | Estimate |
|---|---|
| Population | 308,827 |
| Median home value (owner-reported) | $451,200 |
| Median real estate taxes paid (annual) | $4,707 |
| Effective property tax rate (taxes ÷ value) | 1.04% |
| Median household income | $95,677 |
Two things to keep in mind before you use these numbers. First, the Census asks owners what their home is worth: this is a five-year survey estimate, not the sale price of homes that changed hands, so it is not comparable with the sale-price figures elsewhere on this page. Second, 1.04% is the median tax bill divided by the median home value, which is a different calculation from the statewide effective rate in the comparison table above (that one weighs total taxes collected against total value).
Source: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates (B01003 population; B25077 median home value; B25103 median real estate taxes paid; B19013 median household income). Retrieved 2026-09-24. Learn how the American Community Survey collects these estimates.
🏡 Purchase Example: Buying a $400,000 Home in Maine
Using the state's median home price of $400,000, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in Maine:
| Cost Component | Amount |
|---|---|
| Home Price | $400,000 |
| Down Payment (20%) | $80,000 |
| Loan Amount | $320,000 |
| Estimated Closing Costs (3.5%) | $14,000 |
| Total Cash Needed at Closing | $94,000 |
Monthly Payment (20% Down)
| Item | Monthly |
|---|---|
| Principal & Interest | $2,023 |
| Property Taxes (0.98%) | $327 |
| Homeowners Insurance | $90 |
| PMI (not needed at 20% down) | $0 |
| Total Monthly Payment | $2,439 |
Annual income needed (28% DTI): $105,000/yr
PMI Scenario: What If You Put Only 10% Down?
With a 10% down payment ($40,000), you'd have a loan of $360,000 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.85% of the loan annually:
| Item | 10% Down | 20% Down (savings) |
|---|---|---|
| Principal & Interest | $2,275 | $2,023 |
| Monthly PMI | $255 | $0 |
| Total PITI+PMI | $2,947 | $2,439 |
The lower down payment costs you an extra $508/month (P&I + PMI). You would need $127,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.
First-year interest: In year one, $20,695 of your payments go to interest alone. Over the full 30-year term, you'll pay $408,142 in total interest.
💰 State-Specific Cost Notes for Maine
Property taxes in Maine are 0.98%, meaning about $3,920/year ($327/month) on the median-priced home.Homeowners insurance in Maine is relatively affordable at $1,077/year ($90/month), about 28% below the national average of $1,492 — one of the lower insurance burdens in our state data.
Closing costs in a mid-range market like Maine typically run 2%–4% of the purchase price — roughly $14,000 on a $400,000 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.
Monthly Payment on a $400,000 Home in Maine
With a standard 20% down payment ($320,000 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $2,439.
Monthly Payment Breakdown (PITI)
| Component | Monthly Cost | Annual Cost |
|---|---|---|
| Principal & Interest | $2,023 | $24,276 |
| Property Taxes (0.98% est.) | $327 | $3,924 |
| Home Insurance | $90 | $1,080 |
| Total Monthly Payment | $2,439 | $29,268 |
Income Required in Maine
Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $105,000 to comfortably afford the median-priced home in Maine with 20% down at 6.5%.
How Interest Shapes Your Payments
In your first year, approximately $20,695 goes toward interest alone. Over the full 30-year term, you'll pay a total of $408,142 in interest.
Amortization Schedule — First 10 Years
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| Year 1 | $3,577 | $20,695 | $316,423 |
| Year 2 | $3,816 | $20,455 | $312,607 |
| Year 3 | $4,072 | $20,200 | $308,535 |
| Year 4 | $4,345 | $19,927 | $304,191 |
| Year 5 | $4,636 | $19,636 | $299,555 |
| Year 6 | $4,946 | $19,325 | $294,609 |
| Year 7 | $5,277 | $18,994 | $289,332 |
| Year 8 | $5,631 | $18,641 | $283,701 |
| Year 9 | $6,008 | $18,264 | $277,694 |
| Year 10 | $6,410 | $17,861 | $271,284 |
* Full 30-year amortization available in our interactive calculator.
❓ Frequently Asked Questions — Buying a Home in Maine
How much income do I need to buy a house in Maine?
With the median home price in Maine at $400,000 and a 20% down payment, you need roughly $105,000/year based on the 28% front-end DTI rule (total monthly housing costs of $2,439). If you put down 10%, the income requirement rises to about $127,000/year due to the higher loan amount and PMI.
What's the minimum down payment in Maine?
While 20% down ($80,000) avoids PMI, many Maine buyers opt for lower down payments. FHA loans require as little as 3.5% ($14,000), and conventional loans can go as low as 3%–5% ($12,000–$20,000). However, a 10% down payment ($40,000) would cost you $2,947/month — about $508 more than 20% down — due to PMI and a larger principal.
What are property taxes like in Maine?
Maine's effective property tax rate is 0.98%, which is above the national average of 0.90% (about 9% higher than the average state). On a $400,000 home, you'd pay approximately $3,920/year in property taxes ($327/month).
How much is homeowners insurance in Maine?
The average annual premium in Maine is $1,077, which is below the US average of $1,492 (about 28% lower than the average state). That makes Maine a relatively affordable insurance market for homeowners. This adds $90/month to your payment.
What are the total closing costs for a home in Maine?
On a $400,000 home in Maine, expect to pay about $14,000 in closing costs. Combined with a 20% down payment ($80,000), you'd need approximately $94,000 in cash at closing. First-time buyers in Maine may qualify for down payment assistance programs or reduced closing costs through local housing authorities — check your state housing agency for available grants and low-interest loan programs.
Compare Maine With Nearby States
Buyers relocating within the Northeast compare these markets most often. Every figure uses the same model as this page — each state's median home price, 20% down, 6.5% APR on a 30-year fixed loan, plus that state's property tax rate and average insurance premium — so the rows are directly comparable.
| State | Median Price | Est. Monthly PITI | Avg. Insurance |
|---|---|---|---|
| Vermont | $400,000 | $2,618/mo | $1,109/yr |
| Connecticut | $452,000 | $3,017/mo | $1,814/yr |
| Pennsylvania | $304,000 | $1,950/mo | $1,120/yr |
| Rhode Island | $500,000 | $3,168/mo | $2,074/yr |
| New York | $530,000 | $3,390/mo | $1,628/yr |
| New Hampshire | $531,500 | $3,451/mo | $1,188/yr |
| New Jersey | $570,000 | $3,893/mo | $1,417/yr |
| Massachusetts | $650,000 | $3,984/mo | $1,871/yr |
At $2,439/month for Maine's median home, Maine sits below the Northeast average of $3,184/month for the states listed here.
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Disclaimer: This is an estimate for informational purposes only. Actual mortgage payments depend on your credit score, exact interest rate, property taxes, insurance premiums, PMI, and other factors. Sources: Zillow Research, median sale price, all homes, July 2026 (home values); Tax Foundation 2024 (state effective property tax rates); NAIC 2022 (statewide average HO-3 homeowners insurance premiums). Consult a qualified mortgage professional for personalized advice. See our full Disclaimer.