Maine’s median home price increased by more than 50% from 2020 to 2024, while wages and salaries grew by less than 33%. Most affordable places to live in Maine now range from$120,000 to $340,000 median home prices.
Whether you seek mountain access or cultural amenities, Maine’s most affordable cities delivers that. This guide reveals 7 cheapest places to live in Maine.
Key Takeaways
- Millinocket ranks #1 with median home prices around $135,000 and monthly rent averaging $850.
- Caribou offers the lowest rents in Maine at $696 per month with median home prices near $120,000.
- Houlton’s 04730 zip code earned recognition as the most affordable place in all of New England in 2025, with median prices around $155,000.
- Most affordable Maine cities feature no state sales tax, diverse recreation from skiing to ocean access, and authentic small-town character.
Comparing Most Affordable Places to Live in Maine
Here’s how top affordable cities compare on prices, rent, and cost of living. These numbers make it easier to see where savings are possible.
| City | Median Home Prices | Median Rent | Cost of Living vs US | Best For |
| Millinocket | ~$135,000 | ~$850 | -15 to -20% | Outdoor enthusiasts, retirees |
| Jay | ~$230,000 | ~$950 | -16 to -18% | Manufacturing workers, families |
| Old Town | ~$135,000-$184,000 | ~$780 | -2% | University employees, young professionals |
| Rumford | ~$164,000 | ~$900 | -11% | Ski enthusiasts, retirees |
| Houlton | ~$155,000 | ~$850 | +2% | Agricultural workers, border commuters |
| Caribou | ~$120,000 | ~$696 | -10 to -12% | Agricultural workers, retirees |
| Presque Isle | ~$176,000 | ~$1,400 | -8 to -10% | University employees, healthcare workers |
7 Most Affordable Places to Live in Maine in 2025
1. Millinocket
Median Home Price: $135,000
Median Rent: $850
Cost of Living: 15-20% below US average
Best For: Outdoor enthusiasts, retirees on fixed incomes, remote workers, adventure seekers
Millinocket, a former mill town, shows the real North Woods Maine character. Now, this town is transforming itself into a center for outdoor recreation.
Millinocket ranks #1 for Maine’s lowest cost of living. Therefore, you can easily access many hiking peaks here. Housing is also very affordable. The median home price is around $135,000. Moreover, monthly rents are only $850 for mountain basecamp living.
However, the town’s mill heritage still causes economic problems. For example, it faces a 24.8% poverty rate and a population decline. On the other hand, the area gets over 100 inches of snow each winter, which is perfect for snowmobiling.
👉Discover affordable living near Maine’s wilderness in Millinocket. So start your Millinocket homes for sale search today!
2. Jay
Median Home Price: $230,000
Median Rent: $950
Cost of Living: 16-18% below US average
Best For: Manufacturing workers, families seeking homeownership, mountain access seekers, Augusta commuters
Along the Androscoggin River, Jay balances industrial paper mill heritage with mountain life. This tight-knit community benefits from Augusta proximity and Mount Blue State Park access.
Median household income reaches $67,716, having solid elementary programs through Spruce Mountain schools. Jay’s median home prices are around $230,000 and $950 monthly rents. As a result, there 16-18% cost savings compared to national norm.
Ranked #2 for lowest cost of living in Maine, though paper mill odor and limited dining options are the trade-offs.
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3. Old Town
Median Home Price: $135,000-$184,000
Median Rent: $780
Cost of Living: 2% below US average (98 index), housing index 76
Best For: University employees, young professionals, paddling enthusiasts, families wanting Bangor access
Old Town sits on the Penobscot River, next to the Penobscot Nation reservation. Therefore, the city blends Native American canoe traditions with a major university. Meanwhile, it offers University of Maine access without Portland’s high prices.
The median household income is $49,329. While, median home prices range from $135,000 to $184,000. Also, monthly rents are a very low at $780. Residents can enjoy Marsh Island bird watching and the Leonard’s Mills historical site.
Old Town Canoe Company started here in 1898. Indeed, it produced canoes for expeditions worldwide. This cemented the town’s paddling heritage. However, the city has a 21.3% poverty rate. Older housing also needs maintenance due to heating costs.
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4. Rumford
Median Home Price: $164,000
Median Rent: $900
Cost of Living: 11% below US average (89 index)
Best For: Ski enthusiasts, retirees stretching fixed incomes, outdoor adventurers, paper mill workers
Rumford, located in the Oxford County, where the Ellis and Swift Rivers meet the Androscoggin. Thus, the town’s paper mill heritage defines this resilient community. Also, the area offers mountain biking networks and Tumbledown Mountain hiking.
Furthermore, Black Mountain downhill skiing is only ten minutes away. Meanwhile, Sunday River resort is accessible within 30 minutes for winter sports lovers.
Median home prices are about $164,000, and monthly rents average $900. Therefore, this delivers 11% cost savings below US averages. Rumford also received recognition for 103% housing value growth from 2020-2025.
This price point provides ski resort proximity affordability. In fact, Rumford ranks #10 for the lowest cost of living in Maine. However, the 20.5% poverty rate and $39,522 median household income reflect some challenges.
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5. Houlton
Median Home Price: $155,000
Median Rent: $850
Cost of Living: 2% higher than US average, but lowest in Aroostook County
Best For: Agricultural workers, border commuters to Canada, extreme affordability seekers, snowmobile enthusiasts
Houlton is Maine’s northernmost town, it sits on the Canadian border. Therefore, it is Aroostook County’s main commercial hub. This is an agricultural community, indeed, it offers genuine small-town living.
Residents enjoy Meduxnekeag River trails, while also have potato farming celebrations. Aroostook State Park hiking and shopping in Woodstock, enhance the lifestyle. Median home prices are near $155,000. Also, monthly rents average $850.
These figures provide ultra-low costs. However, the costs sit 2% above the US average due to the regional context. Nevertheless, there are trade-offs. A remote location, harsh winters, and limited job diversity outside of agriculture pose a challenge.
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6. Caribou
Median Home Price: $120,000
Median Rent: $696
Cost of Living: 10-12% below US average
Best For: Agricultural workers, military personnel, retirees wanting ultra-low costs, Swedish heritage enthusiasts
Caribou is Aroostook County’s second-largest city, home to 7,451 people. These residents rely on potato farming yet enjoy modern services. Consequently, the local economy is stable.
The city features strong schools for instance, the Caribou Community School. The median household income is $54,271, and only 11.8% of people live in poverty. Moreover, Caribou median home price is about $120,000.
What’s more, the average rent is Maine’s lowest, at $696 monthly. Residents can enjoy cross-country skiing at the Nordic Heritage Center. However, the area is remote, rural, and has long winters from October to April.
👉If you’re seeking affordability in northern Maine, then explore Caribou homes for sale today!
7. Presque Isle
Median Home Price: $176,000
Median Rent: $1,400
Cost of Living: 8-10% below US average
Best For: University employees, healthcare professionals, families wanting amenities affordably, agricultural business owners
Presque Isle’s educational and business center offers sophistication for its residents in far northern Maine. The community is home to the University of Maine at Presque Isle (UMPI) and Northern Maine Medical Center. Because of this, it provides unmatched services in Aroostook County.
Presque Isle, “Best of the North” is famous for its quality of life in rural Maine. Consequently, the city mixes UMPI cultural programs with projects to renew its downtown. Additionally, residents enjoy the University’s performing arts
Median home prices are about $176,000. This price is 8−10% below the US average. However, monthly rent is higher at $1,400, reflecting its status as a regional service hub
Yet, practical considerations remain: the city is remote with limited flights and high winter heating costs.
👉Presque Isle offers small-town warmth and affordable prices. So begin your Presque Isle homes for sale search today!
How We Ranked Maine’s Most Affordable Cities in 2025
Our comprehensive analysis uses weighted criteria such as,
- Housing Costs (40%)
- Overall Cost of Living (20%)
- Economic Accessibility (15%)
- Community Infrastructure (15%)
- Market Stability (10%)
Data sources include Maine Housing Authority reports (2024-2025), U.S. Census Bureau Population Estimates Program (2024-2025). As well as, Niche cost of living rankings (2025), Zillow Home Value Index (2025), Zumper rental data (September-October 2025). Additionally, we also used MaineHousing Housing Outlook Report (2025), BLS regional economic data and local law enforcement crime statistics.
What Drives Affordability in Maine?
Maine’s affordable housing has a few roots. It comes from Geographic isolation, old mill town buildings, and farm economies in northern counties. Because of lower population, there’s a good housing supply.
The economy relies on paper mills, potato farms, and tourism. This keeps wages lower, yet housing prices stay stable compared to the coast. Heating costs average $450−$460 monthly for utilities. Heating oil prices have stabilized after the 2022−2023 volatility. This is according to the Governor’s Energy Office.
What’s more, Maine has no state sales tax. This offers big savings. However, property taxes and heating fuel costs reduce this benefit. Since 2018, the rent burden has increased sharply for middle-income households.
For example, 53.2% of renters earning $35,000−$49,999 now struggle with rent. Five years ago, only 32.8% faced this issue. Finally, northern counties get over 100 inches of snow. This requires snow removal money and higher heating costs from October through April.
Smart Tips for Maine Living
- Research winter heating costs thoroughly.
- Explore MaineHousing First Home programs.
- Consider employment commute realities.
- Evaluate school district quality variations.
- Embrace outdoor recreation opportunities.
Should You Move to Maine?
Most affordable places to live in Maine show off true New England style. Home prices start low at a $120,000 median in Caribou. Prices, by contrast, climb to a $230,000 median in Jay.
These 7 towns balance many factors. For example, they offer access to nature, farming roots, university life, and stable government jobs. Still, you must consider the harsh winters and isolated locations.
Housing costs are still low, despite a 50% price jump since 2020. This is because northern counties and mill towns maintain lower costs. Thus, they beat the prices of more popular coastal areas.
Be sure to plan for realistic costs. This includes high heating bills and long commute times. Also, poverty rates here range from 11.8% to 25.4%. You can choose outdoor fun in Millinocket or a border town value in Houlton.
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Frequently Asked Questions
What is the most affordable place to live in Maine?
Maine's most affordable city is Millinocket with slightly higher $135,000 home prices but superior outdoor recreation access to Baxter State Park.
What are the top 7 most affordable cities in Maine?
The 7 most affordable Maine cities ranked by comprehensive methodology are Millinocket (#1), Jay (#2), Old Town (#3), Rumford (#4), Houlton (#5), Caribou (#6), Presque Isle (#7).
Which Maine cities are best for families on a budget?
For families on a budget, Jay offers the best family value with $230,000 median homes, solid Spruce Mountain schools, and $67,716 median household income supporting 4,644 residents. Caribou delivers exceptional schools with 82% reading and 85% math proficiency alongside $120,000 home prices and 11.8% poverty rates.
What makes Maine one of the most affordable states?
Maine delivers affordability through geographic isolation, agricultural economies, and legacy mill town infrastructure maintaining lower housing costs in northern and central regions. No state sales tax provides savings, though property taxes and heating costs offset benefits.
