ZIP Code 04856 Housing Market

📝 Local Market Notes

The housing market in ZIP code 04856, located within Knox County, Maine, exhibits a distinct pattern of recent volatility followed by stabilization. The FHFA House Price Index for this area surged from 190.94 in 2021 to 310.22 by 2023, reflecting a period of intense appreciation. Although a slight correction occurred in 2024, the index recovered to 317.3 in 2025. This trajectory indicates that the local market has experienced significant value accumulation over the last five years, outpacing the gradual growth seen in earlier decades of the thirty-four-year data history. The current HPI level suggests that home values have more than tripled since the 2000 baseline, marking a substantial shift in asset pricing for the region. Comparative analysis reveals that ZIP 04856 is currently outperforming both its county and state peers. With a year-over-year increase of 4.54%, the ZIP code is growing faster than the Knox County average of 3.76% and significantly outpacing the Maine state average of 0.98%. This divergence signals a localized demand dynamic that is stronger than the broader regional trends. While nearby ZIP 04843 has seen an 8.95% decline, and ZIP 04862 has grown by 5.56%, the steady positive momentum in 04856 suggests it is a resilient sub-market. The alignment with the higher-performing neighboring ZIP 04862, rather than the declining 04843, further underscores the specific appeal of this area within the county. The sub-market character of 04856 aligns with the broader Knox County profile, which features a median home value of $324,900 and a median household income of $74,096. With an owner-occupancy rate of 78.7%, the area leans toward homeownership rather than a renter-heavy environment. The median gross rent of $1,165 per month suggests that rental costs are moderate relative to income levels. For prospective buyers, the practical takeaway is that 04856 represents a stable, owner-oriented market with strong recent appreciation. The current 30-year mortgage rate of 7.40% adds to the cost of entry, but the consistent YoY growth indicates that the area retains value well. Residents and investors should note that this ZIP code is currently a relative outlier in terms of growth, offering a distinct alternative to the slower state-wide market.

Based on FHFA House Price Index data.