M4 is VERY good about rust compared to most traditional carbon steels. But remember to take anyone's opinion on here with a grain of salt. Hell, I've seen people talk down vg10 for it's lack of rust resistance, of all steels.... And, yeah I have seen people talk about M4 rusting if you look at it wrong, but that has been the opposite of my experience. And MOST people on BF talking about m4 steel agree that it resists rust very well for not being "stainless"..
However it will discolor a little bit unless you keep it crazy clean and dry all the time. This is not rust, and it's a ridiculously light version of patina compared to something like 1095. Some people freak out with discoloration, if that's you you *might* want to look at other steels, but don't because this steel is amazing. And, frankly, if you can't handle a knife with a few different shades of gray on it, maybe you should trade that knife in for a nice, cupcake scented chapstick or something
My anecdotal evidence. I live in California, I ride my bicycle to work, and I keep my CPM M4 military clipped inside my waistband, which means it is riding up against my boxers. I also work manual labor 9+ hrs a day. And I carry this knife EVERY day. My boxers are damp from sweat within the first hour of work, continuing all day, and I have some days where I only use my knife once or twice, and when I pull it out it actually is covered in sweat droplets. Which means it is sitting in a dark, humid place, covered in water for hours at a time and has had no rust problems. It darkened a little where the water tends to sit, and one particularly bad day it had a light peppering of flaky rust which you practically needed a magnifying glass to see. But I literally took a few swipes of a pencil eraser on it and the rust was gone.
I have not oiled the blade of this knife since I received it months ago. And even still, you have to look at it from the right angle to see the discoloration, from some angles it looks brand new. Also, I've never used anything but a few swipes on the white sharpmaker rods to keep it sharp. this steel is incredible.
cliff notes: if you want an amazingly strong and wear resistant steel, and don't mind if it takes a very, very light amount of staining then do not hesitate to get CPM M4. I would feel perfectly comfortable having a boat/water knife made of this steel, the staining is that little of a problem.