Maine’s coastline runs 3,478 miles when you count every inlet, peninsula, and island — and virtually every mile of it generates short-term rental demand. Acadia National Park drew 4.06 million visitors in 2023, making it one of the ten most-visited national parks in the country. Portland has evolved into a nationally recognized food destination, named Bon Appetit’s Restaurant City of the Year and consistently ranked among America’s best small cities for tourism. Bar Harbor, Camden, Kennebunkport, and Old Orchard Beach each generate their own seasonal tourism economies that have supported vacation rentals for decades.
But here’s what separates Maine from more forgiving STR markets: seasonality is extreme. June through October drives 70-80% of annual revenue for most properties. Operators who don’t plan for the off-season — or who fail to capture the full value of peak months — end up underwater. The hosts who thrive in Maine approach it like a seasonal business, which it is. They price aggressively during peak weeks, build minimum-stay strategies that fill shoulder months, and either generate alternative demand in winter or budget accordingly. If you’re pursuing rental arbitrage in Maine, understanding this seasonal math is non-negotiable.
Why Maine Is a Top Market for Short-Term Rentals
Maine generates $7.2 billion in annual tourism revenue, and a disproportionate share of that spending flows to accommodations. The state’s appeal is concentrated but powerful: a coastline that attracts visitors from across the Northeast and increasingly from international markets, outdoor recreation that spans every season (if you market it right), and a cultural identity — lobster shacks, lighthouses, craft breweries, working harbors — that translates directly into premium STR experiences guests can’t find in a hotel.
The real opportunity in Maine comes from the ADR premium. Coastal properties, particularly those with water views or access, command nightly rates that dramatically exceed the national STR average. A two-bedroom cottage in Bar Harbor pulls $250-$400/night during July and August. Waterfront properties in Camden and Boothbay Harbor regularly exceed $350/night. Even inland properties near popular lakes (Sebago, Rangeley, Moosehead) command $175-$275/night during summer.
What makes this premium sustainable is limited supply. Maine’s geography — rocky coastline, conservation land, strict local building codes — physically constrains new construction in the most desirable areas. You can’t build a new property in Bar Harbor or Kennebunkport the way you can add apartments in Nashville. That supply constraint protects ADRs for existing operators and creates a genuine competitive moat.
Demand is also diversifying beyond summer. Portland’s year-round food, arts, and brewery scene generates consistent tourism from October through May. Ski traffic at Sunday River, Sugarloaf, and Saddleback creates winter demand in the western mountains. And leaf-peeping season (late September through mid-October) has become a major revenue period, with fall foliage tourism generating an estimated $450 million annually for the state.
Maine Short-Term Rental Laws and Regulations
Maine gives municipalities significant control over STR regulation, and towns with heavy tourism pressure have used that authority aggressively. The regulatory landscape varies dramatically from Portland’s structured licensing system to rural towns with virtually no STR-specific rules. Navigating this patchwork is one of the biggest operational challenges for Maine hosts.
State-Level Requirements
Maine state requirements for STR operators include:
- Registration with the Maine Revenue Services for sales tax and lodging tax collection
- Collection and remittance of 9% Maine lodging tax on all stays (this single rate combines sales and lodging taxes)
- Compliance with the Maine Uniform Building and Energy Code for safety standards
- Installation of smoke detectors and carbon monoxide detectors per state fire code
- Septic system compliance (particularly relevant for coastal and rural properties)
- Reporting all rental income on Maine individual income tax returns
Maine’s 9% lodging tax is collected and remitted by Airbnb and VRBO automatically for properties booked through those platforms. However, direct bookings (which many established Maine STR operators rely on for 20-40% of revenue) require manual tax collection and quarterly remittance to Maine Revenue Services.
Key City Regulations
Portland: Maine’s largest city implemented one of New England’s more comprehensive STR regulatory frameworks. Portland requires a short-term rental registration that distinguishes between owner-occupied (hosted) and non-owner-occupied (unhosted) rentals. Non-owner-occupied STRs are limited to certain zones, and the city caps the total number of non-owner-occupied STR registrations. Annual registration fees apply. Portland also enforces a local housing ordinance that targets investor-owned properties, driven by concerns about STRs reducing long-term housing supply. As of 2025, non-owner-occupied STRs are restricted primarily to commercial and mixed-use zones.
Bar Harbor: The gateway to Acadia National Park has some of the strictest STR regulations in Maine. Bar Harbor limits short-term rental licenses to properties that were already operating as STRs before the ordinance took effect (grandfathered properties). New STR applications face a lengthy review process and may be denied based on neighborhood density caps. The town’s motivation is preserving residential character while managing the tourist influx that peaks from June through October. If you’re entering the Bar Harbor market, acquiring a property with an existing STR license is critical — getting a new license is extremely difficult.
Kennebunkport: This affluent coastal town requires STR registration and restricts the number of rental days per year for non-owner-occupied properties. Kennebunkport’s regulations focus on preserving the town’s residential character while acknowledging that vacation rentals have been part of the local economy for generations. Owner-occupied rentals face fewer restrictions.
Old Orchard Beach: OOB has a more commercial approach to STRs, consistent with its identity as a beach resort town. The town requires registration and annual inspections but is generally more permissive than Portland or Bar Harbor. Fire safety inspections are mandatory, and the town enforces strict occupancy limits based on property size and septic capacity.
Recent Regulatory Changes (2025-2026)
Maine’s 2025 legislative session saw several STR-related bills, reflecting the ongoing tension between tourism revenue and housing affordability. LD 1234 proposed a statewide STR registry that would have created standardized reporting requirements across all municipalities. The bill received significant debate but was ultimately carried over to the 2026 session. Supporters argue a statewide registry would simplify compliance; opponents (including many STR operators) worry about additional bureaucracy and potential caps.
Portland tightened its enforcement mechanisms in 2025, partnering with a third-party monitoring service to identify unregistered STRs. The city issued fines to dozens of operators, and the enforcement crackdown pushed many unregistered hosts to either comply or exit the market — both outcomes benefit compliant operators by reducing unregulated competition.
Bar Harbor continued to limit new STR licenses while exploring whether to allow existing license holders to transfer licenses upon property sale. This transfer provision, if adopted, would significantly impact property values for licensed STR properties in the Acadia gateway market.
Tax Obligations for Maine Airbnb Hosts
Maine simplifies lodging taxation into a single 9% rate, but the compliance details still require attention.
Lodging Tax: Maine charges 9% on all short-term lodging (stays under 28 consecutive days). This combined rate covers both sales and lodging taxes. Airbnb and VRBO collect this automatically. For direct bookings, you must register with Maine Revenue Services and remit quarterly.
Income Tax: Maine’s income tax is progressive, ranging from 5.8% to 7.15%. All net rental income is taxable. Seasonal operators should estimate quarterly payments to avoid underpayment penalties. The seasonality of Maine STR income makes cash flow management critical — you’ll generate most of your taxable income between June and October but owe taxes throughout the year.
Deductible Expenses: Standard rental deductions apply: cleaning, supplies, utilities, property management, platform fees, insurance, depreciation, maintenance, and marketing. Maine-specific deductions to track include snow removal (if operating in winter), septic maintenance, and dock/waterfront maintenance costs. These property-specific expenses can be substantial and materially reduce your tax liability.
One overlooked tax consideration for Maine hosts: if you use the property personally for more than 14 days per year (or 10% of the days it’s rented, whichever is greater), the IRS reclassifies it as a personal residence, limiting your deductible expenses. Many Maine hosts use their properties during the off-season, which is fine — but track your personal use days carefully to avoid triggering this limitation.
Best Cities for Airbnb in Maine
Maine’s STR markets fall into three categories: coastal summer destinations with extreme seasonality and high ADRs, Portland’s year-round urban market, and inland/mountain properties with winter ski and summer lake demand. Your choice shapes everything from your revenue profile to your management complexity.
Portland
Maine’s largest city offers the closest thing to year-round STR demand in the state. Portland’s food scene (James Beard Award-winning restaurants, nationally ranked craft breweries, the Portland Food Festival) drives tourism well beyond summer. The Old Port, Arts District, and East End neighborhoods are the most desirable STR locations. Portland also generates corporate and medical travel demand from Maine Medical Center and the city’s growing tech and creative economy.
ADR in Portland runs $165-$235 during peak season (June-October) and $110-$155 off-peak. Annual occupancy averages 62-72%, notably higher than coastal resort towns because demand continues through winter. Monthly gross revenue for a well-optimized two-bedroom averages $3,000-$4,200 during peak months and $1,800-$2,600 off-peak. Portland’s year-round viability makes it the most bankable Maine market for operators who need consistent cash flow.
Bar Harbor / Acadia Gateway
The premium coastal market, driven almost entirely by Acadia National Park. Bar Harbor properties command some of the highest nightly rates in New England during July and August — $250-$450 for a standard two-bedroom, with waterfront or water-view properties exceeding $500/night. The season is compressed: strong demand from late May through mid-October, with July and August being the revenue peak.
The challenge is off-season. November through April, Bar Harbor essentially shuts down. Occupancy drops below 20%, and many operators close their properties entirely for the winter. Annual gross revenue for a competitive two-bedroom runs $35,000-$55,000, but nearly all of that comes in a five-month window. Properties with existing STR licenses command a significant premium at sale — sometimes $50,000-$100,000 above comparable unlicensed properties.
Kennebunkport / Southern Coast
Maine’s southern coast (Kennebunkport, Ogunquit, York, Wells) attracts a slightly different visitor profile: affluent families and couples from the Boston metro area and beyond. The proximity to Boston (80-90 minutes to Kennebunkport) creates strong weekend getaway demand from May through October and holiday weekend spikes.
ADR runs $185-$300 during peak season, with occupancy between 65% and 78% from June through September. Off-season occupancy drops sharply but doesn’t disappear entirely — Kennebunkport’s Christmas Prelude event in early December generates a late-season revenue spike. Monthly gross revenue for a two-bedroom averages $3,200-$5,000 during peak months.
Rangeley / Western Mountains
This inland market serves a dual function: summer lake tourism (Rangeley Lake, Mooselookmeguntic Lake) and winter ski traffic (Saddleback Mountain, Sugarloaf). This two-season demand profile produces better annual revenue than pure coastal properties that go dark in winter.
ADR runs $140-$220, with occupancy around 50-65% during peak periods (July-August, December-March). Larger properties (3-4BR) with lake access or proximity to ski resorts perform best. Monthly gross revenue averages $2,200-$3,600 during peak months. The dual-season appeal makes western Maine an increasingly popular choice for investors seeking less extreme seasonality than coastal markets.
| Market | Avg Daily Rate (Peak) | Peak Occupancy | Annual Gross Revenue (2BR) | Seasonality Risk |
|---|---|---|---|---|
| Portland | $165-$235 | 62-72% | $36,000-$48,000 | Low |
| Bar Harbor / Acadia | $250-$450 | 75-90% | $35,000-$55,000 | Very High |
| Kennebunkport / Southern Coast | $185-$300 | 65-78% | $32,000-$50,000 | High |
| Rangeley / Western Mountains | $140-$220 | 50-65% | $28,000-$42,000 | Moderate |
How Much Do Airbnbs Make in Maine?
Maine STR revenue is defined by the gap between peak and off-peak performance. Understanding — and planning for — that gap is the single most important financial decision you’ll make as a Maine host.
During peak season (July-August), a competitive Bar Harbor property can generate $8,000-$14,000/month. But in January? That same property might generate $200 — or nothing. Portland smooths this curve somewhat, but even Portland sees a 35-40% revenue drop from summer to winter. Coastal resort properties face 60-80% revenue declines in the off-season.
Annual gross revenue benchmarks for Maine STR operators:
- Portland (year-round, 2BR): $36,000-$48,000
- Coastal resort (seasonal, 2BR): $32,000-$55,000
- Premium coastal (water view/access, 3BR+): $55,000-$95,000
- Inland/mountain (dual-season, 2-3BR): $28,000-$42,000
- Luxury waterfront (dock access, 4BR+): $80,000-$140,000+
The most successful Maine operators maximize peak months while finding creative solutions for the off-season. Some offer monthly winter discounts to traveling nurses or remote workers — a segment that’s grown significantly since 2020. Others partner with local ski resorts for winter package deals. A few close entirely from November to April and budget their annual expenses against five months of peak revenue. There’s no single right approach, but pretending the off-season doesn’t exist will kill your business.
Direct bookings play a larger role in Maine than in most STR markets. Established operators report that 20-40% of their revenue comes through personal websites, repeat guests, and referrals. This matters because direct bookings avoid the 3-15% platform commission, significantly improving margins during a season where every dollar counts.
How to Start Your Maine Airbnb Business
Maine’s seasonal market demands more upfront planning than year-round destinations. Here’s how to approach it.
Step 1: Choose Your Seasonal Strategy. Before anything else, decide how you’ll handle the off-season. Portland allows year-round operation with reduced winter revenue. Coastal properties require either off-season income strategies (monthly rentals, winter getaway marketing) or sufficient peak-season revenue to cover 12 months of expenses in 5-6 months of income. Your financial model must work under your seasonal strategy — not the other way around.
Step 2: Research Regulations Thoroughly. Maine’s town-by-town regulatory variation means you must check specific rules for your target property’s municipality. Contact the town office directly. In Bar Harbor, verify whether the property has an existing STR license. In Portland, confirm the zoning allows non-owner-occupied STRs. This research happens before you even look at properties — there’s no point analyzing a deal you can’t legally operate.
Step 3: Analyze Properties with Seasonal Math. Model revenue for each month, not as an annual average. Use AirDNA or AllTheRooms data filtered by month to see actual seasonal performance in your target market. Your annual revenue is the sum of 12 different monthly figures, not a yearly average multiplied by 12. Ensure the seasonal total covers all annual expenses with a 15-20% buffer for maintenance, vacancies, and the unexpected.
Step 4: Set Up Legal and Tax Infrastructure. Register a Maine LLC ($175 filing fee). Register with Maine Revenue Services for lodging tax collection. Obtain local STR registration or license per your municipality’s requirements. If operating near the coast, verify septic system compliance — this is a common delay that catches new operators off guard.
Step 5: Design for the Maine Experience. Maine guests have specific expectations. Coastal properties need nautical touches without being kitschy — quality linens, a well-equipped kitchen for cooking lobster, outdoor seating with views, local coffee and brewery recommendations. Mountain properties need fireplaces or wood stoves, game tables for rainy days, and proximity to trails. What guests won’t tolerate: dated interiors, unreliable Wi-Fi, or anything that feels like a generic rental rather than a Maine experience.
Step 6: Build a Marketing Engine Beyond Platforms. In Maine, your own website and direct booking capability matter more than in most markets. Repeat guests are the backbone of many established Maine STR operations. Collect guest emails (with permission), build a simple website, and create a social media presence showcasing your property and area. A guest who books direct saves you 10-15% in platform fees — over a full peak season, that difference can be $4,000-$8,000.
Step 7: Plan for Winter Before It Arrives. If you’re operating year-round, prepare your property for Maine winters: winterize plumbing, ensure heating is reliable and cost-effective, stock snow removal equipment or contract a plow service, and adjust your minimum-night requirements to attract longer stays. If you’re closing for winter, schedule maintenance and upgrades during the off-season so your property is pristine for the spring opening. Smart hosts use co-hosting arrangements to manage properties remotely during shoulder seasons.
Maine STR Insurance and Liability
Maine’s coastal environment creates specific insurance challenges that inland operators don’t face. Salt air accelerates wear on properties. Winter storms can cause ice dam damage. And coastal flooding — particularly in areas like Portland’s waterfront and low-lying coastal areas — requires specific coverage.
Liability Insurance: A $1 million commercial general liability policy runs $1,000-$2,000 annually per property in Maine, with coastal properties at the higher end due to increased risk exposure (decks, docks, waterfront access). If your property has a dock, boat rental, or water access, verify your policy explicitly covers water-related activities.
Property Coverage: Coastal Maine properties need comprehensive coverage that includes windstorm, ice dam damage, and potentially flood insurance. Standard homeowner’s policies exclude STR activity — you need either an STR endorsement or a dedicated commercial policy. For properties in flood zones, separate NFIP or private flood insurance is mandatory.
Seasonal Vacancy Coverage: If you close your property for winter, some policies reduce coverage during vacancy periods. Verify that your policy maintains full coverage even when the property is unoccupied, or add a vacancy endorsement. A burst pipe in an unoccupied winter property can cause $50,000+ in damage — this isn’t theoretical in Maine.
Airbnb’s AirCover supplements but doesn’t replace dedicated STR insurance. For full context on coverage gaps, read our analysis on whether insurance covers Airbnb hosting. Maine STR insurance specialists include Proper Insurance, Foremost (which has strong seasonal property expertise), and local carriers like MMG Insurance.
Why 10XBNB Gives You the Edge in Maine
Maine’s STR market punishes amateur mistakes more severely than year-round markets. Overpay for a property in a town that restricts STRs, and you’re stuck with an investment that can’t generate the returns you modeled. Underprice your peak weeks, and you’ve lost revenue you can’t recover until next summer. Fail to prepare for winter, and a single maintenance disaster can wipe out a season’s profit.
10XBNB’s system was designed to prevent exactly these mistakes. The market analysis training teaches you to evaluate seasonal markets correctly — not with annual averages that mask the reality of five-month revenue cycles. The pricing optimization module covers event-driven and seasonal pricing strategies that are essential in Maine’s compressed peak season. And the arbitrage framework shows how to test a Maine market without the six-figure commitment of buying coastal property.
The 10XBNB community includes operators running profitable STRs across New England, including hosts managing Maine coastal properties. That network provides practical intelligence on everything from which towns are tightening regulations to which property managers are worth hiring to which cleaning services can handle a Saturday turnover during peak season when every property on the coast needs service at the same time.
Maine’s STR market isn’t for everyone — the seasonality and regulatory complexity create real barriers. But for operators who approach it systematically, the premium ADRs and supply constraints create profit potential that most year-round markets simply can’t match. The key is having the right knowledge before you commit capital.
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Frequently Asked Questions
How do Maine Airbnb hosts handle the off-season?
Maine hosts use several off-season strategies: offering monthly winter discounts to traveling nurses, remote workers, or snowbirds; marketing to winter sports enthusiasts near ski areas; hosting holiday getaway packages; or closing the property entirely and budgeting annual expenses against peak-season revenue. Portland properties maintain the strongest year-round demand. Coastal properties typically see 60-80% revenue declines from November through April, so financial planning for seasonality is essential.
Is it hard to get an Airbnb license in Bar Harbor, Maine?
Yes. Bar Harbor has some of Maine’s strictest STR regulations. New short-term rental licenses are extremely difficult to obtain due to neighborhood density caps and a grandfathering system that favors existing operators. The most reliable path into the Bar Harbor market is purchasing a property that already holds an active STR license. Properties with existing licenses sell at a significant premium — sometimes $50,000-$100,000 above comparable unlicensed properties — reflecting the license’s value.
What tax rate do Maine Airbnb hosts pay?
Maine charges a 9% lodging tax on all short-term stays under 28 days. This single rate combines sales and lodging taxes. Airbnb and VRBO collect this automatically for platform bookings. For direct bookings, hosts must register with Maine Revenue Services and remit the 9% quarterly. State income tax on rental profits ranges from 5.8% to 7.15% depending on total income.
Can I do rental arbitrage in Maine?
Rental arbitrage is possible in Maine, primarily in Portland and other year-round markets where the rental inventory is deep enough to find willing landlords. Coastal resort areas like Bar Harbor and Kennebunkport have limited rental stock, making arbitrage harder to execute. Portland is the strongest arbitrage market — lease costs are manageable, year-round demand supports cash flow, and the rental market offers suitable properties. Always verify that your target municipality allows STR use at the specific property before signing a lease.
How much do Maine Airbnb properties make during peak season?
Peak season revenue (July-August) varies dramatically by market. Bar Harbor properties can generate $8,000-$14,000/month for a well-positioned two-bedroom. Kennebunkport and the southern coast produce $5,000-$8,000/month. Portland runs $3,500-$5,000/month during peak. Premium waterfront properties with water access can exceed $15,000/month during July and August. Most Maine STR operators generate 70-80% of their annual revenue between June and October.
Is Portland or Bar Harbor better for Airbnb investing in Maine?
It depends on your financial strategy. Portland offers lower ADRs but year-round demand, making cash flow more predictable and reducing seasonality risk. Bar Harbor delivers higher peak-season revenue but nearly zero winter income, requiring careful financial planning. Portland is better for rental arbitrage operators and first-time hosts who need consistent monthly income. Bar Harbor is better for investors who can handle compressed revenue cycles and want the highest absolute ADR. Portland also has a deeper rental market if you need to pivot your strategy.
Maine’s STR market demands more strategic thinking than most states, but the reward is access to some of the highest nightly rates and most loyal guest bases in the country. The state’s natural supply constraints, premium tourism appeal, and growing diversification beyond summer create conditions where well-prepared operators build genuinely profitable businesses. See how Maine compares to other top markets in our comprehensive best states for Airbnb ranking.
