Is Baltimore, Maryland Good for Airbnb Investment?

To start an Airbnb in Baltimore, Maryland, begin by researching local regulations as Baltimore requires short-term rental operators to obtain a Short-Term Residential Rental License from the Department of Housing and Community Development, which costs approximately $300 annually and requires property inspections for safety compliance including smoke detectors, carbon monoxide detectors, and fire extinguishers. Next, secure your property either by purchasing or obtaining landlord permission if renting, ensuring it meets Baltimore's zoning requirements as some residential areas restrict short-term rentals. Furnish the space with essential amenities including comfortable bedding, basic kitchen supplies, WiFi, TV, and cleaning supplies while considering Baltimore's tourist attractions like the Inner Harbor and Fort McHenry when decorating. Create your Airbnb listing with high-quality photos, competitive pricing based on Baltimore's average nightly rates of $80-150 depending on location and season, and highlight proximity to popular areas like Federal Hill, Fells Point, or Canton. For ongoing management, establish check-in procedures, maintain consistent communication with guests, coordinate professional cleaning between stays, and stay compliant with Baltimore's 14.5% hotel tax which must be collected and remitted to the city, while also considering hiring local property management companies like RedAwning or Vacasa if you prefer hands-off management.

To identify profitable short-term rental properties in Baltimore, Maryland, focus on neighborhoods like Federal Hill, Fells Point, Inner Harbor, Canton, and Mount Vernon which offer proximity to major attractions, restaurants, and business districts. Target properties with 2-3 bedrooms, parking availability, outdoor spaces, and unique architectural features like historic rowhouses or waterfront views that command premium rates of $150-250 per night. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates, occupancy rates (aim for 65-75%), and seasonal demand patterns, particularly during peak tourism months and Ravens/Orioles games. Research competition by analyzing similar properties within a 1-mile radius, identifying gaps in amenities or pricing strategies, and monitoring properties with consistently high ratings and booking frequency. Utilize Baltimore-specific resources including the city's STR licensing requirements, neighborhood association guidelines, and local property management companies like Vacasa or RedAwning, while leveraging tools such as AirDNA for market data, BiggerPockets for investment analysis, and local MLS systems to identify undervalued properties in gentrifying areas like Pigtown or Hampden that show strong rental potential.

To obtain an Airbnb/STR permit in Baltimore, Maryland, you must first register with the Baltimore City Department of Housing and Community Development by submitting an application online through their portal or in person at 417 East Fayette Street. Required documents include a completed short-term rental registration form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, valid business license from Baltimore City, liability insurance policy with minimum $500,000 coverage naming the city as additional insured, floor plan showing maximum occupancy, and contact information for a local representative available 24/7. The registration fee is approximately $300 annually, with additional inspection fees of around $150. You must also obtain a trading license from the Department of Finance for roughly $75 and ensure compliance with zoning requirements, as STRs are prohibited in certain residential districts. The property must pass a housing inspection and meet all fire safety codes, including smoke detectors in each bedroom and common areas, carbon monoxide detectors, and proper egress windows. The timeline typically takes 4-6 weeks from application submission to approval, assuming all documents are complete and the property passes inspection on the first attempt. Baltimore requires STR operators to collect and remit hotel taxes, maintain guest registries, post emergency contact information prominently, and limit occupancy to no more than 2 guests per bedroom plus 2 additional guests, with a maximum of 16 people total regardless of property size.

Short-term rentals (STRs) are legal in Baltimore, Maryland, but operate under strict regulations implemented in 2017 and updated in subsequent years. The city requires STR operators to obtain a license, pay annual fees, and comply with safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. STRs are prohibited in certain residential zoning districts, particularly R-1 through R-8 zones, effectively banning them in most single-family residential neighborhoods, while they are generally permitted in commercial and mixed-use areas. The city limits the number of STR licenses issued and requires operators to maintain liability insurance, collect and remit hotel taxes, and ensure properties meet building code standards. Recent changes have included stricter enforcement mechanisms and increased penalties for non-compliance, with the city conducting regular inspections and imposing fines for violations. Baltimore also requires STR operators to provide emergency contact information and maintain guest registries, while prohibiting rentals for less than two consecutive nights in most cases.

The best Airbnb investment areas in Baltimore include Fells Point, which attracts tourists with its cobblestone streets, waterfront dining, and proximity to the Inner Harbor; Federal Hill, offering stunning harbor views and walkability to major attractions like the National Aquarium and Oriole Park at Camden Yards; Canton, popular among young professionals and tourists for its waterfront location, nightlife, and easy access to downtown; Inner Harbor area, the city's premier tourist destination with world-class attractions, hotels, and convention facilities drawing business travelers; Mount Vernon, known for its historic architecture, cultural institutions like the Walters Art Museum, and appeal to cultural tourists; Hampden, a trendy neighborhood with unique shops, restaurants, and events like HonFest that attract visitors seeking authentic Baltimore experiences; and Little Italy, which draws food tourists and visitors attending events at nearby venues while offering authentic Italian dining experiences. These areas benefit from proximity to major attractions, universities like Johns Hopkins, business districts, and transportation hubs, with Fells Point and Inner Harbor commanding the highest nightly rates due to tourist demand, while neighborhoods like Canton and Federal Hill offer strong year-round occupancy from both leisure and business travelers.

In Baltimore, Maryland, Airbnb hosts must collect and remit a 15.5% hotel tax on all short-term rental bookings, which consists of a 7% state sales tax, 7% Baltimore City hotel tax, and 1.5% Baltimore tourism tax. The tax is calculated on the total rental amount including cleaning fees but excluding security deposits. Hosts must register with the Baltimore City Department of Finance to obtain a hotel tax license and file monthly returns by the 20th of the following month, remitting collected taxes even if no rentals occurred. The state portion requires separate registration with the Maryland Comptroller's office and quarterly filings. Airbnb automatically collects and remits these taxes for most properties through their platform since 2019, but hosts remain ultimately responsible for compliance and must verify collection is occurring. Properties rented for 30 days or longer are generally exempt from hotel taxes, and certain charitable or government-related stays may qualify for exemptions with proper documentation. Failure to comply can result in penalties of 10-25% of unpaid taxes plus interest, and the city conducts regular audits of short-term rental operators.

Starting an Airbnb in Baltimore, Maryland requires approximately $280,000-$350,000 in total initial investment. Property purchase costs average $200,000-$250,000 based on median home prices in desirable neighborhoods like Federal Hill or Canton. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and decor to create an attractive rental space. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, smart locks, security systems, and welcome amenities. Baltimore requires a short-term rental license ($300), plus potential HOA approvals and zoning compliance totaling $500-$1,500 in permits and fees. Insurance increases by $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's policies. Utility setup and deposits for electricity, gas, water, internet, and cable average $500-$800 initially, with monthly costs of $200-$300. First six months of operating expenses including utilities ($1,200-$1,800), cleaning services ($1,800-$3,000), maintenance reserves ($1,000-$2,000), platform fees, supplies, and marketing total approximately $8,000-$12,000, bringing the complete startup investment to roughly $280,000-$350,000 depending on property location and quality level targeted.

Airbnb properties in Baltimore, Maryland typically generate annual revenues between $15,000-$45,000 depending on location and property type, with Inner Harbor and Federal Hill properties commanding premium rates of $80-150 per night while outer neighborhoods average $50-80 nightly. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), property management (10-20% of revenue), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts like those operating renovated rowhouses in Canton and Fells Point reporting annual profits of $8,000-18,000 per unit. Key success factors include strategic location within 2 miles of downtown attractions, professional photography, dynamic pricing strategies, maintaining 4.8+ star ratings, and offering amenities like parking and fast WiFi. Properties near Johns Hopkins University and the National Aquarium consistently outperform the market, while hosts who invest in smart locks, noise monitoring, and local guidebooks see 20-30% higher booking rates. The Baltimore market shows seasonal fluctuations with peak performance April through October, and successful operators often achieve 65-80% occupancy rates compared to the city average of 55-65%.

Airbnb investments in Baltimore, Maryland typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property location and management efficiency. Properties in desirable neighborhoods like Federal Hill, Fells Point, and Inner Harbor command higher nightly rates of $80-150, while areas near Johns Hopkins University and downtown business district maintain steady occupancy rates of 65-75% annually. Initial profitability usually occurs within 12-18 months after accounting for startup costs, furnishing, and marketing expenses, with properties requiring $15,000-25,000 in upfront investment beyond the down payment. The Baltimore market benefits from consistent demand from business travelers, medical professionals visiting Johns Hopkins Hospital, and tourists exploring the waterfront attractions, with peak seasons during spring and fall generating 20-30% higher revenues than winter months.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Baltimore, Maryland. Local Baltimore real estate agents who focus on Airbnb investment properties include teams from Keller Williams Realty, RE/MAX, and Coldwell Banker, with agents like those at Baltimore Investment Properties Group and Charm City Real Estate Investors providing specialized services since around 2018. National services include Mashvisor, which offers market analysis tools for Baltimore's rental market, AirDNA for short-term rental data analytics, and Awning, a property management company that helps investors identify and manage Airbnb properties in Baltimore since 2019. RedAwning and Vacasa also provide investment property identification services in the Baltimore market, while local companies like Baltimore Airbnb Management and Chesapeake Short Term Rentals offer comprehensive services from property acquisition to management. Additional national platforms serving Baltimore include BiggerPockets for networking and deal finding, Roofstock for turnkey rental properties, and HomeUnion for investment property services, with many of these services expanding into the Baltimore market between 2017-2020 as the short-term rental investment sector grew.