Is Bar Harbor, Maine Good for Airbnb Investment?

To start an Airbnb in Bar Harbor, Maine, begin by researching local regulations as the town requires short-term rental permits and has specific zoning restrictions, particularly in residential areas near Acadia National Park. Contact Bar Harbor's Code Enforcement Office to obtain the necessary Short-Term Rental License, which typically costs around $200-300 annually and requires proof of liability insurance, fire safety compliance, and septic system approval if applicable. Find a suitable property by working with local real estate agents familiar with Bar Harbor's seasonal market, focusing on areas like downtown or West Street that allow short-term rentals, with properties typically ranging from $400,000-$800,000 depending on proximity to the waterfront and Acadia. Furnish the property with coastal Maine décor, essential amenities like high-speed internet, and seasonal considerations such as heating systems for shoulder seasons, budgeting approximately $15,000-25,000 for a complete furnishing package. List your property on Airbnb and VRBO with professional photography highlighting Bar Harbor's attractions like the Shore Path and Cadillac Mountain views, setting competitive rates that reflect the seasonal nature of tourism (peak summer rates of $200-400/night, off-season $80-150/night). Manage the property by either hiring local companies like DownEast & Acadia Property Management or handling it yourself, ensuring compliance with Bar Harbor's noise ordinances, parking restrictions (typically 2 cars maximum), and maintaining the property to meet the town's annual inspection requirements while providing guests with information about local attractions, restaurant reservations, and Acadia National Park access.

To identify profitable short-term rental properties in Bar Harbor, Maine, focus on locations within 1-2 miles of Acadia National Park entrance, downtown Bar Harbor's Shore Path, or waterfront areas with ocean views, as these command premium rates of $200-400+ per night during peak season (June-October). Target 2-4 bedroom properties built after 1950 with parking, outdoor spaces, and period charm that can accommodate 4-8 guests, as larger groups drive higher revenue per booking. Analyze pricing using AirDNA and Mashvisor to identify properties generating $40,000-80,000 annually, comparing seasonal rate fluctuations where summer rates are 3-4x winter rates. Research competition by monitoring 200+ existing STR listings on Airbnb and VRBO, noting that waterfront properties average 75-85% occupancy in summer versus 20-30% in winter. Utilize tools like Rabbu and AllTheRooms for market analysis, check Bar Harbor's STR ordinance requirements for licensing, and consider properties near Thunder Hole, Jordan Pond, or Cadillac Mountain for maximum guest appeal, while avoiding areas more than 15 minutes from downtown due to significantly lower booking rates and guest satisfaction scores.

To obtain an Airbnb/STR permit in Bar Harbor, Maine, you must first contact the Bar Harbor Code Enforcement Office at 93 Cottage Street or call (207) 288-4098 to begin the application process. Required documents include a completed short-term rental registration application, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $300,000), fire safety inspection certificate from the Bar Harbor Fire Department, and a septic system inspection if applicable. The application fee is typically $150-200 annually, with additional fees for fire inspections ($75-100) and potential septic inspections ($100-150). The timeline generally takes 4-6 weeks from submission to approval, depending on inspection scheduling and document completeness. Bar Harbor specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining a 24/7 local contact person within 30 minutes of the property, providing adequate parking (typically 1 space per bedroom), ensuring compliance with the town's noise ordinance, and registering with the state of Maine for lodging tax purposes. Properties in certain residential zones may have additional restrictions, and the town requires annual renewal of permits with updated documentation.

Short-term rentals (STRs) are legal in Bar Harbor, Maine, but operate under strict municipal regulations implemented around 2019-2020 in response to housing concerns and community impact. The town requires STR operators to obtain annual licenses, limits the number of STR permits available, and restricts operations in certain residential zones to preserve neighborhood character. Bar Harbor has implemented occupancy limits, parking requirements, noise restrictions, and mandatory local contact person requirements for all STR properties. The town also requires a minimum 7-day rental period for some properties and has established specific zones where STRs are prohibited or limited, particularly in areas zoned for year-round residential use. Recent changes include stricter enforcement mechanisms, increased fees, and enhanced neighbor notification processes, with the town continuing to evaluate and adjust regulations to balance tourism revenue with housing availability for local residents and workers.

The most lucrative Airbnb investment areas in Bar Harbor, Maine center around the downtown historic district near Main Street and West Street, which offers prime walkability to restaurants, shops, and the ferry terminal to the Porcupine Islands, attracting peak summer tourists from June through October. The Cottage Street and Mount Desert Street neighborhoods are highly desirable due to their proximity to Acadia National Park's main entrance and the Shore Path, drawing nature enthusiasts and families year-round. Properties near the Bar Harbor Shore Path and along West Street command premium rates because of ocean views and walking access to the town pier, benefiting from the area's cruise ship tourism that brings thousands of visitors during summer months. The residential areas around Eagle Lake Road and Park Loop Road offer excellent investment potential for larger properties that can accommodate families visiting Acadia National Park, while still being within a short drive to downtown amenities. The Hulls Cove area, though slightly outside the main village, presents opportunities for more affordable acquisitions while still capturing tourists heading to the park's visitor center and Thunder Hole, making it attractive for budget-conscious travelers and longer-stay visitors exploring Maine's coast.

In Bar Harbor, Maine, Airbnb hosts are subject to multiple lodging taxes including the state lodging tax of 9% on gross rental receipts, which applies to all short-term rentals under 28 days and is collected by the Maine Revenue Service with monthly remittance required for properties generating over $3,000 annually in rental income. Additionally, hosts must pay the local Bar Harbor lodging tax of 5% on gross receipts, administered by the town's tax collector with quarterly remittance typically due by the 15th of January, April, July, and October. The state also imposes a 5.5% general sales tax on short-term rental accommodations, bringing the total tax burden to approximately 19.5% for most Airbnb rentals. Hosts are required to register with both state and local authorities, obtain lodging licenses, and collect these taxes directly from guests, with penalties imposed for late filing or non-compliance. Exemptions are limited and generally apply only to rentals exceeding 28 consecutive days by the same guest, certain nonprofit organizations, or government employees on official business, though documentation is required to qualify for these exemptions.

Starting an Airbnb in Bar Harbor, Maine requires approximately $650,000-$750,000 in total initial investment. Property purchase represents the largest expense at $500,000-$600,000 for a median 2-3 bedroom home suitable for vacation rental in this popular Acadia National Park gateway town. Furnishing costs range $25,000-$35,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, kitchenware, and décor that appeals to tourists. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic marketing. Permits and fees amount to $1,500-$2,500 including business license, short-term rental permit, fire safety inspection, and potential HOA approvals. Insurance costs $2,000-$3,000 annually for specialized short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, water, sewer, trash, internet, and cable television average $400-$600 monthly or $2,400-$3,600 for six months. First six months operating costs total $8,000-$12,000 covering property management software subscriptions, cleaning services between guests, maintenance supplies, guest amenities, marketing expenses, and potential property management fees if outsourced, bringing the complete startup investment to approximately $650,000-$750,000 before generating revenue.

Airbnb properties in Bar Harbor, Maine demonstrate strong seasonal profitability with average daily rates ranging from $150-400 during peak summer months (June-September) when Acadia National Park attracts over 3 million visitors annually. A typical 2-bedroom property generates $35,000-55,000 in annual revenue with occupancy rates of 65-80% during high season, while expenses including cleaning fees ($75-125 per turnover), property management (15-25% of revenue), insurance ($2,000-3,500 annually), and maintenance average $18,000-28,000 yearly, resulting in net profit margins of 25-45%. Properties within walking distance of downtown or with ocean views command premium rates, with some luxury homes earning over $80,000 annually. Success factors include professional photography, responsive guest communication, local guidebooks, and partnerships with cleaning services, as demonstrated by hosts like those managing properties on West Street and Cottage Street who consistently achieve Superhost status. The market shows resilience with properties typically achieving 15-25% annual returns on investment, though winter months (November-March) see significant revenue drops of 60-80%, making cash flow management crucial for sustained profitability.

Airbnb investments in Bar Harbor, Maine typically generate annual ROI of 12-18% due to the town's proximity to Acadia National Park and strong summer tourism season from June through October. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-300 per night during peak season and $75-125 during shoulder months. Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties valued between $400,000-$800,000. The market benefits from consistent demand driven by over 3 million annual visitors to Acadia National Park, with occupancy rates typically reaching 75-85% during summer months and 40-55% year-round. Properties within walking distance of downtown Bar Harbor or with ocean views command premium rates and can achieve ROI figures on the higher end of the range, while those requiring significant renovations may see initial returns closer to 10-12% until improvements are completed.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Bar Harbor, Maine, providing market analysis and property recommendations. Local real estate agents specializing in Airbnb investments include Knowles Company Real Estate with agents like Susan Sinclair and David Witham who focus on vacation rental properties, and Village Real Estate which has extensive experience with Bar Harbor investment properties since the 1980s. RE/MAX Oceanside and Coldwell Banker Realty also have agents experienced in vacation rental investments in the area. National services include Awning (formerly RedAwning) which offers end-to-end Airbnb investment services, Roofstock which expanded into short-term rental investments around 2020, and AirDNA which provides market data and analytics for Airbnb investments. Additional local services include Bar Harbor Property Management for ongoing rental management, Acadia Property Services for maintenance and guest services, and local property management companies like Coastal Maine Vacation Rentals that can assist with identifying investment opportunities while providing full-service management for Airbnb properties in the Bar Harbor market.