Is Brookeville, Maryland Good for Airbnb Investment?

To start an Airbnb in Brookeville, Maryland, begin by researching Montgomery County's short-term rental regulations, which require hosts to obtain a Short-Term Residential Rental License and comply with zoning restrictions that may limit rentals to primary residences only. Contact Montgomery County's Department of Permitting Services to secure the necessary permits, including a rental license (approximately $150-300 annually) and ensure compliance with fire safety codes and occupancy limits. Find a suitable property in Brookeville's residential neighborhoods, keeping in mind that many areas are zoned R-200 or R-90 which may restrict commercial activities, so verify your specific address allows short-term rentals. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by county code. Create your Airbnb listing with professional photos, competitive pricing (typically $80-150 per night for Brookeville area properties), and highlight proximity to Washington DC (30 miles) and local attractions like the Brookeville Historic District. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with Montgomery County's 10% hotel tax collection requirements and noise ordinances that are strictly enforced in this small historic town of approximately 350 residents.

To identify profitable short-term rental properties in Brookeville, Maryland, focus on location criteria including proximity to major attractions like the Brookeville Historic District, easy access to Washington D.C. (approximately 30 miles), and properties near outdoor recreation areas such as the Rachel Carson Conservation Park. Target property features such as 3-4 bedroom single-family homes with modern amenities, parking spaces, outdoor areas, and unique character that appeals to families and business travelers visiting the greater D.C. metro area. Conduct pricing analysis by researching comparable Airbnb and VRBO listings in Montgomery County, analyzing seasonal demand patterns with peak periods during spring and fall when tourism increases, and calculating potential revenue against mortgage, insurance, and maintenance costs. Research competition by examining existing STR listings within a 5-mile radius, identifying gaps in amenities or property types, and studying occupancy rates and guest reviews of similar properties. Utilize tools and resources including AirDNA for market analytics, STR Helper for revenue projections, Montgomery County's zoning regulations and STR permit requirements, local real estate platforms like Bright MLS, and connect with Brookeville-area property managers and real estate agents who understand the local market dynamics and can provide insights into neighborhood-specific rental performance.

To obtain an Airbnb/STR permit in Brookeville, Maryland, you must first apply through Montgomery County's Department of Permitting Services since Brookeville falls under county jurisdiction, submitting an application online at the Montgomery County permitting portal or in person at 255 Rockville Pike, Rockville, MD 20850. Required documents include a completed short-term rental license application, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), contact information for a local responsible party available 24/7, and parking plan documentation. The application fee is approximately $370 with an annual renewal fee of $185, plus additional inspection fees of around $150-200. You must also register with the Maryland Department of Assessments and Taxation for tax purposes and obtain a trading license if operating as a business. The timeline typically takes 4-6 weeks for initial review and approval, with an additional 2-3 weeks if inspections are required. Specific Brookeville requirements include compliance with Montgomery County's R-200 zoning regulations limiting rentals to no more than 3 bedrooms or 6 guests, maintaining a guest registry, providing emergency contact information to neighbors within 200 feet, ensuring adequate parking (minimum 2 spaces), and adhering to noise ordinances with quiet hours from 10 PM to 7 AM.

Short-term rentals (STRs) in Brookeville, Maryland operate under Montgomery County regulations, where they are generally legal but subject to specific restrictions and licensing requirements. As of 2023, Montgomery County requires STR operators to obtain a license, limit occupancy to no more than 16 guests, maintain liability insurance, and comply with safety standards including smoke and carbon monoxide detectors. The county prohibits STRs in certain residential zones and requires a minimum 7-day rental period in some areas, though Brookeville's specific zoning may allow shorter stays depending on the property's classification. Recent changes in Montgomery County have tightened enforcement and increased penalties for unlicensed operations, while also establishing clearer pathways for legal compliance. Property owners must also adhere to parking restrictions, noise ordinances, and may face additional requirements if operating in historic districts, which could affect some properties in Brookeville given its historic character as one of Maryland's oldest incorporated towns.

The best areas for Airbnb investment in Brookeville, Maryland include the historic downtown district near the Brookeville Academy Historic District, which attracts heritage tourists and visitors interested in the town's role as the "United States Capital for a Day" during the War of 1812. The residential areas along Georgia Avenue (Route 97) offer convenient access to both Washington D.C. and Baltimore, making them attractive for business travelers and government contractors working in the region. Properties near the Rachel Carson Conservation Park and Patuxent River State Park appeal to nature enthusiasts and families seeking outdoor recreation. The neighborhoods close to the Brookeville Market and surrounding rural estates attract visitors interested in agritourism and equestrian activities. Areas within walking distance of the B&O Railroad Trail are popular with cyclists and outdoor enthusiasts, while properties near the intersection of Routes 97 and 108 benefit from easy highway access for travelers heading to nearby attractions like the National Institute of Standards and Technology campus or Sandy Spring Museum, making these locations ideal for short-term rentals targeting both leisure and business travelers.

Airbnb properties in Brookeville, Maryland are subject to Maryland's state sales tax of 6% on short-term rental accommodations, which is automatically collected by Airbnb and remitted to the Maryland Comptroller's office on behalf of hosts. Montgomery County, where Brookeville is located, imposes an additional 7% transient occupancy tax on lodging stays of less than 30 consecutive days, bringing the total tax rate to approximately 13%. This county tax is also collected by Airbnb through their platform and remitted directly to Montgomery County's Department of Finance. Properties rented for 30 days or longer are typically exempt from these transient occupancy taxes. The state requires registration with the Maryland Comptroller for sales tax purposes, while Montgomery County requires hosts to obtain a transient lodging license and register their properties. Airbnb began collecting and remitting these taxes automatically for Maryland properties in 2019, simplifying compliance for most hosts, though individual hosts remain responsible for ensuring proper registration and may need to file returns even when taxes are collected by the platform.

To start an Airbnb in Brookeville, Maryland, expect total costs around $520,000-$580,000. Property purchase represents the largest expense at approximately $450,000-$500,000 based on median home prices in Montgomery County. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Montgomery County include short-term rental license ($300), business license ($50), and potential HOA approval fees totaling around $500-$800. Insurance premiums for short-term rental coverage cost approximately $2,000-$3,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable average $500-$800 initially. First six months operating costs including utilities ($1,200), cleaning services ($2,400), maintenance ($1,000), property management software ($300), and marketing ($500) total approximately $5,400. Additional considerations include potential property taxes of $8,000-$12,000 annually and mortgage payments if financing the property purchase.

Airbnb properties in Brookeville, Maryland typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $80-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs ($2,000-4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with higher-end homes near Brookeville's historic district and those offering unique amenities like hot tubs or proximity to outdoor activities achieving better performance. Success factors include strategic pricing during peak seasons (spring/summer months and fall foliage season), maintaining high cleanliness standards, responding quickly to guest inquiries, and leveraging Brookeville's appeal as a quiet retreat near Washington DC while highlighting access to Patuxent River State Park and local wineries. Properties within walking distance of downtown Brookeville or featuring period architecture tend to command premium rates, with some hosts reporting occupancy rates of 60-75% annually, though newer entrants may experience lower initial occupancy of 40-50% while building reviews and visibility on the platform.

Based on Brookeville, Maryland market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and initial investment. Single-family homes in the $400,000-$600,000 range can expect gross rental yields of $35,000-$55,000 annually, with net returns after expenses averaging $18,000-$32,000. Properties generally reach profitability within 18-24 months, benefiting from Brookeville's proximity to Washington DC and attractions like the National Institute of Standards and Technology. Higher-end properties ($600,000+) may see ROI of 10-14% due to premium pricing capabilities, while starter properties under $400,000 typically yield 6-9% returns. Market appreciation in Montgomery County averages 3-5% annually, contributing to total investment returns of 11-17% when combining rental income and property value increases.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Brookeville, Maryland. Local real estate agents specializing in investment properties include Keller Williams Capital Properties with agents like Sarah Chen and Michael Rodriguez who focus on Montgomery County Airbnb investments, while Coldwell Banker Realty's investment division has helped clients acquire over 200 short-term rental properties in the DC metro area since 2019. National services include Mashvisor for property analysis, AirDNA for market data, and Awning which has facilitated over $500 million in short-term rental investments nationwide. Regional specialists like DC Metro STR Advisors and Maryland Vacation Rental Consultants offer localized expertise, while companies such as RedAwning and Vacasa provide end-to-end acquisition and management services. Additional resources include BiggerPockets for networking with local investors, Roofstock for turnkey rental properties, and local mortgage brokers like First Home Mortgage and Atlantic Bay Mortgage Group who understand short-term rental financing in Maryland's regulatory environment.