Is Chevy Chase, Maryland Good for Airbnb Investment?

To start an Airbnb in Chevy Chase, 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 typically limit rentals to primary residences with a maximum of 120 nights per year. Contact Montgomery County's Department of Permitting Services to apply for the required license (approximately $200-300 annually) and ensure your property meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Find a suitable property in Chevy Chase's residential zones, keeping in mind that many neighborhoods have HOA restrictions on short-term rentals, so verify with your homeowners association before proceeding. Furnish the space with quality furniture, linens, and amenities that appeal to business travelers and tourists visiting nearby Washington D.C., focusing on professional décor and reliable Wi-Fi since many guests will be visiting the area for work or tourism. Create your Airbnb listing with professional photos highlighting the proximity to Metro stations, downtown D.C. (approximately 20 minutes), and local attractions, pricing competitively with similar properties in the $100-250 per night range depending on size and amenities. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and ensuring compliance with Montgomery County's tax requirements including collecting and remitting the 7% hotel tax to the county, while also considering hiring a local property management company if you plan to scale or live far from the property.

To identify profitable short-term rental properties in Chevy Chase, Maryland, focus on locations within walking distance of the Metro Red Line stations, particularly Friendship Heights and Bethesda, as these provide easy access to downtown Washington DC for business travelers and tourists. Target properties built after 1980 with 2-3 bedrooms, updated kitchens, parking spaces, and outdoor areas like patios or gardens, as these features command premium rates in this affluent market. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in nearby Bethesda and Northwest DC, aiming for properties that can generate $150-250 per night given the area's high-income demographics and proximity to NIH, Walter Reed, and downtown DC. Research competition by analyzing existing Airbnb and VRBO listings within a 2-mile radius, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu and AllTheRooms for market analysis, partner with local real estate agents familiar with Montgomery County's STR regulations, and leverage the Washington DC tourism board data to understand seasonal demand patterns, particularly focusing on properties that can attract both business travelers during weekdays and leisure visitors exploring the greater Washington metropolitan area on weekends.

To obtain an Airbnb/STR permit in Chevy Chase, Maryland, you must first apply through Montgomery County's Department of Permitting Services since Chevy Chase falls under county jurisdiction, submitting your application online via the county's ePermitting portal or in person at 255 Rockville Pike, Rockville, MD. 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 ($1 million minimum), fire safety inspection certificate, and contact information for a local responsible party available 24/7. The application fee is approximately $200-300 with annual renewal fees of $150-200, and you may need additional inspections costing $100-150 each. The timeline typically takes 4-8 weeks for initial approval, depending on inspection scheduling and document completeness. Specific Chevy Chase requirements include adherence to Montgomery County's STR regulations limiting rentals to primary residences only (owner must live on-site at least 185 days per year), maximum occupancy of 2 guests per bedroom plus 2 additional guests, mandatory registration with the county tax office for hotel/motel tax collection, compliance with noise ordinances and parking restrictions, and maintaining a guest registry for county inspection upon request.

Short-term rentals (STRs) in Chevy Chase, Maryland are generally prohibited or heavily restricted depending on the specific jurisdiction within the area. Chevy Chase spans multiple municipalities including the Town of Chevy Chase, Village of Chevy Chase Section 3, Village of Chevy Chase Section 5, Chevy Chase Village, and Chevy Chase View, with most of these incorporated areas having zoning ordinances that restrict or prohibit short-term rentals in residential zones to preserve neighborhood character. The Town of Chevy Chase and several villages have enacted specific prohibitions on rentals shorter than 30 days in residential areas, while Montgomery County's broader STR regulations also apply to unincorporated portions of Chevy Chase, requiring special permits and compliance with safety requirements. Recent changes around 2019-2022 have seen these municipalities strengthen enforcement and clarify definitions of short-term rentals, with violations subject to fines ranging from $500 to $1,000 per day, making traditional short-term rental operations like Airbnb largely impractical or illegal in most residential areas of Chevy Chase.

The most promising Airbnb investment areas in Chevy Chase, Maryland include the Chevy Chase Village and Town of Chevy Chase neighborhoods, which offer proximity to high-end shopping at Friendship Heights and easy Metro access via the Friendship Heights station, attracting business travelers working in nearby Bethesda and Washington DC. The areas near Connecticut Avenue (Route 355) are particularly attractive due to walkability to restaurants, the Avalon Theatre, and quick access to Rock Creek Park for recreational visitors. Neighborhoods close to the Chevy Chase Club and Columbia Country Club draw guests attending events or visiting members, while properties near the Chevy Chase Pavilion and Mazza Gallerie shopping centers benefit from retail tourism and conference attendees. The residential areas between East-West Highway and Western Avenue are ideal for families visiting nearby universities like American University and Georgetown, as well as medical tourists accessing NIH facilities in Bethesda. These locations capitalize on Chevy Chase's reputation as an affluent suburb with excellent schools, attracting relocating executives, visiting academics, and extended-stay business travelers who prefer residential settings over hotels while maintaining easy access to downtown Washington DC via Metro.

In Chevy Chase, Maryland, Airbnb hosts are subject to Maryland's state sales tax of 6% on short-term rental income, which applies to stays of less than 30 consecutive days. Montgomery County, where Chevy Chase is located, imposes an additional 7% hotel/motel tax on short-term rentals, bringing the total occupancy tax to 13%. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through Airbnb's automated tax collection service, which began around 2017-2018 for Maryland. Hosts who collect taxes independently must register with the Maryland Comptroller's office and Montgomery County's Department of Finance, filing monthly returns and remitting taxes by the 20th of the following month. Exemptions may apply for stays exceeding 30 consecutive days, certain government and nonprofit organization bookings, and properties that qualify as permanent residences rather than commercial short-term rentals, though hosts should verify current exemption criteria with local tax authorities as regulations have evolved since 2019 when Montgomery County strengthened its short-term rental oversight.

The total cost to start an Airbnb in Chevy Chase, Maryland is approximately $1,150,000-$1,400,000. Property purchase represents the largest expense at $900,000-$1,200,000 based on median home prices in this affluent Washington D.C. suburb. Furnishing costs range from $25,000-$40,000 for high-quality furniture, bedding, kitchenware, and décor suitable for the upscale market. Initial setup including professional photography, listing creation, smart locks, and welcome amenities costs $3,000-$5,000. Permits and fees vary but typically include business license ($50-$200), short-term rental permit ($200-$500), and potential HOA approval fees ($100-$300). Insurance including landlord and short-term rental coverage adds $2,000-$4,000 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable total $500-$1,000. First six months operating costs including utilities ($1,200-$1,800), cleaning services ($3,600-$6,000), maintenance reserves ($2,000-$3,000), platform fees, and marketing expenses total approximately $15,000-$25,000. Additional considerations include potential property management fees (10-20% of revenue) and marketing costs for competitive positioning in the premium Chevy Chase market.

Airbnb properties in Chevy Chase, Maryland demonstrate strong profitability potential with average nightly rates ranging from $150-300 due to the area's proximity to Washington D.C. and affluent demographics. Properties typically generate $3,000-6,000 monthly revenue with occupancy rates of 65-75%, while expenses including mortgage, utilities, cleaning, and maintenance average $2,000-3,500 monthly, resulting in profit margins of 25-40%. Success factors include proximity to Metro stations, professional staging, and targeting business travelers and families visiting the capital region. A typical 3-bedroom townhouse purchased for $800,000 with a $4,000 monthly mortgage can generate $5,500 in rental income, yielding approximately $1,500 monthly profit after all expenses. Properties within walking distance of Friendship Heights Metro station and those offering amenities like parking and home offices command premium rates, with some hosts reporting annual profits of $18,000-25,000. The market benefits from consistent demand from government contractors, consultants, and tourists, though hosts must navigate Montgomery County's short-term rental regulations and obtain proper licensing, with successful operators typically achieving 15-20% annual returns on investment.

Airbnb investments in Chevy Chase, Maryland typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the area's proximity to Washington D.C. and affluent demographics. Properties in this market, with average daily rates of $150-250, generally achieve profitability within 18-24 months, benefiting from consistent business traveler demand and weekend leisure guests visiting the nation's capital. The high property values in Chevy Chase (median home prices around $800,000-1.2 million) require substantial initial investment but offer stable occupancy rates of 65-75% annually, with peak seasons during spring and fall generating premium rates that can push annual returns toward the higher end of the range for well-positioned properties near Metro stations or major attractions.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Chevy Chase, Maryland. Local real estate agents specializing in investment properties include The Chevy Chase Group at Compass, Long & Foster's investment division, and TTR Sotheby's International Realty, while Keller Williams Capital Properties has agents experienced in short-term rental investments. National services like Mashvisor, AirDNA, and BiggerPockets offer market analysis and property sourcing tools for the Chevy Chase area. RedAwning and Vacasa provide property management services that help investors identify profitable opportunities, while local property management companies such as Evolve Vacation Rental and AvantStay focus on maximizing Airbnb returns. Real estate investment firms like HomeVestors and Roofstock occasionally feature properties in the greater Washington D.C. metro area including Chevy Chase. Local mortgage brokers specializing in investment properties include First Home Mortgage and Atlantic Coast Mortgage, while national lenders like Lima One Capital and Kiavi provide short-term rental financing options for investors targeting this affluent Maryland market.