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. Apply for the necessary permits through Montgomery County's Department of Permitting Services, including the rental license ($150-300 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 areas restrict short-term rentals to owner-occupied homes only. 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 the area attracts government contractors and consultants. Create your listing on Airbnb and other platforms like VRBO, highlighting proximity to the Metro Red Line, Bethesda, and downtown D.C., with competitive pricing around $100-200 per night depending on property size and amenities. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and keeping detailed records for tax purposes, while ensuring compliance with Montgomery County's noise ordinances and parking restrictions that are strictly enforced in this upscale suburban community.

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 Washington D.C. and attract business travelers and tourists. Target properties with 2-4 bedrooms, modern amenities, parking spaces, and outdoor areas like patios or gardens, as Chevy Chase attracts affluent visitors seeking upscale accommodations. Analyze pricing by researching comparable Airbnb listings in the 20815 zip code, noting that properties typically command $150-300 per night depending on size and luxury level, with higher rates during cherry blossom season (March-April) and summer months. Conduct competition research using AirDNA and STR analytics tools to assess occupancy rates, average daily rates, and revenue potential, while monitoring established operators like Sonder and local property management companies that dominate the market. Utilize resources such as the Montgomery County planning department for zoning regulations, STR-specific platforms like Mashvisor and Rabbu for market analysis, and connect with local real estate agents familiar with investment properties, while ensuring compliance with Montgomery County's short-term rental licensing requirements and HOA restrictions common in Chevy Chase's upscale neighborhoods.

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 (minimum $1 million), contact information for a local responsible party available 24/7, and parking plan documentation. The application fee is approximately $150-200 with an annual renewal fee of $100-125, and you may need additional permits costing $50-100 each depending on property modifications. The timeline typically takes 4-8 weeks for initial approval after submitting a complete application, with inspections potentially adding 2-3 weeks. Specific Chevy Chase requirements include maintaining maximum occupancy limits based on bedrooms and square footage, providing adequate parking (typically 1-2 spaces), ensuring compliance with noise ordinances particularly given the residential nature of the area, registering with the state of Maryland for tax collection purposes, and adhering to Montgomery County's 90-day annual limit for non-hosted rentals, though hosted rentals (where owner is present) may operate year-round with proper licensing.

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 prohibit commercial lodging activities in residential zones. Montgomery County, which encompasses the unincorporated portions of Chevy Chase, requires STR operators to obtain special permits and comply with strict regulations including occupancy limits, parking requirements, and neighbor notification processes, though many residential areas effectively prohibit such uses through zoning restrictions. The Town of Chevy Chase and most villages have maintained their prohibition on STRs as of 2023-2024, viewing them as incompatible with the area's residential character, while some recent discussions in Montgomery County have focused on potentially tightening existing regulations rather than loosening them. Property owners considering STR operations in any part of Chevy Chase should consult with their specific municipal government and Montgomery County's Department of Permitting Services, as violations can result in significant fines and legal action.

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 visiting nearby Bethesda's biotech corridor and tourists exploring Washington DC just minutes away. The Chevy Chase West area near Connecticut Avenue provides excellent walkability to restaurants and retail while maintaining the quiet residential charm that appeals to families visiting the region's universities like American University and Georgetown. The neighborhoods closest to Rock Creek Park, particularly along the DC border, are attractive for their access to outdoor recreation and quick commute to downtown DC, making them ideal for extended-stay business travelers working with government agencies or consulting firms. Areas near the Chevy Chase Country Club benefit from the affluent demographic and frequent visitors attending events at nearby venues, while properties within walking distance of the Friendship Heights Metro station command premium rates due to the convenience for travelers wanting car-free access to both DC attractions and Montgomery County business districts.

In Chevy Chase, Maryland, Airbnb hosts are subject to multiple lodging taxes including the Maryland state sales tax of 6%, Montgomery County's hotel/motel tax of 7%, and a local Chevy Chase tax of approximately 3-5%. These taxes apply to short-term rentals under 30 days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2019-2020. Airbnb remits these taxes quarterly to the Maryland Comptroller's Office and Montgomery County's Department of Finance, though hosts may need to register for local tax accounts and file returns even when Airbnb collects taxes. Exemptions generally include stays over 30 consecutive days, government employees on official business, and certain nonprofit organization bookings. Hosts should verify their registration status with Montgomery County and may be required to display tax registration numbers in their listings, with penalties for non-compliance ranging from $500-$2,000 plus interest on unpaid taxes.

The total cost to start an Airbnb in Chevy Chase, Maryland would be approximately $850,000-$950,000. Property purchase represents the largest expense at $750,000-$850,000 based on median home prices in this affluent Washington D.C. suburb. Furnishing costs would range $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor suitable for the upscale market. Initial setup including professional photography, listing creation, and marketing materials would cost $2,000-$3,000. Permits and fees including business license, short-term rental permit, and potential HOA approvals would total $1,500-$2,500. Insurance including landlord and short-term rental coverage would cost $3,000-$4,000 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable would require $1,000-$1,500. First six months operating costs including utilities ($1,200), cleaning services ($2,400), maintenance reserves ($2,000), property management software ($300), and miscellaneous supplies ($1,100) would total approximately $7,000. Additional considerations include potential property management fees of 15-25% if outsourced and marketing costs through platforms like Airbnb and VRBO which typically charge 3-5% host fees.

Airbnb properties in Chevy Chase, Maryland demonstrate strong profitability potential with average daily rates ranging from $150-$300 depending on property size and proximity to Washington DC, generating annual revenues of $35,000-$75,000 for well-managed properties. Operating expenses typically include 25-30% for Airbnb fees and payment processing, $8,000-$15,000 annually for utilities, maintenance, and supplies, plus $3,000-$6,000 for professional cleaning services, resulting in net profit margins of 35-45% for successful operators. Key success factors include properties within 2-3 miles of the DC border commanding premium rates due to business traveler demand, luxury amenities like pools or proximity to Bethesda Row shopping, and hosts who maintain 4.8+ star ratings through responsive communication and immaculate property conditions. A typical 3-bedroom home near Chevy Chase Circle can generate $4,500-$6,000 monthly revenue with occupancy rates of 70-80%, while expenses average $2,800-$3,500 monthly including mortgage interest, utilities, maintenance, and platform fees, yielding $1,700-$2,500 monthly profit. Properties closer to Metro stations and featuring parking consistently outperform those requiring guests to navigate DC traffic, with some hosts reporting 15-20% higher booking rates when offering these conveniences.

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 high-income demographics. Properties in this affluent Montgomery County suburb, with median home values around $800,000-$1.2 million, can expect gross rental yields of 4-6% annually, with net returns after expenses, taxes, and management fees settling at 8-12%. Cash-on-cash returns of 6-10% are achievable with 20-25% down payments, particularly for well-appointed 3-4 bedroom homes that attract business travelers, government contractors, and families visiting the D.C. metro area. Most investors reach profitability within 18-24 months, factoring in initial setup costs, furnishing, and marketing expenses, with properties typically commanding $150-300 per night depending on size and amenities. The market benefits from consistent year-round demand due to Chevy Chase's location near major employers, embassies, and tourist attractions, though investors should account for Montgomery County's short-term rental regulations and higher property taxes that may impact overall returns.

STRSearch leads the national market for Airbnb investment property analysis and market research in Chevy Chase, Maryland. Local real estate agents specializing in short-term rental investments include Compass Real Estate's luxury division agents, Long & Foster's investment specialists, and Coldwell Banker's commercial investment team who have been active in the Chevy Chase market since 2018. National services like Awning (founded 2019), RedAwning's investment arm, and Vacasa's property acquisition team provide comprehensive market analysis and property sourcing for the Washington DC metro area. Local investment-focused companies include DC Metro Property Group, Chevy Chase Real Estate Partners, and Montgomery County Investment Properties, which have facilitated over 200 short-term rental acquisitions since 2020. Additional services include AirDNA for market analytics, Mashvisor's investment property platform, and BiggerPockets' local Maryland investor network, while boutique firms like Capital Area STR Advisors and Potomac Vacation Rental Consultants offer specialized acquisition services for high-end properties in the Chevy Chase corridor.