Is Cloverly, Maryland Good for Airbnb Investment?

To start an Airbnb in Cloverly, Maryland, begin by researching Montgomery County's short-term rental regulations, which require hosts to obtain a Short-Term Residential Rental License through the Department of Housing and Community Affairs, costing approximately $150-300 annually with specific safety and zoning compliance requirements. Next, secure necessary permits including a business license from Montgomery County (around $50-100) and ensure your property meets fire safety codes with smoke detectors, carbon monoxide detectors, and emergency exits clearly marked. Find a suitable property in Cloverly's residential neighborhoods, considering proximity to Washington D.C. for higher demand, with typical rental prices ranging $80-200 per night depending on size and amenities. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks, budgeting $3,000-8,000 for initial setup. Create your Airbnb listing with professional photos highlighting Cloverly's suburban charm and proximity to metro areas, setting competitive rates based on local market analysis of similar properties in nearby Burtonsville and Silver Spring. Finally, manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and staying compliant with Montgomery County's occupancy limits (typically 2 guests per bedroom plus 2 additional) and noise ordinances that are strictly enforced in this residential community.

To identify profitable short-term rental properties in Cloverly, Maryland, focus on properties within 2-3 miles of major attractions like the National Capital Trolley Museum and close to Metro stations for easy DC access, as this suburban location attracts both tourists and business travelers. Target 3-4 bedroom single-family homes or townhouses built after 1990 with modern amenities, parking, and outdoor spaces, as families and groups prefer these features when staying outside the city. Conduct pricing analysis using AirDNA and Mashvisor to track average daily rates ($80-150 range typical for the area) and occupancy rates (aim for 65%+ annually), while researching comparable properties within a 5-mile radius to understand seasonal demand patterns and optimal pricing strategies. Competition research should focus on properties near Brookeville, Olney, and Sandy Spring areas, analyzing their amenities, photos, and guest reviews to identify gaps in the market. Utilize tools like Rabbu, AllTheRooms, and local Montgomery County tourism data, while partnering with Cloverly-area property management companies like Vacasa or RedAwning who understand local regulations and can provide market insights specific to Montgomery County's STR requirements and seasonal tourism patterns driven by proximity to Washington DC and regional attractions.

To obtain an Airbnb/STR permit in Cloverly, Maryland, you must apply through Montgomery County's Department of Permitting Services since Cloverly is an unincorporated area within Montgomery County. Begin by submitting an application for a Short-Term Residential Rental License online through the Montgomery County ePermits portal or in person at 255 Rockville Pike, Rockville, MD 20850. Required documents include a completed application form, proof of property ownership or lease agreement with landlord consent, floor plan of the rental unit, certificate of occupancy, fire safety inspection certificate from Montgomery County Fire and Rescue Service, proof of liability insurance (minimum $500,000), business license registration, and a site plan showing parking availability. The application fee is approximately $150 with an annual renewal fee of $100, plus additional inspection fees ranging from $75-150. You must also register for a Montgomery County business license if not already obtained, which costs around $65 annually. The property must comply with zoning regulations (typically allowed in residential zones with restrictions), maintain adequate parking spaces, meet fire safety requirements including smoke and carbon monoxide detectors, and limit occupancy based on bedroom count. The approval timeline typically takes 4-8 weeks after submission of complete documentation and successful inspections. Once approved, you must display the permit number in all rental listings and maintain compliance with county noise ordinances, parking requirements, and annual renewal obligations.

Short-term rentals (STRs) in Cloverly, Maryland are subject to Montgomery County regulations, which generally allow STRs but with significant restrictions implemented in recent years. As of 2023, Montgomery County requires STR operators to obtain a license and comply with safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. The county limits STRs to no more than 120 days per year for non-owner occupied properties, while owner-occupied properties can operate year-round. STRs are prohibited in certain residential zones and must maintain a minimum distance from other licensed STRs. Recent changes include stricter enforcement mechanisms and increased penalties for violations, with the county implementing these measures around 2021-2022 to address neighborhood concerns about noise, parking, and housing availability. Operators must also collect and remit applicable taxes and maintain liability insurance, with violations potentially resulting in license revocation and fines up to $1,000 per day.

The best areas for Airbnb investment in Cloverly, Maryland include the neighborhoods near the Cloverly Country Club and Golf Course, which attract golf enthusiasts and weekend tourists year-round, and properties along New Hampshire Avenue corridor that benefit from proximity to both Washington D.C. (30 minutes) and Baltimore (45 minutes) for business travelers. The residential areas near Rachel Carson Elementary and Cloverly Elementary schools are attractive for family relocations and extended stays, while properties within walking distance of the Cloverly Shopping Center provide convenience for guests. The neighborhoods bordering the Northwest Branch Trail system appeal to outdoor enthusiasts and nature tourists, and areas near the intersection of Briggs Chaney Road and New Hampshire Avenue offer excellent accessibility to major employment centers like the FDA campus in White Oak and the National Institutes of Health in Bethesda. Properties near the Cloverly Park and Ride lot are particularly valuable for business travelers using public transportation to reach downtown D.C., and the quiet residential streets off Dustin Road attract families visiting the area's highly-rated Montgomery County schools.

Airbnb properties in Cloverly, Maryland are subject to Maryland's state sales tax of 6% on lodging accommodations, which applies to short-term rentals under 30 days and is typically collected by Airbnb directly from guests and remitted to the Maryland Comptroller's office on behalf of hosts through their tax collection agreement established in 2017. Montgomery County, where Cloverly is located, imposes an additional transient occupancy tax of 7% on short-term rental accommodations, bringing the total tax burden to approximately 13% for guests, with this county tax also collected by Airbnb and remitted quarterly to Montgomery County's Department of Finance. Hosts must register with both the state and county tax authorities and obtain proper licenses, though individual remittance is generally not required when using major platforms like Airbnb that have collection agreements in place. Exemptions may apply for stays exceeding 30 consecutive days, certain government or military personnel, and nonprofit organization bookings, though documentation is typically required to qualify for these exemptions.

Starting an Airbnb in Cloverly, Maryland requires approximately $450,000-$550,000 in total initial investment. Property purchase costs around $400,000-$475,000 based on median home prices in Montgomery County. Furnishing a 3-bedroom property typically costs $15,000-$25,000 including furniture, bedding, kitchenware, and electronics. Initial setup expenses including professional photography, listing creation, and marketing materials run $2,000-$3,500. Permits and fees in Montgomery County include short-term rental license ($300), business license ($50), and potential HOA approval fees totaling approximately $500-$800. Insurance premiums for short-term rental coverage cost $2,500-$4,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable services require $1,500-$2,500 initially. First six months of operating costs including utilities ($1,800), cleaning services ($3,600), supplies and maintenance ($2,400), platform fees ($4,800 assuming $8,000 monthly revenue), and property management software ($300) total approximately $12,900. Additional considerations include potential property management fees if outsourced (20-30% of revenue) and maintaining 3-6 months of mortgage payments as reserves.

Airbnb properties in Cloverly, 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 ($50-$80 per turnover), utilities ($150-$300 monthly), property management (10-20% of revenue), insurance ($1,200-$2,000 annually), and maintenance costs ($2,000-$4,000 yearly). Net profit margins typically range from 15-25% for well-managed properties, with successful hosts in the area achieving occupancy rates of 60-75% by leveraging Cloverly's proximity to Washington D.C. (30 miles), competitive pricing strategies, and strong guest communication. Properties near Patuxent River State Park and those offering family-friendly amenities tend to outperform, with some three-bedroom homes generating $40,000+ annually. Success factors include professional photography, consistent 4.8+ star ratings, rapid response times under 1 hour, and seasonal pricing adjustments that capitalize on peak demand during spring and fall months when D.C. tourism and business travel surge.

Airbnb investments in Cloverly, Maryland typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, given the area's proximity to Washington D.C. and Baltimore metropolitan markets. Properties in Cloverly, particularly single-family homes and townhouses, can achieve occupancy rates of 65-75% annually due to business travelers, government contractors, and tourists visiting the greater D.C. area. Initial profitability usually occurs within 18-24 months, with average daily rates of $120-180 depending on property size and amenities. The market benefits from consistent demand driven by nearby employers like NASA Goddard Space Flight Center and various federal agencies, with seasonal peaks during cherry blossom season and summer months. Investment properties typically require $40,000-80,000 in initial capital including down payment and furnishing costs, generating monthly net income of $800-1,500 after expenses including cleaning, utilities, and platform fees.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Cloverly, Maryland by providing market analytics and property recommendations. Local real estate agents in the area include Keller Williams Capital Properties, RE/MAX Realty Services, and Long & Foster Real Estate who have experience with investment properties in Montgomery County. National services like Awning, RedAwning, and Vacasa offer end-to-end Airbnb investment services including property identification, purchase assistance, and management in the Cloverly market. AirDNA and Mashvisor provide market data and analytics specifically for short-term rental investments in the Washington DC metro area including Cloverly. Local property management companies such as Evolve Vacation Rental and TurnKey Vacation Rentals specialize in Airbnb properties in Montgomery County and can assist with identifying profitable investment opportunities. Investment-focused real estate firms like Roofstock and Arrived Homes also operate in the Maryland market and can help locate cash-flowing Airbnb properties in suburban areas like Cloverly.