Is College Park, Maryland Good for Airbnb Investment?

To start an Airbnb in College Park, Maryland, begin by researching local regulations as College Park requires short-term rental operators to obtain a business license and comply with zoning restrictions that typically limit rentals to no more than 30 days and require owner occupancy in residential zones. Contact the College Park City Clerk at 301-474-8000 to obtain the necessary business license ($50-100 annually) and ensure your property meets fire safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. Find a suitable property within University of Maryland proximity, as demand peaks during academic year, with 2-3 bedroom units near campus commanding $80-150 per night. Furnish the space with essential amenities including high-speed internet, study areas for students, comfortable bedding, kitchen supplies, and consider providing parking as it's highly valued in the area. Create your Airbnb listing with professional photos highlighting proximity to UMD (typically 0.5-2 miles), Metro access via College Park-University of Maryland station, and include keywords like "University of Maryland," "student-friendly," and "Metro accessible" to attract both students and visiting families. Set competitive pricing using Airbnb's dynamic pricing tool, typically $60-120 per night depending on season and events, with higher rates during graduation, homecoming, and move-in periods. Manage the property by establishing clear house rules regarding noise (especially important given student population), implement self-check-in systems, maintain regular cleaning schedules, and consider hiring local property management companies like RedAwning or Vacasa if managing multiple properties, while staying responsive to guests within College Park's competitive market that serves over 40,000 university students and frequent campus visitors.

To identify profitable short-term rental properties in College Park, Maryland, focus on locations within 1-2 miles of the University of Maryland campus, particularly near major campus entrances and along Route 1 (Baltimore Avenue), as this area attracts visiting parents, prospective students, and university staff year-round. Target 3-4 bedroom single-family homes or townhouses built after 1980 with dedicated parking, modern amenities, and reliable WiFi, as these accommodate families and small groups while commanding higher nightly rates of $120-180 compared to smaller units at $80-120. Analyze pricing using AirDNA and Mashvisor to track seasonal demand patterns, noting peak periods during university events, graduation, and move-in weeks when rates can increase 40-60%. Research competition by monitoring existing Airbnb and VRBO listings within a 2-mile radius, identifying gaps in amenities or underpriced properties, while noting that the market typically maintains 65-75% occupancy rates due to consistent university-related demand. Utilize tools like Rabbu for local rental regulations compliance, STR Helper for performance tracking, and connect with College Park-specific Facebook groups and the Prince George's County STR community for market insights, while ensuring compliance with the city's short-term rental licensing requirements and zoning restrictions that limit STRs in certain residential areas.

To obtain an Airbnb/STR permit in College Park, Maryland, you must first apply through the City of College Park's Department of Public Services by submitting an application for a Short-Term Rental License, which typically costs around $150-200 annually. Required documents include a completed application form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan of the rental unit, proof of liability insurance (minimum $500,000), contact information for a local responsible party available 24/7, and a signed affidavit acknowledging compliance with city regulations. You must also provide evidence of compliance with fire safety codes, including smoke and carbon monoxide detectors, and pass a city inspection of the property. The application process typically takes 4-6 weeks from submission to approval, and you must renew the license annually. College Park specifically requires that STRs maintain a maximum occupancy of 2 people per bedroom plus 2 additional guests, provide adequate parking for guests, maintain quiet hours from 10 PM to 8 AM, and ensure the property manager or owner can respond to complaints within 30 minutes. Additionally, you must register with the Maryland Department of Assessments and Taxation for tax purposes and collect applicable state and local taxes from guests.

Short-term rentals (STRs) are currently prohibited in College Park, Maryland. The city enacted a comprehensive ban on STRs in 2019 following concerns about their impact on the local housing market and neighborhood character, particularly given the city's proximity to the University of Maryland. College Park's ordinance specifically prohibits the rental of residential properties for periods of less than 30 consecutive days, with violations subject to fines up to $1,000 per day. The ban applies citywide with no exemptions for specific zones or property types. This restriction was implemented as part of broader efforts by Prince George's County municipalities to address housing affordability and preserve residential neighborhoods, and there have been no recent changes to relax these restrictions as of 2023-2024.

The best areas for Airbnb investment in College Park, Maryland are the neighborhoods immediately adjacent to the University of Maryland campus, particularly the areas along Route 1 (Baltimore Avenue) and the residential streets between Campus Drive and Berwyn Road. These locations are highly attractive due to consistent demand from visiting parents during university events like graduation ceremonies, homecoming, and move-in weekends, as well as prospective students and families touring the campus year-round. The downtown College Park area near the College Park Metro station offers excellent potential due to its proximity to both the university and direct access to Washington D.C., attracting business travelers and tourists who want affordable accommodations with easy Metro access to the nation's capital. The Berwyn Heights border area is also promising as it provides a quieter residential setting while maintaining close proximity to campus, appealing to longer-term academic visitors, visiting professors, and families attending extended university programs. Additionally, properties near the College Park Airport and Paint Branch Parkway attract aviation enthusiasts and government contractors working in the area, while the proximity to major employers like NASA Goddard Space Flight Center in nearby Greenbelt creates demand for corporate housing and extended business stays.

In College Park, Maryland, Airbnb hosts are subject to Maryland's 6% state sales tax and a 3% state lodging tax, totaling 9% in state taxes on rental income. Prince George's County imposes an additional 7% county hotel/motel tax on short-term rentals under 30 days, bringing the total occupancy tax to 16%. The City of College Park does not currently impose a separate municipal lodging tax. Airbnb automatically collects and remits the state sales tax and lodging tax for hosts through their platform as of 2019, but hosts remain responsible for registering with the Maryland Comptroller's office and ensuring compliance. The county hotel/motel tax must be collected by hosts directly from guests and remitted monthly to Prince George's County by the 20th of the following month, requiring separate registration with the county. Rentals of 30 days or longer are generally exempt from occupancy taxes but may still be subject to sales tax. Hosts must maintain detailed records of all bookings, taxes collected, and payments made, and may need to file quarterly returns even when using Airbnb's collection service for state taxes.

The total cost to start an Airbnb in College Park, Maryland is approximately $485,000-$535,000. Property purchase costs around $400,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor suitable for short-term rentals. Initial setup costs including professional photography, listing creation, smart locks, and security systems total $3,000-$5,000. Permits and fees in Prince George's County including business license, short-term rental permit, and inspection fees cost approximately $1,500-$2,500. Insurance for short-term rentals runs $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and setup fees for electricity, gas, water, internet, and cable total $1,000-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($150 per turnover, estimated 24 turnovers), maintenance and supplies ($300/month), platform fees (3% of estimated $3,000 monthly revenue), and marketing expenses total approximately $12,000-$15,000.

Airbnb properties in College Park, Maryland typically generate annual revenues of $15,000-$35,000 for single-family homes and $8,000-$18,000 for individual rooms, driven primarily by University of Maryland students, visiting families, and business travelers. Operating expenses generally range from 40-60% of gross revenue, including cleaning fees ($50-80 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,500 annually), and maintenance costs. Properties within walking distance of the UMD campus, particularly 3-4 bedroom houses near Route 1 or Baltimore Avenue, achieve the highest occupancy rates of 65-80% with average daily rates of $80-150, resulting in net profit margins of 15-25% after all expenses. Success factors include proximity to campus (under 1 mile), adequate parking, reliable WiFi, and flexible check-in/out policies to accommodate academic schedules. A case study from 2022-2023 showed a 4-bedroom house on Knox Road generating $28,000 in annual revenue with $18,500 in expenses, yielding a 34% profit margin, while properties further from campus or lacking student-friendly amenities typically see profit margins below 10% due to lower occupancy rates and pricing pressure.

Airbnb investments in College Park, Maryland typically generate annual ROI of 12-18% due to consistent demand from University of Maryland students, faculty, and visitors to the campus area. Cash-on-cash returns generally range from 8-14% annually, with properties near campus commanding premium rates of $80-150 per night depending on size and amenities. Most investors achieve profitability within 18-24 months, with peak earning periods during the academic year (September-May) and graduation weekends. Properties within 1-2 miles of campus perform best, benefiting from year-round occupancy rates of 65-75%, while football weekends and university events can drive rates 2-3x higher than typical periods. The market shows strong fundamentals with UMD's enrollment of over 40,000 students creating steady demand, though investors should account for seasonal fluctuations during summer months when occupancy typically drops to 45-55%.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in College Park, Maryland. Local real estate agents like those at Keller Williams Capital Properties and RE/MAX Realty Plus have extensive knowledge of the College Park market and can identify properties near the University of Maryland campus that perform well as Airbnb investments. National services include Mashvisor, which provides data analytics for rental property investments, and BiggerPockets, which offers market analysis tools and connects investors with local experts. AirDNA provides comprehensive short-term rental market data for the College Park area, while Awning offers end-to-end investment property services including market analysis and property management. Local property management companies like RedAwning and Vacasa can help investors maximize their Airbnb returns through professional management services. Additional national platforms include Roofstock, which specializes in investment properties, and RentSpree, which helps identify high-performing rental markets. Local mortgage brokers and real estate investment groups in the Washington DC metro area also frequently work with Airbnb investors looking to capitalize on College Park's proximity to both the university and Washington DC.