Is Ellsworth, Maine Good for Airbnb Investment?

To start an Airbnb in Ellsworth, Maine, begin by researching local zoning laws and regulations through the Ellsworth Planning Department, as the city requires short-term rental operators to obtain a business license and comply with specific zoning requirements that vary by district. Contact the Ellsworth Code Enforcement Office at (207) 667-2563 to understand permit requirements, fire safety codes, and occupancy limits, then apply for necessary permits including a business license through the City Clerk's office which typically costs around $25-50 annually. Find a suitable property by working with local real estate agents familiar with Ellsworth's neighborhoods like downtown, Shore Road, or residential areas near Acadia National Park, considering properties priced between $200,000-$400,000 for typical homes. Furnish the space with comfortable, durable furniture from retailers like Marden's in Ellsworth or order online, focusing on essentials like quality bedding, kitchen supplies, WiFi, and local guidebooks highlighting nearby attractions like Bar Harbor and Acadia. Create your Airbnb listing with professional photos showcasing the property's proximity to Downeast Maine attractions, set competitive rates around $100-200 per night depending on season and amenities, and write descriptions emphasizing the location's access to outdoor activities and coastal Maine charm. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating with local cleaning services like those found through Ellsworth's business directory, and maintaining compliance with ongoing city requirements while building relationships with neighbors to ensure smooth operations in this close-knit community of approximately 8,000 residents.

To identify profitable short-term rental properties in Ellsworth, Maine, focus on locations within 2-3 miles of Acadia National Park entrances, downtown Bar Harbor ferry routes, and waterfront areas along Union River Bay, as these attract the highest tourist traffic from May through October. Target 2-4 bedroom properties built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces like decks or fire pits, while waterfront or water-view properties command 30-40% higher nightly rates averaging $150-300 per night during peak season. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that Ellsworth typically sees 60-70% occupancy rates during summer months with average daily rates dropping to $80-120 in off-season. Research competition by monitoring active Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or property types, and studying successful hosts' pricing strategies and guest reviews. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and local resources including the Ellsworth Chamber of Commerce for tourism data, while connecting with local property managers like Acadia Cottage Rentals and consulting Hancock County's short-term rental regulations to ensure compliance with licensing requirements that went into effect in 2022.

To obtain an Airbnb/STR permit in Ellsworth, Maine, you must first contact the Ellsworth Code Enforcement Office at City Hall located at 1 City Hall Plaza to determine specific local requirements, as Maine allows municipalities to regulate short-term rentals independently. You'll typically need to submit a completed short-term rental application form, provide proof of property ownership or authorization from the owner, submit a floor plan or property layout, obtain a life safety inspection from the fire department, and provide proof of liability insurance (usually $1 million minimum coverage). Required documents generally include a valid Maine business license, tax identification number, contact information for a local representative if you're an absentee owner, and sometimes neighbor notification letters. Application fees in similar Maine municipalities range from $100-300 initially with annual renewal fees of $50-150, though Ellsworth's specific fees should be confirmed with the city clerk. The approval timeline typically takes 30-60 days depending on inspection scheduling and application completeness. Ellsworth may require compliance with parking requirements (usually 1-2 spaces per unit), occupancy limits based on bedrooms and septic capacity, quiet hours enforcement, and registration with the Maine Revenue Service for lodging taxes. You must also ensure the property meets all building, fire, and health codes, and some areas may have zoning restrictions limiting STRs in certain residential districts.

Short-term rentals (STRs) are legal in Ellsworth, Maine, but operate under the city's zoning ordinances and state regulations. The city requires STR operators to comply with local zoning requirements, which typically allow rentals in residential districts with certain restrictions on occupancy limits, parking requirements, and noise ordinances. Properties must meet health and safety standards, and operators are generally required to register with the state of Maine for tax purposes. Ellsworth has not implemented a specific STR licensing program as of 2023, but properties must comply with existing building codes, fire safety regulations, and the Maine Department of Health and Human Services lodging facility requirements if renting for fewer than 30 days. The city has been monitoring STR activity and may consider additional regulations if issues arise with neighborhood compatibility or housing availability, similar to other Maine coastal communities that have experienced increased STR activity in recent years.

The most promising Airbnb investment areas in Ellsworth, Maine include the downtown historic district near Main Street, which attracts visitors exploring the charming New England architecture and local shops, and properties near the Union River for scenic waterfront appeal. The area around Ellsworth Falls offers natural beauty and proximity to outdoor activities, while neighborhoods near Route 1/3 provide convenient access for tourists heading to Acadia National Park, as Ellsworth serves as a gateway city with many visitors stopping overnight before continuing to Bar Harbor. The residential areas near Knowlton Park and Branch Lake attract families and groups seeking quieter accommodations with lake access, and properties within walking distance of The Grand theater and local restaurants downtown capitalize on cultural tourism. The Surry Road corridor benefits from its rural charm while maintaining accessibility to amenities, and areas near the Ellsworth Business Park can capture business travelers visiting local companies like Jackson Laboratory's nearby facilities, though leisure tourism from Acadia-bound visitors represents the strongest market segment throughout the summer months from June through September.

In Ellsworth, Maine, Airbnb hosts are subject to Maine's state lodging tax of 9% on gross rental receipts, which applies to all short-term rentals under 28 days and is collected by the Maine Revenue Services with quarterly remittance required for hosts earning over $3,000 annually in rental income. Additionally, hosts must pay Hancock County's 5% county lodging tax, bringing the total lodging tax burden to 14% of gross rental receipts. The City of Ellsworth does not impose a separate municipal lodging tax as of 2023, though hosts should verify current local ordinances. Tax collection can be handled directly by hosts through registration with Maine Revenue Services and obtaining a lodging license, or through Airbnb's automated tax collection service which began collecting and remitting Maine state lodging taxes in 2019. Exemptions include rentals to permanent residents (28+ days), certain nonprofit organizations, and government employees on official business, while hosts must maintain detailed records of all transactions and file returns even during periods of no activity once registered.

Starting an Airbnb in Ellsworth, Maine requires approximately $285,000-$350,000 in total initial investment. Property purchase costs around $250,000-$300,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor to create an appealing guest experience. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies total approximately $2,000-$3,000. Permits and fees vary but generally include short-term rental registration ($200-$500), business license ($50-$200), and potential zoning compliance costs ($500-$1,500). Insurance for short-term rentals runs $1,500-$2,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, internet, and cable cost around $500-$800 initially. First six months of operating costs including utilities ($200-$300/month), cleaning supplies and services ($150-$250/month), maintenance reserves ($100-$200/month), platform fees (3% of bookings), property management software ($50-$100/month), and marketing expenses total approximately $4,000-$7,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Ellsworth, Maine typically generate annual revenues between $15,000-$35,000 for seasonal rentals, with peak summer months (June-September) accounting for 60-70% of bookings due to proximity to Acadia National Park. Average daily rates range from $120-$180 during peak season and $80-$120 in off-season, with occupancy rates averaging 45-65% annually. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for utilities, 3% Airbnb service fees, plus property taxes averaging $2,000-$4,000 annually and insurance costs around $1,200-$2,000. Net profit margins generally range from 25-40% for well-managed properties, with successful hosts reporting annual profits of $8,000-$18,000 on properties valued at $200,000-$400,000. Key success factors include strategic location within 20 minutes of Bar Harbor, professional photography, responsive guest communication, and amenities like kayaks or bikes that capitalize on outdoor recreation demand. Properties near downtown Ellsworth or with water views command premium rates, while those offering unique experiences like converted barns or historic homes achieve higher occupancy rates and can charge 15-25% above market average.

Airbnb investments in Ellsworth, Maine typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's proximity to Acadia National Park and Bar Harbor's tourist traffic. Properties within 15 minutes of the park entrance command premium rates of $150-250 per night during peak season (June-October), while off-season rates drop to $80-120 per night. Initial investment recovery generally occurs within 7-10 years for properties purchased at median prices of $300,000-450,000, with occupancy rates averaging 65-75% annually. Seasonal rental properties near downtown Ellsworth or waterfront locations achieve higher cash-on-cash returns of 8-12% due to consistent demand from tourists visiting Mount Desert Island, while year-round rental potential from healthcare workers at Maine Coast Memorial Hospital provides additional income stability during winter months.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Ellsworth, Maine. Local real estate agents like Coldwell Banker Realty and The Knowles Company have extensive knowledge of the Ellsworth market and can identify properties with strong Airbnb potential near Acadia National Park. AirDNA provides market data and analytics specifically for short-term rental investments in the Bar Harbor/Ellsworth area, while Mashvisor offers investment property analysis tools that include Airbnb profitability projections for Maine coastal markets. Vacasa and RedAwning offer property management services for investors who purchase Airbnb properties in Ellsworth, handling everything from guest communications to maintenance. BiggerPockets connects investors with local experts familiar with Maine's short-term rental regulations, and Roofstock has occasionally featured Maine coastal properties suitable for vacation rental conversion. Local services like Acadia Vacation Rentals and Bar Harbor Property Management can provide insights into the seasonal rental market dynamics that affect profitability in the Ellsworth area, particularly given its proximity to one of Maine's most popular tourist destinations.