Is Hagerstown, Maryland Good for Airbnb Investment?

To start an Airbnb in Hagerstown, Maryland, begin by researching local zoning laws and regulations through the City of Hagerstown Planning and Code Administration office, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to primary residences or specific zones. Contact Washington County's Department of Planning and Zoning at 240-313-2350 to verify county-level requirements and obtain necessary permits, including a rental license and potential fire safety inspections. Find a suitable property in residential areas like Prospect Heights or downtown Hagerstown, ensuring it meets the city's occupancy limits (typically 2 people per bedroom plus 2 additional) and has adequate parking as required by local ordinances. Furnish the property with essential amenities including Wi-Fi, linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers to meet Maryland state fire codes. Register your business with the Maryland Department of Assessments and Taxation, obtain a Maryland sales tax license since short-term rentals are subject to the state's 6% sales tax plus Washington County's 5% hotel tax, and secure appropriate insurance coverage. List your property on Airbnb and other platforms with competitive pricing (average $75-120/night in Hagerstown as of 2023), highlighting proximity to Antietam National Battlefield and downtown attractions. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with the city's noise ordinances and maximum occupancy limits while keeping detailed records for tax purposes and potential city inspections.

To identify profitable short-term rental properties in Hagerstown, Maryland, focus on locations within 2-3 miles of downtown, near Antietam National Battlefield, City Park, and the Maryland Theatre, as these areas attract both business travelers and tourists visiting Civil War sites. Target 2-4 bedroom single-family homes or townhouses built after 1980 with dedicated parking, full kitchens, and outdoor spaces, as families visiting nearby battlefields and Washington County attractions prefer these amenities. Conduct pricing analysis using AirDNA and Mashvisor to identify properties under $200,000 that can generate $80-120 per night, comparing against local hotels like Hampton Inn and Fairfield Inn which typically charge $90-130 nightly. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, noting that Hagerstown has relatively low STR saturation compared to nearby Frederick or Shepherdstown, creating opportunities for well-positioned properties. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Bright MLS, while connecting with Hagerstown-Washington County Economic Development Commission for market insights and ensuring compliance with Washington County's short-term rental regulations established in 2019.

To obtain an Airbnb/STR permit in Hagerstown, Maryland, you must first contact the City of Hagerstown Planning and Code Administration Department at City Hall located at 1 East Franklin Street to determine specific zoning compliance, as short-term rentals may require conditional use permits in certain residential zones. You'll need to submit an application including proof of property ownership or lease agreement, a detailed floor plan, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate from the Hagerstown Fire Department, and a business license application. Required documents also include a parking plan showing adequate off-street parking, contact information for a local property manager if you're not local, and neighbor notification forms. The application fee is estimated at $150-300 for the permit plus additional fees for inspections (approximately $75-150), and you'll need an annual business license costing around $50-100. The timeline typically takes 30-60 days from submission to approval, depending on zoning requirements and inspection scheduling. Hagerstown requires STRs to maintain occupancy limits based on bedrooms (generally 2 people per bedroom plus 2 additional), provide adequate parking (minimum 1 space per rental unit), maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertising. Properties must pass fire safety inspections annually and maintain compliance with all residential building codes and health department regulations.

Short-term rentals (STRs) are legal in Hagerstown, Maryland, but operate under specific municipal regulations that were updated around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit short-term rentals to certain residential districts, with stricter controls in historic neighborhoods and near Washington County Hospital areas. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide local contact information and maintain guest registries. Hagerstown prohibits STRs in some multi-family residential zones and requires parking compliance, noise ordinance adherence, and limits on occupancy based on bedroom count. The city has implemented these regulations to balance tourism revenue with neighborhood character preservation, particularly given Hagerstown's proximity to Antietam National Battlefield and other Civil War sites that attract visitors, while recent enforcement efforts have focused on unlicensed operators and properties exceeding occupancy limits.

The best areas for Airbnb investment in Hagerstown, Maryland include the Historic Downtown District, particularly around West Washington Street and South Potomac Street, which attracts visitors to the Maryland Theatre, Washington County Museum of Fine Arts, and various cultural events throughout the year. The Antietam Creek area and neighborhoods near Antietam National Battlefield (about 10 miles south) are highly desirable due to Civil War tourism and history enthusiasts visiting the battlefield sites. The City Park and Fairgrounds Park vicinity offers appeal for families attending events at the Washington County Agricultural Education Center and seasonal festivals. Areas near Hagerstown Regional Airport and along Interstate 81 corridors, such as the Halfway Boulevard district, attract business travelers and those attending conferences at venues like the Washington County Convention Center. The South End neighborhoods near Hagerstown Community College draw visitors for educational events, graduations, and sports tournaments, while properties near the Western Maryland Rail Trail appeal to outdoor enthusiasts and cyclists exploring the 23-mile trail system connecting to neighboring counties.

Airbnb properties in Hagerstown, Maryland are subject to Maryland's state sales tax of 6% on lodging accommodations, which applies to short-term rentals under 30 days. Washington County, where Hagerstown is located, imposes an additional 5% hotel/motel tax on transient accommodations, bringing the total occupancy tax rate to approximately 11%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began in Maryland around 2017-2018. For properties where Airbnb doesn't collect taxes automatically, hosts must register with the Maryland Comptroller's office and Washington County to obtain tax identification numbers, collect taxes from guests, and remit payments monthly or quarterly depending on volume. The state sales tax is remitted to the Maryland Comptroller, while the county occupancy tax is paid to Washington County's finance department. Exemptions may apply for stays exceeding 30 consecutive days, certain government employees on official business, and some nonprofit organization bookings, though documentation is typically required to qualify for these exemptions.

The total cost to start an Airbnb in Hagerstown, Maryland is approximately $285,000-$315,000. Property purchase costs around $220,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials total approximately $2,000-$3,000. Permits and fees vary but generally include business license ($100-$300), short-term rental permit if required ($200-$500), and potential HOA approval fees. Insurance for short-term rentals costs $2,000-$4,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable run $500-$1,000 initially. First six months operating costs including utilities ($1,200), cleaning services ($1,800), maintenance and supplies ($1,000), platform fees to Airbnb/VRBO ($2,400 assuming $4,000 monthly revenue), property management software ($300), and marketing ($500) total approximately $7,200. Additional considerations include potential property management fees if outsourced (20-30% of revenue), emergency repair fund, and working capital for periods of low occupancy.

Airbnb properties in Hagerstown, Maryland typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), property management (10-20% of revenue if outsourced), maintenance ($1,000-$3,000 annually), and Airbnb's 3% host service fee. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved by hosts who handle cleaning and maintenance themselves. Success factors in Hagerstown include proximity to Antietam National Battlefield and Washington County Museum of Fine Arts, competitive pricing against local hotels like Hampton Inn ($89-$129 nightly), professional photography, consistent 4.8+ star ratings, and targeting business travelers visiting local employers like Volvo Group and Meritus Health. Properties within 10 miles of historic downtown Frederick or offering unique amenities like hot tubs or game rooms command premium rates, while those near Interstate 81 attract overnight travelers, with occupancy rates averaging 45-65% annually and peak performance during spring and fall tourist seasons.

Airbnb investments in Hagerstown, Maryland typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Hagerstown near the Arts & Entertainment District and close to Antietam National Battlefield tend to perform better, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months, assuming a 20-25% down payment on properties valued between $150,000-250,000. The market benefits from proximity to Washington DC (90 minutes), Baltimore (60 minutes), and historical tourism, though seasonal fluctuations affect performance with stronger bookings from April through October. Operating expenses typically run 35-45% of gross revenue including cleaning, maintenance, insurance, and platform fees, making net annual returns more conservative at 6-8% for most investors in this secondary market.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties and provides market analysis for Airbnb investments in Hagerstown, Maryland. Local real estate agents like Keller Williams Realty and Coldwell Banker Residential Brokerage in Hagerstown have agents experienced in investment properties who understand the local rental market dynamics. RE/MAX and Century 21 also have local offices with agents who work with investors seeking vacation rental properties. National services include BiggerPockets, which offers investment property analysis tools and connects investors with local professionals, and Roofstock, which focuses on turnkey rental properties. AirDNA provides short-term rental market data and analytics for the Hagerstown area to help investors identify profitable opportunities. Local property management companies like Tri-State Property Management and Washington County property managers can assist with identifying investment-worthy properties and provide ongoing management services. Mashvisor offers investment property analysis specifically for short-term rentals, while LoopNet and other commercial real estate platforms list multi-family and investment properties in the Hagerstown market that could be converted to profitable Airbnb units.