Is Higgins Beach, Maine Good for Airbnb Investment?

To start an Airbnb in Higgins Beach, Maine, begin by researching local regulations through the Town of Scarborough, which governs this area, as they require short-term rental registration and may have occupancy limits, parking requirements, and noise ordinances that typically restrict quiet hours from 10 PM to 7 AM. Obtain necessary permits including a business license from Scarborough Town Hall, register for Maine state lodging taxes, and secure liability insurance coverage of at least $1 million, while also checking with your HOA if applicable since many beachfront properties have rental restrictions. Find a suitable property within walking distance of Higgins Beach, focusing on 2-4 bedroom homes or condos that can accommodate families, with average purchase prices ranging from $400,000-$800,000 for beach-proximate properties as of 2023. Furnish the space with coastal-themed, durable furniture including beach chairs, umbrellas, and outdoor shower facilities, ensuring you have adequate parking for 2-3 vehicles as required by most local ordinances. List your property on Airbnb and VRBO with professional photography highlighting ocean views and beach access, setting competitive rates of $200-$500 per night depending on season and proximity to beach. Manage the property by hiring local cleaning services like those found in nearby Old Orchard Beach, install keyless entry systems, provide 24/7 guest communication, maintain relationships with local contractors for repairs, and consider hiring property management companies such as Vacasa or RedAwning that operate in the Maine coastal market, while ensuring compliance with the state's 9% lodging tax and Scarborough's local tax requirements.

For identifying profitable short-term rental properties in Higgins Beach, Maine, focus on oceanfront or ocean-view locations within walking distance of the beach, particularly properties on Ocean Avenue or nearby streets that offer easy beach access and parking availability. Target 3-4 bedroom single-family homes or condos built after 1980 with modern amenities, outdoor spaces like decks or patios, and updated kitchens and bathrooms that can command premium rates during peak summer months (June-September). Analyze pricing by researching comparable Airbnb and VRBO listings in the area, noting that beachfront properties can earn $300-500+ per night in summer while off-beach properties typically range $150-300, with annual occupancy rates around 60-70% due to Maine's seasonal nature. Study competition using AirDNA, Mashvisor, and STR analytics tools to assess market saturation, seasonal demand patterns, and revenue potential, while monitoring local competitors' pricing strategies, amenities, and guest reviews. Utilize resources like the Town of Scarborough's zoning regulations and STR permit requirements, Maine real estate platforms like Maine Listings, and vacation rental management companies like Vacasa or RedAwning that operate in the Higgins Beach market to understand regulatory compliance, property availability, and professional management options that can maximize profitability in this competitive coastal market.

To obtain an Airbnb/STR permit in Higgins Beach, Maine (part of Scarborough), you must first register with the Town of Scarborough Planning Department at 259 US Route 1, submitting a completed Short-Term Rental Registration application along with a copy of your property deed, floor plan showing maximum occupancy, proof of liability insurance (minimum $300,000), septic system inspection certificate if applicable, and contact information for a local property manager if you're an absentee owner. The registration fee is approximately $150 annually, with applications processed within 30-45 days of submission. Scarborough requires STR properties to maintain maximum occupancy limits based on septic capacity (typically 2 people per bedroom plus 2 additional), provide adequate parking (minimum 2 spaces), display the registration number in all advertisements, maintain a guest registry, and ensure quiet hours from 9 PM to 8 AM. Properties must also comply with the town's Life Safety Code requiring smoke and carbon monoxide detectors, fire extinguishers, and emergency egress windows in sleeping areas. Additionally, you'll need to register with the Maine Revenue Service for lodging tax collection and remit the 9% state lodging tax plus Scarborough's 1% local option tax quarterly, with initial tax registration completed online at maine.gov/revenue within 30 days of beginning operations.

Short-term rentals (STRs) are legal in Higgins Beach, Maine, but are subject to local regulations implemented by the Town of Scarborough, which governs this coastal community. As of 2023, Scarborough requires STR operators to obtain a business license and comply with specific zoning requirements, with most residential areas allowing STRs but with restrictions on occupancy limits typically capped at 2 people per bedroom plus 2 additional guests. The town has implemented noise ordinances, parking requirements (usually 1 space per bedroom), and mandates that properties maintain septic system compliance and adequate waste management. Recent changes around 2022-2023 included stricter enforcement of existing regulations and enhanced complaint procedures, though no outright bans have been enacted in Higgins Beach specifically. Properties must also comply with Maine state lodging laws including safety requirements and tax collection, and some homeowners associations in the area may have additional restrictions. The town has been balancing tourism revenue with resident concerns about housing availability and neighborhood character, leading to ongoing discussions about potential future modifications to STR regulations.

The best areas for Airbnb investment near Higgins Beach, Maine include the immediate Higgins Beach neighborhood itself, particularly properties within walking distance of the beach access points, as this area attracts summer tourists seeking oceanfront vacation rentals from June through September. The nearby Scarborough Beach area offers similar appeal with its expansive sandy shoreline and proximity to local seafood restaurants. Pine Point, located just south of Higgins Beach, provides excellent investment potential due to its family-friendly atmosphere and access to both ocean and marsh activities, drawing visitors interested in kayaking, fishing, and nature photography. The Prouts Neck area, though more upscale, offers luxury rental opportunities for affluent tourists visiting the scenic coastline and Winslow Homer Studio. Old Orchard Beach, approximately 15 minutes north, provides year-round rental potential due to its amusement pier, seasonal events, and proximity to the Portland Jetport, attracting both leisure travelers and business visitors to the greater Portland area. These locations benefit from Maine's growing tourism industry, with visitors drawn to lobster festivals, lighthouse tours, and outdoor recreation activities throughout the warmer months.

Airbnb properties in Higgins Beach, Maine are subject to Maine's 9% lodging tax, which applies to all short-term rental accommodations under 28 days, collected from guests at the time of booking and remitted monthly to Maine Revenue Services by the 15th of the following month. Additionally, the Town of Scarborough (where Higgins Beach is located) imposes a local lodging tax of 1% on short-term rentals, bringing the total occupancy tax to 10%, with both taxes typically collected through Airbnb's automated tax collection system for properties listed on the platform, though hosts remain responsible for ensuring proper registration with both state and local authorities. Properties rented for 28 days or longer are exempt from these lodging taxes, and certain nonprofit organizations may qualify for exemptions, but standard vacation rental properties have no other significant exemptions available, with hosts required to obtain a Maine sales tax certificate and Scarborough short-term rental permit to legally operate and remit these taxes.

To start an Airbnb in Higgins Beach, Maine, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$650,000 for a median 2-3 bedroom coastal home near the beach. Furnishing costs range $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and beach-themed decor suitable for vacation rentals. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,500. Permits and fees total $1,500-$2,500, covering short-term rental registration with Scarborough (the town governing Higgins Beach), business license, and any required inspections. Insurance including landlord and short-term rental coverage runs $3,000-$4,500 annually. Utility setup and deposits for electricity, water, internet, and cable cost $1,000-$1,500. First six months operating costs including utilities ($2,400), cleaning services ($3,600), maintenance ($2,000), property management software ($300), and marketing ($1,200) total approximately $9,500. Additional considerations include potential HOA fees ($1,200-$2,400 for six months) and emergency repair fund ($5,000), bringing the comprehensive startup investment to approximately $650,000-$750,000 depending on property size and condition.

Airbnb properties in Higgins Beach, Maine typically generate strong seasonal profitability with average nightly rates ranging from $200-400 during peak summer months (June-September) and dropping to $100-150 in off-season periods. A typical 3-bedroom beachfront property can gross $45,000-65,000 annually with occupancy rates of 60-75% during summer and 25-35% off-season, while expenses including property management (15-25%), cleaning fees ($75-125 per turnover), utilities ($200-300 monthly), insurance ($2,000-3,500 annually), and maintenance ($3,000-5,000 annually) typically consume 40-50% of gross revenue. Properties within 0.2 miles of the beach command premium rates and achieve profit margins of 25-35%, while those further inland see margins of 15-25%. Success factors include proximity to Higgins Beach State Park, modern amenities like WiFi and air conditioning, professional photography, and responsive guest communication, with properties managed by companies like Vacasa or RedAwning often outperforming owner-managed units by 15-20% in both occupancy and revenue. The market benefits from Scarborough's proximity to Portland (15 minutes) and strong repeat visitor rates, though profitability heavily depends on capturing the critical July-August peak season when daily rates can exceed $500 for premium oceanfront properties.

Airbnb investments in Higgins Beach, Maine typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's strong summer tourism season from June through September when nightly rates average $200-350 for beachfront properties and $150-250 for properties within walking distance of the beach. Properties generally achieve profitability within 18-24 months, with peak occupancy rates of 75-85% during summer months and 25-40% during off-season periods. The market benefits from Higgins Beach's proximity to Portland (20 minutes) and its reputation as a family-friendly destination, with average property acquisition costs of $400,000-700,000 for investment-suitable homes generating annual gross revenues of $35,000-65,000 after accounting for seasonal fluctuations, property management fees of 15-25%, and maintenance costs averaging $8,000-12,000 annually.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Higgins Beach, Maine. Local real estate agents specializing in vacation rental investments include Keller Williams Realty in Scarborough, Coldwell Banker Residential Brokerage, and RE/MAX By The Bay, with agents like those at Portside Real Estate Group focusing specifically on coastal investment properties. National services include AirDNA for market analytics, Mashvisor for investment property analysis, and BiggerPockets for investor networking and deal sourcing. Local property management companies that also help identify investment opportunities include Vacasa, RedAwning, and Maine Coast Vacation Rentals. Additional specialized services include Short Term Rental University for education, Host Financial for STR-specific lending, and local investment groups like Maine Real Estate Investors Association that focus on the Scarborough and Old Orchard Beach area markets where Higgins Beach properties are highly sought after for their proximity to Portland and strong summer rental demand.