Is Highland, Maryland Good for Airbnb Investment?

To start an Airbnb in Highland, Maryland, begin by researching Howard County's zoning regulations and short-term rental ordinances, as Highland falls under Howard County jurisdiction which requires short-term rental operators to obtain a business license and comply with safety inspections. Contact Howard County's Department of Planning and Zoning to verify your property is in a zone that permits short-term rentals, then apply for a Home Occupation Permit through the county office, which typically costs around $100-200 and requires proof of liability insurance of at least $1 million. Find a suitable property in Highland's residential neighborhoods, ensuring it meets county fire safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture, linens, and amenities while ensuring compliance with Americans with Disabilities Act guidelines where applicable. Create your Airbnb listing with professional photos, competitive pricing based on similar properties in Columbia and Ellicott City nearby, and highlight Highland's proximity to Baltimore and Washington DC. For ongoing management, establish cleaning protocols between guests, maintain 24/7 communication availability, handle Howard County tax requirements including the 5% county accommodation tax, and consider hiring local property management companies like Vacasa or RedAwning if you prefer hands-off management, while staying current with any changes to Howard County's short-term rental regulations which have evolved since 2019.

To identify profitable short-term rental properties in Highland, Maryland, focus on locations within 2-3 miles of major attractions like Patapsco Valley State Park, historic Ellicott City, and proximity to Baltimore-Washington corridor for business travelers. Target 2-4 bedroom single-family homes or townhouses built after 1990 with modern amenities, parking, outdoor spaces, and unique character features that photograph well for listings. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80-150 typical for the area) and occupancy rates (aim for 65%+ annually), while analyzing comparable properties within 5-mile radius through Airbnb and VRBO searches. Research competition by monitoring existing STR listings in Howard County, identifying gaps in amenities or property types, and studying seasonal demand patterns driven by proximity to BWI Airport, Fort Meade, and seasonal tourism to nearby attractions. Utilize tools like Rabbu, AllTheRooms, and local Howard County zoning maps to ensure STR compliance, while leveraging Zillow, Realtor.com, and local MLS data to identify undervalued properties in neighborhoods with strong walkability scores and access to I-95, Route 29, and public transportation connecting to Baltimore and Washington DC markets.

To obtain an Airbnb/STR permit in Highland, Maryland, you must first contact the Howard County Department of Planning and Zoning at 3430 Court House Drive, Ellicott City, MD 21043, as Highland falls under Howard County jurisdiction. Submit a Short-Term Rental Registration application along with required documents including property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), contact information for a local representative within 30 minutes of the property, and a $150 application fee. The property must comply with Howard County zoning regulations, maintain occupancy limits based on bedroom count plus two additional guests, provide adequate parking (minimum two spaces), and pass safety inspections including smoke and carbon monoxide detectors in all sleeping areas. The approval process typically takes 30-45 days from submission of complete application, and annual renewal is required with a $75 fee. Properties must be owner-occupied or have an owner residing within Howard County, maintain a guest registry, and display the registration number in all advertisements. Contact Howard County at 410-313-2350 for current application forms and to schedule required inspections before beginning operations.

Short-term rentals (STRs) in Highland, Maryland are generally legal but subject to Montgomery County regulations since Highland is an unincorporated community within the county. As of 2023, Montgomery County requires STR operators to obtain a license, limit occupancy to no more than 16 guests, maintain liability insurance, and comply with safety requirements including smoke and carbon monoxide detectors. The county prohibits STRs in certain residential zones and requires a minimum 48-hour rental period to distinguish from daily hotel-style accommodations. Recent changes in 2022 strengthened enforcement mechanisms and increased penalties for unlicensed operations, while also establishing clearer pathways for compliant operators. Highland properties must also comply with any applicable homeowners association restrictions, and operators are required to provide 24/7 contact information and respond to complaints within two hours, with violations potentially resulting in license suspension or revocation.

The best areas for Airbnb investment in Highland, Maryland include the neighborhoods near Patapsco Valley State Park and the historic Ellicott City corridor, which attract outdoor enthusiasts and tourists visiting the charming Main Street district with its antique shops, restaurants, and Civil War history. The areas around Howard Community College and near the MARC train stations offer strong potential for business travelers and visitors to nearby Baltimore and Washington DC, with properties typically seeing steady demand from corporate guests and weekend tourists. Neighborhoods within walking distance of the Patapsco River and hiking trails appeal to nature lovers and families seeking outdoor recreation, while properties near the intersection of Routes 108 and 29 benefit from proximity to Columbia's business district and shopping centers. The residential areas around Centennial Park and Lake Elkhorn draw visitors attending events, sports tournaments, and festivals, making them attractive for short-term rental investments due to consistent seasonal demand and higher weekend occupancy rates.

Highland, Maryland does not have specific local lodging or occupancy taxes as it is an unincorporated community in Howard County. However, Airbnb hosts in Highland are subject to Maryland's state sales tax of 6% on short-term rental accommodations, which applies to stays of less than 30 consecutive days. Howard County does not currently impose a separate hotel or lodging tax on short-term rentals. The Maryland sales tax is typically collected by Airbnb directly from guests and remitted to the state on behalf of hosts through their tax collection agreements established around 2017-2018. Hosts may still need to register for a Maryland sales tax license and file returns even when Airbnb collects the tax, depending on their total rental income and other business activities. There are generally no exemptions for short-term rentals under 30 days, though longer-term stays exceeding 30 consecutive days are typically exempt from the transient accommodation tax requirements. Hosts should verify their specific obligations with the Maryland Comptroller's office as tax collection arrangements and local regulations can change.

To start an Airbnb in Highland, Maryland, the total costs would be approximately $485,000-$565,000. Property purchase represents the largest expense at $400,000-$450,000 based on median home prices in Howard County. Furnishing costs range from $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor to make the property guest-ready. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees in Howard County include short-term rental licenses, inspections, and registration fees totaling $500-$1,500. Insurance premiums for short-term rental coverage cost $2,000-$3,500 annually. Utilities including electricity, water, gas, internet, and cable average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs encompass cleaning services ($150 per turnover), maintenance reserves, supplies, platform fees (3% of bookings), and marketing, totaling approximately $8,000-$12,000 assuming 60-70% occupancy rates and $150-$200 average daily rates typical for the Baltimore-Washington corridor market.

Airbnb properties in Highland, Maryland typically generate annual revenues between $18,000-$35,000 for single-family homes and $12,000-$22,000 for condos, based on average daily rates of $85-$140 and occupancy rates around 45-65%. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% of revenue), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts in the area reporting annual profits of $8,000-$15,000 per property. Key success factors include proximity to Baltimore (30 minutes), competitive pricing during peak summer months and fall foliage season, professional photography, rapid guest communication, and maintaining 4.8+ star ratings. Properties near Patapsco Valley State Park and those offering amenities like hot tubs or fire pits command premium rates, with some hosts like those operating converted farmhouses reporting 70%+ occupancy rates and $25,000+ annual profits by targeting weekend getaway markets from Washington DC and Baltimore metropolitan areas.

Airbnb investments in Highland, Maryland typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Single-family homes near recreational areas like Patapsco Valley State Park or Rocky Gap State Park tend to perform better, achieving the higher end of these ranges. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically reached in 10-12 years. Properties closer to Baltimore (45 minutes away) or Washington DC metro area command higher nightly rates of $120-180, while more rural Highland locations average $80-130 per night. Seasonal variations show peak performance during summer months and fall foliage season, with occupancy rates averaging 65-75% annually for well-managed properties.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Highland, Maryland. Local real estate agents in the area include Keller Williams Realty and RE/MAX who have experience with investment properties and Airbnb regulations in Howard County. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for Highland's vacation rental market. RedAwning and Vacasa offer property management services for investors who purchase Airbnb properties in the region. Local property management companies such as Chesapeake Property Management and Mid-Atlantic Real Estate Services also assist with short-term rental operations. Investment-focused real estate companies like HomeVestors and BiggerPockets-affiliated agents work with clients seeking profitable rental properties in Highland and surrounding Howard County areas. Additional national platforms like Roofstock and Fundrise have expanded into the Maryland market to help investors identify and purchase income-generating properties suitable for Airbnb conversion.