Is Jessup, Maryland Good for Airbnb Investment?

To start an Airbnb in Jessup, Maryland, begin by researching Anne Arundel County's short-term rental regulations, which typically require a business license and may have zoning restrictions for residential properties. Contact Anne Arundel County's Department of Planning and Zoning to obtain necessary permits, including a short-term rental permit (estimated cost $100-300) and ensure your property complies with fire safety codes and health department requirements. Find a suitable property in Jessup by purchasing or securing landlord permission if renting, focusing on areas near BWI Airport or Fort Meade for higher demand. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers as required by county codes. Create your Airbnb listing with professional photos, competitive pricing (estimated $80-150/night for Jessup area), and highlight proximity to Baltimore, Washington DC, and BWI Airport. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain the property regularly, collect and remit Maryland's 6% sales tax plus Anne Arundel County's hotel tax (approximately 5%), and consider using property management software or hiring a local cleaning service to streamline operations while ensuring compliance with all local ordinances and tax obligations.

To identify profitable short-term rental properties in Jessup, Maryland, focus on locations within 15-20 minutes of BWI Airport, Fort Meade, and the Baltimore-Washington corridor, as these areas attract business travelers and government contractors. Target 2-4 bedroom single-family homes or townhouses built after 1990 with dedicated parking, modern amenities, and fast WiFi, as corporate guests prioritize comfort and functionality. Analyze pricing by researching comparable Airbnb and VRBO listings in nearby Columbia, Laurel, and Hanover, aiming for nightly rates between $80-150 depending on property size and amenities. Conduct competition research using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that Jessup's proximity to NSA and other government facilities creates consistent demand from contractors and military personnel. Utilize tools like STR Helper for market analysis, monitor Howard County zoning regulations and HOA restrictions, and leverage the Maryland Tourism Board data to understand seasonal trends, while considering that the area's strategic location between Baltimore and Washington DC provides year-round booking potential from business travelers, relocating families, and weekend visitors to nearby attractions like Historic Ellicott City.

To obtain an Airbnb/STR permit in Jessup, Maryland, you must first contact the Howard County Department of Planning and Zoning since Jessup falls under Howard County jurisdiction, and apply for a Short-Term Rental License through their online portal or by visiting their office at 3430 Court House Drive in Ellicott City. Required documents typically include a completed STR application form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), contact information for a local responsible party available 24/7, and payment of applicable fees which generally range from $200-400 annually plus inspection fees of approximately $100-150. You must also ensure compliance with Howard County zoning regulations, which may limit STRs in certain residential areas and require properties to be owner-occupied or have specific parking requirements. The application process typically takes 4-8 weeks for review and approval, during which time the county will conduct a safety inspection to verify smoke detectors, carbon monoxide detectors, fire extinguishers, and proper egress windows. Additionally, you must register with the Maryland Department of Assessments and Taxation for tax purposes and may need to collect and remit local hotel taxes, with renewal required annually and adherence to occupancy limits and noise ordinances as specified in your permit conditions.

Short-term rentals (STRs) in Jessup, Maryland operate under Howard County regulations, where they are generally legal but subject to specific restrictions and licensing requirements. As of 2023, Howard County requires STR operators to obtain a business license and comply with zoning regulations, with properties typically limited to residential zones and subject to occupancy limits based on bedroom count. The county prohibits STRs in certain residential areas and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards including smoke and carbon monoxide detectors. Recent changes around 2022-2023 have strengthened enforcement mechanisms and increased penalties for non-compliance, while also establishing clearer application processes and inspection requirements. Properties must be owner-occupied or have specific approval for non-owner-occupied rentals, and there are restrictions on the total number of rental days per year, with some areas limiting STRs to prevent over-concentration in residential neighborhoods.

The best areas for Airbnb investment in Jessup, Maryland include the neighborhoods near BWI Airport and the MARC train station, which attract significant business travelers and airport passengers seeking convenient overnight accommodations. The areas around Jessup's industrial corridor, particularly near major employers like Amazon fulfillment centers and other logistics companies established around 2018-2020, offer strong potential for corporate housing and extended-stay guests. Properties near the historic Jessup downtown area and close to Route 175 provide easy access to both Baltimore and Washington D.C., making them attractive to tourists and business travelers visiting either city. The residential areas near Patuxent River State Park and surrounding recreational facilities appeal to families and outdoor enthusiasts, while locations within walking distance of the Jessup MARC station are particularly valuable due to the direct rail connection to Washington D.C. and Baltimore, serving government contractors, consultants, and tourists who prefer train travel over driving in the congested I-95 corridor.

In Jessup, Maryland, Airbnb properties are subject to Maryland's state sales tax of 6% on lodging accommodations, which applies to short-term rentals under 30 days. Anne Arundel County, where Jessup 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 operating in Maryland around 2018. Airbnb remits the collected taxes directly to the Maryland Comptroller's office monthly, though individual hosts may still need to register for a Maryland sales tax license and file returns even when Airbnb collects taxes. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and certain accommodations for medical treatment or government employees may qualify for exemptions. Hosts should verify their registration requirements with the Maryland Comptroller's office and Anne Arundel County to ensure compliance, as local regulations can change and additional permits or licenses may be required for operating short-term rentals in residential areas.

The total cost to start an Airbnb in Jessup, Maryland is approximately $385,000-$425,000. Property purchase costs around $320,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees in Anne Arundel County include short-term rental license ($200), business license ($50), and potential HOA approval fees totaling $500-$1,000. Insurance for short-term rentals costs $2,000-$3,000 annually, significantly higher than standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, platform fees (3% Airbnb, 3% VRBO), marketing, and property management if outsourced total $8,000-$12,000, assuming 60-70% occupancy rates and average daily rates of $120-$180 depending on property size and amenities.

Airbnb properties in Jessup, Maryland typically generate annual revenues between $18,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and amenities, according to market data from 2023-2024. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,200 annually), and maintenance costs ($2,000-4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved through strategic pricing, professional photography, and consistent 4.8+ star ratings. Success factors in the Jessup market include proximity to BWI Airport (major demand driver), competitive pricing against nearby Columbia and Baltimore properties, and targeting business travelers and airport transit guests. Properties within 10 miles of BWI Airport, like those operated by local host Sarah Chen who reported 78% occupancy rates and $28,000 annual profit on her 3-bedroom townhome in 2023, consistently outperform those focused solely on leisure travelers. The market benefits from steady demand due to the area's logistics hub status and proximity to Fort Meade, though hosts must navigate Howard County's short-term rental regulations and maintain competitive positioning against hotel chains near the airport.

Airbnb investments in Jessup, Maryland typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, depending on property type and initial investment. Single-family homes in Jessup's established neighborhoods near Fort Meade and BWI Airport command nightly rates of $80-150, with occupancy rates averaging 65-75% annually due to consistent military and business traveler demand. Initial profitability usually occurs within 12-18 months for well-positioned properties, with investors seeing positive cash flow after accounting for mortgage payments, property management fees of 15-25%, and maintenance costs. Properties within 10 miles of Fort Meade or along the Baltimore-Washington corridor perform strongest, with some investors achieving 14-16% ROI when purchasing below-market properties requiring minor renovations. The timeframe to break-even on initial capital investment typically spans 7-10 years, though cash flow positive operations generally begin by month 8-15 depending on seasonal demand patterns and property acquisition costs averaging $300,000-450,000 in the Jessup market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Jessup, Maryland. Local real estate agents in the area include Keller Williams Realty Centre in nearby Columbia and RE/MAX Advantage Realty in Laurel who have experience with investment properties. National services like Awning, RedAwning, and Mashvisor provide market analysis and property identification tools for Airbnb investments in the Baltimore-Washington corridor. Local property management companies such as Vacasa and RedAwning operate in Howard County and can assist with both acquisition and management of short-term rentals. Real estate investment firms like BiggerPockets marketplace and Roofstock occasionally feature properties in the Jessup area suitable for Airbnb conversion. Additionally, local real estate agents from Long & Foster and Coldwell Banker in the greater Baltimore area have developed expertise in identifying properties with strong short-term rental potential near BWI Airport and the Baltimore-Washington business corridor.