Is Kent Island, Maryland Good for Airbnb Investment?

To start an Airbnb in Kent Island, Maryland, begin by researching Queen Anne's County zoning regulations and short-term rental ordinances, as the county requires special permits for rentals under 30 days in most residential zones. Contact the Queen Anne's County Planning and Zoning Department to obtain a Conditional Use Permit and ensure compliance with the county's short-term rental regulations established around 2019-2020. Find a suitable property by working with local real estate agents familiar with Kent Island's waterfront and residential areas, focusing on properties zoned for commercial or mixed-use, or those in areas where short-term rentals are permitted with proper permits. Once you secure a property, obtain necessary permits including a business license from Queen Anne's County, a rental license, and ensure the property meets Maryland's safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the property with coastal-themed decor appropriate for the Chesapeake Bay area, including comfortable bedding, kitchen essentials, and outdoor furniture to take advantage of Kent Island's waterfront location. List your property on Airbnb and other platforms like VRBO, highlighting proximity to the Chesapeake Bay Bridge, local seafood restaurants, and water activities. For management, either handle bookings, cleaning, and guest communication yourself or hire a local property management company familiar with Kent Island's seasonal tourism patterns, ensuring you maintain the required guest registry and collect the 6% Maryland sales tax plus any applicable county lodging taxes.

To identify profitable short-term rental properties in Kent Island, Maryland, focus on waterfront or water-view locations within walking distance of Chesapeake Bay beaches, particularly in areas like Stevensville and Chester near the Bay Bridge, as these command premium rates of $200-400 per night during peak summer months. Target 3-4 bedroom single-family homes or townhouses built after 1990 with amenities like decks, hot tubs, boat slips, or dock access, as properties with water access can generate 30-40% higher revenue than inland alternatives. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that Kent Island STRs typically achieve 60-75% occupancy rates with average daily rates ranging from $150-350 depending on proximity to water and seasonal demand. Research competition by monitoring active Airbnb and VRBO listings within a 3-mile radius, identifying gaps in luxury amenities or unique features like crab deck setups or kayak rentals that appeal to Baltimore and Washington DC visitors seeking weekend getaways. Utilize tools like Rabbu, AllTheRooms, and local MLS data through Bright MLS, while consulting Queen Anne's County zoning regulations and HOA restrictions, as some waterfront communities like Kentmoor Harbor restrict short-term rentals, making compliant properties more valuable in this $180 million annual tourism market driven by boating, fishing, and Bay Bridge proximity.

To obtain an Airbnb/STR permit in Kent Island, Maryland, you must apply through Queen Anne's County since Kent Island is located within this county. Start by contacting the Queen Anne's County Department of Planning and Zoning at 410-758-4098 or visiting their office at 107 Clay Street in Centreville to obtain the Short-Term Rental License application. Required documents typically include a completed application form, property deed or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate from the local fire department, health department approval for septic systems if applicable, and a $200-300 application fee. You must also provide contact information for a local property manager if you live more than 50 miles away, obtain a business license from the county clerk's office, and ensure compliance with zoning regulations as STRs may be restricted in certain residential areas. The approval process generally takes 30-60 days after submitting a complete application, and annual renewal is required with a renewal fee of approximately $150-200. Additional Kent Island-specific requirements may include parking provisions for guests, noise ordinance compliance, and adherence to the Chesapeake Bay Critical Area regulations if your property is within the designated environmental zone.

Short-term rentals (STRs) are legal in Kent Island, Maryland, but are subject to Queen Anne's County regulations that require proper licensing and compliance with zoning restrictions. As of 2023, STR operators must obtain a rental license from Queen Anne's County, pay applicable taxes including the county's 3% accommodations tax, and ensure their properties meet safety and occupancy standards. The county has implemented restrictions limiting STRs in certain residential zones to preserve neighborhood character, particularly in areas like Stevensville and Chester, and requires properties to have adequate parking and septic capacity. Recent changes in 2022-2023 have strengthened enforcement mechanisms and increased penalties for non-compliant operators, while also establishing clearer guidelines for noise ordinances and guest limits. Properties in commercial zones generally face fewer restrictions than those in residential areas, and the county has been working to balance tourism revenue with resident concerns about housing availability and neighborhood disruption.

The most promising Airbnb investment areas on Kent Island, Maryland include the waterfront communities along the Chesapeake Bay shoreline, particularly around Stevensville and the Bay Bridge Marina area, which attract tourists seeking scenic water views, boating access, and proximity to the Chesapeake Bay Bridge for easy access to Annapolis and the Eastern Shore. The historic downtown Stevensville district offers charm and walkability while being close to restaurants, shops, and the Cross Island Trail, appealing to leisure travelers and couples seeking weekend getaways. Areas near Terrapin Beach Park and Sandy Point State Park (accessible via the bridge) draw families and outdoor enthusiasts year-round for swimming, fishing, and beach activities. The neighborhoods around Kent Island Golf and Country Club attract golf tourists and upscale travelers, while properties near the Chesapeake Bay Environmental Center appeal to eco-tourists and nature enthusiasts. Business travelers frequent areas close to major employers and the Bay Bridge for convenient commutes to Baltimore and Washington D.C., making locations with easy highway access particularly valuable for short-term corporate stays.

Airbnb properties on Kent Island, Maryland are subject to Maryland's state sales tax of 6% on lodging accommodations, plus Queen Anne's County imposes a local lodging tax of 5%, resulting in a combined tax rate of 11% on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2017-2018 for Maryland jurisdictions. Airbnb remits the collected state sales tax to the Maryland Comptroller's office monthly and the local lodging tax to Queen Anne's County quarterly. Property owners who collect taxes independently must register with the Maryland Comptroller for a sales tax license and file monthly returns, while also registering with Queen Anne's County for local tax remittance. Stays of 30 days or longer are generally exempt from these transient occupancy taxes, and some jurisdictions may exempt stays by permanent residents, though specific exemptions should be verified with local authorities. The local lodging tax revenue typically supports tourism promotion and local infrastructure projects within Queen Anne's County.

The total cost to start an Airbnb on Kent Island, Maryland is approximately $485,000-$565,000. Property purchase costs around $400,000-$475,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor. Initial setup including professional photography, listing creation, and welcome amenities costs $2,000-$3,000. Permits and fees including short-term rental license, business registration, and potential HOA approvals total $500-$1,500. Insurance including liability coverage and property protection adds $2,500-$4,000 annually. Utilities setup and deposits for electricity, water, internet, and cable cost $500-$800. First six months operating costs including cleaning services ($3,600), maintenance ($2,000), marketing ($1,200), supplies ($1,500), and property management software ($600) total approximately $9,000. Additional considerations include potential property improvements ($5,000-$10,000) and working capital reserves for vacancy periods, bringing the comprehensive startup investment to the upper end of this range for a well-positioned rental property.

Airbnb properties on Kent Island, Maryland typically generate annual revenues between $35,000-$65,000 for well-positioned waterfront or water-view properties, with average daily rates ranging from $150-$280 during peak summer months and $90-$150 during off-season periods. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% if outsourced), utilities ($200-$350 monthly), insurance ($1,500-$2,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties within walking distance of Chesapeake Bay beaches or with boat access command premium rates and achieve 65-75% occupancy rates during May through September, while inland properties typically see 45-55% annual occupancy. Net profit margins for successful Kent Island Airbnb operations range from 25-35% after all expenses, with properties purchased specifically for short-term rental investment showing ROI of 8-12% annually. Success factors include proximity to water activities, professional photography showcasing bay views, responsive guest communication, and strategic pricing during peak crabbing season and summer boating months when demand from Baltimore and Washington DC visitors peaks.

Airbnb investments in Kent Island, Maryland typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to the Chesapeake Bay Bridge and seasonal tourism demand from Baltimore and Washington D.C. metro areas. Properties within walking distance of waterfront attractions or the Chesapeake Bay Beach Club command premium nightly rates of $150-280 during peak summer months (May-September), while off-season rates drop to $80-150. Initial investment recovery typically occurs within 6-8 years for properties purchased at median prices of $400,000-600,000, with gross rental yields averaging 10-15% annually. The market benefits from consistent demand from business travelers visiting nearby Annapolis and weekend tourists, though investors should expect 3-6 months to reach consistent profitability after initial setup and marketing efforts, with properties averaging 60-75% occupancy rates throughout the year.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in the Kent Island, Maryland market. Local real estate agents specializing in Airbnb investment properties in the area include Coldwell Banker Residential Brokerage, Long & Foster Real Estate, and RE/MAX Advantage Realty, with agents like those at Chesapeake Bay Properties focusing on waterfront investment opportunities around 2020-2023. National services include Mashvisor (launched around 2016), AirDNA for market analysis, Awning for turnkey Airbnb investments, RedAwning for property management, and Vacasa for full-service management since 2009. Local property management companies serving Kent Island investors include Chesapeake Vacation Rentals and Bay Bridge Vacation Rentals, while national platforms like HostGPO and Hostfully provide operational support. Investment-focused real estate companies such as Roofstock and Arrived Homes have expanded into short-term rental markets around 2021-2022, and local mortgage brokers like Bay Area Lending and Chesapeake Mortgage Group specialize in investment property financing for the Eastern Shore market.