Is Ogunquit, Maine Good for Airbnb Investment?

To start an Airbnb in Ogunquit, Maine, begin by researching local regulations through the Ogunquit Town Office, as the town requires short-term rental registration and compliance with zoning ordinances that may restrict rentals in certain residential areas. Obtain necessary permits including a business license from the town clerk, a lodging license from the Maine Department of Health and Human Services if operating more than 3 rooms, and ensure compliance with fire safety codes and building inspections. Find a suitable property within Ogunquit's designated rental zones, considering proximity to Ogunquit Beach and Perkins Cove for maximum appeal, with properties typically ranging from $400,000-$1,200,000 depending on location and size. Furnish the space with coastal Maine décor, essential amenities like WiFi, air conditioning, and beach equipment, budgeting approximately $15,000-$30,000 for a complete setup. List your property on Airbnb, VRBO, and local rental sites like GoMaine.com, setting competitive rates of $150-$400 per night depending on season and property size, with peak summer rates being highest. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property year-round, and collecting Maine's 9% lodging tax plus Ogunquit's local tax, while considering hiring local property management companies like Vacasa or RedAwning if you're not local to the area.

To identify profitable short-term rental properties in Ogunquit, Maine, focus on locations within 0.5 miles of Ogunquit Beach, Main Beach, or Perkins Cove, as these areas command premium rates of $300-600 per night during peak summer season (June-September). Target 2-4 bedroom properties with ocean views, beach access, parking for 2+ cars, outdoor spaces, and classic Maine cottage charm, as these features can increase nightly rates by 20-40%. Analyze comparable properties using AirDNA and Mashvisor to identify the $400,000-800,000 price range that typically yields 15-25% annual returns, while avoiding oversaturated areas near Route 1 motels. Research competition by monitoring 50+ active listings on Airbnb and VRBO, noting that properties with professional photography and local amenities descriptions outperform by 30%. Utilize tools like Rabbu for Ogunquit-specific market data, connect with Ogunquit Chamber of Commerce for seasonal tourism patterns, and consult local property managers like Vacasa or RedAwning who report average occupancy rates of 70-85% for well-positioned properties, while ensuring compliance with Ogunquit's short-term rental registration requirements and the town's 10% lodging tax.

To obtain an Airbnb/STR permit in Ogunquit, Maine, you must first contact the Ogunquit Code Enforcement Office at Town Hall located at 23 School Street to begin the application process. Required documents typically include a completed short-term rental registration form, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $300,000), fire safety inspection certificate, and septic system inspection if applicable. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100. You must also obtain a business license from the Town Clerk's office for an additional $25-50 fee. The timeline for approval is generally 4-6 weeks from submission of complete application, depending on inspection scheduling and any required corrections. Specific Ogunquit requirements include maximum occupancy limits based on bedroom count (typically 2 people per bedroom plus 2 additional), mandatory posting of emergency contact information and house rules, compliance with parking restrictions (usually 1-2 spaces per unit), adherence to noise ordinances with quiet hours from 9 PM to 8 AM, and annual renewal of permits. Properties must also meet all building, fire, and health codes, and owners are required to maintain a local contact person available 24/7 for emergency situations.

Short-term rentals (STRs) are legal in Ogunquit, Maine, but operate under strict municipal regulations that have evolved significantly since 2019. The town requires STR operators to obtain a business license and comply with specific zoning restrictions, with STRs primarily permitted in certain residential and commercial zones while being prohibited in some neighborhood areas to preserve residential character. Current regulations include occupancy limits based on bedrooms and septic capacity, mandatory parking requirements (typically 2 spaces per unit), noise ordinances with quiet hours from 9 PM to 8 AM, and waste management protocols. Property owners must register annually, pay licensing fees, and maintain liability insurance, while also ensuring compliance with life safety codes including smoke and carbon monoxide detectors. Recent changes implemented between 2020-2023 have tightened enforcement mechanisms, increased penalties for violations, and established clearer complaint procedures for neighbors, reflecting the town's effort to balance tourism revenue with residential quality of life concerns. The town conducts regular inspections and has the authority to revoke licenses for repeated violations, making Ogunquit one of the more regulated STR markets in coastal Maine.

The most attractive Airbnb investment areas in Ogunquit, Maine include the Perkins Cove district, which offers prime waterfront location with scenic harbor views, proximity to the famous Marginal Way cliff walk, and high-end dining options that attract premium-paying tourists year-round. The Main Beach area presents excellent investment potential due to its direct beach access, walkability to downtown shops and restaurants, and consistent demand from families and couples seeking classic Maine beach vacations during the peak summer season from June through September. The Shore Road corridor is particularly valuable for Airbnb investments as it provides ocean views while being more affordable than beachfront properties, attracting visitors who want coastal proximity without premium beachfront pricing. The Village Center/Downtown area offers strong rental potential due to its walkability to local attractions, restaurants, and shops, appealing to visitors who prefer not to drive during their stay. Properties near the Ogunquit Playhouse benefit from theater-goers and cultural tourists who visit for the renowned summer theater season, creating demand beyond typical beach tourism and extending the profitable rental season from May through October.

In Ogunquit, Maine, Airbnb hosts are subject to Maine's 9% lodging tax on short-term rentals under 28 days, which applies to the total rental amount including cleaning fees. Additionally, hosts must collect the local Ogunquit lodging tax of 3%, bringing the total tax burden to 12% on short-term rental income. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for properties where Airbnb has agreements with tax authorities, though hosts remain ultimately responsible for ensuring proper remittance. For properties not covered by Airbnb's automatic collection, hosts must register with the Maine Revenue Services and remit state lodging taxes monthly if collecting more than $3,000 annually, while local taxes are remitted to the Town of Ogunquit quarterly. Exemptions include stays of 28 days or longer, rentals to permanent residents, and accommodations provided to employees, though documentation is required to substantiate exempt transactions.

To start an Airbnb in Ogunquit, Maine, expect total costs of approximately $850,000-$950,000. Property purchase represents the largest expense at $700,000-$800,000 for a median-priced home suitable for short-term rental in this coastal tourist destination. Furnishing costs will run $25,000-$35,000 for quality furniture, bedding, kitchen essentials, and coastal-themed decor appropriate for vacation rental guests. Initial setup including professional photography, listing creation, welcome materials, and basic supplies costs around $3,000-$5,000. Permits and fees total approximately $2,000-$3,500, covering business licenses, short-term rental permits, fire safety inspections, and any required municipal registrations. Insurance premiums for short-term rental coverage average $3,000-$4,000 annually, significantly higher than standard homeowner's policies. Utility setup and deposits for electricity, water, sewer, internet, and cable services cost roughly $1,500-$2,500. First six months of operating expenses including utilities ($3,600), cleaning services ($4,800), property management software ($600), maintenance reserves ($3,000), marketing ($1,200), and miscellaneous supplies ($1,800) total approximately $15,000, bringing the complete startup investment to nearly $900,000 for a turnkey Airbnb operation in Ogunquit's competitive vacation rental market.

Airbnb properties in Ogunquit, Maine demonstrate strong seasonal profitability with average nightly rates ranging from $150-400 during peak summer months (June-September) and dropping to $80-150 in off-season periods. A typical 2-3 bedroom property near Ogunquit Beach can generate $35,000-65,000 in annual gross revenue, with expenses including property management fees (15-25%), cleaning costs ($75-125 per turnover), utilities ($200-400 monthly), insurance ($2,000-4,000 annually), and maintenance averaging $3,000-6,000 yearly. Net profit margins typically range from 25-45% for well-managed properties, with beachfront or beach-adjacent rentals achieving the highest returns due to Ogunquit's popularity as a coastal destination. Success factors include proximity to Ogunquit Beach and Marginal Way walking path, professional photography, responsive guest communication, and strategic pricing during events like the Ogunquit Playhouse season and summer festivals. Properties within walking distance of the village center and beach consistently outperform those requiring car transportation, with some premium oceanview properties achieving occupancy rates of 80-90% during summer months while maintaining rates above $300 per night.

Airbnb investments in Ogunquit, Maine typically generate annual ROI of 12-18% due to the town's strong summer tourism season and proximity to Ogunquit Beach, with cash-on-cash returns ranging from 8-14% depending on property type and financing structure. Seasonal rental properties in Ogunquit can achieve occupancy rates of 65-80% during peak months (June-September) with average daily rates of $200-400 for well-appointed properties near the beach or downtown area. Most investors reach profitability within 18-24 months, with beachfront or ocean-view properties commanding premium rates and achieving the higher end of ROI ranges, while inland properties typically perform at the lower end but still benefit from Ogunquit's reputation as a premier Maine coastal destination. The market shows consistent year-over-year growth of 3-5% in property values, supported by limited inventory and strong demand from Boston and New York metropolitan area visitors seeking quintessential Maine coastal experiences.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for investors seeking profitable short-term rental opportunities in Ogunquit, Maine. Local real estate agents specializing in vacation rental investments include Coldwell Banker Yorke Realty (established 1978), RE/MAX Shoreline, and The Dunne Group at Keller Williams Realty, who have extensive knowledge of Ogunquit's seasonal rental market and zoning regulations. National services like Awning (founded 2017), RedAwning, and Vacasa provide comprehensive investment analysis, property management, and market data for coastal Maine properties. AirDNA offers detailed market analytics and revenue projections specifically for Ogunquit's short-term rental market, while companies like Mashvisor and BiggerPockets provide investment calculators and market analysis tools. Local property management companies such as Seacoast Property Management and York Beach Vacation Rentals offer turnkey solutions for investors, handling everything from guest services to maintenance. Investment-focused real estate firms like Benchmark Real Estate and Century 21 Atlantic Realty have agents who specialize in identifying properties with strong Airbnb potential in Ogunquit's prime locations near the beach and Marginal Way walking path.