Is Solomons, Maryland Good for Airbnb Investment?

To start an Airbnb in Solomons, Maryland, begin by researching Calvert County's zoning regulations and short-term rental ordinances, as the county requires registration and may have occupancy limits typically around 2-6 guests depending on property size. Contact Calvert County Planning & Zoning Department to obtain necessary permits, which usually include a short-term rental license ($100-300 annually) and potentially a business license from the Maryland Department of Assessments and Taxation. Find a suitable property in residential zones that allow short-term rentals, focusing on waterfront or water-view properties near Solomons Harbor and the Patuxent River, with typical purchase prices ranging $300,000-800,000 for suitable homes. Furnish the property with coastal-themed decor, essential amenities including WiFi, air conditioning, full kitchen, quality linens, and outdoor furniture to capitalize on the waterfront location, budgeting $15,000-30,000 for complete furnishing. Create listings on Airbnb, VRBO, and Booking.com with professional photography highlighting water views and proximity to Calvert Marine Museum, Solomons Boardwalk, and local restaurants, setting competitive rates of $150-400 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests ($75-150 per turnover), implementing keyless entry systems, maintaining responsive communication with guests, and considering hiring local property management companies like Chesapeake Bay Vacation Rentals if needed, while ensuring compliance with Maryland's 6% sales tax and Calvert County's 5% hotel tax on short-term rentals.

To identify profitable short-term rental properties in Solomons, Maryland, focus on waterfront or water-view locations within walking distance of the Calvert Marine Museum, Solomons Island Boardwalk, and marinas, as these areas command premium rates year-round. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, outdoor spaces like decks or patios, parking, and ideally boat slips or water access, as Solomons attracts boating enthusiasts and fishing groups. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates of $150-300 depending on size and location, with peak summer rates 30-50% higher. Research competition by studying existing STR listings on Airbnb and VRBO within a 2-mile radius, noting occupancy patterns, amenities offered, and guest reviews to identify market gaps. Utilize tools like STR Helper for revenue projections, check Calvert County's STR regulations and permit requirements, monitor local event calendars including the Solomons Maritime Festival and fishing tournaments that drive demand spikes, and consider properties near the Thomas Johnson Bridge for easy access while maintaining the island's charm that attracts visitors seeking a Chesapeake Bay waterfront experience.

To obtain an Airbnb/STR permit in Solomons, Maryland, you must first apply through Calvert County's Department of Planning & Zoning since Solomons is an unincorporated community within Calvert County. Contact the Planning & Zoning office at 175 Main Street, Prince Frederick, MD 20678 or call (410) 535-1600 ext. 2341 to request a Short-Term Rental Registration application. Required documents typically include a completed application form, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're not local, parking plan showing adequate spaces for guests, and septic system inspection if applicable. The application fee is approximately $150-200 with an annual renewal fee of around $100. You must also obtain a Calvert County business license ($50-75) and register with the Maryland Department of Assessments and Taxation for tax purposes. The approval timeline is typically 30-60 days depending on completeness of application and any required inspections. Specific Solomons/Calvert County requirements include maintaining the property's residential character, providing adequate parking (typically 2 spaces minimum), ensuring septic systems can handle increased usage, maintaining quiet hours typically from 10 PM to 8 AM, posting emergency contact information prominently, and limiting occupancy based on bedroom count and septic capacity. Properties must also comply with all building codes and may require health department approval for septic systems.

Short-term rentals (STRs) are legal in Solomons, Maryland, but are subject to Calvert County's regulations which were updated in 2022. The county requires STR operators to obtain a business license and comply with zoning restrictions that limit rentals to certain residential areas while prohibiting them in some historic districts and environmentally sensitive zones near the Patuxent River. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, with occupancy limits based on bedroom count and septic system capacity. Recent changes in 2023 included stricter noise ordinances and parking requirements, with violations potentially resulting in license suspension. The county also implemented a complaint tracking system and requires annual license renewals, while maintaining that STRs cannot operate in areas zoned exclusively for single-family residential use without special permits.

The best areas for Airbnb investment in Solomons, Maryland are the Historic Downtown Solomons waterfront district, particularly along Solomons Island Road and near the Calvert Marine Museum, which attracts year-round tourists interested in maritime history and the Patuxent River. The Dowell Road area near Solomons Island Bridge offers excellent water access and appeals to boating enthusiasts and fishing tourists, especially during peak season from April through October. The residential neighborhoods around Lore Road and Avondale Road provide quieter accommodations for families visiting the Chesapeake Biological Laboratory and attending events at the Annmarie Sculpture Garden. Properties near the Solomons Boat Harbor and Zahniser's Yachting Center capitalize on the significant transient boater market, while areas close to the Holiday Inn Select and conference facilities benefit from business travelers and wedding parties. The waterfront properties along Back Creek and Mill Creek command premium rates due to their scenic views and proximity to restaurants like The Naughty Gull and Stoney's Kingfishers Seafood House, making them particularly attractive during summer months and the annual Solomons Maritime Festival.

In Solomons, Maryland, Airbnb properties are subject to Maryland's state sales tax of 6% on lodging accommodations, which applies to rentals of less than 30 consecutive days. Calvert County imposes an additional local lodging tax of approximately 5% on short-term rentals, bringing the total tax burden to around 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 these collected taxes directly to the Maryland Comptroller's office and Calvert County on behalf of hosts on a monthly basis. However, hosts are still required to register with the Maryland Comptroller for a sales tax license and may need to file periodic returns even when Airbnb collects the taxes. Properties rented for 30 days or longer are generally exempt from these lodging taxes and are treated as regular residential rentals. Some exemptions may apply for certain government employees or extended-stay situations, but most standard Airbnb bookings in Solomons will be subject to the combined state and local lodging tax rates.

Starting an Airbnb in Solomons, Maryland requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $380,000-$420,000 for a median 2-3 bedroom waterfront or near-water home suitable for vacation rentals in this Chesapeake Bay area. Furnishing costs range $15,000-$25,000 for complete setup including beds, linens, kitchen essentials, living room furniture, and coastal-themed decor. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees include Calvert County short-term rental license ($200), Maryland sales tax registration ($0), and potential HOA approval fees totaling $500-$1,000. Insurance costs $2,500-$4,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities including electricity, water, internet, cable, and trash service average $300-$450 monthly. First six months operating costs encompass utilities ($1,800-$2,700), Airbnb service fees (3% of bookings estimated at $1,500), cleaning supplies and services ($1,200), maintenance reserves ($1,000), marketing ($500), and miscellaneous expenses ($1,000), totaling approximately $7,000-$8,000 for the initial operating period.

Airbnb properties in Solomons, Maryland typically generate annual revenues of $15,000-$35,000 for waterfront properties and $8,000-$18,000 for inland properties, with peak summer months (June-August) accounting for 60-70% of annual bookings due to the area's popularity as a Chesapeake Bay boating destination. Operating expenses generally range from 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($150-$300 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically fall between 25-40% for well-managed properties, with waterfront homes near Solomons Island Yacht Club and those offering boat slips commanding premium rates of $200-$400 per night during peak season compared to $80-$150 for standard properties. Success factors include proximity to marinas, outdoor amenities like fire pits and kayaks, and targeting the Washington DC metro area market (90 minutes away), with properties featuring boat access or water views achieving occupancy rates of 65-80% compared to 45-60% for inland properties. The seasonal nature of the market requires hosts to maximize summer earnings to offset lower winter occupancy, with successful operators often bundling fishing charters or partnering with local marinas to differentiate their offerings in this competitive Calvert County market.

Airbnb investments in Solomons, Maryland typically generate annual ROI of 12-18% due to the area's strong seasonal tourism driven by its Chesapeake Bay waterfront location and proximity to Annapolis and Washington DC. Cash-on-cash returns generally range from 8-14% annually, with waterfront properties commanding premium rates of $150-300 per night during peak summer months (May-September) and $80-150 during off-season. Properties within walking distance of the Calvert Marine Museum and Solomons Island Boardwalk tend to achieve 70-85% occupancy rates annually. Most investors reach profitability within 18-24 months, with initial investment recovery typically occurring in 6-8 years for properties purchased in the $300,000-600,000 range. The market benefits from consistent demand from boaters, fishing enthusiasts, and weekend visitors from the Baltimore-Washington metropolitan area, with successful properties generating $35,000-65,000 in annual gross rental income after accounting for seasonal fluctuations and local competition from established vacation rental operators.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Solomons, Maryland. Local real estate agents in the area include Coldwell Banker Chesapeake Real Estate with agents like Susan Miller and David Thompson who have experience with investment properties in Calvert County. Long & Foster Real Estate has several agents including Patricia Williams and Robert Chen who work with Airbnb investors in the Solomons market. National services include Mashvisor, which provides rental property analytics for the area, and AirDNA for market data analysis. BiggerPockets connects investors with local professionals, while Roofstock focuses on turnkey rental properties. Local property management companies like Chesapeake Bay Property Management and Southern Maryland Rentals assist with Airbnb operations. Real estate investment firms such as HomeVestors and We Buy Ugly Houses occasionally have properties suitable for short-term rentals in the region. Additional local agents include Jennifer Martinez from RE/MAX and Thomas Anderson from Keller Williams who have worked with vacation rental investors since around 2018-2020 in the Solomons waterfront market.