Is Stonington, Maine Good for Airbnb Investment?

To start an Airbnb in Stonington, Maine, begin by researching local regulations through the Stonington Town Office, as the town requires short-term rental operators to obtain a business license and comply with fire safety codes, with properties needing annual inspections and liability insurance of at least $1 million. Contact the Stonington Code Enforcement Officer to understand zoning restrictions, as some residential areas may have limitations on short-term rentals, and obtain necessary permits including a plumbing permit if modifications are needed and electrical inspections for safety compliance. Find a suitable property by working with local real estate agents familiar with Stonington's market, focusing on areas near the harbor or with ocean views that attract tourists, with typical purchase prices ranging from $300,000-$800,000 depending on location and condition. Furnish the property with coastal Maine décor, essential amenities like high-speed internet, full kitchen appliances, quality linens, and outdoor furniture to take advantage of Maine's natural beauty, budgeting approximately $15,000-$30,000 for complete furnishing. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting ocean views and proximity to Stonington's working waterfront, setting competitive rates of $150-$400 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company like Vacasa or RedAwning if you're not local, while maintaining compliance with Maine's lodging tax requirements and providing guests with information about local attractions like the Stonington Opera House and Isle au Haut ferry access.

To identify profitable short-term rental properties in Stonington, Maine, focus on waterfront or water-view locations within walking distance of the historic downtown harbor area, as this coastal village attracts visitors seeking authentic Maine fishing village experiences. Target 2-4 bedroom properties built before 1950 with original character features like hardwood floors, fireplaces, and period details, while ensuring modern amenities like updated kitchens, reliable WiFi, and adequate parking. Analyze pricing by researching comparable Airbnb and VRBO listings in Stonington and nearby Deer Isle, aiming for properties that can command $200-400 per night during peak summer months (June-September) with 60-70% occupancy rates. Study competition by monitoring existing STR listings within a 2-mile radius, identifying gaps in amenities or property types, and noting seasonal pricing patterns of successful hosts. Utilize tools like AirDNA for market analysis, Mashvisor for investment calculations, and local resources including the Stonington Chamber of Commerce for tourism data, Island Ad-Vantages newspaper for local market insights, and networking with local real estate agents familiar with the Blue Hill Peninsula vacation rental market to identify off-market opportunities and understand zoning regulations specific to Hancock County.

To obtain an Airbnb/STR permit in Stonington, Maine, you must first contact the Stonington Town Office at 207-367-2351 or visit them at 39 Main Street to obtain a Short-Term Rental Registration application, as the town implemented STR regulations around 2021-2022. Required documents typically include a completed application form, proof of property ownership or lease agreement, floor plan showing maximum occupancy, septic system compliance certificate, fire safety plan, parking plan showing adequate off-street parking, and contact information for a local property manager if you're not a resident. You'll need to pay an estimated registration fee of $150-300 annually, plus potential inspection fees of $75-150. The application process usually takes 30-60 days for review and approval, during which time the town may conduct a site inspection to verify compliance with health, safety, and zoning requirements. Stonington-specific requirements include maintaining a maximum occupancy based on septic capacity and bedroom count, providing adequate parking (typically 2 spaces minimum), ensuring the property meets all building and fire codes, having a local contact person available 24/7 for emergencies, and adhering to quiet hours and neighborhood compatibility standards. You must also register with the Maine Revenue Service for lodging tax collection and may need additional permits from the state Department of Health and Human Services if serving food, with renewal required annually along with any applicable state and local tax obligations.

Short-term rentals (STRs) are legal in Stonington, Maine, but operate under the town's general zoning and land use regulations rather than specific STR ordinances as of 2023. The town allows vacation rentals in residential areas, though they must comply with standard residential use requirements including parking, septic capacity, and occupancy limits. Properties must meet state fire safety codes and obtain necessary permits for commercial use if operating frequently. Stonington has not implemented the strict registration requirements or caps seen in larger Maine coastal communities like Bar Harbor or Portland, though the town reserves the right to address nuisance complaints through existing ordinances. Recent discussions at town meetings have focused on potential future regulations as STR activity has increased, particularly in waterfront areas, but no significant legal changes have been enacted. Property owners should verify current zoning compliance and may need state licensing depending on the frequency and scale of their rental operations.

The most promising Airbnb investment areas in Stonington, Maine include the historic village center near the working waterfront, where guests can experience authentic lobster fishing culture and stay within walking distance of restaurants like Aragosta and the Stonington Opera House, attracting cultural tourists year-round. The Oceanville Road corridor offers excellent potential due to its proximity to both the village and scenic coastal access points, appealing to families and outdoor enthusiasts visiting Acadia National Park's Schoodic Peninsula just 30 minutes away. Properties near the Stonington-Deer Isle causeway area capture traffic from visitors heading to or from Isle au Haut and provide convenient access to local amenities while maintaining that coveted "Down East" atmosphere. The Green Head/Burnt Cove vicinity presents opportunities for waterfront or water-view properties that command premium rates from summer visitors, wedding parties, and fall foliage tourists, particularly given the area's reputation for spectacular sunsets and proximity to local art galleries and studios that draw creative travelers seeking inspiration in this quintessential Maine fishing village.

In Stonington, Maine, Airbnb hosts are subject to Maine's statewide lodging tax of 9% on gross rental receipts, which applies to all short-term rentals under 28 days and is collected by the Maine Revenue Services. Hosts must register for a sales tax certificate, collect the tax from guests at the time of booking or check-in, and remit payments quarterly using Form ST-3 by the last day of the month following each quarter. Additionally, Stonington may impose a local occupancy tax of approximately 3-5% depending on municipal ordinances, which would be collected separately and remitted to the town treasurer's office. The state lodging tax has no exemptions for short-term rentals, though stays over 28 consecutive days by the same guest are exempt, and hosts earning less than $3,000 annually in rental income may qualify for simplified reporting procedures. Collection typically occurs through Airbnb's automated tax collection service for the state portion, while local taxes may require manual collection and direct remittance to municipal authorities, with penalties of 1.5% per month applied to late payments.

The total cost to start an Airbnb in Stonington, Maine is approximately $485,000-$565,000. Property purchase costs around $400,000-$475,000 based on median coastal Maine home prices in the area. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and coastal decor. Initial setup costs total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees range $500-$1,500 including business registration, short-term rental permits, and potential town licensing requirements. Insurance adds $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities average $200-$300 monthly totaling $1,200-$1,800 for six months covering electricity, heating, water, internet, and cable. First six months operating costs include $1,800-$2,400 for cleaning services, $600-$1,200 for supplies and maintenance, $300-$600 for Airbnb platform fees, and $500-$1,000 for marketing and guest amenities, totaling approximately $3,200-$5,200. Additional considerations include property taxes averaging $4,000-$6,000 annually and potential HOA fees if applicable.

Airbnb properties in Stonington, Maine typically generate annual revenues between $15,000-$35,000 for seasonal rentals, with peak summer months (June-September) accounting for 70-80% of bookings at average daily rates of $150-$250. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (15-25%), utilities ($2,000-$3,500 annually), maintenance ($1,500-$3,000), insurance ($800-$1,200), and local taxes. Net profit margins typically range from 25-35% for well-managed properties, with waterfront or harbor-view units commanding premium rates up to $300+ per night. Success factors include proximity to Stonington Harbor, lobster boat tours, and Isle au Haut ferry access, with properties featuring authentic Maine coastal charm, modern amenities, and professional photography performing best. A typical 2-bedroom cottage near the harbor might generate $28,000 in annual revenue with $12,000 in expenses, yielding approximately $16,000 net profit (57% margin), while inland properties without water views typically see 20-30% lower revenues and margins around 20-25% due to increased competition and lower demand.

Airbnb investments in Stonington, Maine typically generate annual ROI of 12-18% based on the town's strong summer tourism market and limited lodging inventory. Cash-on-cash returns range from 8-14% annually, with properties near the harbor and downtown area achieving the higher end of this range due to proximity to restaurants, galleries, and ferry services to nearby islands. Most investors reach profitability within 18-24 months, with peak earning months from June through September accounting for 65-70% of annual revenue. Properties with 2-3 bedrooms and water views command premium rates of $200-350 per night during peak season, while off-season rates drop to $80-150 per night. The market benefits from Stonington's reputation as a picturesque fishing village and gateway to Acadia National Park, with occupancy rates averaging 70-75% during summer months and 35-45% in shoulder seasons, resulting in annual occupancy rates of 55-65% for well-managed properties.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Stonington, Maine. Local real estate agents in the area who specialize in investment properties include Knowles Company Real Estate, which has been serving the Stonington market since 1985, and The Dunham Group at Keller Williams Realty, established in 2003. National services that assist with Airbnb property acquisition include Mashvisor (founded 2014), which provides rental property analytics, AirDNA (launched 2015) for market data and revenue projections, and Roofstock (established 2015) for turnkey rental property purchases. Additional local resources include Camden National Bank's investment property lending division, active since 1875, and Vacasa property management services, which expanded to Maine in 2017. BiggerPockets, the real estate investing platform founded in 2004, also connects investors with local professionals in the Stonington area, while HostGPO (established 2019) provides bulk purchasing services for Airbnb property furnishing and setup specifically for coastal Maine markets.