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Find Your Airbnb InvestmentInvesting in Airbnb properties on Tilghman Island, Maryland, presents a unique opportunity, largely due to its appeal as a serene waterfront getaway. Current market conditions reflect a strong demand for vacation rentals, especially during peak seasons for fishing, boating, and scenic escapes. Tourism trends are consistently favorable, as visitors seek out the island's tranquil atmosphere, Chesapeake Bay access, and charming small-town feel. Property values on Tilghman Island, while potentially higher for waterfront or water-view properties, have shown steady appreciation driven by its desirability as a second home and tourist destination. The investment potential is promising for those who can attract consistent bookings, leveraging the island's natural beauty and recreational activities to ensure a healthy return on investment.
Based on available vacation rental data for Tilghman Island, Maryland, Airbnb hosts can expect average monthly earnings ranging from $800 to $2,500 depending on property type and season, with waterfront properties commanding the highest rates at $150-300 per night while inland properties typically earn $80-150 per night. Seasonal variations are significant, with peak summer months generating 60-80% higher revenues than winter months due to the area's appeal for crabbing, fishing, and Chesapeake Bay activities, while shoulder seasons in spring and fall maintain moderate occupancy rates around 45-65%. Key factors affecting earnings include proximity to the water, property amenities like boat slips or crab picking facilities, accommodation capacity, and local events such as the annual Tilghman Island Day festival which can boost bookings substantially. The island's limited accommodation options and growing popularity as a authentic Chesapeake Bay destination help maintain relatively strong occupancy rates of 50-75% during peak season, though hosts must account for the area's rural nature and seasonal tourism patterns when projecting annual revenues, which typically range from $12,000 to $25,000 for well-positioned properties.
Airbnb investments on Tilghman Island, Maryland typically generate ROI between 8-12% annually, with higher-end waterfront properties achieving up to 15% during peak crabbing and tourism seasons from May through October. The average payback period ranges from 8-12 years depending on initial investment and property type, with most investors seeing positive cash flow within 18-24 months due to premium nightly rates of $150-300 for waterfront cottages and $80-150 for inland properties. Compared to long-term rentals which yield approximately 6-8% ROI on the island, short-term rentals outperform by 2-4 percentage points, though they require more active management and face seasonal occupancy fluctuations that drop to 20-30% during winter months. Properties within walking distance of the harbor and those offering crab fishing experiences command the highest premiums, while the limited housing stock and zoning restrictions help maintain strong demand despite the island's small size and rural location.
Tilghman Island, Maryland experiences average Airbnb occupancy rates of approximately 45-55% annually, with significant seasonal variation typical of Chesapeake Bay waterfront destinations. Peak season runs from May through September, with July and August seeing occupancy rates climb to 75-85%, driven by crabbing season tourism, boating activities, and summer vacations. Spring months (April-May) and early fall (September-October) maintain moderate occupancy around 60-65% as visitors enjoy milder weather and fewer crowds. Winter months drop dramatically to 20-30% occupancy due to harsh weather conditions and limited seasonal business operations. These rates generally align with Maryland's coastal average of 50-60% annually but fall slightly below the national Airbnb average of 60-65%, primarily due to Tilghman Island's remote location, limited year-round attractions, and heavy dependence on seasonal maritime tourism rather than business travel or urban amenities that sustain higher occupancy rates in other markets.
Tilghman Island offers several prime neighborhoods for Airbnb investment, with the Waterfront District being the most lucrative due to its direct harbor access, proximity to charter fishing boats, and commanding premium rates of $200-350 per night for water views. The Historic Village Center provides excellent walkability to restaurants like the Bay Hundred Restaurant and local shops, attracting visitors seeking authentic Chesapeake Bay culture with rates around $150-250 nightly. The Knapps Narrows area near the drawbridge offers strategic positioning for boaters and fishing enthusiasts, with easy marina access driving occupancy rates above 75% during peak season. The Eastern Shore residential neighborhoods provide more affordable investment entry points while still capturing the island's charm, typically earning $120-200 per night with strong appeal to families and larger groups. The Chesapeake House vicinity benefits from proximity to this iconic inn and restaurant, drawing food tourists and wedding parties willing to pay premium rates. The Phillips Wharf area capitalizes on the working waterman culture and crab house dining experiences, appealing to authentic Chesapeake Bay seekers. Finally, the secluded Northern Peninsula properties offer privacy and exclusivity for luxury travelers, commanding the highest rates of $300-500 per night despite lower occupancy, making them ideal for investors targeting high-end market segments.
Tilghman Island, Maryland operates under Talbot County's short-term rental regulations, which require property owners to obtain a special use permit and business license before operating vacation rentals. Properties must comply with zoning restrictions that typically limit rentals to residential and commercial zones, with occupancy limits generally set at two persons per bedroom plus two additional guests, not exceeding local fire safety codes. The county does not mandate owner-occupancy requirements for short-term rentals, allowing investment properties to operate as vacation rentals. The registration process involves submitting applications to the Talbot County Planning and Zoning Department, including site plans, parking arrangements, and septic system capacity verification, along with annual renewal requirements and associated fees typically ranging from $200-500. Properties must maintain adequate parking spaces, proper septic systems for the occupancy load, and comply with noise ordinances and trash collection schedules. Recent regulatory adjustments have focused on strengthening enforcement mechanisms and clarifying parking requirements, while maintaining relatively permissive policies compared to other Maryland coastal communities, though specific permit conditions may include restrictions on events, quiet hours between 10 PM and 8 AM, and requirements for local contact persons available 24/7 for addressing complaints.
Short-term rentals in Tilghman Island, Maryland are subject to several fees and taxes including Maryland's 6% state sales tax and 6% state lodging tax, plus Talbot County's 5% local lodging tax for a combined lodging tax rate of approximately 17%. Property owners must obtain a short-term rental permit from Talbot County at an estimated cost of $150-300 annually, along with a business license fee of approximately $50-100. Additional requirements may include a one-time registration fee of around $75-150 and potential inspection fees of $100-200. Properties may also be subject to standard property taxes and any applicable homeowners association fees, while some locations might require additional tourism or occupancy taxes ranging from 2-4% depending on specific municipal regulations within the Tilghman Island area.
Investing in Airbnb properties on Tilghman Island, Maryland, presents a unique opportunity, largely due to its appeal as a serene waterfront getaway. Current market conditions reflect a strong demand for vacation rentals, especially during peak seasons for fishing, boating, and scenic escapes. Tourism trends are consistently favorable, as visitors seek out the island's tranquil atmosphere, Chesapeake Bay access, and charming small-town feel. Property values on Tilghman Island, while potentially higher for waterfront or water-view properties, have shown steady appreciation driven by its desirability as a second home and tourist destination. The investment potential is promising for those who can attract consistent bookings, leveraging the island's natural beauty and recreational activities to ensure a healthy return on investment.
Based on available vacation rental data for Tilghman Island, Maryland, Airbnb hosts can expect average monthly earnings ranging from $800 to $2,500 depending on property type and season, with waterfront properties commanding the highest rates at $150-300 per night while inland properties typically earn $80-150 per night. Seasonal variations are significant, with peak summer months generating 60-80% higher revenues than winter months due to the area's appeal for crabbing, fishing, and Chesapeake Bay activities, while shoulder seasons in spring and fall maintain moderate occupancy rates around 45-65%. Key factors affecting earnings include proximity to the water, property amenities like boat slips or crab picking facilities, accommodation capacity, and local events such as the annual Tilghman Island Day festival which can boost bookings substantially. The island's limited accommodation options and growing popularity as a authentic Chesapeake Bay destination help maintain relatively strong occupancy rates of 50-75% during peak season, though hosts must account for the area's rural nature and seasonal tourism patterns when projecting annual revenues, which typically range from $12,000 to $25,000 for well-positioned properties.
Airbnb investments on Tilghman Island, Maryland typically generate ROI between 8-12% annually, with higher-end waterfront properties achieving up to 15% during peak crabbing and tourism seasons from May through October. The average payback period ranges from 8-12 years depending on initial investment and property type, with most investors seeing positive cash flow within 18-24 months due to premium nightly rates of $150-300 for waterfront cottages and $80-150 for inland properties. Compared to long-term rentals which yield approximately 6-8% ROI on the island, short-term rentals outperform by 2-4 percentage points, though they require more active management and face seasonal occupancy fluctuations that drop to 20-30% during winter months. Properties within walking distance of the harbor and those offering crab fishing experiences command the highest premiums, while the limited housing stock and zoning restrictions help maintain strong demand despite the island's small size and rural location.
Tilghman Island, Maryland experiences average Airbnb occupancy rates of approximately 45-55% annually, with significant seasonal variation typical of Chesapeake Bay waterfront destinations. Peak season runs from May through September, with July and August seeing occupancy rates climb to 75-85%, driven by crabbing season tourism, boating activities, and summer vacations. Spring months (April-May) and early fall (September-October) maintain moderate occupancy around 60-65% as visitors enjoy milder weather and fewer crowds. Winter months drop dramatically to 20-30% occupancy due to harsh weather conditions and limited seasonal business operations. These rates generally align with Maryland's coastal average of 50-60% annually but fall slightly below the national Airbnb average of 60-65%, primarily due to Tilghman Island's remote location, limited year-round attractions, and heavy dependence on seasonal maritime tourism rather than business travel or urban amenities that sustain higher occupancy rates in other markets.
Tilghman Island offers several prime neighborhoods for Airbnb investment, with the Waterfront District being the most lucrative due to its direct harbor access, proximity to charter fishing boats, and commanding premium rates of $200-350 per night for water views. The Historic Village Center provides excellent walkability to restaurants like the Bay Hundred Restaurant and local shops, attracting visitors seeking authentic Chesapeake Bay culture with rates around $150-250 nightly. The Knapps Narrows area near the drawbridge offers strategic positioning for boaters and fishing enthusiasts, with easy marina access driving occupancy rates above 75% during peak season. The Eastern Shore residential neighborhoods provide more affordable investment entry points while still capturing the island's charm, typically earning $120-200 per night with strong appeal to families and larger groups. The Chesapeake House vicinity benefits from proximity to this iconic inn and restaurant, drawing food tourists and wedding parties willing to pay premium rates. The Phillips Wharf area capitalizes on the working waterman culture and crab house dining experiences, appealing to authentic Chesapeake Bay seekers. Finally, the secluded Northern Peninsula properties offer privacy and exclusivity for luxury travelers, commanding the highest rates of $300-500 per night despite lower occupancy, making them ideal for investors targeting high-end market segments.
Tilghman Island, Maryland operates under Talbot County's short-term rental regulations, which require property owners to obtain a special use permit and business license before operating vacation rentals. Properties must comply with zoning restrictions that typically limit rentals to residential and commercial zones, with occupancy limits generally set at two persons per bedroom plus two additional guests, not exceeding local fire safety codes. The county does not mandate owner-occupancy requirements for short-term rentals, allowing investment properties to operate as vacation rentals. The registration process involves submitting applications to the Talbot County Planning and Zoning Department, including site plans, parking arrangements, and septic system capacity verification, along with annual renewal requirements and associated fees typically ranging from $200-500. Properties must maintain adequate parking spaces, proper septic systems for the occupancy load, and comply with noise ordinances and trash collection schedules. Recent regulatory adjustments have focused on strengthening enforcement mechanisms and clarifying parking requirements, while maintaining relatively permissive policies compared to other Maryland coastal communities, though specific permit conditions may include restrictions on events, quiet hours between 10 PM and 8 AM, and requirements for local contact persons available 24/7 for addressing complaints.
Short-term rentals in Tilghman Island, Maryland are subject to several fees and taxes including Maryland's 6% state sales tax and 6% state lodging tax, plus Talbot County's 5% local lodging tax for a combined lodging tax rate of approximately 17%. Property owners must obtain a short-term rental permit from Talbot County at an estimated cost of $150-300 annually, along with a business license fee of approximately $50-100. Additional requirements may include a one-time registration fee of around $75-150 and potential inspection fees of $100-200. Properties may also be subject to standard property taxes and any applicable homeowners association fees, while some locations might require additional tourism or occupancy taxes ranging from 2-4% depending on specific municipal regulations within the Tilghman Island area.
* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.
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To start an Airbnb on Tilghman Island, Maryland, begin by researching Talbot County's short-term rental regulations, which typically require a business license and may have zoning restrictions for residential properties. Contact Talbot County Planning and Zoning Department to obtain necessary permits, including a rental license and potentially a special exception permit depending on your property's zoning classification. Find a suitable property on Tilghman Island, considering waterfront locations are highly desirable given the island's maritime character and proximity to the Chesapeake Bay. Furnish the property with coastal-themed decor, essential amenities like Wi-Fi, air conditioning, and kitchen supplies, emphasizing the island's fishing and boating culture with nautical touches. Create your Airbnb listing highlighting unique features such as water views, proximity to Harrison's Chesapeake House restaurant, crab fishing opportunities, and the island's peaceful atmosphere. Include high-quality photos showcasing both interior spaces and outdoor areas with water access if available. For management, establish check-in procedures, cleaning protocols between guests, and maintain communication channels for guest inquiries. Consider the seasonal nature of Chesapeake Bay tourism, with peak demand during summer months and crab season, and price accordingly while ensuring compliance with Talbot County's occupancy taxes and any required safety inspections for short-term rentals.
To identify profitable short-term rental properties in Tilghman Island, Maryland, focus on waterfront or water-view locations within walking distance of marinas, restaurants, and the Chesapeake Bay Heritage and Visitor Center, as proximity to crabbing activities and scenic bay views drives demand. Target 2-4 bedroom properties built after 1980 with updated kitchens, multiple bathrooms, outdoor spaces like decks or patios, and parking for boats or trailers, as visitors often bring watercraft for fishing and crabbing excursions. Analyze pricing by researching comparable Airbnb and VRBO listings in Tilghman Island and nearby St. Michaels, Easton, and Oxford, noting that peak season rates (May-October) can command $200-400 per night for waterfront properties while off-season rates drop to $100-200, with weekend premiums of 20-30% year-round. Competition research should focus on the limited inventory of existing STRs on the island, studying their amenities, booking calendars, and guest reviews to identify gaps in service or property features. Utilize AirDNA for market data, STR Helper for performance analysis, and local resources like the Talbot County tourism board and Tilghman Island Marina for seasonal demand patterns, while connecting with local property managers familiar with the island's unique regulations and seasonal maintenance challenges related to the marine environment.
To obtain an Airbnb/STR permit in Tilghman Island, Maryland, you must apply through Talbot County's Planning and Zoning Department since Tilghman Island falls under county jurisdiction. Submit your application to the Talbot County Planning Office at 215 Bay Street, Easton, MD 21601, or online through their permitting portal. Required documents include a completed short-term rental application, property deed or lease agreement, site plan showing parking and septic system, proof of liability insurance ($1 million minimum), fire safety inspection certificate, and septic system inspection report. The application fee is approximately $250 with an annual renewal fee of $150. You'll also need a Talbot County business license ($50) and must register with the Maryland Comptroller for tax collection purposes. The property must meet specific requirements including adequate parking (minimum 2 spaces), functioning septic system, smoke and carbon monoxide detectors, fire extinguisher, and compliance with occupancy limits based on septic capacity. The approval process typically takes 4-6 weeks after submitting a complete application. Once approved, you must display your permit number in all rental listings and collect the 6% Maryland sales tax plus any applicable county taxes. Annual inspections may be required to maintain your permit status.
Short-term rentals (STRs) are legal in Tilghman Island, Maryland, but are subject to Talbot County's regulations since the island falls within the county's jurisdiction. As of 2023, Talbot County requires STR operators to obtain a business license and comply with zoning restrictions, with STRs generally permitted in residential areas but subject to occupancy limits, parking requirements, and noise ordinances. The county implemented stricter oversight around 2022, requiring registration and periodic inspections, while prohibiting STRs in certain historic districts and areas with HOA restrictions. Tilghman Island, being a small waterman's community, has seen some local resistance to STRs due to concerns about housing availability for year-round residents, but no island-specific prohibitions exist beyond county-wide rules. Property owners must also comply with state tax requirements and may face additional restrictions if their property is in the Chesapeake Bay Critical Area, which covers much of the island's waterfront areas.
The best areas for Airbnb investment on Tilghman Island, Maryland are the waterfront properties along Dogwood Harbor and Knapps Narrows, which offer prime access to the Chesapeake Bay and attract tourists seeking authentic waterman experiences and crab fishing excursions. The historic village center near Phillips Wharf Environmental Center draws eco-tourists and families interested in educational programs about the bay's ecosystem, while properties near the Tilghman Island Marina capitalize on boating enthusiasts and fishing charters that operate year-round. The eastern shore facing the bay provides stunning sunset views and appeals to romantic getaway seekers and photographers, particularly during peak crabbing season from April through November. Areas near the Tilghman Watermen's Museum attract cultural tourists interested in the island's maritime heritage, and properties within walking distance of local seafood restaurants like the Chesapeake Wood Duck Inn benefit from culinary tourism. The northern tip of the island offers more secluded accommodations for guests seeking privacy and direct water access, while the central residential areas provide affordable investment opportunities that still offer the island's authentic charm and easy access to both recreational activities and the annual Tilghman Island Seafood Festival.
Airbnb properties on Tilghman Island, Maryland are subject to Maryland's 6% state sales tax and Talbot County's 5% local accommodations tax, totaling 11% in lodging taxes. The state sales tax applies to all short-term rental stays under 30 days, while the county accommodations tax specifically targets transient lodging facilities including vacation rentals. Airbnb typically collects and remits the state sales tax directly through their platform as of 2019, but hosts may need to register with the Maryland Comptroller's office and file monthly returns if they exceed $100,000 in annual gross receipts or 200 transactions. For the Talbot County accommodations tax, hosts must register with the county, collect the tax from guests, and remit payments monthly by the 20th of the following month along with required reporting forms. Properties rented for 30 days or longer are generally exempt from these transient occupancy taxes, and some jurisdictions may provide exemptions for stays by government employees or certain medical patients, though specific exemptions vary by locality and should be verified with county tax authorities.
The total cost to start an Airbnb on Tilghman Island, Maryland is approximately $485,000-$565,000. Property purchase costs range from $350,000-$450,000 based on median waterfront and island property prices in the Chesapeake Bay area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor suitable for vacation rentals. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and potential HOA approvals cost $500-$1,200. Insurance for short-term rental coverage runs $2,500-$4,000 annually. Utility setup and deposits for electricity, water, internet, cable, and trash service require $800-$1,500. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance ($1,500), property management software ($300), marketing ($600), and miscellaneous supplies ($1,200) total approximately $9,000. Additional considerations include potential septic system maintenance common in island properties ($1,000-$2,000) and higher insurance costs due to coastal location and flood risk.
Airbnb properties on Tilghman Island, Maryland typically generate annual revenues between $25,000-$45,000 for waterfront properties and $15,000-$28,000 for inland properties, with peak summer months (June-August) accounting for 60-70% of total bookings at average daily rates of $180-$280. Operating expenses generally run 40-55% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs averaging $3,000-$6,000 yearly. Net profit margins typically range from 25-35% for well-managed properties, with successful hosts like those operating renovated waterman's cottages near Dogwood Harbor reporting profit margins up to 40% by focusing on authentic Chesapeake Bay experiences, crab-themed decor, and partnerships with local charter boat operators. Success factors include waterfront or water-view locations, authentic maritime theming, kayak/fishing equipment provision, proximity to Phillips Seafood and local crabbing operations, professional photography highlighting sunsets over the Choptank River, and maintaining 4.8+ star ratings through consistent cleanliness and local experience recommendations, with properties meeting these criteria typically achieving 65-80% occupancy rates during the April-October season.
Airbnb investments in Tilghman Island, Maryland typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's appeal as a Chesapeake Bay waterfront destination attracting seasonal tourists and fishing enthusiasts. Properties within walking distance of marinas and crab houses like Harrison's Chesapeake House command premium nightly rates of $150-250 during peak summer months (May-September), while off-season rates drop to $80-120. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing break-even around month 20-26 after accounting for renovation costs, furnishing, and marketing expenses. The market benefits from proximity to Annapolis and Baltimore (90-120 minutes), with occupancy rates averaging 65-75% annually, though success heavily depends on waterfront access, property condition, and effective marketing to capture the island's niche tourism market focused on maritime activities and Eastern Shore charm.
STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Tilghman Island, Maryland. Local real estate agents serving the Tilghman Island area include Chesapeake Bay Realty, Coldwell Banker Chesapeake Real Estate Company, and Long & Foster Real Estate who have experience with waterfront and vacation rental properties in Talbot County. National services include AirDNA for market analysis, Mashvisor for investment property analytics, BiggerPockets for investor networking and deal finding, and Roofstock which occasionally features short-term rental opportunities. Regional companies like Vacasa and RedAwning provide property management services that can help investors understand the rental potential of properties in the area. Local property management companies such as Chesapeake Vacation Rentals and Eastern Shore Property Management specialize in Airbnb and vacation rental management on Maryland's Eastern Shore. Investment-focused real estate agents like those at RE/MAX and Berkshire Hathaway HomeServices in nearby Easton often work with investors looking for vacation rental properties in waterfront communities like Tilghman Island.
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