Short‑term rentals (STRs) continue to evolve across the U.S., and Maine is no exception. As travelers seek coastal escapes, rugged natural beauty, and towns with character, certain Maine destinations stand out for their rental demand, pricing power, and investment potential. Below, we detail five of the top STR markets in Maine as of 2025—why they shine, what metrics support them, and what to watch out for.
How We Selected These Markets
To identify the top towns in Maine for STR investment, we focused on several key criteria:
Average Daily Rate (ADR) and occupancy — ability to command strong nightly rates and maintain booking levels
Gross revenue potential — revenue relative to property value and cost of ownership
Regulatory environment — permitting, zoning, licensing/rental registration, safety or other local rules that could impact STR operations
Tourism / guest appeal — access to coast, parks, historic towns, scenic views, four‑season recreation
Barriers to entry / property cost vs upside — how expensive properties are, how saturated the STR market is, and how much risk versus reward there is
1. Bar Harbor, ME — Best Coastal / National Park Adjacent Market
Why it stands out
Bar Harbor offers one of the strongest combinations of natural appeal, prestige, and demand stability in Maine. Located on Mount Desert Island, it’s a gateway to Acadia National Park, which draws visitors year‑round (especially in the shoulder seasons) as well as peak summer. Its coastal scenery, whale watching, hiking, lobster shacks, and New England charm all help support high ADRs.
Key Metrics
Bar Harbor is ranked #3 among Maine STR markets in 2025. ADR is around $397.82/night, with occupancy approximately 55.83%. Monthly revenue for many listings is ~$4,773.55.
We place towns adjacent to Bar Harbor (such as Ellsworth) as “gateway” markets that enjoy high occupancy and strong return because they are less expensive to own yet close to the main draw. For Ellsworth: ~62% occupancy and ~$263 ADR, leading to ~$45,930/year gross revenue in many cases.
Strengths & Opportunity
Strong ADRs and seasonal peaks: Visitors are willing to pay premium in summer and fall for views, access to trails, boating, etc.
Appeal in shoulder seasons: Spring and fall draw hikers, photographers, leaf peepers, and outdoor enthusiasts, smoothing out demand a bit.
Prestige location: Bar Harbor’s name and reputation helps with listings, guest confidence, marketing, and sometimes allows higher nightly pricing.
Tourist infrastructure: Presence of lodging, dining, adventure/tour operators, so guests have more to do; hosts can capture more ancillary value (guide services, tours).
Risks & Watch Points
High property costs and competition: Premium locations come with premium pricing; entry costs are high. You’ll need high upfront capital.
Seasonality dips: Winter is harsh; many guest nights are heavily back‑loaded in summer/fall. Off‑season occupancy and revenue can drop sharply.
Regulation & licensing: Bar Harbor already has STR registration requirements; proposed or active rules could tighten further. For example, new oversight, life safety inspections, possibility of random audits or stricter safety compliance.
Operation costs: Maintenance, insurance, utilities, snow removal, wear and tear from weather exposure (salt, storms) can be larger in coastal settings.
2. Portland, ME — Best Urban / Coastal Hybrid Market
Why it stands out
Portland combines the benefits of being Maine’s most dynamic city (food, arts, waterfront, ferry access, nightlife) with coastal charm. It attracts both weekenders and longer stays, for both people from within Maine and from out of state. This mix gives STRs broader demand profiles.
Key Metrics
Portland ranks #1 among Maine STR markets with about 871 active STR properties, ADR at ~$334.75/night, and occupancy around 50.56%.
On the regulatory front, Portland has imposed a cap on non‑owner‑occupied STR units (originally 300, increased to ~400), requires registration, annual licensing, and certain restrictions.
Strengths & Opportunity
Year‑round demand: Business travel, conferences, food tourism, arts, and events keep Portland active even outside prime seasons.
Amenity strength: Restaurants, breweries, coastal walks, ferry access, shops—guests expect features; listings with quality amenities tend to do better.
Market liquidity: More buyers/investors are active in Portland, meaning resale, property management services, and guest services are more accessible.
Premium pricing power: Being urban/coastal, you can sometimes charge more for listings with views, proximity to downtown, or unique features.
Risks & Watch Points
Regulation burden: Because of its popularity, Portland has tighter rules: licensing, caps, inspections, possibly parking or zoning restrictions. Non‑owner occupied units are limited.
High entry cost: Real estate in Portland is expensive; cost per square foot can be quite high, reducing yield unless you manage well.
Competition & saturation: Being a leading STR town means many listings—so differentiation (amenities, guest experience, listing presentation) is essential.
Urban guest expectations: Guests expect cleanliness, modern features, fast wifi, etc. Falling short can hurt ratings and future bookings.
3. York, ME — Best Premium Coastal Beach Market
Why it stands out
York is one of Maine’s classic beach towns, with coastline, historic districts, scenic harbors, beaches, and high seasonal appeal. It’s not quite as busy as Bar Harbor for national tourists, but people value York for its beaches, seaside ambiance, and proximity to other popular coastal towns.
Key Metrics
York is ranked #5 (in 2025) with ADR ~$493.43/night, monthly revenue ~$3,336.73, though occupancy is lower (≈ 37.67%) compared to towns with more balanced occupancy.
York, like several coastal Maine towns, is considering or implementing regulatory oversight of STRs. For example, there has been talk of ordinances to track and regulate STR units, especially due to their concentration in beach areas and impact on affordable housing & community character.
Strengths & Opportunity
High nightly rates: In beach towns, visitors often expect to pay more for location, views, proximity to sand, water activities.
Prestigious locale: York has brand appeal—guests drawn to classic New England beaches, historic inns, harbor views, quaint downtowns.
Strong seasonal demand: Summer is very busy; likely good demand during shoulder seasons for beach and coastal tourism.
Upside if you can imbalance occupancy: If you can drive bookings outside peak summer (e.g. fall, early spring), the high ADR helps offset lower occupancy months.
Risks & Watch Points
Low occupancy out of season: The high ADR helps, but many nights outside summer may be empty, or demand may drop significantly.
Higher regulatory risk: Beach towns are among those where locals often push for limits, tighter regulation, licensing, occupancy caps, parking restrictions, noise complaints. Public sentiment, local ordinances, referendum efforts are active in York.
Property and maintenance costs: Coastal exposure means higher wear, maybe higher insurance. Utilities and upkeep may be costlier.
High entry cost / premium property premiums: To get “beachfront” or “near‑beach” or “harbor view” you often pay a premium, which reduces yield unless booked at or near top rates.
4. Rangeley, ME — Best Dual‑Season Mountain & Lake Market
Why it stands out
Rangeley offers a very attractive mix of lake recreation and mountain scenery. Think boating, fishing, summer nature, plus winter sports. That gives it dual‑season appeal. If you're willing to take on off‑peak volatility, it offers good upside.
Key Metrics
Rangeley has ADR ~$418.10/night, but occupancy is lower, about 29.80% in many listings. Monthly revenue is ~$2,012.03.
We identify Rangeley among dual‑season markets: strong in summer lake activity, fall foliage, winter snow‑sports when weather allows.
Strengths & Opportunity
Dual‑season attractions: Lake in summer, snow in winter. For guests wanting nature and widgets (quiet, scenic views, outdoor activity) this is attractive.
Less saturation than beach towns—meaning perhaps more opportunity for unique or well‑positioned listings.
Premium nightly pricing: Because of the scenic value, you can often charge higher per night in peak season.
Potential for niche appeal: Rustic cabins, lake views, off‑grid or near nature listings often do well for guests wanting experience, not just place to sleep.
Risks & Watch Points
Very low off‑peak occupancy: Because occupancy is only ~30% for many listings annually, cash flow must be managed carefully.
Weather & access challenges in winter: Snow, ice, access roads may be tricky, increasing operational costs. Maintenance, heating, winterizing cost more.
Infrastructure limitations: Fewer services (cleaning, maintenance, utilities), less density of support businesses, may reduce margins.
Marketing challenge: Guests expect certain amenities even in remote areas; ensuring listing is attractive, accessible, and dependable is key.
5. Ellsworth, ME — Best Balanced / Gateway to Coastal Park Market
Why it stands out
Ellsworth is a “gateway” town to Bar Harbor and Acadia. Many travelers choose to stay in Ellsworth because it tends to be more affordable than staying in Bar Harbor, yet still close enough to drive in for day trips to the park, coast, and other attractions. That gives it a very strong balanced profile: good ADRs, solid occupancy, and somewhat lower barrier to entry than the highest‑priced coastal towns.
Key Metrics
Ellsworth as the best overall Airbnb market in Maine due to its balance of ~62% occupancy and ~$263 ADR, leading to ~$45,930 in gross annual revenue for many STR listings.
Home values are often somewhat lower than fully coastal, “postcard” towns, which makes property acquisition more feasible for more investors.
Strengths & Opportunity
Strong gateway appeal: Guests or tourists want proximity to coastal beauty, national park access, but may choose Ellsworth for lodging cost and convenience.
Balanced seasonality: While summer is strong, Ellsworth seems to hold more demand in shoulder seasons thanks to its location.
Lower entry cost vs Bar Harbor or beachfront towns: Still premium, but lower than some luxury coastal or national park‑adjacent areas.
Growing investor confidence: Increase in active rentals year over year in Ellsworth suggests people are seeing returns.
Risks & Watch Points
Regulatory movement: As demand rises, expect more oversight. Towns may introduce stricter registration, life safety or building code inspections, occupancy limits, or local tax changes.
Competition spillover: Being near Bar Harbor, some guests may cross over; premium properties in Bar Harbor may still have pull. So you need to compete well on amenities, guest experience, pricing, and listing quality.
Off‑peak demand still weaker than summer — unless you optimize for shoulder seasons or have marketing strategies to boost fall/spring stays.
Operational strain: As inventory and STR activity grow, service providers (cleaning, maintenance, hospitality support) may be stretched; managing logistics matters.
Honorable Mentions & Rising Towns in Maine
Old Orchard Beach — beach town with strong summer demand. High ADRs in peak season, but subject to very strong seasonality. AirROI rank #2.
Kennebunk — just implemented a stricter “Good Neighbor” ordinance (registration, inspection) starting Jan 2025; good demand but regulatory compliance costs rising.
Ogunquit, Wells — other coastal markets worth watching for premium nightly rates and strong summer tourism.
Regulatory & Local Risk Factors in Maine
For any STR investment, you’ll want to carefully assess local regulation. Maine has a patchwork of rules, and the regulatory environment is active (both in enforcement and in proposals). Some of the things to watch:
Municipal registration/licensing is becoming common. For example, Bar Harbor requires annual registration and fees.
Life safety, fire, and building/sanitary inspections are required in many towns. Some towns require them every few years.
Some towns enforce “Good Neighbor” ordinances: neighbor notification, parking minimums, occupancy limits. Kennebunk’s ordinance is a leading example.
Coastal towns often face pressure from locals concerned about housing affordability, infrastructure strain, and preserving community character. Proposals for STR counting, caps, or zoning changes are active in York and other beach towns.
State‑level tax obligations: hosts must collect Maine’s state sales tax (9%) on STR booked nights, plus lodging or occupancy taxes, local fees. Airbnb and other platforms often handle collection for state tax, but local taxes/regulations may require host action.
Tips for Making STRs Work in Maine in 2025
To turn the promise of these markets into strong returns, here are practical strategies and best practices:
Underwrite conservatively
Use realistic occupancy rates (not peak only), assume off season dips, include all operating costs (heating, snow removal, insurance, remote location costs if applicable).Choose location carefully within town
Proximity to attractions (e.g. coastline, access to national parks, lakes, trails) matters. Also consider access roads, utilities, amenities, and guest convenience.Manage guest expectations & offer distinguishing features
Scenic views, quality furnishings, strong Wi-Fi, well‑maintained interiors, clean accommodations, and excellent guest communication go a long way. Listings that look good online get more bookings.Stay ahead of regulation
Before purchase, check the town’s STR ordinances or proposed changes. Factor in licensing fees, inspections, and any caps or occupancy limits.Optimize for shoulder seasons
Summer might bring most of the revenue, but reducing down time in spring and fall by offering specials, events, or packages can help stabilize cash flow.Build operational resilience
Especially in rural or remote towns: reliable cleaning and maintenance teams, backup for utilities, snow removal, emergency contact, etc.Use strong listing & marketing strategy
High‑quality photography, detailed descriptions, prompt responses, reviews matter. If appealing to out‑of‑state or international visitors, show what makes your listing special and accessible.Plan exit strategy or conversion flexibility
Some properties may become long‑term rentals if regulation tightens or if demand shifts. Choose homes that can adapt (e.g. no restrictive zoning, good resale potential).
Here are quick takeaways to help you choose which Maine town might align best with your investment goals, capital, and risk tolerance:
| If you want… | Best Maine Town to Target |
|---|---|
| Premium coastal view, high nightly rates, tourism prestige | Bar Harbor |
| Year‑round demand, urban amenities, hybrid guest mix | Portland |
| Beach town prestige, very high ADRs, strong summer occupancy | York |
| Scenic lake & mountain surroundings, dual‑season revenue potential | Rangeley |
| Balance of proximity to parks/coast but lower entry cost and steady occupancy | Ellsworth |
Each of these markets offers opportunity—and they each have trade‑offs: cost, seasonality, regulation, competition, or remote logistics. The key is matching your style (do you prefer high ADR even with lower occupancy vs steady moderate income?), your budget (both purchase + ongoing costs), and your capacity to manage or outsource operations.
