Are short-term rentals still profitable in Annapolis despite restrictions?

Yes, tourism demand from boat shows and military events supports 7% rental yields and $28k average cash flow. High occupancy at 65% offsets regulatory hurdles for compliant investors. Focus on exempt periods maximizes returns.

How do I license a short-term rental property in Annapolis?

Hosts must register via the Annapolis Rental Portal and obtain a license, paying Anne Arundel County occupancy taxes. Owner-occupied rentals are exempt from some caps. Check the city's Planning and Zoning for annual reports and compliance.

What events drive short-term rental demand in Annapolis?

U.S. Naval Academy graduation, spring and fall boat shows generate peak demand, exempt from rental caps. These events attract thousands, filling 560+ advertised units quickly. Year-round sailing and historic tourism provide steady occupancy.

Short Term Rental Investment Properties for Sale in Annapolis, MD

Property at 1542 Star Pine Dr, Annapolis, MD

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1508 sft

1542 Star Pine Dr, Annapolis, MD, 21409

Property at 26 Pleasant St, Annapolis, MD

2 Bed
1 Bath
972 sft

26 Pleasant St, Annapolis, MD, 21401

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Why Invest in Annapolis, Maryland?

Short-term rentals in Annapolis, MD offer strong investor appeal despite recent regulatory caps at 10% per blockface. Tourism from Naval Academy events and boat shows drives consistent demand, with over 500 units advertised citywide. Average nightly rates support solid cash flow, bolstered by 5-7% annual appreciation in this historic market. Renter occupancy remains high at 65%, even as the city enforces licensing for compliance. Owner-occupied exemptions provide flexibility for hands-on investors navigating the rules.

8.2%

Avg. ROI

7.1%

Rental Yield

6.8%

Cap Rate

$28500/mo

Avg. Cash Flow

$245/mo

Avg. Rent

5.4%

1Y Appreciation

Frequently Asked Questions

The city caps short-term rentals at 10% per blockface, with exemptions for owner-occupied units and events like Naval Academy graduation. Over 500 units are advertised, but only licensed ones comply fully. A 12-month moratorium on new licenses is under consideration to improve enforcement.

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Frequently Asked Questions

What are the current short-term rental regulations in Annapolis?

Are short-term rentals still profitable in Annapolis despite restrictions?

How do I license a short-term rental property in Annapolis?

What events drive short-term rental demand in Annapolis?

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