Annapolis, MD

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Annapolis short-term rental market based on reliable data.

Listings

503 / 1007

Reliable / Active

Cap Rate

7%

Middle-Earners Gross Yield

Revenue

$44,026

Middle-Earners Revenue

Occupancy

48%

Middle-Earners Occupancy

Home Value

$630,139

Median Home Sale Price

Top Earners

$87,081

Top-Earners Revenue

Annapolis

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Annapolis.

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C

Challenging to Investors

Annapolis Regulations

Annapolis allows STRs but imposes a strict 10% blockface cap with a lottery, limiting supply in high-demand areas. Licensing is multi-step (state tax ID, CSS portal registration, local contact for non-residents) and requires ongoing reporting plus an 8% occupancy tax. Enforcement is inconsistent, with only ~50% of listed properties licensed, raising compliance risk and limiting investment certainty.

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About Annapolis

Annapolis, the capital of Maryland, sits on the western shore of the Chesapeake Bay in Anne Arundel County. With a population of approximately 40,000, the city carries a distinctly maritime character, its downtown clustered around a small harbor and brick-lined streets. Best known as the home of the United States Naval Academy and as a sailing capital of the East Coast, Annapolis also serves as a gateway to the broader Chesapeake Bay region. The city lies roughly 30 miles east of Washington, D.C. and about 25 miles south of Baltimore, making it an easy drive from either metropolitan area.

The United States Naval Academy is the city's most prominent institution, founded in 1845 and occupying a waterfront campus at the edge of the historic district. Visitors can tour the grounds, watch the midday formation in summer, and explore the Naval Academy Museum, all within a short walk of downtown. The academy's presence anchors Annapolis' identity and draws year-round visitors interested in military history and architecture.

Just up the street from the academy, the Maryland State House is the oldest state capitol in continuous legislative use in the United States, dating to 1772. Its distinctive wooden dome dominates the skyline, and the building hosted the ratification of the Treaty of Paris in 1784. Free tours make it a popular stop for visitors interested in early American history and colonial architecture.

The Chesapeake Bay defines the surrounding landscape, and Annapolis' relationship with the water is most visible at City Dock, where sailboats tie up alongside cafes and seafood restaurants. From here, visitors can take sailing charters, harbor cruises, or walk across the Spa Creek bridge to the residential neighborhood of Eastport. The waterfront walk, lined with shops and seafood counters, is one of the most popular stretches in the city.

A short drive east of downtown, Sandy Point State Park sits at the tip of the peninsula where the bay meets the Severn River, offering swimming beaches, fishing piers, and views of the Chesapeake Bay Bridge. It's a favorite summer escape for visitors looking to extend their stay beyond the historic district.

Annapolis makes a compelling base for a short-term rental because it concentrates a remarkable amount of history, waterfront scenery, and food into a compact, walkable core. The combination of an active sailing scene, year-round cultural events, easy access from both Washington and Baltimore, and proximity to Chesapeake Bay recreation gives the city broad seasonal appeal. Visitors tend to return for the brick sidewalks, the seafood shacks, and the feeling of a working port that is also one of America's most carefully preserved colonial capitals.

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