Southwest Harbor, ME

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

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

Listings

120 / 392

Reliable / Active

Cap Rate

8%

Middle-Earners Gross Yield

Revenue

$50,277

Middle-Earners Revenue

Occupancy

71%

Middle-Earners Occupancy

Home Value

$618,768

Median Home Sale Price

Top Earners

$87,637

Top-Earners Revenue

Southwest Harbor

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Southwest Harbor.

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B

Generally Investor friendly

Southwest Harbor Regulations

Southwest Harbor has no local STR ordinances, making STRs broadly permitted with no caps or local licensing, only Maine’s state-level tax registration and 9% vacation rental tax. Compliance is straightforward and comparable to neighboring areas; modest fees (state tax and recommended $1M liability) are manageable. The biggest drawback is lack of explicit city-level provisions and evolving regional pressures that could change the rules.

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About Southwest Harbor

Southwest Harbor is a small coastal town nestled on the western side of Mount Desert Island in Hancock County, Maine. With a year-round population of approximately 1,700 residents, the town carries the easygoing, maritime character that defines Maine's working harbors—weathered lobster boats, quiet coves, and clapboard homes clustered along wooded hillsides. It is often described as the "quiet side" of Mount Desert Island, offering a calmer alternative to the bustle of Bar Harbor while still serving as a primary gateway to the western half of Acadia National Park. The nearest sizable city is Bangor, situated about 50 miles to the north, while Portland lies roughly 175 miles to the southwest.

Acadia National Park is the defining draw of the region, and Southwest Harbor provides a less-crowded entry point to its western trails and coastal stretches. From the town center, the park's western sections—including the cliffside overlooks along the western shoreline and quieter loop roads—are within roughly ten to fifteen minutes by car, while the full sweep of Acadia's carriage roads, lakes, and mountain summits lies within about twenty-five minutes. Hikers can access the remote southwestern coast via the Wonderland Trail, and visitors often combine a drive along the Park Loop Road with stops at Sand Beach and the Jordan Pond House.

A short drive south of town, in the adjacent community of Bass Harbor, stands Bass Harbor Head Light, one of the most photographed lighthouses in Maine. The walk down to its rocky perch at the southwestern tip of the island takes roughly fifteen minutes and rewards visitors with crashing surf and views over Blue Hill Bay. Sunset here draws photographers and road-trippers from across the region, and the lighthouse remains an active aid to navigation maintained by the U.S. Coast Guard.

Closer to the village center, the Wendell Gilley Museum celebrates the life and art of the renowned wildfowl carver Wendell Gilley, a pioneer in decorative bird carving who lived and worked in Southwest Harbor. The museum displays intricate wooden bird sculptures alongside rotating exhibits on regional art and natural history, and its small size makes it an easy, weather-friendly stop for an hour or two. It also anchors the town's Main Street, which is lined with galleries, lobster shacks, and a handful of independent inns.

For short-term rental owners, Southwest Harbor offers a compelling combination of small-town charm, year-round natural beauty, and proximity to one of the Northeast's most-visited national parks. Travelers drawn to Acadia but seeking a quieter base than Bar Harbor will find a town that balances accessibility with authenticity, where shoulder seasons stretch into colorful autumns and quiet springs, and where the harbor, lighthouse, and wooded trails remain within easy reach of almost any doorstep.

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