Portland, Maine Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Portland, Maine?

Yes, short-term rentals are allowed in Portland, Maine, but they are strictly regulated. Portland has implemented one of the most comprehensive regulatory frameworks for short-term rentals in Maine, with annual registration requirements, unit caps, occupancy limits, and building-specific restrictions. The city has progressively tightened regulations, most recently in August 2024 when the City Council reduced the cap on non-owner-occupied units from 400 to approximately 285 units (about 1.5% of Portland's long-term housing stock).

What do Airbnb hosts actually earn in Portland?

Portland hosts earn a median $43,625/year with $275 ADR and 64% occupancy.

Top performers pull in $63,227+ per year.

See the full Portland market breakdown

How to Start a Short-Term Rental Business in Portland, Maine

Step 1: Understand Eligibility and Limitations

Before proceeding, determine if your property qualifies under Portland's strict regulations:

Owner-occupied properties (primary residences) have fewer restrictions but must comply with all registration and safety requirements
Non-owner-occupied properties face a significant cap (285 units citywide) and are not accepting new applications until the number falls below this limit
Existing operators (those already licensed before the August 2024 changes) can continue operations and renew licenses
Property types are restricted to residential dwellings; commercial structures are prohibited

Step 2: Registration Process

Portland requires annual registration for all short-term rentals:

Download and complete the annual registration form from the City of Portland website
Submit the form to the Licensing and Registration Office in Room 307, 3rd floor, City Hall at 389 Congress St, Portland, ME 04101
Pay applicable fees based on your property type and ownership status
Schedule and pass required building and fire safety inspections
Renew annually by December 31st each year (new registrations must be submitted by January 1st)

Step 3: Compliance with Safety and Building Codes

City inspection required for each short-term rental unit to ensure building code and fire safety compliance
Unlimited inspection rights reserved by the city, including rental history and booking data requests
48-hour response requirement for any city requests, with penalties for non-compliance
Fire inspection fee applies for new applications ($100 one-time fee)

Step 4: Operational Compliance

Advertisement requirements: All listings must include the city-issued registration permit number
Occupancy limits: Maximum 2 guests per bedroom plus 2 additional guests maximum per unit
Rent control: Annual rate increases cannot exceed the inflation rate
Property management: Owner responsibility for compliance even when using management services

Required Documents, Permits, Licenses, and Guidelines

Essential Documents

Short-Term Rental Registration Form (annual renewal required)
Property ownership documentation or lease agreement (for tenant-operated units)
Building compliance certificates from city inspections
Fire safety inspection report ($100 fee for new applications)

Required Permits and Licenses

Portland Short-Term Rental Registration Certificate (display required in unit)
Building and Fire Safety Inspection Approvals
Business License (if applicable under other business operations)

Registration Categories and Fees

Based on the 2022 fee structure (subject to change):

Owner-occupied units: Starting at $100 per year for first unit
Tenant-occupied units: Similar fee structure to owner-occupied
Non-owner-occupied mainland units: Significantly higher fees, ranging from $750 for first unit to $4,000 for fifth unit
Island short-term rentals: Separate category with different fee structure

Additional Guidelines

Maximum 5 short-term rentals per property owner
Building-specific limits: 1-2 total units = 1 STR allowed; 10+ total units = 5 STRs allowed
Maximum 5 living spaces that can be rented within any single owner-occupied property
Primary residence requirement for owner-occupied registrations

Specific Regulations for Portland, Maine

Unit Caps and Restrictions

Non-owner-occupied units: Capped at approximately 285 units citywide (1.5% of long-term housing stock)
No new permits will be issued for non-owner-occupied units until the count falls below the cap
Existing operators can continue operations and renew licenses
Owner-occupied units: No specific cap, but must meet all safety and registration requirements

Occupancy and Operational Limits

Guest limits: Maximum 2 guests per bedroom, plus 2 additional guests maximum per unit
Rent control: Annual rate increases limited to inflation rate
Inspection requirements: City reserves right to inspect at any time
Data reporting: 48-hour response requirement for city information requests

Advertising and Listing Requirements

Permit number display: All advertisements must include the city-issued registration number
Accuracy requirements: $1,000 fine for providing false information on registration forms
Platform compliance: Must comply with listing platform requirements (Airbnb, VRBO, etc.)

Historical Regulatory Changes

2018: Initial registration requirements implemented
2021: Rent control ordinance applied to short-term rentals
2024: Non-owner-occupied cap reduced from 400 to approximately 285 units

State-Level Regulations for Maine

Vacation (Casual) Rental Tax

9% tax rate on all short-term rental reservations
Platform collection: Airbnb and similar platforms collect and remit this tax
Exemptions:
- Fewer than 15 nights rented per year (for single-unit owners)
- Rentals of 28 days or more (if used as primary address or for education/employment)

State Definition

Short-term rental: "A residential property that is rented for vacation, leisure or recreation purposes for a week or a month, and typically under 30 days but not for more than an entire summer or winter season, to a person who has a place of permanent residence to which the person intends to return."

Contact Information for Local Authority

Portland Short-Term Rental Licensing

Licensing and Registration Office

Address: Room 307, 3rd floor, City Hall, 389 Congress St, Portland, ME 04101
Phone: 207-756-8131
Email: housingsafety@portlandmaine.gov
Website: Portland Short-Term Rental Registration

Registration Resources

Registration Form: Download here
Direct application process: In-person submission required

Important Note

No online renewal: Registration must be completed in person at City Hall
Annual deadline: December 31st for renewals, January 1st for new registrations

Source Links

Investment Advisory: Portland's short-term rental market is highly regulated with limited availability, particularly for non-owner-occupied properties. The 2024 cap reduction to 285 non-owner-occupied units means new investors in this category will likely face a significant waiting period. Existing licensed operators maintain their rights, but the regulatory environment continues to evolve toward greater restrictions.

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Ask the AI Advisor about Portland

Portland, Maine sits on a peninsula jutting into Casco Bay in Cumberland County, and with a population of roughly 68,000 it is the largest city in the state by a comfortable margin. It carries the feel of a working seaport that has reinvented itself as a culinary and cultural hub, with a compact historic core, fishing boats in the harbor, and a strong sense of place rooted in New England maritime tradition. The city is best known for its Old Port district, its lighthouse-dotted coastline, and its lobster-and-brewery scene, and it serves as a natural gateway to the rest of Maine's coast and to the state's outdoor playgrounds. It lies about 110 miles northeast of Boston, roughly a two-hour drive along Interstate 95.

The Old Port is the heart of downtown Portland, a few blocks of brick warehouses, cobblestone streets, and converted mercantile buildings that now hold boutiques, galleries, restaurants, and pubs. It sits immediately along the working waterfront, where lobster boats unload at the wharves and ferry terminals connect to the bay's islands. Visitors can easily walk the length of the district in an afternoon, and most downtown short-term rentals put it within a few minutes on foot.

A short drive southeast of the city, in the town of Cape Elizabeth, Portland Head Light anchors Fort Williams Park on the rocky headland of Casco Bay. Completed in 1791 and still active today, it is one of the oldest and most photographed lighthouses in the United States, and the surrounding park offers cliff-top walking paths, picnic areas, and views of the open Atlantic. From downtown Portland the park is about a 15-minute drive, making it an easy morning or sunset outing for guests.

Just across the water, the islands of Casco Bay are reached by ferry from the downtown waterfront, with Peaks Island the closest and most popular at roughly a 15-minute crossing. Peaks is small enough to circle by bike or on foot, with a handful of inns, a quiet downtown, and rocky shores that feel a world away from the city. The same ferry terminal serves other islands further out, including Little Diamond and Great Diamond, giving guests a chance to add a half-day or full-day coastal excursion to a Portland stay.

Farther afield, Acadia National Park lies about 175 miles to the northeast, a three-hour drive that many Portland-based travelers use as a launching point for a longer Maine itinerary. Closer to the city, the town of Freeport is roughly 20 minutes north and is home to the original L.L. Bean flagship store, drawing day-trippers year-round. Together these nearby draws give Portland a strong base for guests who want a city stay with easy access to lighthouses, islands, harborfront dining, and the wider Maine coast.

Portland, Maine

Challenging To Investors

STR Regulations for Portland, Maine