Saco, Maine Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Saco, ME?

Yes, short-term rentals are currently allowed in Saco, Maine, but with specific limitations and under evolving regulations. The city operates under a seasonal rental ordinance that applies to designated coastal areas, with a minimum six-day rental requirement. Saco is actively contemplating comprehensive short-term rental regulations, with city staff and councilors reviewing adopted regulations from other communities and developing new policies to address the growing presence of platforms like Airbnb and Vrbo.

What do Airbnb hosts actually earn in Saco?

Saco hosts earn a median $34,063/year with $293 ADR and 58% occupancy.

Top performers pull in $50,156+ per year.

See the full Saco market breakdown

How to Start a Short-Term Rental Business in Saco

Step 1: Determine Your Property's Status

First, verify if your property falls within the designated seasonal rental areas. According to current regulations, the seasonal rental ordinance applies to single-family, two-family, and multifamily dwelling units specifically located:

East of Seaside Avenue and Camp Ellis Avenue
Areas within 400 feet to the west of the center line of these streets

Step 2: Obtain Required Licensing

Seasonal Rental License is mandatory for any person or entity renting dwelling units for seasonal periods. Applications must be submitted to the Code Enforcement Officer, who will review all applications to ensure compliance with:

Fire Code requirements
Building Code standards
Life-Safety Code provisions

Step 3: Prepare for Compliance

Ensure your property meets all safety and building standards before operating. Properties must be suitable for rental periods of at least six days and can only be occupied by one family during each rental period.

Required Documents, Permits, Licenses, and Guidelines

Essential Requirements

Seasonal Rental License from the Code Enforcement Officer
Proof of compliance with Fire, Building, and Life-Safety Codes
Property registration if operating a multifamily dwelling (separate from STR licensing)
Business registration through the City Clerk's office

Property Standards

Properties must meet current life safety codes and standards
Regular inspections may be required to maintain compliance
Properties must be registered annually if classified as multifamily dwellings

Registration and Inspection Process

For multifamily properties, registration includes:

Owner registration with the City by October 1st annually
Annual renewal required
Inspection fees of $75.00 per unit when due
Access requirements for all dwelling units, common areas, basements, and outbuildings

Specific Regulations for Short-Term Rentals

Current Seasonal Rental Ordinance

Minimum rental period: Six days (rentals for periods shorter than six days are prohibited)
Occupancy limitation: Only one family per rental period
Geographic restrictions: Limited to designated coastal areas (east of Seaside Avenue/Camp Ellis Avenue and within 400 feet west of center lines)

Proposed and Emerging Regulations

Saco City Council is actively developing comprehensive STR regulations with consideration for:

Hosted vs. Un-Hosted Distinction

Hosted rentals: Renting a room in the host's primary residence
Un-hosted rentals: Renting out entire properties
Different regulatory approaches may apply to each category

Primary Owner vs. Investor Properties

Owner-occupied: Properties where the owner resides and occasionally rents
Investor-owned: Properties purchased specifically for short-term rental income
Regulations may differentiate between these categories

Compliance and Enforcement

Enhanced monitoring and compliance systems under development
City considering free pilot program with Greater Portland Council of Governments (GPCOG) for STR tracking software
Significant penalties proposed for non-compliance (current fines range $100-$1,000 per day)

Penalties and Enforcement

Current violations subject to:

$250 per day for failure to register multifamily units by October 1st
$250 per day for failure to update contact information
$1,000 per day for providing false information
$250 per day for renting unregistered units
$100-$1,000 per day for violating seasonal rental minimum stay requirements

Contact Information for Local Authority

Code Enforcement Department (Primary STR Authority)

Address: Saco City Hall, 300 Main Street, Saco, Maine
Phone: (207) 284-6983
Email: housingsafety@sacomaine.org
Website: sacomaine.org/departments/code_enforcement

Key Personnel

Code Enforcement Officer: Primary contact for seasonal rental licenses
Housing Safety Program Contact: For multifamily dwelling registration

Online Services

IWorq Portal: sacome.portal.iworq.net/portalhome/sacome - Online permit and registration system
City Code Online: ecode360.com/SA1647 - Municipal code access

State-Level Regulations (Maine)

While Saco has specific local regulations, Maine state law provides the overarching framework:

Maine Room Rental Laws

Maine allows short-term rentals but requires compliance with local zoning and safety regulations
Properties must comply with state fire safety and building codes
Registration requirements may vary by municipality

Maine Lodging Tax

Maine imposes a 9% lodging tax on short-term rentals
Additional local taxes may apply
Registration with Maine Revenue Services may be required

Important Considerations for Investors

Market Dynamics

Based on current market data for Saco:

Median occupancy rate: 66%
Average daily rate: $230
Average annual host income: $61,000
Typical booking nights: 241 nights per year

Risk Factors

Regulatory uncertainty: New comprehensive STR ordinances under development
Geographic limitations: Current regulations restrict rentals to coastal areas
Compliance costs: Potential for increased fees and inspection requirements

Future Outlook

Saco is actively monitoring neighboring cities' approaches, including potential caps on non-owner-occupied short-term rentals. Investors should expect evolving regulations with increased compliance requirements and monitoring systems.

Sources and References

Disclaimer: This guide is based on available information as of the search results provided. Short-term rental regulations in Saco are actively evolving. Investors should verify current requirements with the Code Enforcement Department before making investment decisions or commencing operations.

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Ask the AI Advisor about Saco

Saco is a small coastal city in York County in southern Maine, with a population of roughly 20,000 residents. The community sits along the Saco River, which forms the boundary with its twin city of Biddeford, and the two towns together form a single urban area within the greater Portland metropolitan region. Saco has a mixed character: part historic mill town, part seaside suburb, and part gateway to some of southern Maine's most popular beach destinations. It lies approximately 15 to 20 miles southwest of Portland, Maine's largest city, making it an easy day-trip or commuter distance from the amenities of a major urban center while retaining its own quieter, small-city feel.

One of the most popular draws in the immediate area is Old Orchard Beach, a classic New England seaside resort town located just a few miles south of Saco along U.S. Route 1. The town is famous for its seven-mile stretch of sandy beach and its historic amusement pier, and it draws large numbers of summer visitors who come for swimming, surfing, boardwalk dining, and evening entertainment. The drive from downtown Saco to Old Orchard Beach's main pier is typically only about 10 minutes.

Just south of the city, Ferry Beach State Park offers a quieter alternative for visitors who prefer wooded trails and natural shoreline over the busier commercial beach scene. The park features over a mile of beachfront, scenic walking paths through pine and oak forests, and opportunities for picnicking and birdwatching. It is generally only a five- to ten-minute drive from the center of Saco.

Families traveling with children often head to Funtown Splashtown USA, a well-known amusement and water park complex located directly in Saco along the U.S. Route 1 corridor. The park has been a regional fixture for decades and features wooden and steel roller coasters, a large water park, and other rides aimed at younger visitors. It is one of the most-visited seasonal attractions in southern Maine and a frequent anchor destination for vacationing families staying in the area.

A short drive north of Saco brings visitors to the heart of downtown Biddeford, where a growing food and brewery scene has developed around the city's historic textile mills along the Saco River. Saco's own Main Street, meanwhile, retains a quiet 19th-century character with older brick commercial buildings, locally owned restaurants, and a leafy town common.

Saco works well as a base for short-term rental visitors because it combines affordable, lower-density housing options with quick access to the beach, amusement parks, and natural areas that define southern Maine tourism. Its proximity to Portland, its location between coastal and inland recreation, and its position as a crossroads for travelers heading up and down the Maine coast give it a flexibility that appeals to a wide range of guests throughout the summer travel season.

Saco, Maine

Challenging To Investors

STR Regulations for Saco, Maine