Airbnb Baltimore, Maryland: Market Data, Laws & Investor Guide

Baltimore, Maryland is an attractive destination for Airbnb hosts looking to start a short-term rental business in 2024. This vibrant city, known for its rich history, diverse culture, and thriving arts scene, draws visitors year-round. With iconic attractions like the Inner Harbor, National Aquarium, and Fort McHenry, Baltimore offers a wealth of opportunities for Airbnb hosts to capitalize on the growing tourism market.

In 2024, Baltimore remains a top choice for Airbnb investors due to its strong rental demand and revenue potential. According to AirDNA, Baltimore boasts an impressive 58% occupancy rate and an average daily rate of $92, translating to an annual revenue of $19,476 for a typical listing. With over 2,100 active listings in the city, the short-term rental market in Baltimore is thriving, presenting a lucrative opportunity for hosts.

Furthermore, Baltimore's strategic location on the East Coast, just a short drive from major cities like Washington D.C. and Philadelphia, makes it an ideal base for travelers exploring the region. The city's well-connected transportation network, including Baltimore-Washington International Airport, Amtrak, and the MARC train, ensures easy accessibility for guests.

As the travel industry continues to rebound in the post-pandemic era, Baltimore's Airbnb market is poised for growth. Travelers are increasingly seeking unique, personalized accommodations that offer a genuine local experience, and Baltimore's diverse neighborhoods, from the historic charm of Fell's Point to the trendy vibe of Hampden, cater to a wide range of preferences.

However, starting an Airbnb business in Baltimore requires careful planning and compliance with local regulations. The city has implemented a licensing system for short-term rentals, which includes requirements such as obtaining a rental license, registering with the city, and adhering to safety and zoning standards. Navigating these regulations can be challenging, but with proper research and preparation, hosts can successfully launch and operate their Airbnb businesses in Baltimore.

In this comprehensive guide, we will delve into the key aspects of starting an Airbnb business in Baltimore, Maryland. From understanding the local market and regulations to optimizing your listing for success, we'll provide you with the insights and resources you need to thrive in this exciting and dynamic city.

Baltimore Short-Term Rental Market Analysis

Baltimore's short-term rental market has shown promising growth and potential in recent years. Here's a detailed analysis of the city's Airbnb market:

Occupancy Rate, Nightly Rate, and Seasonality:

• According to AirDNA, Baltimore's average occupancy rate in 2024 is 58%, with an average daily rate of $92 and annual revenue of $19,476
• Baltimore experiences moderate seasonality, with peak months being May through October.

Market Growth and Tourism Industry:

Baltimore's short-term rental market has seen steady growth in the past two years:

1. Active listings increased by 8% in the past year.
2. Average monthly occupancy grew by 3% in the past year.
3. Average daily rate increased by 5% in the past year.

The city's tourism industry has also experienced significant growth:

1. In 2022, Baltimore welcomed 27 million visitors, with 79% being returning visitors.
2. Domestic travelers generated $3.7 billion for Baltimore's economy in 2022, up 39% from 2021.
3. In 2023, 11% of overnight travelers visited Baltimore to attend special events.

Key Events and Festivals:

1. Preakness Stakes (May)
2. AFRAM (August)
3. Baltimore Pride Festival (June)
4. Baltimore Jazz Festival (August)
5. Vegan SoulFest (August)
6. Flower Mart (May)
7. Artscape (July)
8. Orioles and Ravens games (seasonal)

Mid-Term Rental Market:

1. Mid-term rentals, typically lasting between 1 and 12 months, are gaining popularity among specific demographics such as relocating families, remote workers, and students.
2. While exact data on Baltimore's mid-term rental market is limited, the city's diverse economy, educational institutions, and growing remote work culture suggest a promising potential for this segment.

In conclusion, Baltimore's short-term rental market presents a lucrative opportunity for Airbnb hosts in 2024. With steady growth, a thriving tourism industry, and a wide array of events and festivals, the city is well-positioned to attract both short-term and mid-term guests. However, hosts must navigate local regulations and licensing requirements to operate successfully in this market.

Best Neighborhoods in Baltimore for an Airbnb Business

When searching for the ideal location to start an Airbnb business in Baltimore, hosts should consider factors such as proximity to popular attractions, up-and-coming areas with growing demand, and established tourist hotspots. By analyzing data from reputable sources like AirDNA and Mashvisor, and considering local knowledge, we've identified the top 5 neighborhoods in Baltimore for starting an Airbnb.

1. Fells Point

Fells Point, a historic waterfront neighborhood, is a prime location for Airbnb hosts due to its charming cobblestone streets, lively nightlife, and proximity to attractions like the Inner Harbor and National Aquarium.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $165
3. Airbnb Seasonality: High demand from May to October
4. Estimated Annual Revenue: $40,950

The median home price in Fells Point is $350,000 for a single-family house (Zillow, 2024). Listings with 1-2 bedrooms tend to provide the best return on investment in this neighborhood.

2. Federal Hill

Federal Hill, known for its stunning views of the Inner Harbor and vibrant restaurant scene, is another top choice for Airbnb hosts in Baltimore.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $140
3. Airbnb Seasonality: Consistent demand throughout the year
4. Estimated Annual Revenue: $33,215

The median home price in Federal Hill is $325,000 for a single-family house (Zillow, 2024). Listings with 1-2 bedrooms offer the best return on investment.

3. Canton

Canton, a trendy waterfront neighborhood with a mix of restaurants, bars, and parks, is an attractive option for Airbnb hosts targeting younger travelers.

1. Average Occupancy Rate: 62%
2. Average Daily Rate: $130
3. Airbnb Seasonality: High demand during summer months
4. Estimated Annual Revenue: $29,400

The median home price in Canton is $300,000 for a single-family house (Zillow, 2024). Studios and 1-bedroom listings provide the best return on investment in this neighborhood.

4. Hampden

Hampden, a quirky and artistic neighborhood known for its unique shops and restaurants along "The Avenue," is an up-and-coming area for Airbnb hosts.

1. Average Occupancy Rate: 60%
2. Average Daily Rate: $110
3. Airbnb Seasonality: High demand during holiday season (Miracle on 34th Street lights display)
4. Estimated Annual Revenue: $24,100

The median home price in Hampden is $250,000 for a single-family house (Zillow, 2024). Listings with 1-3 bedrooms offer the best return on investment.

5. Mount Vernon

Mount Vernon, a historic and cultural hub with beautiful architecture and easy access to Penn Station, is a solid choice for Airbnb hosts catering to business travelers and tourists alike.

• Average Occupancy Rate: 58%
• Average Daily Rate: $120
• Airbnb Seasonality: Consistent demand throughout the year
• Estimated Annual Revenue: $25,500

The median home price in Mount Vernon is $275,000 for a single-family house (Zillow, 2024). Studios and 1-bedroom listings tend to provide the best return on investment in this neighborhood.

By considering these top neighborhoods and their respective data points, hosts can make an informed decision when choosing a location to start their Airbnb business in Baltimore. Keep in mind that while certain neighborhoods may have higher home prices, they may also generate higher returns due to increased demand and daily rates.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Baltimore

To maximize your revenue as an Airbnb host in Baltimore, it's crucial to set competitive prices and offer in-demand amenities. By analyzing the top-performing listings in the city, we've identified key factors that contribute to their success.

Setting Competitive Prices

When determining your nightly rate, consider the following factors:

• Location: Properties in popular neighborhoods like Fells Point, Federal Hill, and Mount Vernon can command higher prices.
• Seasonality: Baltimore experiences peak demand from May to October. Adjust your prices accordingly to maximize revenue during high season.
• Occupancyrates: Keep an eye on your competitors' occupancy rates and adjust your prices to maintain a healthy balance between occupancy and revenue.
• Amenities: Listings with sought-after amenities can justify higher nightly rates.

In-Demand Amenities

Based on our analysis of top-performing Airbnb listings in Baltimore, here are the amenities that can help you stand out and attract more bookings:

• Unique decor and architecture: Listings with distinctive charm, such as converted historic buildings or modern lofts, are highly popular among guests.
• Outdoor spaces: Private balconies, patios, or rooftop decks with city views are a major draw for travelers.
• High-end kitchen appliances: Well-equipped kitchens with modern appliances appeal to guests who prefer to cook their own meals.
• Smart home technology: Keyless entry, smart thermostats, and voice-controlled devices provide convenience and a luxurious touch.
• Office spaces: Dedicated workspaces with ergonomic furniture cater to the growing remote work trend.

Popular Property Types and Revenue Potential

In Baltimore, certain property types tend to perform better than others. Here's a breakdown of popular property types, average property prices, and potential revenue by bedroom count:

Townhouses:

• 2-bedroom townhouses: Average price $300,000; Potential annual revenue $28,000
• 3-bedroom townhouses: Average price $350,000; Potential annual revenue $33,500

Apartments:

• Studio apartments: Average price $72,000; Potential annual revenue $18,500
• 1-bedroom apartments: Average price $75,000; Potential annual revenue $16,000
• 2-bedroom apartments: Average price $99,000; Potential annual revenue $25,000

Condos:

• 1-bedroom condos: Average price $200,000; Potential annual revenue $20,000
• 2-bedroom condos: Average price $250,000; Potential annual revenue $26,000

By offering in-demand amenities and focusing on popular property types, you can maximize your revenue potential as an Airbnb host in Baltimore. Keep in mind that these are average figures, and individual property performance may vary based on factors like location, condition, and marketing strategies.

Understanding Baltimore Short-Term Rental Regulations

Baltimore, Maryland has implemented a comprehensive set of regulations for short-term rentals to ensure responsible operation and preserve the character of its neighborhoods. All STRs, whether owner-occupied or not, must obtain a biennial license from the city for a $200 fee. The licensing process requires hosts to provide detailed property information and agree to abide by the city's STR regulations.

Baltimore limits new STR operations to primary residences only, prohibiting the use of non-primary residences such as investment properties. Hosts must notify their immediate neighbors of their intention to operate an STR and provide contact information for any concerns. Additionally, hosts are required to collect and remit the city's 9.5% transient occupancy tax and the state's 6% lodging tax from their guests.

To start an STR business in Baltimore, hosts must determine if their property is eligible for a license, obtain a state Tax ID, apply for the city's STR license, and ensure proper tax compliance. The city takes a relatively strict approach to enforcing its STR regulations, which may deter some potential operators. However, Baltimore is still considered relatively Airbnb-friendly compared to other major cities, as it allows both hosted and un-hosted STRs, provided they meet the licensing requirements.

Read our full STR regulations guide for more detailed information on Baltimore short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Baltimore Airbnb Host

To thrive as an Airbnb host in Baltimore, it's essential to understand the local market, cater to guest preferences, and navigate the city's unique challenges. By incorporating popular amenities, appealing design themes, and effective marketing strategies, hosts can attract more bookings and deliver exceptional guest experiences.

Popular Amenities and Design Themes

Baltimore Airbnb guests appreciate listings that showcase the city's rich history and vibrant culture. Incorporating local artwork, vintage decor, and industrial-chic elements can create a captivating atmosphere that resonates with visitors. Additionally, providing sought-after amenities such as high-speed Wi-Fi, smart TVs, and well-equipped kitchens can enhance the overall guest experience.

Outdoor spaces are also highly valued in Baltimore, especially during the warmer months. Listings with private balconies, patios, or rooftop access can be particularly appealing to guests seeking a taste of the city's lively atmosphere.

Attracting Baltimore Customers

To attract Baltimore Airbnb customers, hosts should focus on crafting compelling listing descriptions that highlight the property's unique features and proximity to popular attractions. Emphasizing the listing's walkability to landmarks like the Inner Harbor, Fells Point, or Camden Yards can be a significant draw for visitors.

Hosts should also leverage social media and targeted advertising to reach potential guests. Engaging with local tourism boards, partnering with local businesses, and offering special packages or discounts during major events can help increase visibility and bookings.

Potential Challenges and Guidelines for Success

Operating an Airbnb in Baltimore comes with its own set of challenges. Hosts on forums like BiggerPockets and Reddit have noted the importance of complying with the city's strict short-term rental regulations, which include obtaining a license and adhering to zoning restrictions. Failure to comply with these rules can result in fines and legal issues.

Hosts have also emphasized the need for robust security measures, such as smart locks and surveillance cameras, to ensure guest safety and prevent unauthorized access. Maintaining open communication with neighbors and addressing any concerns promptly can help foster positive community relations.

To run a successful Airbnb in Baltimore, hosts recommend investing in professional cleaning services, promptly addressing maintenance issues, and providing exceptional customer service. Responding quickly to guest inquiries, offering local recommendations, and going above and beyond to accommodate special requests can lead to positive reviews and repeat bookings.

By staying informed about local market trends, adapting to guest preferences, and proactively addressing potential challenges, Baltimore Airbnb hosts can create memorable experiences for their guests while building a profitable and sustainable short-term rental business.

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