In-depth analysis

Should you buy an STR in Portland in 2026?

Only if you can acquire a property with a transferable permit, or if you intend to operate as an owner-occupied home-share. Portland’s STR ordinance caps non-owner-occupied registrations citywide and the cap was reached years ago. ADR $191, occupancy 57%, RevPAR $109, market score 48/100. Old Port tourism, cruise-ship traffic, and a deep restaurant scene make demand real — but the regulatory gate is the binding constraint.

Regulation: where the city stands

City of Portland STR ordinance:

Non-owner-occupied STR cap — citywide cap on registrations; waitlist when full.
Owner-occupied STR — permitted with annual registration, more broadly available.
Tenant protections — converting tenant-occupied units to STR is regulated.
Lodging tax — Maine state 9% Sales & Lodging Tax applies.
Annual renewal with life-safety inspection.

South Portland, Westbrook, and Cape Elizabeth (separate municipalities) have their own STR rules — generally more permissive than Portland proper. Maine state-level: LD 1709 and successor proposals have floated statewide STR rules; none binding as of 2026.

The market by the numbers

Metric	Portland	Comparison
Avg ADR	$191	Solid New England city
Occupancy	57%	Seasonal
RevPAR	$109	Modest
Market score	48/100	Held back by regulation

Demand: summer cruise season (June-October), Old Port walkability, restaurant tourism, fall foliage (October), winter business travel. Roughly 60% of annual revenue concentrates in June-October.

Submarkets that matter

Old Port — walkable, premium ADR, condo-heavy.
West End / Munjoy Hill — Victorian SFR, premium SFR ADR when permitted.
East End — Eastern Promenade, family-friendly, walkable.
Bayside / India Street — newer condo, business-traveler demand.
South Portland / Cape Elizabeth (adjacent municipalities) — separate STR rules, cheaper basis.

The 3 mistakes buyers make here

Buying a residential SFR expecting to obtain a new non-owner-occupied permit. The cap is full; new permits are effectively unavailable.
Confusing Portland with South Portland. They are separate cities with separate STR ordinances.
Underwriting cruise traffic as a guaranteed steady demand. The cruise season is real but compressed and event-driven.

What to do next

Pull the City of Portland STR program and confirm permit status.
Verify adjacent-municipality rules if considering South Portland or Cape Elizabeth.
Run Market Score and Comp Analyzer.
Model with the DSCR Loan Calculator.

Not investment advice. Verify all regulatory and tax information with local authorities and licensed professionals before committing capital.

Last reviewed 2026-05-07 · Estimated — community-sourced · Population 66,215