Damariscotta, ME Airbnb Market Data, Statistics, and Occupancy Rates

Damariscotta Short-Term Rental Market Overview

Damariscotta, a charming coastal village on Maine's Midcoast, presents an attractive short-term rental opportunity with an ROI score of 70 out of 100. With only 11 active Airbnb listings and a striking 90% year-over-year growth in supply, the market is still in its early stages—offering first-mover advantages for investors who act strategically. Average annual revenue sits at $46,289 against average home values of $672,995, reflecting a seasonal but lucrative earnings profile driven by Maine's summer tourism draw.

Key Market Statistics

According to Rabbu market data, the Damariscotta short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Damariscotta

Damariscotta's small supply base, above-average occupancy stability, and strong summer demand create a compelling entry point for investors seeking seasonal rental income in a picturesque Maine market.

Expert Market Assessment

"Damariscotta earns its "Attractive Opportunity" designation through a combination of tight supply and pronounced seasonal demand. The market's revenue profile is heavily summer-weighted—August alone averages $11,278, while January drops to just $938—so investors need to plan for significant cash-flow swings. That said, above-average occupancy stability and a growing market trend provide reassurance that demand is genuine and strengthening. For buyers comfortable with a seasonal income model and who price their property competitively during shoulder months, this small Midcoast market offers meaningful upside with relatively little head-to-head competition."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Damariscotta

Average revenue by month in Damariscotta

Damariscotta's revenue profile is sharply seasonal, with August ($11,278) and July ($10,638) generating more than 10× the revenue of winter months like January ($938) and February ($847). Investors should expect roughly 70% of annual income to arrive between June and September, making disciplined off-season budgeting essential.

Active Airbnb listings by property size in Damariscotta

The market's active inventory is dominated by 1-bedroom properties, which account for 6 of the 11 total listings. This concentration suggests a potential gap for larger properties—investors offering 2+ bedroom homes could face minimal competition and capture group or family travelers.

Average daily rate (ADR) by property size in Damariscotta

One-bedroom listings in Damariscotta average an ADR of $121, well below the market-wide average of $207, which suggests that larger or premium properties in the market are commanding significantly higher nightly rates. Investors considering larger properties may find a meaningful ADR premium relative to acquisition cost.

Average RevPAN by property size in Damariscotta

One-bedroom properties deliver a RevPAN of $55, reflecting the interplay between a $121 ADR and a 45% occupancy rate. While modest on its own, this figure is consistent with a seasonal market where peak-month performance substantially outweighs the winter lull.

Average occupancy rates by property size in Damariscotta

One-bedroom units maintain a 45% average occupancy rate, actually exceeding the market-wide average of 38%. This suggests smaller properties have an easier time filling nights, potentially because their lower price point appeals to a broader range of guests year-round.

Average monthly revenue by property size in Damariscotta

One-bedroom listings average $2,156 per month, falling below the market-wide average of $3,857—a gap that implies larger or higher-end properties in the market are pulling in substantially more. Investors targeting the 1-bedroom segment should set conservative revenue expectations while recognizing lower acquisition and operating costs.

Average annual revenue by property size in Damariscotta

At $25,882 in average annual revenue, 1-bedroom properties earn roughly 56% of the market-wide average of $46,289. For investors with lower capital to deploy, a 1-bedroom can still serve as a viable entry point, though larger configurations appear to offer considerably stronger return potential.

Most common amenities for Airbnb listings in Damariscotta

Parking is universal across Damariscotta listings (100%), followed closely by kitchens (91%) and backyards (73%)—reflecting a market where guests expect a home-like, self-sufficient experience in a rural setting. Outdoor amenities like patios (64%), outdoor furniture (46%), and BBQ grills (36%) are common differentiators, signaling that guests prioritize enjoying the Midcoast landscape from the property itself.

Understanding Damariscotta's ROI Score: 70/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Damariscotta's ROI score of 70 out of 100 places it in the "Attractive Opportunity" band, driven primarily by above-average occupancy stability and a positive market growth trend. The revenue-to-price ratio and supply/demand balance score as average, reflecting the reality that home values of nearly $673K require meaningful seasonal revenue to justify the investment. Investors should pair this score with thorough local regulatory research and a realistic seasonal cash-flow model before committing.

Short-Term Rental Regulations in Damariscotta

Understanding local STR regulations is essential before investing in Damariscotta. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Damariscotta, Maine may be required to register or obtain a permit before listing their property. Investors should verify current requirements directly with the Town of Damariscotta and the State of Maine, as local ordinances can change.

Key Restrictions

Common STR restrictions in small Maine towns can include occupancy limits, minimum stay requirements, noise ordinances, and parking regulations. HOA rules may also apply in certain developments, and some municipalities cap the number of active permits, so it's important to confirm any such limitations before purchasing a property.

Tax Obligations

Maine levies a lodging tax on short-term rentals, and hosts are typically responsible for collecting and remitting this to the state. Platforms like Airbnb often handle tax collection automatically, but investors should confirm compliance with both state and local tax obligations.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Damariscotta can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Damariscotta's STR market is expected to continue maturing as new listings absorb growing visitor interest in Maine's Midcoast region. Summer months should remain the dominant revenue driver, with July and August likely sustaining ADRs in the $200+ range and peak monthly revenues above $10,000. Shoulder-season performance in June and September may see incremental gains as the market gains visibility, potentially pushing annual revenue estimates 3–5% higher. Investors should plan conservatively for winter months, where revenue can dip below $1,000, and budget accordingly for a heavily seasonal cash-flow pattern."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Damariscotta, ME

What is the average Airbnb occupancy rate in Damariscotta?

The average Airbnb occupancy rate in Damariscotta is currently 38%, which is below the Maine state average of 55%. However, this figure reflects the heavily seasonal nature of the market—summer months see significantly higher occupancy, while winter months bring it down. Investors focused on optimizing pricing and minimum stays during peak season can outperform this average.

How much do Airbnb hosts make in Damariscotta?

On average, Airbnb hosts in Damariscotta earn approximately $3,857 per month or $46,289 per year based on trailing 12-month booking data. Revenue is heavily concentrated in July and August, when monthly earnings can exceed $10,000. Winter months are considerably quieter, with revenues typically falling below $1,000.

Is Damariscotta a good market for Airbnb investment?

Damariscotta scores 70 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" category. The market benefits from above-average occupancy stability, a positive growth trend, and extremely limited competition with only 11 active listings. The main consideration is its pronounced seasonality—investors should be comfortable with a business model that generates the majority of annual revenue during summer months.

What is the average daily rate (ADR) for Airbnb in Damariscotta?

The average daily rate for Airbnb listings in Damariscotta is $207, which is roughly half the Maine state average of $415. This lower ADR reflects the market's concentration of smaller 1-bedroom properties, which average $121 per night. Larger properties, if they enter the market, would likely command higher nightly rates.

Are short-term rentals legal in Damariscotta?

Short-term rentals are generally permitted in Damariscotta, Maine, though operators may need to comply with local registration or permitting requirements. As regulations can evolve, prospective investors should check directly with the Town of Damariscotta and the State of Maine to confirm current rules before listing a property.

When is peak season for Airbnb in Damariscotta?

Peak season in Damariscotta runs from July through August, when average monthly revenues reach $10,638 and $11,278 respectively. June and September serve as strong shoulder months, each generating around $4,900–$5,000 in average revenue. The off-season spans November through March, with monthly revenues ranging from roughly $850 to $1,560.

How many Airbnbs are there in Damariscotta?

As of April 2026, there are 11 active Airbnb listings in Damariscotta. This represents a 90% year-over-year increase in supply, indicating growing investor interest. Despite this growth, the market remains very small, which means less direct competition for well-positioned properties.

How is Airbnb revenue calculated in Damariscotta?

The annual and monthly revenue figures for Damariscotta are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the remaining data up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently, while naturally reflecting seasonal peaks and slower months because each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for Damariscotta and surrounding areas
• Occupancy rates and average daily rate (ADR) trends across property sizes
• Revenue metrics including monthly, annual, and RevPAN calculations based on trailing 12-month booking data
• Home value estimates sourced from Zillow Home Value Index (ZHVI)
• Data aggregated from multiple providers and processed by Rabbu's proprietary analytics for consistency

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and may not capture very recent market shifts or regulatory changes. Individual property results will vary based on location, condition, amenities, pricing strategy, and management quality.