Frederick, MD Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

48 / 100

Frederick presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Frederick Short-Term Rental Market Overview

Frederick, MD is a historic market roughly an hour from Washington, D.C. that draws a mix of weekend visitors, remote workers, and event-goers. With 142 active Airbnb listings, an average daily rate of $155, and a market-wide occupancy rate of 34%, the market generates an average annual revenue of $23,730 per listing. While home values averaging $654,716 make the revenue-to-price ratio tight, selective deal sourcing—particularly in larger property sizes—can still unlock worthwhile returns.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 142
Average Daily Rate (ADR) vs. $368 state avg. $155
Average Occupancy Rate vs. 35% state avg. 34%
RevPAN ADR * Occupancy Rate $53
Average Monthly Revenue Historical 12-month average $1,977
Average Annual Revenue Historical 12-month average $23,730

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Frederick

Frederick appeals to investors seeking proximity to the D.C. metro area combined with a charming downtown that draws leisure travelers, but the competitive landscape requires careful property selection to achieve strong returns.

Key investment factors

  • Proximity to Washington, D.C. generates steady weekend and getaway demand
  • Larger properties (3–4 bedrooms) deliver significantly higher RevPAN and annual revenue
  • A workspace amenity presence of 66% signals meaningful remote-worker and business traveler appeal
  • Seasonal peaks in summer and October align with Frederick's event calendar and tourism draw
  • Parking available in 92% of listings reflects a car-dependent market where driveway access is a baseline expectation

Expert Market Assessment

"Frederick represents a competitive opportunity where investor interest is clearly growing—listing counts surged 154% year-over-year—but the revenue-to-price ratio and supply-demand balance both sit below average. Seasonality is moderate: revenues roughly double from the January low of $1,107 to the July peak of $2,535, with a strong secondary peak in October at $2,371. For investors willing to pursue larger properties (3- and 4-bedroom units pull in $35,118 and $59,477 annually, respectively), the math improves considerably compared to the 1-bedroom segment that dominates current supply."

— Rabbu Market Analysis Team

Understanding Frederick's ROI Score: 48/100

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

Factor Frederick Performance Weight
Revenue-to-Price Ratio Below average 40%
Occupancy Stability Average 30%
Market Growth Trend Below average 15%
Supply/Demand Balance Below average 15%

What This Means for Investors

Frederick's ROI Score of 48 out of 100 places it in the 'Competitive Opportunity' band, indicating that while demand exists, investors face headwinds from a below-average revenue-to-price ratio and a supply-demand balance that's tilting toward competition as listings grow rapidly. Occupancy stability rates as average, offering some cash-flow predictability, but the below-average market growth trend suggests returns may depend more on smart property selection than broad market tailwinds. Pairing this data with thorough local regulatory research and targeting higher-RevPAN property sizes will be key to making the numbers work.

Short-Term Rental Regulations in Frederick

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

Permit Requirements

Short-term rental operators in Frederick, Maryland may be required to obtain a permit or register their property with the city before accepting guests. Investors should verify current requirements directly with Frederick's planning or licensing office and check Maryland state-level regulations.

Key Restrictions

Common restrictions in markets like Frederick can include occupancy limits tied to bedroom count, minimum-stay requirements, noise and nuisance ordinances, designated parking mandates, and potential caps on the number of permits issued. HOA and condo association rules may impose additional layers of restriction that supersede city policy, so reviewing governing documents before purchasing is essential.

Tax Obligations

Maryland requires short-term rental operators to collect and remit state sales tax and any applicable local lodging or occupancy taxes. Many booking platforms handle collection automatically, but hosts should confirm their obligations with the Maryland Comptroller's office and Frederick County to ensure full compliance.

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

Short-Term Rental Financing for Frederick

Financing an Airbnb investment in Frederick requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Frederick Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Frederick's STR market is likely to remain competitive as listing counts have grown significantly (154% year-over-year). Seasonal patterns suggest peak revenues in the May–July and October windows, with softer months in January and February pulling occupancy down. Investors should expect ADR to hold relatively steady in the $150–$165 range market-wide, while occupancy may face modest pressure from the expanding supply. Targeting larger, higher-RevPAN property types and differentiating on amenities could help offset the tighter supply-demand dynamics."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Frederick, MD

What is the average Airbnb occupancy rate in Frederick?
The average Airbnb occupancy rate in Frederick is currently 34%, which is just below the Maryland state average of 35%. Occupancy varies meaningfully by property size—2-bedroom listings lead at 44%, while 1-bedroom and 4-bedroom units both sit around 31%. Seasonality also plays a role, with the busiest months running from May through November.
How much do Airbnb hosts make in Frederick?
On average, Frederick Airbnb hosts earn approximately $1,977 per month, or about $23,730 annually, based on the trailing 12 months of booking data. Earnings vary widely by property size: 1-bedroom listings average $15,754 per year, while 4-bedroom properties bring in roughly $59,477. Peak months like July can push monthly revenue above $2,500.
Is Frederick a good market for Airbnb investment?
Frederick scores a 48 out of 100 on Rabbu's ROI Score, placing it in the 'Competitive Opportunity' category. This means demand and investor interest are solid, but higher home values (averaging $654,716) and growing competition require more selective deal sourcing. Investors who focus on larger, higher-revenue property types and differentiate with strong amenities can still find attractive opportunities here.
What is the average daily rate (ADR) for Airbnb in Frederick?
The average daily rate in Frederick is $155, which is well below the Maryland state average of $368. ADR scales significantly with property size—from $112 for 1-bedroom listings up to $337 for 4-bedroom properties. This pricing structure reflects the market's mix of compact downtown stays and larger family-oriented homes.
Are short-term rentals legal in Frederick?
Short-term rentals operate in Frederick, MD, as evidenced by the 142 active Airbnb listings currently in the market. However, local regulations regarding permits, zoning, and operational requirements can change, so prospective investors should verify the latest rules with Frederick city officials and review any applicable Maryland state regulations before purchasing a property.
When is peak season for Airbnb in Frederick?
Peak season in Frederick runs from May through July, when average monthly revenues reach $2,333 to $2,535. October also delivers a strong secondary peak at $2,371, likely driven by fall tourism and local events. The softest months are January ($1,107) and February ($1,263), so investors should plan cash flow around this seasonal pattern.
How many Airbnbs are there in Frederick?
As of April 2026, there are 142 active Airbnb listings in Frederick. The market has experienced significant growth, with a 154% year-over-year increase in listings. One-bedroom units make up the largest share of supply at 77 listings, followed by 3-bedroom (25), 2-bedroom (24), and 4-bedroom (8) properties.
How is Airbnb revenue calculated in Frederick?
The annual and monthly revenue figures shown for Frederick 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 results up to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks (like July at $2,535) and slower periods (like January at $1,107). Individual results can vary based on property quality, pricing strategy, and how well a listing is managed.

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 by market and property size
  • Average daily rate, occupancy, and RevPAN metrics broken down by bedroom count
  • Monthly and annual revenue trends based on trailing 12-month historical booking data
  • Amenity prevalence data across active listings to identify guest expectations
  • Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and current snapshots; market conditions can shift due to regulatory changes, economic factors, or seasonal variability. Local short-term rental regulations may change. Investors should independently verify permit requirements, tax obligations, and zoning restrictions before purchasing.

Next Steps

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