Short Term Rentals in Maine vs New Hampshire

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Short Term Rentals in Maine vs New Hampshire

Rachael Chen
Member since 2021 · 2 posts · 0 votes

Hi! I'm looking into buying a short-term rental property near Sebago Lake in Maine or in the Lakes Region in New Hampshire (Newfound, Winnipesaukee, Ossipee areas). The cost of entry seems much higher in the NH Lakes Region, but it seems like this area does better for year-round rentals, whereas Sebago Lake would likely be seasonal. Would love to hear from anyone who has an STR(s) in any of these areas, and what your experience has been like. Thanks!


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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    2mo

    Try reaching out to local Host groups for market intel.

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2mo

    From a personal standpoint I really like the NH lakes area @Rachael Chen.

    That is just my personal feelings about the area.

    Have you researched rules/regs, nightly rates, occupancy etc etc for both areas?

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  • Dan WeberBusiness Member
    Realtor · Portland, ME · Member since 2015 · 656 posts · 552 votes
    2mo

    I think you’re right that the Sebago Lake area tends to be more seasonal. You’ll obviously get strong summer demand, but I wouldn’t expect the same consistency year-round as some other parts of ME. And as you said, that is reflected in the price when comparing to NH.

    That said, there are definitely ME markets that can support year-round STR demand. Coastal areas within driving distance of Portland can do well throughout the year, and the mountain regions are strong too. Areas with easy access to Sunday River, Sugarloaf, or Saddleback have both winter ski traffic and summer/fall demand from hiking, biking, weddings, foliage, etc.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2mo

    Looks like you found a local here but this area is niche, for more perspectives I would recommend connecting to people on local host groups on FB

    [email protected]813-563-0877
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  • Jaylan ArcherBusiness Member
    Real Estate Agent · Portsmouth, NH · Member since 2014 · 150 posts · 65 votes
    2mo

    Both are great areas and markets! Would you be looking to use the space at all yourself or is it strictly an investment?

    I own in the southern Maine market which is a bit more of a beach market compared to Sebago. However, I think you are spot on that seasonality is going to be huge around Sebago. I'd say somewhere around 60-70% of the revenue will be between May and September. A lot of owners end up going the route of a winter tenant. 

    Those NH markets just have a more robust year round appeal. Winnipesaukee will always have a reputation for enjoyable summer seasons. However, it's boosted by Gunstock Mountain winter skiing, autumn foliage tourism, and year-round event traffic in towns like Meredith, Wolfeboro, and Laconia. 

    I think overall, the trick is going to be finding that right property that makes the difference in the world of STR's.

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    • Patrick McCannPro Member
      Realtor · NH · Member since 2022 · 113 posts · 59 votes
      2mo
      Quote from @Jaylan Archer:

      Both are great areas and markets! Would you be looking to use the space at all yourself or is it strictly an investment?

      I own in the southern Maine market which is a bit more of a beach market compared to Sebago. However, I think you are spot on that seasonality is going to be huge around Sebago. I'd say somewhere around 60-70% of the revenue will be between May and September. A lot of owners end up going the route of a winter tenant. 

      Those NH markets just have a more robust year round appeal. Winnipesaukee will always have a reputation for enjoyable summer seasons. However, it's boosted by Gunstock Mountain winter skiing, autumn foliage tourism, and year-round event traffic in towns like Meredith, Wolfeboro, and Laconia. 

      I think overall, the trick is going to be finding that right property that makes the difference in the world of STR's.

      Additionally, Winnipesaukee has some large events on the ice during the winter such as the pond hockey tournament, ice fishing derby, and ice run way that draw in large crowds.

      I had a friend who leased a off season winter rental on Sebago to stay in while he rehabbed a property to move into.
      [email protected]603-818-9095
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  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 123 votes
    2mo
    Quote from @Rachael Chen:

    Hi! I'm looking into buying a short-term rental property near Sebago Lake in Maine or in the Lakes Region in New Hampshire (Newfound, Winnipesaukee, Ossipee areas). The cost of entry seems much higher in the NH Lakes Region, but it seems like this area does better for year-round rentals, whereas Sebago Lake would likely be seasonal. Would love to hear from anyone who has an STR(s) in any of these areas, and what your experience has been like. Thanks!


    @Rachael Chen
    Rachael, I'd compare more than just purchase price and occupancy. Look at local STR regulations, seasonality, historical revenue, operating costs, and whether the property's projected income still works during slower months. Sometimes a market with a higher purchase price can produce more consistent year-round cash flow, while a lower-cost market may rely heavily on peak seasons. Good luck with your search!

    786-656-0387
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  • Bianca BarcelosBusiness Member
    NH · Member since 2026 · 88 posts · 48 votes
    2mo

    There is incredible value in the Lakes Region. I'm a local investor and agent in NH so I can only speak to that area vs Sebago in ME but obviously I'm bias toward NH for those reasons. :)

    I do think that while Sebago Lake provides an accessible entry point, the NH Lakes Region generates (and has potential to generate) higher year-round consistency - it's an increasingly year round spot, not just seasonal anymore.  You have summer boating and swimming, fall leaf peeping, winter skiing, and year-round hiking, sight seeing, and exploring!

    I'll caution you on navigating local regulations in that lakes region though.  New Hampshire has no statewide short-term rental ban but restrictions are managed strictly on a town-by-town level so we'd just need to make sure that you're making decisions with that in mind (current and future planning on zoning, permitting, etc.).

    That area in NH that you're thinking about too supports a mid-term rental market (around 3-6 month stays) for traveling healthcare workers, remote workers, winter ski renters, "snowbirds" and relocating buyers.

    If you're interested in chatting more specifically about a town or two in the area, let me know! If you're local I'd love to chat over coffee too - talk soon.

    [email protected]
    Bianca Barcelos, Real Estate55 Reviews
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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    New Hampshire has no state income tax while Maine does, so if you're a Maine resident buying in either state, that STR income gets taxed on your Maine return either way, since Maine taxes residents on worldwide income. Buying in NH only actually saves you state tax if you're also an NH resident; otherwise it's a wash on the state side and the market fundamentals should drive the decision.

    The seasonal angle matters more for the STR loophole than most people realize. Average guest stay needs to be 7 days or less (or 30 with substantial services) for the property to get non-passive treatment through material participation. A heavily seasonal property that books longer average stays during a shorter window can quietly push that average up, so it's worth running the math on actual comparable listings before assuming either market clears the test the same way. Whichever you land on, a cost segregation study is worth doing regardless given the appreciation and income potential in both markets.

    Happy to connect!

    [email protected]941-914-7779
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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    New Hampshire has no state income tax while Maine does, so if you're a Maine resident buying in either state, that STR income gets taxed on your Maine return either way, since Maine taxes residents on worldwide income. Buying in NH only actually saves you state tax if you're also an NH resident; otherwise it's a wash on the state side and the market fundamentals should drive the decision.

    The seasonal angle matters more for the STR loophole than most people realize. Average guest stay needs to be 7 days or less (or 30 with substantial services) for the property to get non-passive treatment through material participation. A heavily seasonal property that books longer average stays during a shorter window can quietly push that average up, so it's worth running the math on actual comparable listings before assuming either market clears the test the same way. Whichever you land on, a cost segregation study is worth doing regardless given the appreciation and income potential in both markets.

    Happy to connect!

    [email protected]941-914-7779
    INVESTOR FRIENDLY CPA®5240 Reviews
    WebsiteView Page
    TaxMD® | Tax Planning Software
    WebsiteView Page
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