Short-term rental (Airbnb) rules in Cape Elizabeth, Maine
Only in limited ways. Cape Elizabeth requires an annual Short Term Rental Permit from the Code Enforcement Officer for any stay under 30 days, and allows just four types: renting part of your primary home while you're there, renting your whole primary home while away for up to 42 days a year, a property on 7+ acres (up to 182 days), or a second unit next to your home while you're in residence (up to 105 days). Rentals are limited to one booking per 7-day period (two if hosted), and STRs aren't allowed in accessory dwelling units.
| What counts as an STR | Any tenancy under 30 consecutive days [1] |
| Permit | Annual Short Term Rental Permit; renewal deadline January 2 [3] |
| Allowed types | Four types only; one STR per lot per year [2] |
| Primary residence, unhosted | Up to 42 days per year [4] |
| 7+ acre lot | Up to 182 days per year [5] |
| STR Adjacent (owner on same or abutting lot) | Up to 105 days per year [9] |
| Rental frequency | 1 rental per 7 days (2 if hosted) [6] |
| Occupancy limit | 2 tenants per bedroom plus 2 for one extra sleeping space [11] |
| Max tenants, lot of 30,000 sq ft or less | 8 tenants (and 8 guests) [7] |
| ADUs | May not be used as STRs [10] |
What needs a permit
Any rental of a dwelling or part of one for less than 30 consecutive days, other than hotels, motels and B&Bs, is a short-term rental [1]. You can't advertise, rent or operate one without a Short Term Rental Permit, which is good for one calendar year; applications are due January 2, and late ones count as late after 30 days [3]. Only the property owner can get a permit. Operating without a permit means a double fee, and a second failure within 5 years bars a permit for a year. Fees are set in the Town Fee Schedule.
Allowed types
Only four types are allowed, one STR per lot per year [2]:
- Primary residence hosted: you stay overnight during the rental, inside your own unit.
- Primary residence unhosted: your whole home while you're away, up to 42 days a year [4].
- Seven acres plus: primary or second home on a lot of 7+ acres, up to 182 days a year [5].
- Short Term Rental Adjacent: a non-primary home on your lot or an abutting lot, with you in residence, up to 105 days a year [9].
Operating rules
Only one rental per 7-day period is allowed (two for hosted), and the property must stay vacant for the rest of the week after a shorter stay [6]. Tenants are limited to two per bedroom plus two more for one extra sleeping space [11], and lots of 30,000 sq ft or less are capped at 8 tenants, 8 guests and 4 on-site parking spaces [7]. On-street parking by tenants or guests is prohibited [8]. You need interconnected smoke alarms, CO alarms, fire extinguishers and emergency lighting, a posted evacuation plan, records of all rentals, and a contact who responds within 30 minutes. An ADU can't be used as a short-term rental [10].
Inspection and enforcement
The Code Enforcement Officer inspects before the first permit and at least every 5 years. Substantiated complaints can lead to suspension, and a third within 3 years revokes the permit for 3 years.
See how Cape Elizabeth compares with 8+ other Maine towns on short-term rentals (airbnb / vrbo) →
Next steps
- Decide which of the four permitted STR types fits your situation and its day limit.
- Install the required smoke alarms, CO alarms, fire extinguisher(s) and emergency lighting, and prepare floor plans showing them.
- Submit the Short Term Rental permit application, fee, parking plan and rental-agreement addendum to the Code Enforcement Office (contact details at capeelizabeth.gov) by January 2.
- Pass the Code Enforcement Officer's inspection, then include your permit number in every listing.
Common questions
- Can I Airbnb my house in Cape Elizabeth, Maine?
- Only in limited ways. You need an annual Short Term Rental Permit from the Code Enforcement Officer, and only four types are allowed, with one STR per lot per year. Only the property owner can get a permit.
- How many days can I rent my home in Cape Elizabeth, Maine?
- It depends on the type. Your whole primary home while away: up to 42 days a year. A property on 7 or more acres: up to 182 days. A second unit next to your home while you're in residence: up to 105 days.
- Can I rent an ADU on Airbnb in Cape Elizabeth, Maine?
- No. ADUs may not be used as short-term rentals.
- How many guests are allowed in a short-term rental in Cape Elizabeth, Maine?
- Two tenants per bedroom plus two more for one extra sleeping space. Lots of 30,000 sq ft or less are capped at 8 tenants, 8 guests and 4 on-site parking spaces.
- When is the short-term rental permit due in Cape Elizabeth, Maine?
- The permit is good for one calendar year, and applications are due January 2. Operating without a permit means a double fee.
Maine state rules for short-term rentals
No statewide STR license. Maine has no state registration or permit for Airbnb/VRBO hosts. State law instead lets each town regulate short-term rentals (30-A M.R.S. §4364-C(2), passed in 2022). Check your town's rules.
Lodging tax (Maine Revenue Services):
- Rentals of living quarters are taxed at 9%, still the rate in 2026.
- Booking platforms such as Airbnb and VRBO must register with the state and collect the tax on bookings made through them.
- If you rent a single unit for fewer than 15 days a year, you generally aren't a "retailer" and don't need to register.
- If you rent 15 days or more in a year, you must register with Maine Revenue Services and collect tax on any bookings you take directly.
- A stay of 28+ days in a row is tax-exempt only in certain cases, such as when the unit is the guest's primary residence.
No state lodging license for vacation rentals. Maine's lodging-license law leaves out "vacation rentals," meaning homes rented to people with a permanent home elsewhere. B&Bs, inns and hotels do need a license.
ADUs: Starting July 1, 2027, towns can't require ADU owners to live on the property. State guidance says towns can still regulate STRs, for example by requiring registration or banning STRs in ADUs.
What the ordinance says
- Sec. 19-1-3 Definitions, "Short Term Rental", Chapter 19 Zoning Ordinance (includes maps & appendices), p. 27
Short Term Rental: The advertising, offering for rent, use, or otherwise making available for transient occupancy a dwelling, or portion of a dwelling for a tenancy of less than thirty (30) consecutive calendar days, excluding motels, hotels, and bed and breakfasts.
- Sec. 19-8-14(B), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 252
The following types of Short Term Rentals may be allowed after obtaining all required permits. Short Term Rental types not listed below are prohibited. Only one Short Term Rental may be operated on a lot in a calendar year, and limited to only one of Short Term Rental types listed below for the calendar year.
- Sec. 19-8-14(C)(1), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 253
No Short Term Rental shall be advertised, rented or operated without first obtaining a Short Term Rental Permit. A Short Term Rental permit shall be valid for the calendar year in which the permit is issued. A permit application received more than thirty (30) days after the permit deadline, which shall be January 2nd of the year the Short Term Rental will be operating, shall be considered late.
- Sec. 19-8-14(B)(2), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 252
A Short Term Rental may be operated by a property owner in their primary residence when the property owner is not in residence during the tenancy of the Short Term Rental tenants. The property may be used as a Short Term Rental for no more than forty-two (42) days per calendar year.
- Sec. 19-8-14(B)(3), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 252
The property may be used as a Short Term Rental for no more than one-hundred eighty-two (182) days per calendar year.
- Sec. 19-8-14(C)(3), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 253
Rental Intensity. No more than one (1) rental/use of the Short Term Rental may occur in a seven (7) day period, except that a Primary residence hosted may be allowed up to two (2) rental/uses in a seven (7) day period.
- Sec. 19-8-14(F)(6), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 257
If a Short Term Rental property is operated on a lot of thirty-thousand (30,000) sq. ft. or less in size, the Short Term Rental permit shall not allow occupancy by more than eight (8) tenants at any time.
- Sec. 19-8-14(F)(4), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 256
On-street parking by Short Term Rental tenants or guests is prohibited.
- Sec. 19-8-14(B)(4), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 252
The property may be used as a Short Term Rental for no more than one-hundred five (105) calendar days per calendar year.
- Sec. 19-7-5(B)(7), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 179
Short Term Rental Prohibition. No accessory dwelling unit shall be operated as a Short Term Rental, Sec. 19-8-14, Short Term Rental Standards.
- Sec. 19-8-14(F)(6), Chapter 19 Zoning Ordinance (includes maps & appendices), p. 256
The maximum tenant capacity of a Short Term Rental shall be limited to no more than two (2) tenants per bedroom, plus two additional tenants for no more than one (1) additional sleeping space.