Short-term rental (Airbnb) rules in Falmouth, Maine
Yes, if you register. Falmouth requires every short-term rental (stays under 30 consecutive days) to be registered with the town and renewed each year by January 1. You must be the owner, name an emergency contact who can respond within 60 minutes, and show at least $1 million in liability coverage.
| What counts as a short-term rental | Renting a dwelling unit, in whole or part, for less than 30 consecutive days [1] |
| Registration | Required before advertising or renting; renew annually by January 1 [2] |
| Who can register | Owners only, not renters or lessees; not transferable to a new owner [3] |
| Fee | Non-refundable fee set by Town Council fee schedule (amount not in ordinance) [4] |
| Emergency contact response time | Within 60 minutes [5] |
| Insurance | Property and general liability coverage of at least $1 million aggregate (or equal platform coverage) [6] |
| Fine for operating unregistered | $1,000 per day first offense; $1,500 per day for additional offenses [7] |
Registration
Falmouth's Short-Term Rental Ordinance (Code Ch. II-23) covers any rental of a dwelling unit, in whole or part, for less than thirty consecutive days [1]. Since January 1, 2022, you can't advertise, operate or rent a short-term rental without first registering it, and the registration must be renewed every year on or before January 1 [2]. Only the owner can register; registrations don't transfer to a new owner or to a different unit [3]. Hotels, motels and bed and breakfasts are exempt.
What the application needs
The annual form asks for a non-refundable fee set by the Town Council's fee schedule [4], the address and map/lot, all owners' contact information, the type of property (single-family, two- or multi-family, or accessory dwelling unit), whether you rent all or part of the unit, and whether it is owner-occupied, tenant-occupied or non-owner-occupied and your primary residence. You must name an emergency contact who can respond within sixty minutes to complaints [5], and provide a certificate of insurance showing property and general liability coverage of at least $1 million, or proof that your booking platform provides equal coverage [6].
What we didn't find
The ordinance asks about owner-occupancy and primary residence but, in the text we reviewed, doesn't cap the number of rentals, set a minimum stay, or ban non-owner-occupied rentals. Any zoning limits on short-term rentals would be in the Zoning Ordinance (Ch. II-19), which we couldn't review. The copy we have is the ordinance as adopted July 26, 2021, so later amendments may not be reflected.
Penalties
Operating or advertising without a valid registration can bring a fine of $1,000 per day for a first offense and $1,500 per day for each additional offense; other violations carry $500 per day [7].
Maine's 9% lodging tax and Maine Revenue Services registration rules apply separately (see the state section on this page).
See how Falmouth compares with 8+ other Maine towns on short-term rentals (airbnb / vrbo) →
Next steps
- Register the unit with the Town of Falmouth on the town's short-term rental registration form before you list it, and renew by January 1 each year.
- Get a certificate of insurance that acknowledges short-term rental use and shows at least $1 million in liability coverage, or document your platform's coverage.
- Designate an emergency contact who can respond within 60 minutes.
- Ask the Falmouth Code Enforcement Division (207-699-5310) about the current registration fee and whether zoning rules apply to your unit, especially an accessory dwelling unit.
Common questions
- Can I Airbnb my house in Falmouth, Maine?
- Yes, if you register. Falmouth requires every short-term rental (stays under 30 consecutive days) to be registered with the town before you advertise or rent, and renewed each year by January 1. Only the owner can register.
- What insurance do I need for a short-term rental in Falmouth, Maine?
- You must show property and general liability coverage of at least $1 million, or proof that your booking platform provides equal coverage. You must also name an emergency contact who can respond within 60 minutes.
- What is the fine for an unregistered short-term rental in Falmouth, Maine?
- Operating or advertising without a valid registration can bring a fine of $1,000 per day for a first offense and $1,500 per day for each additional offense.
- Does Falmouth, Maine limit the number of short-term rentals?
- The ordinance text reviewed doesn't cap the number of rentals, set a minimum stay, or ban non-owner-occupied rentals. Zoning limits, if any, would be in the Zoning Ordinance, which wasn't reviewed, so ask Code Enforcement.
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. 23.2 Definitions, Ch. II-23 Short-Term Rental Ordinance (Ordinance No. 21-2022), p. 3
Short-term Rental: the advertising, offering for rent, use, control, management, or operation of a dwelling unit in whole or in part, for dwelling, sleeping, or lodging purposes for a period of less than thirty consecutive days; for compensation, directly or indirectly.
- Sec. 23.4 Registration Required, Ch. II-23 Short-Term Rental Ordinance (Ordinance No. 21-2022), p. 3
Effective January 1, 2022, no person shall advertise, operate, or rent a short-term rental without first registering the short-term rental unit with the Town of Falmouth. Registration must be renewed annually on or before January 1.
- Sec. 23.4 Eligibility for Registration/Renewal, Ch. II-23 Short-Term Rental Ordinance (Ordinance No. 21-2022), p. 3
Short-term rental registrations may not be granted to a renter, lessee, or any other party who is not the owner of the proposed short-term rental unit(s).
- Sec. 23.5(1) Information/Documentation Required, Ch. II-23 Short-Term Rental Ordinance (Ordinance No. 21-2022), p. 4
Non-refundable registration fee for each short-term rental as described on a fee schedule established by Town Council order.
- Sec. 23.5(11) Emergency Contact, Ch. II-23 Short-Term Rental Ordinance (Ordinance No. 21-2022), p. 4
The emergency contact person(s) must be able to respond within sixty minutes to complaints regarding the condition, safety, or operation of the short- term rental, or the conduct of guests; and
- Sec. 23.5(12) Certificate of Insurance, Ch. II-23 Short-Term Rental Ordinance (Ordinance No. 21-2022), p. 4
At the time of registration, the owner must provide a certificate of insurance that expressly acknowledges that said property may be used for short-term rental business activity and evidencing (a) property insurance and (b) general liability insurance appropriate to cover the rental use of said property in the aggregate of not less than $1 million or proof that the Owner conducts rental transactions for said property through a hosting platform that provides equal or greater coverage.
- Sec. 23.6 Enforcement, Penalties, Ch. II-23 Short-Term Rental Ordinance (Ordinance No. 21-2022), p. 5
For the violation of operating and/or advertising the rental of a short-term rental without a valid registration, the violator may be penalized with a per day fine of $1,000 for the first offense and an additional per day fine of $1,500 for each additional offense, to be recovered upon complaint to Maine District Court or Superior Court, for use of the Town.