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Ocean City, MD — Market Intelligence Report
Researched by Chalet's Senior STR Analysts · Verified with local Ocean City market partners
Ocean City, Maryland’s short-term rental market is defined by its sharp seasonal revenue spikes and a highly active operator base, with full-time listings averaging $17,107 in annual revenue (Chalet data, 2,095 active listings). This headline figure captures the reality for committed hosts, while the broader whole-market median of $36,145 is buoyed by a large cohort of part-time and casual listings. Median occupancy sits at 26% across the year, with an average daily rate (ADR) of $318 and a median gross yield of 8.28% against a median home value of $436,512. Nationally, Ocean City ranks #240 for STR performance. The market’s defining feature is its extreme seasonality: peak revenue in August hits $5,691 per listing at 82% occupancy and $371 ADR, while the January trough collapses to just $1,090 and 0% occupancy, underscoring the necessity of precise cash flow management and off-season strategy.
For investors targeting scale, bedroom count is a decisive lever. Three-bedroom properties represent 26% of supply and deliver an average annual revenue of $19,972 at a $386 ADR and 22% occupancy, offering a robust middle ground for both yield and operational flexibility. Four-bedroom homes—though a smaller slice at 6% of inventory—push average annual revenue to $26,588, with ADRs climbing to $466 and occupancy holding at 23%. Larger assets (5BR and up) show even higher revenue potential, but the sample sizes thin out, and occupancy softens. For those seeking a resilient, proven product, the 2,229 listings in zip code 21842 (the city’s core) post a median annual revenue of $36,184, a $319 ADR, and an 8.3% yield on a $438,299 median home value—an attractive combination for buyers seeking both liquidity and operational scale. For on-the-ground insights and acquisition support, connect with a Chalet agent.
Ocean City’s guest demand is overwhelmingly regional, with less than 1% international share. Baltimore, Washington DC, Philadelphia, New York, and Pittsburgh collectively drive over 14% of all reviews—underscoring the city’s status as a Mid-Atlantic drive-market mainstay. Booking lead times average 49 days (median 28), and stays run just under five nights, supporting a steady cadence for turnover-focused operators. The market’s top hosts—Vacasa Ocean City, Seaside Vacations & Sales, Shoreline Properties—control a significant share of inventory, but the diversity of operators (1,456 hosts, 801 superhosts) leaves room for new entrants with differentiated product or management. To model returns at the property level, use the Chalet ROI calculator.
Risks are concentrated and material. The most significant headwind is a -3.3% year-over-year decline in median home value, reflecting both broader market softness and the impact of regulatory friction. The city’s regulatory regime is stable for incumbents but restrictive for new entrants: short-term rentals remain legal, but new licenses are paused in R-1 and MH districts through at least 2027, and all operators must comply with a 12% lodging tax stack, annual licensing, and local agent requirements. The January trough—0% occupancy and minimal revenue—demands robust off-season planning and reserves. For a detailed compliance roadmap, review Ocean City STR regulations.
Ocean City’s STR market rewards disciplined, full-time operators who can navigate deep seasonality and regulatory constraints, but the -3.3% YoY home value decline is a clear signal that asset selection and timing are more critical than ever.
Get matched with top Ocean City, MD lenders who specialize in short-term rental financing — they understand STR underwriting and offer competitive rates for investment properties.
