Executive Overview: Are STRs Allowed in Ellsworth, ME?

Short-term rentals (STRs) are allowed in Ellsworth as of 2025. The city has not adopted a local STR licensing or permitting regime. In late 2020, the City Council enacted a temporary COVID‑19 ordinance (Chapter 63) to govern non‑resident visitors and STRs; that ordinance has since expired. Ellsworth is currently studying short‑term rentals and housing impacts and is considering potential zoning controls that could restrict where STRs may operate (particularly in residential zones), but no new local rules have been enacted yet. Consequently, investors must comply with applicable Maine state laws and general city ordinances (noise, property maintenance, shoreland zoning, etc.), and should plan for possible future zoning restrictions.

Source: www.ellsworthmaine.gov/government/city-ordinances-codes/ (see Chapter 63) Source: www.newscentermaine.com/article/news/local/housing/ellsworth-maine-ranks-2nd-best-place-to-own-airbnb-in-us-sparking-conversation-on-community-impact/97-522cb5bf-bf82-4535-b6f9-6da0ac48d840 Source: revedy.com/understanding-the-short-term-rental-market-in-ellsworth-maine/

How to Start an STR Business in Ellsworth

• Select a property and confirm its zoning. STRs are commercial activity; use the city’s Unified Development Ordinance (UDO) to verify permitted use status and any overlay requirements. Shoreland zoning applies near water and may include special standards (setbacks, height, lot coverage, vegetation, septic siting). Consult the UDO Table of Contents and zoning map, and engage Planning/Code Enforcement if use classification is not clear.
• Align the property with state and local standards. Implement life‑safety and habitability requirements (smoke/CO detection, egress, structural integrity) and address city ordinances that affect STRs: Noise (Chapter 23), Property Maintenance (Chapter 60), and Shoreland Zoning (UDO Article 4). If the site involves a mooring/harbor component, review the Harbor Ordinance and Overnight Mooring and Anchorage Control (Chapter 65).
• Register the property as a vacation rental and obtain a state permit. Maine law requires annual registration and a permit for vacation rentals, along with proof of appropriate insurance. Display the permit onsite.
• Set up Maine tax compliance. Collect and remit the combined 9% lodging tax (5% Maine sales tax + 4% lodging tax) and any applicable local taxes. Secure a Maine revenue account and file/pay on schedule.
• Establish compliance infrastructure. Create house rules for quiet hours, occupancy, parking, trash/recycling, and snow removal. Set up guest communications, check‑in, and contact information for local issues (noise complaints, emergencies).
• Operational planning for seasonality. Ellsworth’s STR market is highly seasonal (summer peak). Use the off‑season for maintenance, permit renewals, and regulatory monitoring. Consider management/PM services to maintain standards year‑round.

Source: www.ellsworthmaine.gov/government/city-ordinances-codes/ (UDO, Noise, Property Maintenance, Shoreland, Mooring) Source: legislature.maine.gov/legis/bills/bills_129th/billtexts/HP114701.asp (LD 1588) Source: revedy.com/understanding-the-short-term-rental-market-in-ellsworth-maine/ (market seasonality and regulatory status)

Required Documents, Permits, Licenses, and Guidelines

• State vacation rental permit (annual). Maine requires registration and an annual permit for vacation rentals. Provide proof of appropriate insurance at application. The statutory fee cap is $50 for the permit; additional inspection fees may apply if inspections are required. Display the permit in a visible location in the rental.
• Insurance. Maintain appropriate liability/property insurance for the STR.
• Life‑safety and habitability compliance. Ensure smoke and CO detectors, safe egress, structurally sound conditions, and sanitary standards consistent with Maine lodging rules and local ordinances.
• Zoning and shoreland compliance. Confirm the property’s zoning and comply with the UDO, including shoreland standards (Article 4) and performance standards (Article 8).
• Noise and property maintenance. Operate in compliance with Ellsworth’s Noise Ordinance (Chapter 23) and Property Maintenance Ordinance (Chapter 60). Inform guests of quiet hours and parking limits to prevent complaints.
• Harbor/mooring considerations (if applicable). If the rental property involves water‑related operations or guest moorings, review the Harbor Ordinance and the Overnight Mooring and Anchorage Control Ordinance (Chapter 65).
• Business registrations and tax accounts. Obtain any required state/local business accounts and set up tax remittance for the 9% lodging tax.
• Disclosure notice (if fewer than 3–5 rooms). Maine law provides an exception for small lodgings from full DHHS licensing, but such lodgings are considered “vacation rentals” and must still register and permit. In these situations, owners must post a visible notice stating the lodging is not inspected by the Maine DHHS and provide guests with the same notice at check‑in.

Note: As of 2025, Ellsworth does not require a city‑issued STR license or permit. State requirements, however, do apply.

Source: legislature.maine.gov/legis/bills/bills_129th/billtexts/HP114701.asp Source: www.ellsworthmaine.gov/government/city-ordinances-codes/ (Noise, Property Maintenance, Shoreland, Harbor, Mooring)

Specific Regulations for STRs (City/County/State)

City of Ellsworth (Local)

• No STR‑specific local licensing or permitting as of 2025. The temporary COVID‑19 STR ordinance (Chapter 63) has expired.
• Active ordinances that affect STR operations:
  • Noise Ordinance (Chapter 23): Establishes quiet hours and nuisance thresholds; plan to mitigate outdoor noise and late‑night gatherings.
  • Property Maintenance Ordinance (Chapter 60): Requires safe, sanitary, and maintained premises (exterior, grounds, trash, lighting).
  • Unified Development Ordinance (Chapter 56):
    • Shoreland Zoning (Article 4): Sets development standards for properties near water (setbacks, lot coverage, vegetation, septic).
    • Performance Standards (Article 8): General development standards (stormwater, outdoor storage, etc.).
  • Harbor Ordinance and Overnight Mooring and Anchorage Control (Chapters 3 & 65): Govern use of city harbors, moorings, and anchorage; if rentals tie into boating access, expect compliance obligations.
• Regulatory trajectory: Ellsworth is studying STR impacts and housing availability and considering zoning restrictions in residential neighborhoods. Monitor City Council/Planning Board agendas for any adopted changes.

Source: www.ellsworthmaine.gov/government/city-ordinances-codes/ Source: www.newscentermaine.com/article/news/local/housing/ellsworth-maine-ranks-2nd-best-place-to-own-airbnb-in-us-sparking-conversation-on-community-impact/97-522cb5bf-bf82-4535-b6f9-6da0ac48d840

Hancock County (County Level)

• The provided materials do not include county‑level STR rules. Focus on city and state requirements.

State of Maine (State Level)

• Registration and permit requirement: Vacation rentals must register annually with the Maine Department of Health and Human Services (DHHS) and obtain a permit; proof of appropriate insurance is required.
• Fee: Up to $50 for the vacation rental permit; additional inspection fees may apply.
• Insurance: Required as a condition of permit issuance.
• Inspections and enforcement: DHHS may inspect, impose fines, suspend/revoke permits, and pursue injunctions for violations.
• Exceptions and small‑lodging notifications: Small private homes and small rooms/cottages below statutory thresholds are exempt from full lodging licensing but are considered “vacation rentals” and must register/permit; they must display a state‑specified notice that the lodging is not inspected by DHHS and provide the notice to guests at check‑in.
• Taxes: The 9% lodging tax applies to short‑term rentals (5% sales tax + 4% lodging tax).

Source: legislature.maine.gov/legis/bills/bills_129th/billtexts/HP114701.asp

Local Authority Contacts (STRs and Related Compliance)

• Code Enforcement / Planning (primary for zoning and land use questions)
  • Phone: (207) 669‑6640
  • Email: planning@ellsworthmaine.gov
  • Office: City Hall
  • Address: 1 City Hall Plaza, Ellsworth, ME 04605
• City Hall (general)
  • Phone: (207) 667‑2563
  • Fax: (207) 667‑4908
• Ellsworth Fire Department (non‑emergency)
  • Phone: (207) 667‑8666
• Ellsworth Police Department (non‑emergency)
  • Phone: (207) 667‑2168

Note: For Maine DHHS vacation rental registration/permit questions, contact the Maine DHHS (Maine Center for Disease Control and Prevention) licensing line. Direct contact details were not provided in the sources; consult the state’s website or call the general DHHS number.

Source: www.ellsworthmaine.gov/government/city-ordinances-codes/ Source: www.ellsworthmaine.gov/contact/

Compliance Checklist

• Use/Right‑to‑Operate
  • Confirm zoning allows STR; verify shoreline/overlay standards.
• State Permit
  • Register vacation rental with DHHS, obtain annual permit, display onsite.
• Insurance
  • Maintain liability/property insurance; provide proof at application.
• Life‑Safety
  • Smoke/CO detection, egress, sanitation, structural safety.
• Taxes
  • Set up Maine sales/lodging tax accounts; collect/remit 9% lodging tax.
• Local Ordinances
  • Adopt policies for Noise, Property Maintenance, Shoreland, and (if applicable) Harbor/Moorings.
• Guest Communication
  • Provide quiet hours, parking limits, trash/recycling instructions, and local contacts.
• Monitoring
  • Track city planning, City Council, and Board of Appeals actions for new STR/zoning rules.

Source Pages

• Ellsworth City Ordinances & Codes (main index): www.ellsworthmaine.gov/government/city-ordinances-codes/
• Revedy STR Guide (market/regulatory commentary): revedy.com/understanding-the-short-term-rental-market-in-ellsworth-maine/
• NewsCenter Maine (local STR discussion/housing study): www.newscentermaine.com/article/news/local/housing/ellsworth-maine-ranks-2nd-best-place-to-own-airbnb-in-us-sparking-conversation-on-community-impact/97-522cb5bf-bf82-4535-b6f9-6da0ac48d840
• Maine LD 1588 (vacation rental registration and permits): legislature.maine.gov/legis/bills/bills_129th/billtexts/HP114701.asp
• Island Institute (context on coastal STR impacts and local ordinance approaches): www.islandinstitute.org/working-waterfront/short-term-gain-long-term-pain/