Portland's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Portland, Maine, there are 11 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Extended Home Share

Any letting of 30 days or more is a 'Long Term Rental' under Sec. 6-150.1 and falls outside Portland's STR rules (though it still requires long-term rental registration under Article VI). Owner-occupants may register up to five owner-occupied STR units (e.g., separate bedrooms) within their primary residence under Sec. 6-153(h)(f).

Key details: STR/long-term threshold: 30 days (Sec. 6-150.1). Maine lodging-tax threshold: Less than 28 days (36 MRS Sec. 1811). Occupancy cap: 2 guests per bedroom + 2 additional (Sec. 6-153(a)). Owner-occupied bedrooms allowed in one primary residence: Up to 5 (Sec. 6-153(h)(f)). Long-term rental registration also required: Yes, under Ch. 6, Art. VI.

Treating a sub-30-day stay as a 'long-term' rental to evade the STR cap or registration scheme is a violation of Sec. 6-151 (failure to register) and Sec. 6-155(a), (d), and (e). Exceeding the two-guests-per-bedroom-plus-two occupancy ceiling under Sec. 6-153(a) is a violation enforceable under Sec. 6-1. Penalty for false information remains $1,000 under Sec. 6-155(d).

Parking Rules

Portland's STR ordinance does not require a minimum number of off-street parking spaces specific to short-term rentals. The unit's underlying zoning parking ratio (and on-street parking rules under Chapter 28) governs.

Key details: STR-specific parking minimum: None. Base residential zoning parking: Generally 1 space/unit (varies by zone). Downtown / B-zone parking minimum: Reduced or waived. State ADU parking cap: Max 1 space per ADU (30-A MRS § 4364-A). On-street rules: Portland Code Chapter 28.

Parking violations are issued under Portland Code Chapter 28 with standard ticket fines (typically $25–$50 for meter/zone violations, up to $100+ for winter-ban or hydrant violations) plus possible tow fees. Failure to provide required off-street parking under the underlying zoning is a Chapter 14 zoning violation enforceable through Code Enforcement with civil penalties under 30-A MRS § 4452 ($100–$2,500/day per violation).

Portland is more permissive than most cities when it comes to parking rules. That said, there are still limits.

Host Presence Rule

Portland does not require a host to be physically present during a guest stay, but to qualify for the lower owner-occupied fee tier and avoid the non-owner-occupied cap, the registrant must occupy the rental unit as their primary residence as defined in Sec. 6-150.1.

Key details: Host physical presence required during stay?: No. Owner-occupied requirement: Registrant's primary residence under Sec. 6-150.1. Owner-occupied units allowed in one primary residence: Up to 5 (Sec. 6-153(h)(f)). New tenant-occupied STRs after 1/1/2026: Prohibited (Sec. 6-153(d)). Fee delta: $100 owner-occupied vs $200 non-owner-occupied mainland (Sec. 6-152(c)).

Misrepresenting owner-occupied status to qualify for the lower fee tier or avoid the 1.5% cap is 'providing false information' under Sec. 6-155(d), penalty $1,000.00 per occurrence. Operating without a registration, or under the wrong category, is enforceable under Sec. 6-155(a) and (e) per general penalties in Sec. 6-1.

Taxes & Fees

Portland charges a tiered annual STR registration fee ranging from $100 (first owner-occupied or island unit) up to $4,000 (fifth non-owner-occupied mainland unit), in addition to the Maine 9% state lodging tax (Title 36 MRS § 1811) collected on every stay under 28 days.

Key details: Owner-occupied 1st unit fee: $100/year. Non-owner-occupied mainland 1st unit fee: $200/year. Non-owner-occupied mainland 5th unit fee: $4,000/year. Maine state lodging tax: 9% (36 MRS § 1811). Renewal deadline: December 31 (annual).

Operating an unregistered STR is a violation of Chapter 6. The City of Portland may issue civil penalties under 30-A MRS § 4452 (the general statutory municipal-ordinance enforcement statute) ranging from $100 to $2,500 per day per violation, plus attorney's fees. Failing to collect/remit the state 9% lodging tax (when the operator sells off-platform) is enforced by Maine Revenue Services and can rise to a Class E crime under 36 MRS § 1754-B for unregistered marketplace activity above the $100,000 threshold.

Compared to other cities, Portland takes a harder line on taxes & fees. The enforcement and penalty structure reflects that.

Registration Rules

Portland's STR registration runs on a calendar-year basis with renewal due by January 1 (Sec. 6-154(b)(c)). Beginning calendar year 2026, non-owner-occupied mainland STRs are capped at 1.5% of the prior year's registered long-term rental stock (about 285 units), down from the prior 400-unit cap, with a first-come, first-registered allocation and waitlist.

Key details: 2025 cap (non-owner-occupied mainland): 400 units. 2026+ cap formula: 1.5% of prior-year long-term rental registrations (~285 units). Peaks Island non-owner-occupied cap (2026+): 40 units (Sec. 6-153(c)). Per-operator citywide limit: 5 STR registrations (Sec. 6-153(e)). Renewal deadline: January 1 each year (Sec. 6-154(b)(c)(1)).

Per Sec. 6-155, failing to register, failing to renew on time, failing to update registration, and renting or permitting occupancy of an unregistered unit are all violations enforceable under Sec. 6-1. False information carries a fixed $1,000 penalty under Sec. 6-155(d). Operating without an allocation once the 1.5% cap is met is a violation of Sec. 6-153(b) and forces the operator to the waitlist under Sec. 6-154(a)(b).

Compared to other cities, Portland takes a harder line on registration rules. The enforcement and penalty structure reflects that.

Insurance Requirements

Portland's STR ordinance (Chapter 6, Article VI) does not impose a city-mandated minimum liability insurance amount for short-term rentals. Operators are responsible for carrying adequate coverage on their own, and Maine law does not preempt that gap.

Key details: City minimum liability requirement: None specified. HOA/condo attestation: Required if applicable. State STR insurance mandate: None. Recommended coverage: Dedicated STR policy/rider. Disorderly-house liability: Portland Code §§ 6-200 et seq..

No direct city fine attaches to lack of insurance, but operating without coverage exposes the host to unlimited personal liability for guest injuries, fires, or property damage. If a registered STR causes nuisance or property damage and the operator lacks resources to remedy it, Portland may revoke or refuse to renew the STR license under Chapter 6 enforcement. Disorderly-house liability under Portland Code §§ 6-200 et seq. and 17 MRS § 2802 can also attach to landlords and operators independent of insurance.

The rules around insurance requirements in Portland lean permissive, but that does not mean anything goes.

Primary-Residence-Only Rule

Portland does not require every STR to be a primary residence, but Sec. 6-153(f) prohibits any STR in a single-family home unless it is owner-occupied, tenant-occupied (with owner permission), or on Peaks or an Outer Island. Non-owner-occupied STRs in detached single-family homes on the mainland are not allowed; in multi-unit buildings they are capped citywide at 1.5% of long-term housing stock.

Key details: Primary residence definition: Resides more than half the year; tax-/ID-registered address (Sec. 6-150.1). Mainland single-family home STR rule: Owner- or tenant-occupied only (Sec. 6-153(f)). New tenant-occupied STRs after 1/1/2026: Prohibited (Sec. 6-153(d)). ADUs as 'owner-occupied'?: No - ADUs explicitly excluded (Sec. 6-150.1). Multi-unit caps: 2-unit: 1 STR; 3-unit: 2; 10+ unit: 5 (Sec. 6-153(g)).

Operating a non-owner-occupied STR in a mainland single-family home violates Sec. 6-153(f) and is enforceable under Sec. 6-155(e) (renting an unregistered unit) and Sec. 6-1. False statements about primary-residence status on the registration application trigger the fixed $1,000 penalty under Sec. 6-155(d).

This is one of the stricter rules in Portland's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Night Caps

Portland does not impose a per-unit annual night cap (e.g., 90 nights/year) on short-term rentals, but it does impose strict citywide caps: 1.5% of registered long-term rental units for non-owner-occupied mainland STRs (starting 2026), a 40-unit annual cap on Peaks Island Year-Round Non-Owner-Occupied STRs, and a five-year sunset for ADUs used as STRs.

Key details: Per-unit annual night cap: None. Mainland Non-Owner-Occupied citywide cap (2026+): 1.5% of prior-year registered long-term rentals. Peaks Island Year-Round Non-Owner-Occupied cap: 40 units. Mainland ADU STR license duration: 5 years from Cert. of Occupancy. New tenant-occupied STRs allowed in 2026: No (renewals only).

Operating outside of the citywide cap (i.e., without an issued license) is a Chapter 6 violation enforceable by registration denial/revocation and civil penalties under 30-A MRS § 4452 of $100–$2,500 per day per violation. Failing to renew by December 31 forfeits the license; the unit goes on the waitlist and may not operate until a new license is issued.

Compared to other cities, Portland takes a harder line on night caps. The enforcement and penalty structure reflects that.

Occupancy Limits

Overnight guest occupancy in each Portland short-term rental is capped at two guests per bedroom, plus a maximum of two additional guests in shared/common space, under Portland Code §§ 6-150 et seq.

Key details: Guests per bedroom: 2. Additional non-bedroom guests: 2 max. 1-BR effective cap: 4 overnight guests. Owner-occupied threshold: >6 months/year residence. Code section: Portland Code §§ 6-150 et seq..

Exceeding occupancy or operating in a building above its STR cap is a violation of Portland Code §§ 6-150 et seq., enforceable by Permitting and Inspections through registration revocation, denial of renewal, and civil penalties under 30-A MRS § 4452 (typically $100–$2,500 per day per violation).

Permit Requirements

Every short-term rental (any letting of a rental unit, in whole or in part, for less than 30 days) must be registered annually with the Portland Permitting and Inspections Department under Portland City Code Chapter 6, Article VI. The registration number must appear on every advertisement and listing.

Key details: Code section: Portland Code Ch. 6, Art. VI, Sec. 6-151. STR definition: Letting any rental unit for less than 30 days. Owner-occupied 1st-unit fee: $100/year. Non-owner-occupied mainland 1st-unit fee: $200/year. False-info penalty: $1,000 fixed (Sec. 6-155(d)).

Per Portland Code Sec. 6-155 and Sec. 6-1, operating an unregistered STR, failing to display the registration number, or failing to pay the registration fee is a civil violation. Providing false information on the registration carries a fixed penalty of $1,000.00 per Sec. 6-155(d). Failure to respond to a city inquiry within 48 hours is itself a separate violation under Sec. 6-155(f). Listings without a registration number expose the booking service (platform) to enforcement under Sec. 6-151(e).

This is not one of those rules that cities tend to ignore. Portland actively enforces its permit requirements requirements.

Noise Rules

Portland's general noise ordinance (Chapter 17) and the state disorderly-conduct statute (17-A MRS § 501-A) apply to short-term rental guests with no STR-specific noise carve-out. STR operators are responsible for ensuring guests comply with quiet hours and decibel limits.

Key details: Nighttime quiet hours: 10:00 p.m. – 7:00 a.m.. Nighttime dBA reduction: −5 dBA vs. daytime. Construction limit: 50 dB after 7 p.m. within 500 ft of residence. State disorderly-conduct statute: 17-A MRS § 501-A (Class E). STR operator liability: Portland Code §§ 6-200 et seq. (Disorderly Houses).

Civil noise-ordinance violations under Chapter 17 typically draw a written warning, then escalating civil penalties under 30-A MRS § 4452 ($100–$2,500/day). Class E disorderly-conduct charges under 17-A MRS § 501-A carry up to 6 months in jail and a $1,000 fine. Repeated violations at an STR property are an enumerated basis for STR registration revocation or non-renewal under Chapter 6 and Portland's disorderly-house code §§ 6-200 et seq.

The Bottom Line

Portland is tougher than many cities when it comes to short-term rentals. Out of the 11 rules covered here, 5 are rated strict. If you are a homeowner, renter, or business owner in Portland, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Portland's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.