Is Anacortes, Washington Good for Airbnb Investment?

Potentially—Anacortes, Washington combines visitor demand with long-term real estate upside.

• Presents a compelling opportunity given the city's unique location and strong seasonal tourism appeal.
• Anacortes' market is characterized by its position as the gateway to the San Juan Islands, a thriving maritime culture, and stunning natural beauty that attracts visitors year-round for ferry connections.
• This consistent seasonal demand supports strong occupancy rates during peak summer months and shoulder seasons.
• While property values in this desirable island community have seen steady appreciation, making initial investments substantial.
• The area's appeal to both Pacific Northwest visitors and international travelers seeking authentic coastal experiences suggests favorable long-term investment potential.
• Investors should, however, consider the seasonal nature of demand, local zoning restrictions, and the limited inventory of available properties.

$2,800–$5,200 based on location, season, and property quality.

• Based on available market data and rental performance metrics, Airbnb properties in Anacortes, Washington typically generate between $2,800 to $5,200 in monthly revenue.
• Seasonal variations are significant, with peak summer months (June through September) seeing revenues 40-60% higher than winter months due to increased tourism for whale watching, ferry access to the San Juan Islands.
• Properties experience their lowest occupancy and rates during November through February, often dropping to $1,800-$3,000 monthly.
• Key factors affecting earnings include proximity to the ferry terminal and downtown area, water views, property size and amenities.
• The average daily rate ranges from $120-$280 depending on property type and season, while occupancy rates typically fluctuate between 45-65% annually.
• Properties within walking distance of commercial areas and those offering unique amenities like hot tubs or waterfront access consistently achieve higher revenue multiples.

Potentially strong—typical annual ROI is 8–14%.

• Typically generate ROI between 8-14% annually, with average nightly rates ranging from $120-180 during peak summer months and $80-120 in off-season.
• The payback period for initial investment and setup costs averages 7-10 years, depending on property acquisition price and renovation expenses.
• Compared to long-term rentals in Anacortes which yield approximately 6-8% annually with monthly rents of $1,200-2,000, short-term rentals can outperform by 2-6 percentage points but require significantly more active management and carry higher vacancy risks during winter months when tourism drops substantially.
• Properties within walking distance of the ferry terminal or with water views command premium rates and achieve occupancy rates of 65-75% annually, while those further from attractions typically see 45-60% occupancy.

Anacortes, Washington averages 65–70% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Anacortes, Washington typically average around 65-70% annually, with significant seasonal variation driven by the area's appeal as a summer destination and gateway to the San Juan Islands.
• Peak season from June through September sees occupancy rates climb to 80-85%, while winter months from November through February drop to approximately 45-50%.
• Spring and fall shoulder seasons maintain moderate occupancy around 60-65%.
• The summer peak aligns with favorable weather for outdoor activities, ferry access to the islands, and the town's maritime festivals.
• Anacortes generally outperforms Washington state's average Airbnb occupancy of about 60% due to its unique island location and tourist appeal.
• The market benefits from limited hotel inventory in the area, making short-term rentals particularly attractive to visitors seeking waterfront accommodations and island access.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The best Airbnb investment neighborhoods in Anacortes include the Historic Downtown area which offers walkability to restaurants, shops.
• Mount Erie vicinity provides scenic mountain and water views attracting outdoor enthusiasts and commanding premium rates for its natural setting and hiking access.
• The Guemes Channel waterfront area delivers direct water access and ferry views with high demand from visitors seeking maritime experiences and sunset views.
• Cap Sante Marina district capitalizes on boating tourism and marina activities with consistent occupancy from sailing and fishing visitors who pay higher rates for water proximity.
• Washington Park area benefits from its location near the popular day-use park and camping facilities, attracting families and nature lovers with moderate to high pricing potential.
• Commercial Avenue corridor offers more affordable investment entry points while maintaining good access to downtown amenities and ferry services, appealing to budget-conscious travelers.
• The Fidalgo Bay waterfront provides a quieter alternative with water views and beach access, attracting guests seeking peaceful retreats while still being within reasonable distance of main attractions.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Short-term rental regulations in Anacortes, Washington require property owners to obtain a business license and conditional use permit before operating vacation rentals.
• The city limits occupancy to two guests per bedroom plus two additional guests, with a maximum of 10 people total per property.
• Owner-occupancy is not mandated for short-term rentals, allowing non-resident property owners to operate vacation rentals.
• Zoning restrictions permit short-term rentals in residential zones including R-1, R-2, and R-3 districts.
• The registration process involves submitting a detailed application including property information, emergency contact details, parking plans, and neighborhood notification requirements.
• Recent regulatory changes implemented around 2019-2021 include stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of house rules and emergency contacts.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Anacortes, Washington are subject to several fees and taxes including Washington State sales tax of 6.5%, Skagit County lodging tax of 2%, and Anacortes city lodging tax of 2%.
• Property owners must obtain a business license from the City of Anacortes costing approximately $25-50 annually.
• Additional requirements may include a one-time registration fee of $50-100, potential inspection fees of $75-150, and compliance with fire safety requirements which may cost $100-300 for initial setup.
• Property owners must also collect and remit the Department of Revenue's Business & Occupation (B&O) tax at varying rates depending on income levels, typically 0.471% for service businesses.