Is Burlington, Washington Good for Airbnb Investment?

To start an Airbnb in Burlington, Washington, begin by researching local regulations through the Burlington Municipal Code and Skagit County ordinances, as short-term rentals typically require business licenses and may have zoning restrictions in residential areas. Obtain necessary permits including a Washington State business license, Burlington business license (estimated $50-100 annually), and potentially a conditional use permit if required by zoning laws. Find a suitable property by purchasing or leasing in areas zoned for short-term rentals, focusing on properties near downtown Burlington or with easy access to Interstate 5 and nearby attractions like the Skagit Valley. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Washington State fire codes. Create your Airbnb listing with professional photos, competitive pricing (estimated $80-150 per night for Burlington market), and detailed descriptions highlighting proximity to tulip fields, outlet malls, and Seattle (60 miles south). Manage your property by establishing cleaning protocols, guest communication systems, and compliance with Washington State landlord-tenant laws, while maintaining required insurance coverage and collecting applicable taxes including Washington State sales tax (6.5%) and any local lodging taxes that Burlington may impose.

To identify profitable short-term rental properties in Burlington, Washington, focus on locations within 2-3 miles of downtown Burlington, near Highway 20 corridors for easy access to North Cascades National Park and Anacortes ferry terminals, and properties close to the Skagit River for outdoor recreation appeal. Target 2-4 bedroom single-family homes or cabins with outdoor spaces, parking, and unique features like river views or rustic charm that appeal to tourists visiting the North Cascades region, with purchase prices ideally under $400,000 to maintain healthy profit margins. Analyze comparable STR rates using AirDNA and Mashvisor, targeting properties that can generate $150-250 per night during peak summer months (June-September) when tourism peaks for hiking and outdoor activities. Research competition by monitoring existing Airbnb and VRBO listings within a 10-mile radius, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, AirDNA, and local MLS data through Redfin or Zillow, while connecting with Burlington-area real estate agents familiar with STR regulations and tourist patterns, and consider properties near Cascade Mall or with easy access to Interstate 5 for business travelers heading to Boeing facilities in nearby Everett.

To obtain an Airbnb/STR permit in Burlington, Washington, you must first contact the Burlington Planning Department at City Hall located at 833 S Spruce Street to determine if short-term rentals are permitted in your zoning district, as Burlington follows Skagit County regulations for many land use matters. Submit an application through the city's planning department which typically requires a completed STR permit application form, proof of property ownership or authorization from owner, a site plan showing parking and access, proof of liability insurance (minimum $1 million coverage), a floor plan indicating maximum occupancy, contact information for a local property manager if you're not local, and payment of application fees estimated at $200-400. You'll also need to register for a Washington State business license through the Department of Revenue, obtain a Skagit County business license if required, and ensure compliance with fire safety codes which may require inspection by Burlington Fire Department. The approval timeline typically ranges from 4-8 weeks depending on application completeness and any required inspections. Burlington requires STR operators to maintain guest registries, limit occupancy to posted maximums, provide adequate parking (typically 1 space per bedroom plus 1), maintain quiet hours from 10 PM to 7 AM, post emergency contact information prominently, and renew permits annually with fees around $150-250, while also collecting and remitting applicable lodging taxes to both state and local authorities.

Short-term rentals (STRs) are legal in Burlington, Washington, but operate under specific regulations established by the city. Burlington requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in residential zones with certain limitations on the number of guests and parking requirements. The city prohibits STRs in some multi-family residential areas and requires operators to maintain noise standards and provide adequate waste management. Recent changes around 2020-2022 included stricter enforcement of existing regulations and enhanced complaint procedures for neighbors. STR properties must meet safety standards including smoke and carbon monoxide detectors, and operators are required to provide emergency contact information to the city and neighboring properties. The city also limits the number of consecutive days a property can be rented and requires a minimum stay period, though specific day limits vary by zoning district.

The best Airbnb investment areas in Burlington, Washington include downtown Burlington near the Burlington Premium Outlets which attracts year-round shopping tourism and visitors to the Skagit Valley Tulip Festival each April, generating consistent rental demand. The Cascade Mall vicinity offers proximity to major retail and dining while serving business travelers and families visiting the area. Properties near the Skagit River waterfront provide scenic appeal for tourists exploring the Pacific Northwest's natural beauty and outdoor recreation opportunities. The residential neighborhoods around Fairhaven Avenue benefit from their central location and easy access to Interstate 5, making them attractive to travelers heading to the San Juan Islands ferry terminals or continuing north to Canada. Areas close to Skagit Valley College draw visitors for educational events and family visits to students. The Burlington-Edison School District area appeals to families relocating or visiting for school-related activities, while properties within walking distance of local parks like Maiben Park attract outdoor enthusiasts and families seeking recreational amenities during their stay.

In Burlington, Washington, Airbnb hosts are subject to both state and local lodging taxes. The Washington State sales tax applies at 6.5%, plus Burlington's local sales tax of approximately 2.4%, totaling around 8.9% in combined sales tax on short-term rental income. Additionally, hosts must collect the state lodging tax of 0.2% and potentially local lodging taxes that can range from 2-4% depending on Burlington's specific municipal rates, which are typically around 2% for the city. These taxes are collected from guests at the time of booking and must be remitted monthly to the Washington State Department of Revenue for state portions and to Skagit County or Burlington directly for local portions, with returns due by the 25th of the following month. Airbnb may collect and remit some of these taxes automatically through their platform for participating jurisdictions, but hosts remain ultimately responsible for compliance. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and some exemptions may exist for certain government or charitable organization bookings.

To start an Airbnb in Burlington, Washington, expect total costs around $520,000-$580,000. Property purchase represents the largest expense at approximately $450,000-$500,000 based on median home prices in Skagit County as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies run $2,000-$3,000. Permits and fees vary but budget $1,500-$2,500 for business licenses, short-term rental permits, and potential HOA approvals required by Burlington and Skagit County. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Monthly utilities including electricity, water, sewer, garbage, internet, and cable average $300-$400, totaling $1,800-$2,400 for six months. First six months operating costs including cleaning services, maintenance, restocking supplies, platform fees, and marketing budget add another $4,000-$6,000. Additional considerations include property taxes, potential property management fees if outsourced, and a reserve fund for unexpected repairs or vacancy periods during the initial launch phase.

Airbnb properties in Burlington, Washington typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $85-$140 depending on property size and location proximity to the Skagit River and Cascade Mountains. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-$60 per turnover), property management (15-25% if outsourced), utilities ($150-$250 monthly), insurance ($800-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties within walking distance of downtown Burlington or featuring mountain views achieve occupancy rates of 65-75% with profit margins of 25-35%, while standard residential properties typically see 45-55% occupancy and 15-25% margins. Success factors include professional photography, responsive communication, proximity to Interstate 5 for Seattle commuters, and seasonal optimization for summer tourists visiting North Cascades National Park. A typical 3-bedroom home purchased for $450,000 in 2022 with a $150,000 renovation generated approximately $28,000 in annual Airbnb revenue with $16,800 in expenses, yielding an 11.2% net profit margin, though this varies significantly based on mortgage obligations and property taxes averaging $4,500-$6,500 annually in Skagit County.

Airbnb investments in Burlington, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near downtown Burlington or close to Interstate 5 corridor tend to perform better, with investors seeing profitability within 18-24 months of initial investment. The market benefits from proximity to Seattle (approximately 65 miles south) and Vancouver, BC, attracting both business travelers and tourists exploring the North Cascades region. Average nightly rates range from $85-140 for entire homes, with occupancy rates typically running 60-75% annually. Initial investment requirements including down payment, furnishing, and setup costs usually range from $40,000-80,000 for a typical 2-3 bedroom property, with gross rental yields averaging 10-14% before expenses. The timeframe to break even on initial cash investment typically occurs within 2-3 years, assuming consistent marketing efforts and property maintenance standards are maintained.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Burlington, Washington, providing market analysis and property recommendations. Local real estate agents like Windermere Real Estate and John L. Scott specialize in investment properties in the Burlington area and understand the short-term rental market dynamics. RE/MAX agents in Skagit County frequently work with Airbnb investors seeking properties near the North Cascades and outlet malls. BiggerPockets connects investors with local professionals and provides market insights for Burlington's rental market. Mashvisor offers data-driven property analysis for short-term rentals in the Pacific Northwest including Burlington. AirDNA provides comprehensive market data and revenue projections for Airbnb properties in the Burlington-Mount Vernon area. Local property management companies like Vacasa and RedAwning help investors manage their short-term rental properties once acquired. Roofstock focuses on turnkey rental properties and occasionally features opportunities in smaller Washington markets. Local mortgage brokers and lenders like Banner Bank and Peoples Bank understand investment property financing in Skagit County and can facilitate purchases for out-of-state investors targeting the Burlington market.