Is Cashmere, Washington Good for Airbnb Investment?

To start an Airbnb in Cashmere, Washington, begin by researching local zoning laws and short-term rental regulations through Chelan County's planning department, as Cashmere typically requires a conditional use permit for vacation rentals in residential zones and may have occupancy limits of 2-8 guests depending on property size. Obtain necessary permits including a business license from the City of Cashmere ($50-100 annually), a Washington State business license, and register for state and local tax collection (Washington charges 6.5% sales tax plus local taxes around 2-3%). Find a suitable property by searching MLS listings, Zillow, or Redfin for homes priced between $400,000-800,000 in residential areas near downtown or with mountain views, ensuring the property allows short-term rentals per HOA or deed restrictions. Furnish the space with quality furniture from retailers like West Elm or local stores, focusing on mountain/rustic themes popular in the area, including essentials like linens, kitchen supplies, WiFi, and outdoor furniture for the typical $15,000-25,000 setup cost. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting Cashmere's proximity to Leavenworth (20 minutes), apple orchards, and outdoor activities, setting rates around $150-300 per night based on seasonal demand. Manage the property by establishing cleaning protocols with local services (typically $75-125 per turnover), installing keyless entry systems, creating detailed house rules about noise (important in residential neighborhoods), and maintaining responsive communication with guests while monitoring reviews to maintain Superhost status and maximize bookings during peak seasons like summer festivals and fall harvest time.

To identify profitable short-term rental properties in Cashmere, Washington, focus on locations within walking distance of downtown's Bavarian-themed attractions, near Riverside Park along the Wenatchee River, or properties offering mountain views of the Cascade Range. Target 2-4 bedroom homes or cabins built after 1980 with outdoor amenities like decks, fire pits, or hot tubs, full kitchens, reliable WiFi, and parking for multiple vehicles, as visitors often come for outdoor recreation and family gatherings. Analyze pricing by researching comparable Airbnb and VRBO listings in Cashmere and nearby Leavenworth (premium market 20 minutes away), aiming for properties that can generate $150-300 per night during peak summer and fall seasons while maintaining 60-70% occupancy rates. Conduct competition research using AirDNA and Mashvisor to assess market saturation, seasonal demand patterns, and revenue potential, noting that Cashmere has less competition than Leavenworth but draws visitors for apple orchards, river activities, and as a quieter alternative to busier tourist towns. Utilize tools like Zillow and Redfin for property searches, STR Helper for local regulation compliance, and the Chelan County website to verify short-term rental permitting requirements, while connecting with local property management companies familiar with the seasonal tourism patterns driven by harvest festivals, outdoor recreation, and proximity to Stevens Pass skiing.

To obtain an Airbnb/STR permit in Cashmere, Washington, you must first contact the Cashmere City Hall at 101 Woodring Street or call (509) 782-3513 to apply for a Short-Term Rental Business License, as Cashmere requires all STRs to be licensed as businesses within city limits. Required documents typically include a completed business license application, proof of property ownership or lease agreement with landlord consent, site plan showing parking availability, proof of liability insurance (minimum $1 million recommended), fire safety inspection certificate from Chelan County Fire District, septic system inspection if applicable, and contact information for a local property manager if you're an absentee owner. The application fee is approximately $150-200 annually, with additional inspection fees of $75-100. Submit your complete application to the City Clerk's office and schedule required inspections with the Building Department and Fire District. The approval timeline is typically 4-6 weeks from submission of complete application, depending on inspection scheduling and any required corrections. Cashmere-specific requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring compliance with residential zoning restrictions, providing 24/7 local contact information to guests and neighbors, maintaining a guest registry, and adhering to maximum occupancy limits based on septic capacity and square footage. Once approved, you must display your business license number in all advertising and renew annually by December 31st.

Short-term rentals (STRs) are generally legal in Cashmere, Washington, but are subject to local regulations and zoning restrictions implemented by the city. As of recent years, Cashmere has adopted ordinances that typically require STR operators to obtain business licenses and comply with specific operational standards including noise restrictions, parking requirements, and occupancy limits. The city generally prohibits or heavily restricts STRs in certain residential zones to preserve neighborhood character, while allowing them in commercial and mixed-use areas with proper permits. Recent legal changes around 2020-2022 have included stricter enforcement mechanisms and enhanced neighbor notification requirements, with the city requiring operators to provide local contact information for complaints and maintain properties according to health and safety standards. Property owners must also comply with state and county tax obligations, and violations can result in fines or permit revocation, reflecting Cashmere's approach to balance tourism revenue with residential community concerns.

The best areas for Airbnb investment in Cashmere, Washington are the Historic Downtown District along Cottage Avenue, which attracts tourists visiting the Cashmere Museum and Pioneer Village and offers walkable access to local shops and restaurants, and the Riverside neighborhoods near the Wenatchee River, which provide scenic waterfront access popular with outdoor enthusiasts and families seeking recreational activities like fishing, rafting, and hiking. The areas near Cashmere Valley Road are also attractive due to proximity to apple orchards and wineries, drawing agritourism visitors especially during harvest season from September to November, while properties within walking distance of Riverside Park and the Apple Days Festival grounds benefit from increased demand during major events like the annual Apple Days Festival in October. The neighborhoods closest to US Highway 2 offer convenience for business travelers and tourists heading to or from the greater Wenatchee Valley region, Leavenworth, and the Cascade Mountains, making them ideal for short-term rentals targeting both leisure and business guests year-round.

In Cashmere, Washington, Airbnb hosts are subject to multiple lodging and occupancy taxes including Washington State's 6.5% sales tax, a state lodging tax of 2%, and Chelan County's lodging tax of 2%, totaling approximately 10.5% in combined taxes on short-term rental accommodations. The City of Cashmere may impose an additional local lodging tax of up to 2%, bringing the potential total to 12.5%. These taxes are typically collected by Airbnb directly from guests at the time of booking for participating jurisdictions through their tax collection service, which began around 2017-2018 for Washington State. For taxes not collected by Airbnb, hosts must register with the Washington State Department of Revenue and obtain a business license, collect taxes from guests, and remit them monthly or quarterly depending on volume. Remittance to Chelan County and any city taxes requires separate registration and reporting. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and some jurisdictions may exempt stays by government employees or certain nonprofit organizations, though hosts should verify current exemption criteria with each taxing authority as regulations can change.

To start an Airbnb in Cashmere, Washington, the total costs would be approximately $485,000-$520,000. Property purchase represents the largest expense at $400,000-$425,000 based on median home prices in the Wenatchee Valley area. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and decor to create an appealing guest experience. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-$3,000. Permits and fees vary but generally include business license ($100-$200), short-term rental permit ($300-$500), and potential HOA approvals. Insurance specifically for short-term rentals costs approximately $1,500-$2,500 annually, significantly higher than standard homeowner's insurance. Monthly utilities including electricity, water, sewer, garbage, internet, and cable average $200-$300 per month, totaling $1,200-$1,800 for six months. First six months operating costs encompass cleaning services ($100-$150 per turnover), maintenance reserves ($200-$400 monthly), Airbnb host fees (3% of bookings), property management software ($20-$50 monthly), restocking supplies ($100-$200 monthly), and marketing expenses, totaling approximately $4,000-$6,000 for the initial six-month period.

Airbnb properties in Cashmere, Washington, demonstrate moderate profitability with average nightly rates ranging from $120-180 during peak seasons (summer and fall) and $80-120 in off-peak periods, generating annual revenues of approximately $25,000-45,000 for well-managed properties. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near recreational areas like the Wenatchee River or with mountain views achieve higher occupancy rates of 65-75% compared to standard residential properties at 45-55%. Success factors include proximity to outdoor activities, professional photography, responsive host communication, and seasonal pricing optimization, with properties offering amenities like hot tubs, fire pits, or river access commanding premium rates. Net profit margins typically range from 15-25% for hands-on owners and 5-15% for those using full-service management companies, with seasonal cabins and riverfront properties showing the strongest performance due to Cashmere's appeal as a gateway to the Cascade Mountains and its proximity to Leavenworth's tourist attractions.

Airbnb investments in Cashmere, Washington typically generate annual ROI of 12-18% based on the area's proximity to recreational attractions like the Wenatchee River and nearby ski resorts, with cash-on-cash returns ranging from 8-14% depending on property type and financing structure. Properties in Cashmere generally reach profitability within 18-24 months due to strong seasonal demand from tourists visiting Leavenworth (15 minutes away) and outdoor enthusiasts accessing hiking trails and water activities, with average daily rates of $150-250 during peak summer and winter seasons. The market benefits from limited hotel inventory in the immediate area, driving occupancy rates of 65-75% annually, while properties purchased in the $400,000-600,000 range typically generate $35,000-55,000 in gross rental income annually after accounting for Chelan County's tourism patterns and the region's growing popularity as a Pacific Northwest destination.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Cashmere, Washington, using data analytics to evaluate potential Airbnb returns. Local real estate agents serving the Cashmere area include Windermere Real Estate and John L. Scott Real Estate, with agents like those at Coldwell Banker Bain specializing in investment properties in the Wenatchee Valley region. National services include Mashvisor, which provides Airbnb investment analysis tools, AirDNA for market data and revenue projections, and BiggerPockets for investor networking and property analysis. RedAwning offers vacation rental investment consulting, while local property management companies like Vacasa and RedAwning Property Management can help investors manage their Airbnb properties once purchased. Real estate investment firms such as Roofstock and Awning focus on turnkey rental properties, and local mortgage brokers familiar with investment property financing in Washington state can assist with funding these purchases.