Is Cle Elum, Washington Good for Airbnb Investment?

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

• Presents a promising opportunity due to its growing appeal as a year-round recreational destination.
• Current market conditions show a steady increase in tourism, driven by its proximity to the Cascade Mountains, popular for skiing, hiking, and water activities.
• Property values in Cle Elum have seen appreciation, reflecting the area's increasing popularity, though they remain more accessible than in larger metropolitan areas.
• This combination of consistent tourism trends, a strong demand for vacation rentals, and reasonable property investment costs suggests a favorable long-term investment potential for Airbnb hosts in Cle Elum.

$1,200–$4,500, based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb properties in Cle Elum, Washington typically generate monthly revenues ranging from $1,200 to $4,500, with an average of approximately $2,800 per month for well-positioned properties.
• Seasonal variations are significant, with peak earnings occurring during summer months (June through August) when revenues can increase by 40-60% above average due to hiking, fishing, and outdoor recreation demand.
• Spring and fall represent shoulder seasons with moderate occupancy rates around 65-75%.
• Key factors affecting earnings include proximity to recreational areas like the Yakima River and Cascade Mountains, property size and amenities (hot tubs and game rooms command premium rates).
• Properties within walking distance of downtown Cle Elum or offering unique features like mountain views typically achieve occupancy rates of 70-85% annually.

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

• Typically generate ROI between 8-14% annually, with properties averaging $150-250 per night during peak seasons and 60-70% occupancy rates due to the area's proximity to Snoqualmie Pass skiing and summer recreation activities.
• The payback period for initial investment generally ranges from 7-12 years, depending on property acquisition costs which average $400,000-600,000 for suitable vacation rental homes.
• Compared to long-term rentals in the area that yield approximately 6-8% ROI with monthly rents of $1,800-2,500, short-term rentals can outperform by 2-6 percentage points but require significantly more active management and carry higher operational costs including cleaning, maintenance, and marketing expenses that typically consume 25-35% of gross revenue.
• The seasonal nature of Cle Elum's tourism market creates income volatility, with winter and summer months generating 70% of annual revenue while spring and fall see substantial drops in occupancy.

Cle Elum, Washington averages 55–65% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Cle Elum, Washington typically average around 55-65% annually, with significant seasonal variation driven by the area's proximity to Snoqualmie Pass skiing and summer recreational activities.
• Peak occupancy occurs during winter months (December through March) when rates can reach 75-85% due to skiers and snowboarders, while summer months (June through August) see occupancy rates of 70-80% from hikers.
• Spring and fall represent shoulder seasons with occupancy dropping to 40-50% as outdoor activities diminish and weather becomes less predictable.
• These rates generally outperform Washington state's average Airbnb occupancy of approximately 50-55% and exceed the national average of 48-52%.
• The town's occupancy rates have shown resilience and growth since 2019, supported by increased remote work trends and urban residents seeking mountain retreats.

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

• The downtown Cle Elum historic district offers excellent Airbnb potential due to its walkable access to restaurants, shops, and the Iron Horse Trail.
• The Suncadia Resort area, located about 15 minutes from downtown, provides luxury vacation rental opportunities with access to golf courses, skiing, and resort amenities.
• The Roslyn-adjacent neighborhoods benefit from proximity to the famous filming location of Northern Exposure and offer more affordable property acquisition costs while still attracting tourists exploring the Cascade Mountains.
• The Coal Mines Trail vicinity appeals to mountain bikers and hikers, providing steady bookings from outdoor recreation groups who value trail access and scenic mountain views.
• The South Cle Elum residential areas near the Yakima River offer waterfront and water-view properties that attract fishing enthusiasts and families seeking peaceful retreats.
• The neighborhoods along Bullfrog Road provide a balance of privacy and accessibility, appealing to guests seeking secluded mountain experiences while remaining close to town amenities and Interstate 90 access for easy Seattle commutes.

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

• Short-term rental regulations in Cle Elum, Washington require property owners to obtain a business license and conditional use permit through the city's planning department.
• Properties are generally limited to 8-10 occupants maximum with parking requirements of one space per bedroom plus two additional spaces.
• Owner-occupancy is not required for most properties, though some residential zones may restrict rentals to owner-occupied dwellings or require owners to live within a certain radius of the rental property.
• The registration process involves submitting property details, emergency contact information, waste management plans, and proof of liability insurance coverage of at least $1 million.
• Recent changes implemented around 2022-2023 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 Cle Elum, Washington are subject to several fees and taxes including Washington State's 6.5% sales tax, Kittitas County's 2.4% lodging tax.
• Property owners must obtain a business license from the City of Cle Elum costing approximately $75-100 annually.
• Additional requirements may include a transient accommodation license fee of around $50-75 annually and potential inspection fees of $100-200.
• Some properties may also be subject to utility taxes of 1-2% and must remit collected taxes monthly to the Washington State Department of Revenue.