Is Cle Elum, Washington Good for Airbnb Investment?

To start an Airbnb in Cle Elum, Washington, begin by researching local regulations through Kittitas County and the City of Cle Elum, as short-term rentals typically require a business license and may need conditional use permits depending on zoning (residential areas often have restrictions). Contact Kittitas County Planning Department at (509) 962-7506 to verify zoning compliance and obtain necessary permits, which may include a short-term rental permit, business license ($50-150 annually), and potentially a conditional use permit ($500-1000) if in residential zones. Find a suitable property by searching MLS listings, working with local realtors like Windermere or John L. Scott, focusing on properties near Suncadia Resort, downtown Cle Elum, or areas with mountain/recreational access, with typical investment properties ranging $300,000-800,000. Furnish the property with durable, mountain-themed decor suitable for outdoor enthusiasts, including quality bedding, kitchen essentials, outdoor gear storage, and amenities like hot tubs or fire pits that appeal to visitors coming for skiing, hiking, or Suncadia activities. List your property on Airbnb, VRBO, and local vacation rental sites, emphasizing proximity to Suncadia (4 miles), Snoqualmie Pass skiing (30 minutes), and outdoor recreation, with competitive pricing around $150-400/night depending on size and amenities. Manage the property by establishing cleaning protocols with local services like Cle Elum Cleaning Co, installing keyless entry systems, creating detailed house rules addressing noise (important in residential areas), parking, and pet policies, while maintaining responsive communication with guests and monitoring reviews to ensure compliance with both platform standards and local noise ordinances that are strictly enforced in this small mountain community.

To identify profitable short-term rental properties in Cle Elum, Washington, focus on locations within 2-3 miles of Suncadia Resort and near recreational areas like the Yakima River, Lake Cle Elum, and Snoqualmie Pass skiing, as these drive year-round tourism demand. Target 3-4 bedroom cabins or homes with mountain views, hot tubs, fireplaces, and outdoor spaces that can accommodate 6-10 guests, as families and groups visiting for skiing, hiking, and resort activities prefer larger properties. Analyze pricing using AirDNA and STR data showing Cle Elum properties average $150-250 per night with 60-70% occupancy rates, particularly strong during ski season (December-March) and summer months (June-September). Research competition through Airbnb and VRBO searches revealing approximately 200-300 active STRs in the area, with successful properties featuring professional photography, local activity guides, and amenities like game rooms or outdoor fire pits. Utilize tools like Mashvisor, AirDNA, and Rabbu for market analysis, monitor Kittitas County vacation rental regulations, partner with local property management companies like Vacasa or RedAwning, and connect with Cle Elum real estate agents specializing in investment properties to identify opportunities before they hit the general market.

To obtain an Airbnb/STR permit in Cle Elum, Washington, you must first contact the City of Cle Elum Planning Department at City Hall located at 119 West First Street or call (509) 674-2262 to submit a Short-Term Rental Business License application. Required documents typically include a completed application form, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), emergency contact information, parking plan, and waste management plan. You'll need to pay an estimated application fee of $150-250 plus an annual business license fee of approximately $100-150. The property must comply with zoning requirements (typically allowed in residential zones with restrictions), maintain adequate parking (usually 1-2 spaces per unit), provide 24/7 local contact information, display the permit number in all advertisements, limit occupancy based on bedrooms and square footage, and ensure compliance with fire safety codes including smoke and carbon monoxide detectors. The approval process typically takes 30-60 days after submitting a complete application, during which the city may conduct an inspection. Once approved, you must renew the permit annually and maintain compliance with all city regulations including noise ordinances, occupancy limits, and tax collection requirements.

Short-term rentals (STRs) are legal in Cle Elum, Washington, but are subject to municipal regulations and licensing requirements. The city requires STR operators to obtain a business license and comply with zoning restrictions, with most residential areas allowing STRs but with occupancy limits typically capped at 2 guests per bedroom plus 2 additional guests. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators must collect and remit local taxes. Cle Elum has implemented noise ordinances and parking requirements, with violations potentially resulting in license revocation. The city has been actively updating its STR regulations since around 2019-2020 to balance tourism revenue with neighborhood livability concerns, requiring annual license renewals and establishing complaint procedures for residents. Some areas near critical infrastructure or environmentally sensitive zones may have additional restrictions, and the city maintains the right to limit the total number of STR permits if deemed necessary for community welfare.

The best areas for Airbnb investment in Cle Elum, Washington are the Historic Downtown District, which attracts visitors year-round due to its proximity to antique shops, restaurants, and the Cle Elum Historical Telephone Museum, plus its walkability to local events and festivals. The South Cle Elum area near the former Milwaukee Road depot is highly desirable for railroad enthusiasts and history buffs visiting the Iron Horse State Park trail system. Properties near Roslyn and the Suncadia Resort area (technically outside city limits but close) benefit from overflow guests during peak seasons when the resort is fully booked, particularly during winter ski season and summer golf/hiking months. The residential areas along First Street and Pennsylvania Avenue offer good investment potential due to their proximity to recreational activities like fishing, hiking, and ATV trails, attracting outdoor enthusiasts visiting the Cascade Mountains region. The area near Lake Cle Elum provides excellent opportunities for waterfront or water-view properties that appeal to families and groups seeking lake recreation, boating, and fishing experiences, with particularly strong demand during summer months from Seattle-area visitors seeking weekend getaways.

Airbnb properties in Cle Elum, Washington are subject to multiple lodging taxes including Washington State's 6.5% sales tax, a state lodging tax of 0.2%, and Kittitas County's lodging tax of 2%, totaling approximately 8.7% in combined taxes. The city of Cle Elum may impose an additional local lodging tax of up to 2% under RCW 67.28.180, though the exact rate varies by local ordinance. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Washington around 2017-2018. Property owners must register with the Washington State Department of Revenue and obtain a business license, and while Airbnb remits most taxes automatically, hosts remain responsible for ensuring compliance and may need to file periodic returns with state and local authorities. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered residential rather than transient lodging, and some jurisdictions may exempt stays by government employees or certain nonprofit organizations, though specific exemption criteria should be verified with local tax authorities as they can change based on municipal ordinances.

Starting an Airbnb in Cle Elum, Washington requires approximately $450,000-$550,000 in total initial investment. Property purchase costs around $400,000-$475,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including beds, sofas, dining sets, kitchen essentials, linens, and decor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies total approximately $2,000-$3,000. Permits and fees vary but generally include business license ($100-$200), short-term rental permit ($300-$500), and potential HOA approval fees totaling around $500-$1,000. Insurance for short-term rentals runs $1,500-$2,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable cost approximately $1,000-$1,500 initially. First six months of operating costs including utilities ($300-$400/month), cleaning services ($100-$150 per turnover), maintenance reserves ($200-$300/month), platform fees (3% of bookings), and miscellaneous supplies total approximately $4,000-$6,000, assuming moderate occupancy rates of 50-60% during the initial period.

Airbnb properties in Cle Elum, Washington demonstrate strong profitability potential, with average nightly rates ranging from $150-$300 depending on property size and amenities, generating annual revenues of $35,000-$65,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for utilities, 3% Airbnb service fees, and $2,000-$4,000 annually for insurance and permits, resulting in net profit margins of 35-45% for established properties. Success factors include proximity to Suncadia Resort, outdoor recreation access, and seasonal demand from Seattle-area visitors seeking mountain retreats, with properties featuring hot tubs, game rooms, and mountain views commanding premium rates. A typical 3-bedroom cabin purchased for $450,000 with $3,500 monthly mortgage payments can generate $4,200 monthly revenue during peak seasons, achieving break-even within 18-24 months while building equity, though success heavily depends on effective marketing, consistent guest experience, and seasonal demand management during slower winter months.

Airbnb investments in Cle Elum, Washington typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to Snoqualmie Pass skiing and outdoor recreation activities that attract Seattle-area visitors year-round. Properties generally reach profitability within 18-24 months, with peak earning potential during winter ski season (December-March) and summer hiking months (June-September) when nightly rates can command $150-300 depending on property size and amenities. The market benefits from limited hotel inventory and strong demand from weekend warriors and vacation rental seekers, though investors should factor in seasonal occupancy fluctuations that typically see 65-75% annual occupancy rates, with higher-end properties near recreational areas achieving the upper range of ROI expectations while standard residential properties trend toward the lower end of the spectrum.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Cle Elum, Washington. Local real estate agents in the Cle Elum area who work with Airbnb investors include Windermere Real Estate and John L. Scott Real Estate, both of which have agents familiar with vacation rental markets in Kittitas County. National services that help investors find profitable Airbnb properties include Mashvisor, which provides rental property analytics and market data, AirDNA for short-term rental market insights, and Roofstock, which focuses on investment properties. RedAwning offers property management and investment services for vacation rentals, while BiggerPockets connects investors with local professionals and provides market analysis tools. Local property management companies like Vacasa and AvantStay can provide insights into profitable properties in the Suncadia and Cle Elum area, as they manage numerous short-term rentals in the region and understand which property types and locations generate the highest returns for investors.