Is Des Moines, Washington Good for Airbnb Investment?

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

• Can be a promising venture, influenced by its unique market dynamics and evolving tourism landscape.
• Current market conditions show a steady demand for short-term rentals, driven by visitors seeking proximity to Seattle-Tacoma International Airport, the Puget Sound.
• Tourism trends indicate a consistent flow of both leisure and business travelers, with the airport serving as a significant driver of transient stays.
• Property values in Des Moines have seen a gradual appreciation, making it an attractive location for real estate investment.
• The investment potential for Airbnb in Des Moines is enhanced by its blend of residential charm and convenient access to larger urban centers.

$1,200–$2,800 per month based on location, season, and property quality.

• Based on available market data, Airbnb hosts in Des Moines, Washington typically earn between $1,200 to $2,800 per month.
• Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 25-40% due to higher tourism demand and proximity to Seattle attractions.
• Key factors affecting earnings include property type and size, with waterfront or Sound-view properties commanding premium rates of $150-250 per night compared to standard homes at $80-150 per night.
• Occupancy rates generally range from 60-75% annually, with successful hosts maintaining higher occupancy through competitive pricing, professional photography, and responsive guest communication.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with properties averaging $120-180 per night and occupancy rates around 65-75% due to the city's proximity to Seattle-Tacoma International Airport and business travelers.
• The average payback period ranges from 12-18 years depending on initial investment and property type, with waterfront and airport-adjacent properties performing better.
• Compared to traditional long-term rentals in Des Moines that yield approximately 6-8% ROI with more stable but lower returns of $1,800-2,400 monthly rent.
• Properties purchased in the $400,000-600,000 range typically see gross annual revenues of $35,000-55,000 from Airbnb operations, though net returns after expenses, taxes.

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

• Airbnb occupancy rates in Des Moines, Washington typically average around 65-70% annually, with significant seasonal variation that peaks during summer months (July-September) at approximately 80-85% occupancy due to increased tourism and favorable weather conditions.
• The lowest occupancy rates occur during winter months (December-February) at around 45-55%, reflecting reduced travel demand in the Pacific Northwest during this period.
• Spring and fall months maintain moderate occupancy levels of 60-70%.
• Des Moines performs slightly below the Washington state average of approximately 72% annual occupancy.
• Compared to national Airbnb averages of around 68-72%, Des Moines falls within the typical range but tends toward the lower end due to its smaller market size and limited tourist attractions compared to major destination cities.
• The city's proximity to Seattle-Tacoma International Airport provides some advantage for short-term stays, particularly during peak travel seasons.

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

• The best Airbnb investment neighborhoods in Des Moines, Washington include the Marina District near Des Moines Marina.

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

• Des Moines, Washington requires short-term rental operators to obtain a business license and register with the city, with permits typically costing around $100-200 annually.
• Properties must comply with occupancy limits of 2 people per bedroom plus 2 additional guests, with a maximum of 10 occupants total.
• Owner-occupancy is not required for short-term rentals, allowing both hosted and non-hosted operations.
• Zoning restrictions permit short-term rentals in residential zones including R-1, R-2, and R-3, but they are prohibited in certain commercial districts without conditional use permits.
• Recent regulatory changes in 2022-2023 included stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of house rules.
• Properties must maintain liability insurance of at least $1 million and provide 24-hour contact information for guests and neighbors.

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

• Short-term rentals in Des Moines, Washington are subject to several fees and taxes including Washington State's 6.5% sales tax, King County's 0.1% sales tax.
• Property owners must obtain a business license from the City of Des Moines costing around $25-50 annually, plus register for a Washington State business license at approximately $19.
• The city requires a short-term rental permit with fees typically ranging from $100-300 annually, and operators must collect and remit the state's lodging tax which varies but generally falls between 1-2% for properties under 40 units.
• Additional costs may include a one-time registration fee of $50-100, potential inspection fees of $75-150, and compliance with fire safety requirements that could cost $200-500 initially.
• Tourism promotion area taxes may apply at rates of 0.5-1% in certain districts, and operators are also responsible for standard property taxes and any applicable utility taxes which typically range from 6-15% depending on the utility type.