Is Ellensburg, Washington Good for Airbnb Investment?

To start an Airbnb in Ellensburg, Washington, begin by researching local regulations through the City of Ellensburg Planning Department, as the city requires short-term rental operators to obtain a business license and comply with zoning restrictions that typically limit rentals to certain residential zones. Contact Kittitas County for any additional county-level requirements and ensure compliance with Washington State tax obligations including Business & Occupation tax registration. Obtain necessary permits including a city business license (approximately $50-100 annually), fire safety inspection if required, and register for Washington State Department of Revenue tax collection. Find a suitable property by searching areas near Central Washington University or downtown Ellensburg, considering properties that meet minimum safety standards including smoke detectors, carbon monoxide detectors, and adequate egress windows. Furnish the space with essential amenities including comfortable bedding, kitchen basics, WiFi, and local guidebooks, ensuring all furniture meets fire safety codes. Create your Airbnb listing with professional photos, competitive pricing (typically $80-150 per night in Ellensburg), and detailed descriptions highlighting proximity to the university and outdoor activities. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, collecting and remitting the required 8.4% state sales tax plus local lodging taxes, and keeping detailed records for tax purposes while monitoring compliance with occupancy limits and noise ordinances specific to Ellensburg's residential neighborhoods.

To identify profitable short-term rental properties in Ellensburg, Washington, focus on locations within walking distance of Central Washington University campus, downtown areas near restaurants and entertainment, and properties with mountain or valley views. Target 2-4 bedroom homes or condos with modern amenities, full kitchens, reliable Wi-Fi, parking, and outdoor spaces that appeal to visiting families, university guests, and outdoor enthusiasts. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for nightly rates between $80-150 depending on size and location, while calculating potential annual revenue against acquisition and operating costs. Research competition by studying existing Airbnb and VRBO listings within 3-mile radius, identifying gaps in amenities or pricing, and monitoring occupancy rates during peak periods like university events, graduation, and summer months. Utilize tools like Rabbu, STR Helper, and local MLS data through Windermere or John L. Scott Realty, while connecting with local property management companies like Vacasa or RedAwning for market insights, and consider properties near recreational areas like the Yakima River Canyon or Manastash Ridge that attract weekend visitors year-round.

To obtain an Airbnb/STR permit in Ellensburg, Washington, you must apply through the City of Ellensburg Planning Department located at 420 N Pearl Street or online through their permitting portal. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local responsible party available 24/7, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $200-300 with an annual renewal fee of $150-200. The review process typically takes 4-6 weeks and includes a zoning compliance check and potential site inspection. Ellensburg-specific requirements include limiting occupancy to 2 guests per bedroom plus 2 additional guests maximum, maintaining a guest registry, posting emergency contact information prominently, ensuring compliance with fire safety codes, providing adequate parking (typically 1 space per bedroom), and adhering to noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also comply with the city's zoning regulations, which may restrict STRs in certain residential areas, and operators must obtain a business license and collect applicable taxes including lodging tax.

Short-term rentals (STRs) are legal in Ellensburg, Washington, but operate under specific regulations established by the city. As of 2023, Ellensburg requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use zones, while limiting them in residential neighborhoods to preserve housing stock for long-term residents. The city has implemented occupancy limits, parking requirements, noise restrictions, and mandates that operators provide contact information for a responsible party available 24/7. STRs are generally prohibited in areas zoned exclusively for single-family residential use, and the city has established a cap on the total number of STR permits to prevent oversaturation. Recent changes include stricter enforcement mechanisms and increased penalties for violations, with the city conducting regular compliance checks and requiring annual permit renewals that include neighborhood impact assessments.

The best areas for Airbnb investment in Ellensburg, Washington are the downtown core near 8th Avenue and Pearl Street, which attracts business travelers visiting the city center and tourists exploring local shops and restaurants, plus it's walking distance to Central Washington University events. The neighborhoods immediately surrounding Central Washington University campus, particularly areas within a 10-minute walk like the streets around 14th Avenue and Walnut Street, offer strong rental demand from visiting parents, prospective students, university staff, and event attendees year-round. The historic residential areas near Olmstead Place State Park and the Yakima River provide appeal for tourists seeking outdoor recreation including hiking, fishing, and exploring the historic homestead, while also attracting visitors to the Kittitas County Fairgrounds during fair season and other events. Properties near the Interstate 90 corridor but still within city limits capture business travelers and tourists passing through central Washington, offering convenient highway access while maintaining proximity to Ellensburg's amenities and CWU activities.

In Ellensburg, Washington, Airbnb hosts are subject to multiple lodging taxes including the state sales tax of 6.5%, Washington state lodging tax of 0.2%, Kittitas County lodging tax of 2%, and Ellensburg city lodging tax of 2%, totaling approximately 10.7% in combined taxes on short-term rental stays. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for most jurisdictions, though hosts may need to register directly with the Washington State Department of Revenue and local tax authorities to ensure compliance. Remittance procedures require hosts to file monthly or quarterly returns with the state and local jurisdictions, with payments due by the 25th of the following month for monthly filers. The state lodging tax applies to stays of less than 30 consecutive days, while local taxes generally follow similar short-term occupancy rules. Exemptions may include stays exceeding 30 days, certain government employees on official business, and some nonprofit organization bookings, though specific exemption criteria vary by jurisdiction and hosts should verify current requirements with local tax authorities as rates and collection procedures can change.

Starting an Airbnb in Ellensburg, Washington requires approximately $380,000-$450,000 in total initial investment. Property purchase costs average $320,000-$380,000 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, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies run $1,500-$3,000. Permits and fees vary but generally include business license ($100-$200), short-term rental permit ($200-$500), and potential HOA approval costs totaling $500-$1,000. Insurance for short-term rentals costs $1,200-$2,400 annually, with many hosts requiring specialized STR coverage beyond standard homeowner's policies. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable typically require $500-$1,000 upfront plus $200-$400 monthly ongoing costs. First six months of operating expenses including utilities ($1,200-$2,400), cleaning services ($1,800-$3,600), maintenance reserves ($1,000-$2,000), platform fees, supplies, and marketing total approximately $8,000-$15,000, bringing the complete startup investment to $380,000-$450,000 depending on property size and quality level chosen.

Airbnb properties in Ellensburg, Washington show moderate profitability potential with average daily rates ranging from $80-120 for typical 2-3 bedroom properties, generating monthly revenues of $2,400-3,600 during peak months (September-May due to Central Washington University academic calendar) and $1,600-2,400 during summer months. Operating expenses typically include mortgage payments averaging $1,200-1,800 monthly, utilities ($150-250), cleaning fees ($40-60 per turnover), property management (20-25% of revenue if outsourced), insurance ($100-150 monthly), and maintenance costs ($200-400 monthly), resulting in net profit margins of 15-25% for well-managed properties. Success factors include proximity to CWU campus, accommodating 4-6 guests, offering amenities like WiFi and parking, and maintaining high cleanliness standards, with properties within 1 mile of campus achieving 70-85% occupancy rates compared to 45-60% for those further away. A case study of a 3-bedroom property near campus purchased for $280,000 in 2021 generated $38,000 annual revenue with $28,500 in expenses, yielding a 3.4% cash-on-cash return, while properties targeting outdoor enthusiasts visiting nearby Yakima River Canyon and hiking areas show seasonal spikes but lower overall occupancy at 40-55% annually.

Airbnb investments in Ellensburg, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by Central Washington University student demand and seasonal tourism from outdoor recreation activities. Properties near the university campus or downtown area can achieve occupancy rates of 65-75% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months after accounting for startup costs, furnishing, and marketing expenses, while properties purchased in 2019-2021 have shown stronger performance due to lower acquisition costs. The market benefits from limited hotel inventory and consistent demand from university events, outdoor enthusiasts visiting the Cascade Mountains, and business travelers, though seasonal fluctuations occur during summer months when student occupancy decreases but tourism increases.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Ellensburg, Washington. Local real estate agents like Windermere Real Estate and John L. Scott Real Estate have agents familiar with Ellensburg's vacation rental market, while Keller Williams and RE/MAX also serve the area with investment-focused specialists. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and investment analysis, and Awning for turnkey Airbnb investment properties. BiggerPockets connects investors with local experts and resources, while Roofstock and Arrived Homes offer investment property platforms that may include Ellensburg opportunities. Local property management companies like Central Washington Property Management and Ellensburg Property Services can assist with identifying investment opportunities and managing Airbnb operations. RedAwning and Vacasa also provide market insights and property management services that can help investors identify profitable properties in the Ellensburg market, particularly given its proximity to Central Washington University and outdoor recreation areas.