Is Ketchikan, Alaska Good for Airbnb Investment?

To start an Airbnb in Ketchikan, Alaska, begin by researching the Ketchikan Gateway Borough's short-term rental regulations, which typically require a business license and may have zoning restrictions in residential areas. Contact the Ketchikan Gateway Borough Clerk's office to obtain necessary permits including a business license (approximately $50-100 annually) and ensure your property complies with local fire safety codes and building requirements. Find a suitable property in areas like downtown Ketchikan, Tongass Avenue, or near Creek Street where tourism is concentrated, considering properties with 2-3 bedrooms that can accommodate cruise ship passengers visiting from May through September. Furnish the space with durable, weather-resistant furniture suitable for Alaska's climate, including warm bedding, rain gear for guests, and local amenities like coffee from local roasters such as Caribou Coffee Company. Create your listing on Airbnb and VRBO with high-quality photos showcasing views of the Tongass Narrows and nearby attractions like Misty Fjords National Monument, pricing competitively at $80-150 per night depending on season and amenities. Manage the property by partnering with local cleaning services, providing information about salmon fishing charters, totem pole tours, and the Great Alaskan Lumberjack Show, while maintaining communication with guests about weather conditions and ferry schedules to ensure smooth arrivals and departures during Ketchikan's peak tourist season.

To identify profitable short-term rental properties in Ketchikan, Alaska, focus on locations within walking distance of the cruise ship docks, downtown Creek Street historic district, and popular attractions like the Tongass National Forest trailheads, as proximity to these tourist magnets drives highest occupancy rates during the May-September cruise season. Target properties with 2-4 bedrooms, waterfront or mountain views, parking spaces, and Alaska-themed amenities like hot tubs or fire pits, while ensuring reliable internet for remote workers during shoulder seasons. Analyze pricing using AirDNA and Mashvisor to benchmark against the market average of $150-250 per night, accounting for Ketchikan's 70-80% occupancy rates during peak season but significantly lower winter demand. Research competition by studying the approximately 200-300 active STR listings on Airbnb and VRBO, identifying gaps in luxury accommodations or unique experiences like fishing lodge-style properties. Utilize tools like Rabbu and STR Helper for market analysis, monitor the Ketchikan Gateway Borough's STR regulations and business licensing requirements, partner with local property management companies familiar with seasonal maintenance challenges, and consider properties near the Alaska Marine Highway ferry terminal to capture independent travelers beyond cruise passengers.

To obtain an Airbnb/STR permit in Ketchikan, Alaska, you must first contact the Ketchikan Gateway Borough Planning Department at 344 Front Street or call (907) 228-6625 to apply for a Conditional Use Permit for short-term rentals. Required documents include a completed CUP application form, property deed or lease agreement, site plan showing parking and access, proof of liability insurance (minimum $1 million), fire safety inspection certificate from Ketchikan Fire Department, and a business license from Alaska Department of Commerce. The application fee is approximately $500-750 for the conditional use permit, plus $150 for the business license and additional inspection fees of around $200-300. The timeline typically takes 60-90 days for processing, including a public hearing before the Planning Commission and potential Borough Assembly review. Ketchikan-specific requirements include maintaining adequate off-street parking (minimum one space per unit), ensuring compliance with residential zoning density limits, providing 24/7 local contact information for guests, maintaining a guest registry, and adhering to noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also meet International Building Code standards and may require additional permits if modifications are made to accommodate guests.

Short-term rentals (STRs) are legal in Ketchikan, Alaska, but operate under the city's regulatory framework established around 2019-2020. The Ketchikan Gateway Borough requires STR operators to obtain a business license and comply with zoning regulations, with rentals generally permitted in residential areas but subject to specific conditions including occupancy limits, parking requirements, and noise restrictions. Properties must meet safety standards including smoke detectors and emergency egress requirements, and operators must collect and remit local sales tax. The city has implemented a complaint-driven enforcement system and requires contact information for a local representative who can respond to issues within a reasonable timeframe. Recent changes have included stricter enforcement of existing regulations and enhanced penalties for non-compliance, particularly regarding noise violations and exceeding occupancy limits. While STRs are not prohibited in specific areas outright, certain residential zones may have additional restrictions, and operators must ensure compliance with homeowners association rules where applicable.

The best areas for Airbnb investment in Ketchikan, Alaska are downtown Ketchikan near the cruise ship docks and Creek Street, which attracts over 1 million cruise passengers annually from May through September who seek walkable access to the historic boardwalk, salmon ladder, and local shops. The Tongass Narrows waterfront area offers stunning views and proximity to floatplane terminals, appealing to visitors arriving via Alaska Airlines or charter flights for fishing and wilderness excursions. The residential neighborhoods around Ketchikan High School and Park Avenue provide quieter accommodations for longer-stay visitors including fishing guides, seasonal workers, and business travelers visiting the Ketchikan Pulp Company area or government facilities. West Tongass Highway properties near Saxman Village capitalize on cultural tourism as visitors explore Native Alaskan totem parks and cultural centers, while areas near the ferry terminal serve travelers using the Alaska Marine Highway System, with these locations benefiting from Ketchikan's role as the first stop for northbound cruise ships and its reputation as the "Salmon Capital of the World" drawing sport fishing enthusiasts year-round.

Airbnb properties in Ketchikan, Alaska are subject to the Ketchikan Gateway Borough transient occupancy tax of 12% on gross rental receipts for stays of 30 days or less, which applies to all short-term rental accommodations including vacation rentals and bed & breakfasts. The tax is collected from guests at the time of booking and must be remitted monthly to the Ketchikan Gateway Borough by the 15th of the following month using their online portal or by mail with Form TO-1. Additionally, operators must register for a transient accommodation business license and collect Alaska state sales tax of approximately 0% (as Alaska has no statewide sales tax). Properties used as primary residences for more than 185 days per year may qualify for certain exemptions, and stays exceeding 30 consecutive days are generally exempt from the transient occupancy tax. The borough requires quarterly reporting even if no rentals occurred, and penalties apply for late payments at 1.5% per month plus interest, with the borough conducting periodic audits to ensure compliance with collection and remittance requirements.

Starting an Airbnb in Ketchikan, Alaska requires significant upfront investment with property purchase being the largest expense at approximately $350,000 for a median-priced home suitable for short-term rental. Furnishing costs typically range from $15,000-25,000 to create an attractive, fully-equipped space including furniture, appliances, linens, and décor. Initial setup expenses including professional photography, listing creation, and basic renovations average $3,000-5,000. Permits and fees in Ketchikan include business license ($100), short-term rental permit ($200-500), and potential zoning compliance costs totaling around $1,000-2,000. Insurance specifically for short-term rentals costs approximately $2,000-3,000 annually, with the first year requiring upfront payment. Utilities including electricity, water, sewer, internet, and cable average $300-400 monthly in Alaska's climate. First six months of operating costs including utilities ($2,400), cleaning services ($1,800), supplies and maintenance ($1,500), platform fees and marketing ($2,000), and property management software ($300) total approximately $8,000. The complete startup investment for a Ketchikan Airbnb ranges from $380,000-390,000, with the property purchase representing roughly 90% of total initial costs.

Airbnb properties in Ketchikan, Alaska demonstrate strong seasonal profitability with average daily rates ranging from $150-300 during peak summer months (May-September) when cruise ship tourism drives demand, generating annual revenues of $25,000-45,000 for well-positioned properties. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% for utilities, and $2,000-4,000 annually for insurance and permits, resulting in net profit margins of 35-50% for successful operators. Properties near the cruise ship docks and downtown Creek Street command premium rates, with waterfront cabins and homes featuring Alaska-themed decor performing exceptionally well. Success factors include professional photography showcasing mountain and water views, offering transportation assistance since many guests arrive via cruise ships without vehicles, providing local activity recommendations for fishing and wildlife tours, and maintaining high cleanliness standards due to the remote location. Winter occupancy drops significantly to 10-20%, but properties that cater to fishing guides, seasonal workers, and winter sports enthusiasts can maintain year-round viability. Case studies from 2019-2023 show that hosts who invested in hot tubs, fire pits, and authentic Alaskan furnishings achieved 15-25% higher revenues than basic accommodations, while properties managed by local companies like Ketchikan Vacation Rentals reported average annual profits of $18,000-28,000 after all expenses for typical 2-3 bedroom homes.

Airbnb investments in Ketchikan, Alaska typically generate annual ROI of 12-18% due to the city's strong tourism season from May through September when cruise ships bring approximately 1.2 million visitors annually. Cash-on-cash returns generally range from 8-14% for well-positioned properties near the downtown cruise ship docks or popular attractions like Creek Street and the Tongass National Forest. Properties averaging $200-300 per night during peak season (May-September) and $80-120 during off-season can achieve profitability within 18-24 months, assuming initial investment of $250,000-400,000 for a suitable 2-3 bedroom property. The seasonal nature of Ketchikan's tourism means occupancy rates peak at 75-85% during summer months but drop to 25-35% in winter, resulting in annual occupancy rates of 55-65%. Properties that cater to fishing enthusiasts, cruise passengers, and adventure tourists typically outperform the market, with some premium waterfront or uniquely themed properties achieving ROI as high as 22% annually.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Ketchikan, Alaska. Local real estate agents specializing in investment properties include Ketchikan Real Estate Company agents who understand the tourism market, while Alaska Premier Properties and First National Bank Alaska Real Estate have agents experienced with vacation rental investments. National services like Awning, RedAwning, and AirDNA offer market analysis and property management solutions for Ketchikan properties. Vacasa and AvantStay provide full-service property management for short-term rentals in the area, while companies like Mashvisor and BiggerPockets offer investment analysis tools. Local property management companies such as Southeast Alaska Property Management and Ketchikan Property Services can assist with ongoing operations. Real estate investment firms like Roofstock and Arrived Homes occasionally feature Alaska properties, while local mortgage brokers at Tongass Federal Credit Union and True North Federal Credit Union understand financing for investment properties in the Ketchikan market.