Is Lakewood, Washington Good for Airbnb Investment?

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

• Presents a promising opportunity given the city's strategic location and steady growth.
• Lakewood benefits from its proximity to Joint Base Lewis-McChord (JBLM), attracting military personnel and their families, as well as business travelers.
• The local tourism industry is also bolstered by attractions like Lakewold Gardens and American Lake, drawing visitors seeking outdoor recreation and historical sites.
• Property values in Lakewood have seen consistent appreciation, reflecting a stable real estate market.
• This combination of consistent demand from diverse visitor segments and a growing local economy points to strong investment potential for short-term rentals in Lakewood.

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

• Based on available market data and rental analytics, Airbnb hosts in Lakewood, Washington typically earn between $1,200 to $2,800 per month.
• Seasonal variations show peak earnings during summer months when revenue can increase by 25-40% due to higher tourism demand and proximity to Mount Rainier National Park.
• Key factors affecting earnings include property size and amenities, with three-bedroom homes commanding premium rates, proximity to Joint Base Lewis-McChord which drives consistent military family demand.
• Properties within walking distance of American Lake or Steilacoom Lake tend to earn 10-15% more than average.
• The average daily rate ranges from $85 to $165 depending on property type and season, with occupancy rates typically between 60-75% for well-managed listings.

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

• Typically generate ROI between 8-12% annually, with properties near Joint Base Lewis-McChord and Lakewood's recreational areas performing at the higher end due to consistent military and tourist demand.
• The average payback period ranges from 12-18 years depending on initial investment and property type.
• Compared to traditional long-term rentals in Lakewood which average 6-8% ROI, short-term rentals provide 2-4% higher returns but require significantly more active management and face seasonal fluctuations.
• Properties within 5 miles of the military base maintain more consistent year-round occupancy rates of 65-75%, while those focused on recreational tourism see occupancy rates ranging from 45-80% depending on season.

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

• Airbnb occupancy rates in Lakewood, Washington typically average around 55-65% annually, with significant seasonal variation that peaks during summer months (July-September) at approximately 70-80% occupancy due to favorable weather and proximity to outdoor attractions like Mount Rainier National Park and Joint Base Lewis-McChord military installations.
• Winter months (December-February) see the lowest occupancy rates at roughly 40-50%, while spring and fall maintain moderate levels around 55-65%.
• Lakewood's occupancy rates generally align closely with Washington state averages of 60-65% but fall slightly below national Airbnb averages of 65-70%.
• The city benefits from steady demand driven by military personnel, business travelers, and tourists using it as a base for exploring the greater Puget Sound region.

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

• The best Airbnb investment neighborhoods in Lakewood, Washington include Tillicum, which offers affordable property prices and proximity to Joint Base Lewis-McChord making it ideal for military family bookings.
• The Springbrook neighborhood attracts families and longer-term stays with its quiet residential character and access to parks, offering steady occupancy rates.
• The Clover Park district benefits from proximity to the community college and educational facilities, creating demand from visiting academics and families.
• Finally, neighborhoods near Lakewold Gardens provide unique positioning for guests seeking cultural attractions and scenic beauty.

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

• Short-term rental regulations in Lakewood, Washington require property owners to obtain a business license and comply with the city's zoning ordinances.
• The city typically limits occupancy to two guests per bedroom plus two additional guests, with a maximum of 10 occupants total, and requires adequate parking for guests.
• While owner-occupancy is not mandated for all short-term rentals, hosted rentals (where the owner is present) face fewer restrictions than non-hosted properties.
• Property owners must register their rental with the city, provide contact information for a local representative available 24/7, maintain liability insurance.
• The registration process involves submitting an application with property details, proof of insurance, and paying applicable fees, typically ranging from $100-300 annually.
• Recent regulatory changes around 2022-2023 have included stricter enforcement of noise ordinances, enhanced parking requirements, and increased penalties for violations.

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

• Short-term rentals in Lakewood, Washington are subject to several fees and taxes including Washington State's lodging tax of 13.75% (comprised of 6.5% state sales tax, 6.5% state lodging tax.
• The City of Lakewood requires a business license costing approximately $25-50 annually, and short-term rental operators must obtain a conditional use permit which typically costs $200-400 initially with annual renewal fees of $100-200.
• Additional requirements include a fire safety inspection fee of $75-150, and operators must collect and remit the state's Business & Occupation (B&O) tax at a rate of 1.5% on gross receipts for service businesses.
• Property owners may also face increased property tax assessments if the rental generates significant income.