Is Leavenworth, Washington Good for Airbnb Investment?

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

• Presents a compelling opportunity due to the city's unique Bavarian-themed tourism, consistent event calendar, and strong demand for short-term rentals.
• Current market conditions show robust property values, with a median home price of approximately $600,000, and a sustained influx of tourists drawn to year-round festivals like Oktoberfest and the Christmas Lighting Festival, as well as outdoor recreation such as skiing at Stevens Pass and hiking in the surrounding Cascade Mountains.
• This consistent tourism trend ensures high occupancy rates, particularly during peak seasons, and supports strong average daily rates ranging from $150-$300, leading to an attractive investment potential with typical annual ROI between 12-18%.

$2,500–$6,000 per month based on location, season, and property quality.

• Based on available market data and rental performance analytics, Airbnb properties in Leavenworth, Washington typically generate between $2,500 to $6,000 per month in gross revenue.
• Peak earning months occur during December through February due to Christmas markets and winter festivals, as well as July through September for summer hiking and events.
• Spring and late fall represent shoulder seasons with earnings dropping to $1,500 to $3,500 monthly.
• Key factors influencing earnings include proximity to downtown Leavenworth's main attractions, property size and amenities, seasonal decorations and theming, parking availability.
• Properties within walking distance of Front Street typically outperform those requiring driving by 30-40%.
• Average daily rates range from $150-250 in off-peak periods to $300-500 during peak weekends and holidays.

Potentially strong—typical annual ROI is 12–18%.

• Typically generate ROI between 12-18% annually, significantly outperforming long-term rentals which average 6-8% in the area.
• The payback period for Airbnb properties ranges from 8-12 years depending on initial investment and property type.
• Properties within walking distance of Front Street and seasonal attractions see occupancy rates of 65-75% annually, while those requiring short drives average 55-65% occupancy.
• Long-term rental properties in Leavenworth generate approximately $1,800-2,500 monthly rent but lack the seasonal premium that Airbnb properties capture during Oktoberfest, Christmas Lighting Festival.
• The higher ROI comes with increased management complexity, seasonal income volatility, and higher operating expenses including frequent cleaning, maintenance.

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

• Airbnb occupancy rates in Leavenworth, Washington average approximately 65-70% annually, with significant seasonal variation driven by the town's Bavarian-themed tourism and outdoor recreation activities.
• Peak occupancy occurs during Oktoberfest in September-October (85-90%), Christmas Leavenworth in December (80-85%), and summer months June through August (75-80%).
• Spring and fall shoulder seasons typically maintain 60-65% occupancy.
• These rates substantially exceed Washington state's average Airbnb occupancy of approximately 55-60% and the national average of 48-52%.
• The town's consistent festival calendar, proximity to outdoor recreation including skiing at Stevens Pass and hiking in the Cascade Mountains, plus its distinctive German-themed architecture and dining.
• Weekend occupancy rates typically run 15-20 percentage points higher than weekday rates across all seasons.

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

• The downtown core area near Front Street offers the highest rental rates and occupancy due to its walkability to Bavarian-themed shops, restaurants, and festivals.
• The Icicle Village Resort vicinity provides excellent investment potential with proximity to the golf course, conference facilities, and outdoor recreation access.
• The Pine Street and Commercial Street corridor neighborhoods offer a balance of tourist accessibility and slightly lower acquisition costs while maintaining strong rental demand from visitors who prefer quieter accommodations within walking distance of attractions.
• The residential areas near Enchantment Park appeal to families and groups seeking larger properties with outdoor space.
• The Icicle Creek Road area attracts outdoor enthusiasts year-round with direct access to hiking trails, cross-country skiing, and the Icicle Creek.
• The neighborhoods surrounding Waterfront Park benefit from scenic river views and recreational activities.

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

• Short-term rental regulations in Leavenworth, Washington require property owners to obtain a business license and conditional use permit through the city's planning department.
• The city limits occupancy to two people per bedroom plus two additional guests, with a maximum of 10 people total per property.
• Owner-occupancy is not required for short-term rentals, but properties must be registered annually with the city and maintain compliance with fire safety codes, parking requirements of at least two off-street spaces.
• The registration process involves submitting floor plans, emergency contact information, and proof of liability insurance of at least $1 million.
• Properties must also display permit numbers in all advertising and maintain guest registries, with the city conducting periodic inspections to ensure compliance with health and safety standards.

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

• Short-term rentals in Leavenworth, Washington are subject to several fees and taxes including Washington State's 6.5% sales tax, a local lodging tax of approximately 2-4% imposed by Chelan County.
• Property owners must obtain a business license from the city costing approximately $25-50 annually, register for a Washington State business license at $19, and secure a short-term rental permit which typically costs $100-200 per year.
• Additional requirements include a transient accommodation license fee of roughly $50-100, potential fire safety inspection fees of $75-150, and compliance with zoning permits that may cost $25-75.
• The total lodging tax burden on guests ranges from 9-11.5% of the rental rate, while operators face annual regulatory costs of approximately $250-500 depending on specific property requirements and inspection needs.