Is Ocean Shores, Washington Good for Airbnb Investment?

To start an Airbnb in Ocean Shores, Washington, begin by researching local regulations through the City of Ocean Shores Planning Department, as the city requires short-term rental permits and has specific zoning restrictions that limit vacation rentals to certain residential areas. Obtain a business license from Washington State Department of Revenue and register for state and local taxes including the 6.5% state sales tax plus Grays Harbor County's additional lodging tax of approximately 2%. Apply for a short-term rental permit from Ocean Shores City Hall, which typically costs around $200-300 annually and requires proof of insurance, safety inspections, and compliance with occupancy limits. Find a suitable property in approved zones, focusing on areas near the beach or main attractions, with typical purchase prices ranging from $300,000-600,000 for oceanfront properties as of 2023. Furnish the property with coastal-themed decor, essential amenities like WiFi, full kitchen, linens, and outdoor equipment such as beach chairs and umbrellas that appeal to Ocean Shores visitors. List your property on Airbnb, VRBO, and local vacation rental sites, emphasizing proximity to the beach, razor clam digging, and local attractions like the Ocean Shores Convention Center. Manage bookings by establishing relationships with local cleaning services (typically $80-120 per turnover), maintenance contractors familiar with coastal property challenges like salt air corrosion, and consider hiring Ocean Shores-based property management companies like Vacasa or local independents who charge 15-25% commission but handle guest communication, cleaning coordination, and emergency responses.

To identify profitable STR properties in Ocean Shores, Washington, focus on beachfront or ocean-view locations within walking distance of the beach, particularly properties near Chance a la Mer Beach or the main strip along Point Brown Avenue. Target 2-4 bedroom single-family homes or condos built after 1990 with amenities like hot tubs, fireplaces, pet-friendly policies, and parking for multiple vehicles, as families and groups visiting this coastal destination value these features. Analyze pricing using AirDNA or Mashvisor to benchmark against similar properties, aiming for properties that can command $150-300+ per night during peak summer months while maintaining 60-70% occupancy rates annually. Research competition by studying existing STR listings on Airbnb and VRBO within a 1-mile radius of the beach, noting their pricing strategies, amenities, and guest reviews to identify market gaps. Utilize tools like Rabbu, STR Helper, or local MLS data through Redfin and Zillow to analyze purchase prices, property taxes, and rental potential, while consulting with local property management companies like Vacasa or RedAwning who operate in the Ocean Shores market to understand operational costs and revenue projections for this seasonal beach town that peaks during summer months and crab season.

To obtain an Airbnb/STR permit in Ocean Shores, Washington, you must apply through the Ocean Shores City Hall located at 120 2nd Avenue NW by submitting a completed short-term rental business license application along with required documents including proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're not local, and a completed fire safety inspection form. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100. You must also comply with Ocean Shores' specific requirements including maximum occupancy limits based on bedrooms and square footage, designated parking spaces, proper waste management arrangements, 24-hour contact information posted for guests, and adherence to noise ordinances with quiet hours from 10 PM to 8 AM. The property must pass a fire safety inspection and meet all building codes. The timeline for approval typically takes 4-6 weeks from submission of a complete application, including the required inspection period. Once approved, you'll receive your business license which must be renewed annually, and you're required to collect and remit local lodging taxes of approximately 2-4% on all bookings, with monthly reporting to the city required.

Short-term rentals (STRs) are legal in Ocean Shores, Washington, but are subject to municipal regulations and licensing requirements. The city requires STR operators to obtain a business license and comply with zoning restrictions, with most residential areas allowing STRs but with occupancy limits typically capped at 10-12 guests depending on the property size. Ocean Shores has implemented noise ordinances, parking requirements (usually 2 spaces per unit), and mandates that operators provide 24-hour contact information for complaints. The city prohibits STRs in certain multi-family residential zones and requires compliance with health and safety standards including smoke detectors and emergency egress requirements. Recent changes around 2022-2023 have included stricter enforcement of existing regulations and enhanced penalty structures for non-compliance, with the city conducting more frequent inspections and requiring annual license renewals. Properties must also comply with Washington State tax requirements and Ocean Shores' lodging tax, and operators face potential fines ranging from $250-$1,000 for violations of city ordinances.

The most attractive areas for Airbnb investment in Ocean Shores, Washington include the Damon Point area near the state park which offers prime beachfront access and attracts nature enthusiasts year-round, particularly during gray whale migration seasons and bird watching periods. The central Ocean Shores Boulevard corridor provides excellent investment potential due to its proximity to restaurants, shops, and the Ocean Shores Convention Center which hosts events throughout the year including the annual Razor Clam Festival and various car shows. Properties near the Ocean Shores Golf Course appeal to golf tourists and offer steady bookings during the spring through fall seasons. The North Jetty area is highly desirable for fishing enthusiasts and families seeking beach access, with consistent demand during summer months and crabbing seasons. The area around Chance A La Mer Boulevard offers a good balance of accessibility and tranquility, attracting both families and couples seeking romantic getaways, while properties near the marina district benefit from boating tourists and fishing charters, with companies like Westport Charters bringing visitors to the area regularly since the 1980s.

In Ocean Shores, Washington, Airbnb hosts are subject to multiple lodging taxes including the state sales tax of 6.5%, Washington state lodging tax of 0.2%, Grays Harbor County lodging tax of 2%, and Ocean Shores city lodging tax of 2%, totaling approximately 10.7% in combined taxes on short-term rental accommodations. These taxes are typically collected by Airbnb directly from guests at the time of booking for most standard reservations and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with the Washington State Department of Revenue and obtain necessary business licenses from Ocean Shores city offices. Hosts must remit taxes monthly or quarterly depending on volume, with returns due by the 25th of the following month, and while Airbnb handles most collection and remittance automatically since around 2017-2018, hosts remain ultimately responsible for ensuring compliance and may need to file additional returns for any bookings not processed through Airbnb's tax collection system. Exemptions are limited and typically apply only to stays exceeding 30 consecutive days, government employees on official business, or other specific circumstances outlined in state and local tax codes, with most standard vacation rentals subject to the full tax rate.

To start an Airbnb in Ocean Shores, Washington, the total initial costs would be approximately $485,000-$565,000. Property purchase represents the largest expense at $350,000-$425,000 based on median home prices for vacation rental properties in the area as of 2023-2024. Furnishing costs typically range $25,000-$35,000 for a complete 2-3 bedroom coastal property including furniture, appliances, linens, and decor suitable for vacation rentals. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $3,000-$5,000. Permits and fees vary but generally include business license ($200), short-term rental permit ($500-$1,500), and potential HOA approval fees totaling $1,000-$2,500. Insurance for short-term rentals runs $2,500-$4,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, sewer, internet, and cable typically cost $1,500-$2,500 initially. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance reserves ($2,000), platform fees ($1,500), marketing ($1,000), and miscellaneous expenses ($1,500) total approximately $11,400. Additional considerations include potential property management fees if outsourced and emergency repair funds, making the comprehensive startup investment range from $485,000 to $565,000 depending on property size and finish level.

Airbnb properties in Ocean Shores, Washington typically generate annual revenues between $35,000-$65,000 for well-positioned beachfront or near-beach properties, with average daily rates ranging from $150-$280 during peak summer months (June-September) and $80-$140 during off-season periods. Operating expenses generally consume 40-55% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$350 monthly), insurance ($1,500-$2,500 annually), and maintenance reserves (8-12% of revenue). Successful properties in Ocean Shores achieve profit margins of 25-35% by focusing on oceanfront or canal-front locations, maintaining high-quality furnishings and amenities, optimizing pricing through dynamic tools like PriceLabs or Wheelhouse, and targeting the Seattle metropolitan area market approximately 2.5 hours away. Properties within walking distance of the beach, featuring hot tubs, pet-friendly policies, and accommodating 6-8 guests tend to outperform smaller inland units by 20-40% in both occupancy rates (65-75% vs 45-55%) and average daily rates, with the most successful operators reporting net annual profits of $15,000-$25,000 per property after accounting for mortgage payments and all operating expenses.

Based on Ocean Shores, Washington market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location proximity to the beach. Oceanfront properties command premium rates of $200-350 per night during peak summer months (June-September) while inland properties average $120-180 nightly, with occupancy rates of 65-75% annually due to consistent tourist demand from Seattle and Portland metro areas. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even cash flow often achieved in the first 12-15 months when factoring in seasonal variations, property management costs of 15-25%, and maintenance expenses averaging $3,000-5,000 annually. Properties within walking distance of Ocean Shores Beach State Park and downtown attractions typically outperform by 20-30% compared to properties requiring vehicle access to main amenities.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties in Ocean Shores, Washington, offering comprehensive market analysis and property recommendations. Local real estate agents like Windermere Real Estate and John L. Scott serve the Ocean Shores market with expertise in vacation rental properties, while Century 21 Ocean Shores and Coldwell Banker Evergreen Olympic Realty provide specialized investment property services in the area. National services include BiggerPockets for investor networking and deal analysis, Mashvisor for Airbnb profitability analysis and market data, and AirDNA for short-term rental market insights and revenue projections. RedAwning offers property management and investment services for vacation rentals, while Vacasa provides full-service property management for Airbnb investments in coastal Washington markets. Local property management companies like Ocean Shores Property Management and Pacific Coast Vacation Rentals offer turnkey solutions for investors, and mortgage brokers such as Pacific Northwest Lending and Coastal Mortgage Group specialize in investment property financing for vacation rental purchases in the Ocean Shores market.