Is Ocean Shores, Washington Good for Airbnb Investment?

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Ocean Shores, Washington market research

Ocean Shores, Washington Airbnb Investment Overview

$1,200–$3,500,Typical monthly host earnings
8–15%Typical annual ROI
65–70%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Ocean Shores, Washington?

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

  • Presents a promising opportunity, largely driven by its appeal as a coastal tourist destination.
  • Current market conditions in Ocean Shores show consistent demand for short-term rentals, particularly during peak seasons, fueled by visitors drawn to its beaches, clamming.
  • While property values have seen steady appreciation, they generally remain more accessible compared to major metropolitan areas, offering a favorable entry point for investors.
  • Tourism trends indicate a stable flow of recreational travelers seeking short-term accommodations, supporting high occupancy rates and robust rental income potential.
Earnings

How Much Does an Average Airbnb Earn in Ocean Shores?

$1,200–$3,500, based on location, season, and property quality.

  • Based on available vacation rental market data, Airbnb properties in Ocean Shores, Washington typically generate average monthly revenues ranging from $1,200 to $3,500, with beachfront and oceanview properties commanding the higher end of this spectrum.
  • Seasonal variations are significant, with summer months (June through August) producing revenues that can be 150-200% higher than winter months, often reaching $4,000-$6,000 monthly for well-positioned properties.
  • Peak earning periods align with summer vacation season, holiday weekends, and local events like the Sand and Sawdust Festival.
  • Key factors affecting earnings include proximity to the beach, property size and amenities, professional photography and listing optimization, responsive host communication.
  • Properties offering unique amenities like hot tubs, fire pits, or pet-friendly accommodations typically outperform basic rentals by 20-30%.
ROI Analysis

Airbnb Return on Investment in Ocean Shores

Potentially strong—typical annual ROI is 8–15%.

  • Typically generate ROI between 8-15% annually, with properties averaging $150-250 per night during peak summer months and $80-120 during off-season.
  • The payback period for initial investment ranges from 7-12 years depending on property purchase price and renovation costs.
  • Compared to long-term rentals in Ocean Shores that yield 6-9% ROI with monthly rents of $1,200-2,000.
  • The seasonal nature of Ocean Shores' tourism market creates cash flow volatility, with 60-70% of annual revenue concentrated in May through September, making success heavily dependent on effective marketing.
Occupancy Rate

Average Airbnb Occupancy Rate in Ocean Shores

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

  • Ocean Shores, Washington experiences average Airbnb occupancy rates of approximately 65-70% annually, with significant seasonal variation driven by its coastal tourism patterns.
  • Peak season occurs during summer months (June through August) when occupancy rates typically reach 85-90%, coinciding with beach activities, the annual Sand and Sawdust Festival.
  • Spring and fall shoulder seasons see moderate occupancy around 55-65%, while winter months drop to 35-45% due to stormy weather and reduced tourist activity.
  • Ocean Shores generally outperforms Washington state's average Airbnb occupancy rate of approximately 60% due to its unique coastal appeal and established vacation rental market.
  • The destination's occupancy is particularly strong during holiday weekends and summer festivals.
Best Neighborhoods

Best Neighborhoods for Airbnb in Ocean Shores

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

  • Ocean Shores offers several prime neighborhoods for Airbnb investment, with the Damon Point area being exceptional due to its secluded beach access and proximity to the wildlife refuge.
  • The Canal Drive neighborhood excels for its direct canal access and boat-friendly properties, drawing fishing and boating guests who value waterfront convenience and are less price-sensitive.
  • North Beach residential areas near Chance a la Mer provide excellent investment potential with their proximity to the main beach access points, restaurants.
  • The Duck Lake vicinity attracts freshwater fishing enthusiasts and families seeking calmer water activities.
  • Ocean City Road properties benefit from easy highway access and proximity to both beach and commercial areas.
  • The Minard area offers a sweet spot of residential charm with reasonable property prices and good rental potential from guests seeking authentic neighborhood experiences while remaining close to main attractions.
  • Finally, properties near the Ocean Shores Golf Course capture the golf tourism market, commanding higher rates during peak golf season and attracting longer-staying guests who value the course proximity and quieter residential setting.
Regulations

Short-term Rental Regulations in Ocean Shores

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

  • Ocean Shores, Washington requires short-term rental operators to obtain a business license and register their property with the city.
  • Properties are generally limited to a maximum occupancy of two people per bedroom plus two additional guests.
  • Owner-occupancy is not required for short-term rentals, allowing for non-resident ownership and operation of vacation rental properties.
  • Short-term rentals are permitted in most residential zones within city limits, but must comply with parking requirements of at least two off-street parking spaces and maintain quiet hours between 10 PM and 8 AM.
  • The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and passing a safety inspection that covers smoke detectors.
  • Recent regulatory changes implemented around 2020-2022 have strengthened enforcement mechanisms, increased fines for violations to $500-1000 per incident.
Fees and Taxes

Short-term Rental Fees and Taxes in Ocean Shores

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

  • Short-term rentals in Ocean Shores, Washington are subject to multiple fees and taxes including Washington State's 6.5% sales tax, the state lodging tax of 2%.
  • Ocean Shores imposes its own lodging tax of around 2-4% and requires short-term rental operators to obtain a business license costing approximately $25-50 annually.
  • Property owners must register their rental units with the city for an estimated fee of $100-200 per unit, and may need to pay for inspections costing $75-150.
  • Additional requirements include transient accommodation licenses with fees ranging from $150-300 annually.
  • Fire safety inspections may cost an additional $50-100, and some properties may require special use permits with fees of $200-500 depending on zoning requirements.
Common questions

Ocean Shores, Washington Airbnb investment FAQs

How to start an Airbnb in Ocean Shores, Washington?

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.

Launch checklist

  • 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 to 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 to 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 to 120 per turnover), maintenance contractors familiar with coastal property challenges like salt air corrosion.
What's the best way to identify good STR properties in Ocean Shores, Washington?

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.

What to prioritize

  • Target 2 to 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 to 300+ per night during peak summer months while maintaining 60 to 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.
How to get an Airbnb permit in Ocean Shores, Washington?

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.

Documents and approvals

  • The application fee is approximately $150 to 200 annually, with additional inspection fees of around $75 to 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.
  • The property must pass a fire safety inspection and meet all building codes.
  • The timeline for approval typically takes 4 to 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 to 4% on all bookings, with monthly reporting to the city required.
Is it legal to operate a short-term rental in Ocean Shores, Washington?

Short term rentals (STRs) are legal in Ocean Shores, Washington, but are subject to municipal regulations and licensing requirements.

Core operating 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 to 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 to 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 to $1,000 for violations of city ordinances.
What are the best places to invest in Airbnb in Ocean Shores, Washington?

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.

Areas to research

  • 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.
Airbnb and lodging taxes in Ocean Shores, Washington

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.

Taxes and filing responsibilities

  • 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 to 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.
Total cost to purchase, furnish and operate an Airbnb in Ocean Shores, Washington

To start an Airbnb in Ocean Shores, Washington, the total initial costs would be approximately $485,000 to $565,000.

Cost breakdown

  • Property purchase represents the largest expense at $350,000 to $425,000 based on median home prices for vacation rental properties in the area as of 2023 to 2024.
  • Furnishing costs typically range $25,000 to $35,000 for a complete 2 to 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 to $5,000.
  • Permits and fees vary but generally include business license ($200), short term rental permit ($500 to $1,500), and potential HOA approval fees totaling $1,000 to $2,500.
  • Insurance for short term rentals runs $2,500 to $4,000 annually, with the first year paid upfront.
  • Utility deposits and connections for electricity, water, sewer, internet, and cable typically cost $1,500 to $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.
Are Airbnb properties in Ocean Shores, Washington profitable?

Airbnb properties in Ocean Shores, Washington typically generate annual revenues between $35,000 to $65,000 for well positioned beachfront or near beach properties, with average daily rates ranging from $150 to $280 during peak summer months (June September) and $80 to $140 during off season periods. Operating expenses generally consume 40 to 55% of gross revenue, including property management fees (15 to 25%), cleaning costs ($75 to $125 per turnover), utilities ($200 to $350 monthly), insurance ($1,500 to $2,500 annually), and maintenance reserves (8 to 12% of revenue).

Profitability indicators

  • Successful properties in Ocean Shores achieve profit margins of 25 to 35% by focusing on oceanfront or canal front locations, maintaining high quality furnishings and amenities, optimizing pricing through dynamic tools like PriceLabs or Wheelhouse.
  • Properties within walking distance of the beach, featuring hot tubs, pet friendly policies, and accommodating 6 to 8 guests tend to outperform smaller inland units by 20 to 40% in both occupancy rates (65 to 75% vs 45 to 55%) and average daily rates.
What is the expected return on investment for an Airbnb in Ocean Shores, Washington?

Based on Ocean Shores, Washington market conditions, Airbnb investments typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 14% depending on property type and location proximity to the beach. Oceanfront properties command premium rates of $200 to 350 per night during peak summer months (June September) while inland properties average $120 to 180 nightly, with occupancy rates of 65 to 75% annually due to consistent tourist demand from Seattle and Portland metro areas.

Return planning figures

  • Initial profitability usually occurs within 18 to 24 months for well positioned properties, with break even cash flow often achieved in the first 12 to 15 months when factoring in seasonal variations, property management costs of 15 to 25%.
  • Properties within walking distance of Ocean Shores Beach State Park and downtown attractions typically outperform by 20 to 30% compared to properties requiring vehicle access to main amenities.
What company can help me find and buy a profitable Airbnb in Ocean Shores, Washington?

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.

Companies and resources

  • 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.

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Success Rate
100% profitable track record
Data Accuracy
Proprietary filters, precise forecasts
Service Scope
End-to-end STR investment support
Risk Mitigation
Only cash-flow-positive matches
Expert Network
Vetted realtors, lenders, designers included
Other Services
Success Rate
Inconsistent ROI, no guarantees
Data Accuracy
Generic metrics, inaccurate estimates
Service Scope
Partial services only
Risk Mitigation
No profitability screening
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Limited or no partner access
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