Is Port Angeles, Washington Good for Airbnb Investment?

To start an Airbnb in Port Angeles, Washington, begin by researching local regulations through the City of Port Angeles Planning Department, as the city requires short-term rental permits and compliance with zoning ordinances that typically allow vacation rentals in residential zones with specific occupancy limits and parking requirements. Obtain necessary permits including a business license from the city, a short-term rental permit (approximately $200-400 annually), and ensure compliance with Washington State Department of Revenue tax registration for collecting state and local taxes including the 8.4% sales tax and 2% lodging tax. Find a suitable property by considering proximity to Olympic National Park, downtown waterfront, and ferry terminals, with average property prices ranging $300,000-600,000 for suitable homes, or consider renting a property with landlord permission for subleasing. Furnish the space with durable, comfortable furniture focusing on outdoor gear storage, local artwork, and amenities like high-speed internet, full kitchen, and laundry facilities, budgeting approximately $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting views of the Strait of Juan de Fuca and Olympic Mountains, competitive pricing around $100-200 per night depending on size and location, and emphasize proximity to Hurricane Ridge, Sol Duc Hot Springs, and downtown attractions. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services (typically $75-125 per turnover), installing keyless entry systems, maintaining 24/7 guest communication, and partnering with local property management companies like Olympic Property Management if needed for remote oversight, while ensuring compliance with the 2-guest maximum per bedroom rule and quiet hours typically enforced from 10 PM to 7 AM in residential areas.

To identify profitable short-term rental properties in Port Angeles, Washington, focus on locations within 2-3 miles of Olympic National Park entrances, downtown waterfront areas near the ferry terminal, and neighborhoods with mountain or water views like Ediz Hook vicinity. Target 2-4 bedroom single-family homes or cabins built after 1980 with outdoor spaces, fireplaces, and parking, as these appeal to families visiting the national park and outdoor enthusiasts. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $150-300 per night depending on size and amenities, with occupancy rates of 60-75% achievable during peak summer months. Research competition by studying existing Airbnb and VRBO listings within 5 miles, noting their pricing, amenities, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Windermere or John L. Scott realty offices, while consulting Port Angeles city regulations for STR permits and connecting with local property management companies like Olympic Peninsula Vacation Rentals for market insights and operational support.

To obtain an Airbnb/STR permit in Port Angeles, Washington, you must apply through the City of Port Angeles Planning Department located at 321 E 5th Street or online through their permitting portal. Required documents include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, parking plan, contact information for a local property manager within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $200 with an annual renewal fee of $150, and you must also obtain a business license for around $50. Port Angeles requires STRs to be owner-occupied or have an on-site manager, maintain a guest registry, provide adequate parking (typically one space per bedroom plus one), limit occupancy to two people per bedroom plus two additional guests, maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertising. The approval timeline is typically 4-6 weeks after submitting a complete application, and the city conducts inspections to ensure compliance with fire safety, building codes, and zoning requirements. Properties must be located in zones that allow short-term rentals, and some residential areas may have additional restrictions or require conditional use permits.

Short-term rentals (STRs) are legal in Port Angeles, Washington, but operate under specific regulations established by the city. Port Angeles requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use zones, while residential zones have more limited permissions. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR operators must follow. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators are required to provide local contact information for guests. Recent changes around 2020-2022 included stricter enforcement of existing regulations and enhanced complaint procedures for neighbors. The city has been balancing tourism revenue with neighborhood preservation concerns, particularly in residential areas near the downtown core and waterfront. STR operators must also comply with state and county tax requirements, and the city has established a complaint-driven enforcement system to address violations of noise, parking, and occupancy rules.

The best Airbnb investment areas in Port Angeles, Washington include the downtown historic district near the ferry terminal, which attracts tourists heading to Victoria, BC and benefits from walkability to restaurants and shops. The areas near Hurricane Ridge Road and Olympic National Park entrances are highly desirable due to proximity to hiking trails, visitor centers, and outdoor recreation activities that draw nature enthusiasts year-round. The waterfront districts along the Strait of Juan de Fuca offer scenic views and appeal to visitors seeking coastal experiences, while neighborhoods near Peninsula College attract visiting families and academic travelers. The Sequim Bay area, though slightly outside Port Angeles proper, benefits from lavender festival tourism and retiree visitors. Properties near the Port Angeles Fine Arts Center and Webster's Woods Art Park capture cultural tourists, and areas close to the Olympic Discovery Trail appeal to cycling and outdoor adventure travelers. The Lincoln Park and Peabody Heights neighborhoods offer residential charm while maintaining proximity to downtown attractions and the ferry system.

In Port Angeles, Washington, Airbnb hosts are subject to multiple lodging taxes including Washington State's 6.5% sales tax, the state's 0.2% lodging tax, and Clallam County's 2% lodging tax, totaling approximately 8.7% in combined taxes on short-term rental accommodations. The City of Port Angeles also imposes a local lodging tax of 2%, bringing the total tax burden to around 10.7% of the gross rental income. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for state and local taxes in many jurisdictions, though hosts remain responsible for ensuring compliance and may need to register with the Washington State Department of Revenue and local tax authorities. Hosts must remit taxes monthly or quarterly depending on volume, with returns due by the 25th of the following month, and are required to maintain detailed records of all rental transactions. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Port Angeles, Washington, expect total costs of approximately $485,000-$565,000. Property purchase represents the largest expense at $350,000-$425,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Clallam County include business license ($100-$200), short-term rental permit ($500-$1,000), and potential HOA approvals. Insurance costs run $2,000-$3,500 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable total approximately $1,500-$2,500. First six months operating costs including utilities ($800/month), cleaning services ($100-150 per turnover), supplies and maintenance ($300/month), platform fees (3% of bookings), and marketing expenses total roughly $8,000-$12,000, assuming 60-70% occupancy rates typical for the Port Angeles tourism market.

Airbnb properties in Port Angeles, Washington typically generate annual revenues of $15,000-$35,000 for well-positioned listings, with average daily rates ranging from $80-$150 depending on proximity to Olympic National Park and seasonal demand. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within 10 miles of Hurricane Ridge or near the ferry terminal to Victoria achieve higher occupancy rates of 60-75% during peak season (June-September) compared to 35-50% for more remote locations. Net profit margins typically range from 15-35% for hands-on owners, with successful operators like those managing cabins near Lake Crescent reporting $18,000-$28,000 annual profits on properties generating $45,000-$65,000 in gross revenue. Key success factors include strategic location near park entrances, professional photography highlighting outdoor access, competitive pricing during shoulder seasons, and maintaining consistent 4.8+ star ratings through responsive communication and immaculate cleanliness standards that capitalize on the area's reputation as a gateway to Olympic National Park's hiking and outdoor recreation opportunities.

Airbnb investments in Port Angeles, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to Olympic National Park and ferry access to Victoria, BC which creates strong seasonal demand from May through September. Properties within 2-3 miles of the downtown waterfront or Hurricane Ridge access points command premium nightly rates of $120-180, while more distant locations average $80-120 per night with occupancy rates of 65-75% during peak season and 35-45% in winter months. Initial profitability typically occurs within 18-24 months for well-positioned properties, with investors seeing break-even cash flow by month 12-18 when factoring in mortgage payments, property management fees of 15-25%, cleaning costs, and seasonal maintenance requirements. The market benefits from limited hotel inventory and consistent tourist traffic to Olympic National Park, though investors should expect higher vacancy rates during October through March and potential seasonal cash flow challenges requiring 3-6 months of operating reserves.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Port Angeles, Washington, providing market analysis and property recommendations. Local real estate agents specializing in investment properties include Windermere Real Estate and John L. Scott Real Estate, both with offices serving the Port Angeles area since the 1990s. Vacasa, founded in 2009, offers property management services for Airbnb investors in the region, while AirDNA provides market data and analytics for short-term rental investments in Port Angeles. RedAwning and AvantStay focus on vacation rental property acquisition and management in Pacific Northwest markets including Port Angeles. Local investment-focused agents like those at Coldwell Banker Best Homes and RE/MAX Peninsula have been helping investors identify profitable vacation rental properties in the area since the early 2000s. BiggerPockets, established in 2004, connects investors with local professionals and provides resources for Airbnb investment strategies in smaller Washington markets like Port Angeles.