Is Queen Anne, Washington Good for Airbnb Investment?

To start an Airbnb in Queen Anne, Washington, begin by researching Seattle's short-term rental regulations, which require hosts to obtain a Short-Term Rental Operator License from the Seattle Department of Construction and Inspections, limit rentals to primary residences for stays under 28 days, and mandate registration with Washington State Department of Revenue for tax collection. Apply for your operator license ($75-150 annually) and complete required safety inspections including smoke detectors, carbon monoxide detectors, and fire extinguishers, while ensuring compliance with Queen Anne's zoning restrictions that may limit short-term rentals in certain residential areas. Find a suitable property in Queen Anne considering the neighborhood's appeal to tourists visiting Seattle Center, Space Needle, and downtown attractions, ensuring it meets Seattle's requirement that you live on-site at least 9 months per year. Furnish the space with quality amenities including fast WiFi, comfortable bedding, kitchen essentials, and local guidebooks, while maintaining Seattle's required minimum square footage of 220 square feet per rental unit. Create your Airbnb listing with professional photos highlighting Queen Anne's walkability and proximity to major attractions, set competitive pricing based on Queen Anne's average rates of $120-200 per night, and ensure compliance with Seattle's 90-day annual limit for entire-home rentals. Manage your property by maintaining required guest registries, collecting and remitting Seattle's 14.1% lodging tax plus Washington State sales tax, responding promptly to guests, coordinating cleaning between stays, and staying current with Seattle's evolving short-term rental regulations that require annual license renewals and periodic safety inspections.

To identify profitable short-term rental properties in Queen Anne, Washington, focus on locations within walking distance of Seattle Center, Kerry Park, and the Space Needle, as these areas command premium nightly rates of $150-300 due to tourist demand. Target properties with 1-3 bedrooms, parking spaces, and views of the city skyline or Puget Sound, as these features can increase occupancy rates by 20-30% compared to standard units. Analyze comparable STR pricing using AirDNA and Mashvisor, which show Queen Anne properties averaging 65-75% occupancy with $180-220 nightly rates, while monitoring seasonal fluctuations during summer months and major Seattle events. Research competition by examining listings within a 0.5-mile radius on Airbnb and VRBO, noting that properties near Lower Queen Anne typically outperform Upper Queen Anne locations by 15-20% in revenue. Utilize tools like Rabbu and AllTheRooms for Queen Anne-specific market data, while leveraging Seattle's MLS through local real estate agents familiar with STR regulations, and consider properties priced 10-15% below market value in buildings that allow short-term rentals, as Seattle's evolving STR ordinances require careful compliance verification through the city's licensing database.

To obtain an Airbnb/STR permit in Queen Anne, Washington (Seattle), you must first register with the City of Seattle's Department of Construction and Inspections (SDCI) through their online portal at seattle.gov. Required documents include proof of property ownership or lease agreement with landlord consent, a floor plan showing the rental unit, proof of liability insurance ($1 million minimum), a business license from Seattle, and completion of a life safety inspection by SDCI. The application fee is approximately $391 for the initial permit plus $150 for the business license, with annual renewal fees of $230. You must also pay Seattle's lodging tax and obtain a Washington State business license through the Department of Revenue. The timeline typically takes 4-6 weeks from application submission to permit approval, assuming all inspections pass. Queen Anne-specific requirements include adherence to Seattle's operator requirements (must live on-site for homestays or within Seattle for short-term rentals), compliance with the 90-day annual limit for non-primary residences, parking requirements if specified by your building, and notification to neighbors within 100 feet of your property. Additionally, you must display your permit number in all listings and maintain guest registries, and properties in certain Queen Anne historic districts may require additional design review approval from the Seattle Department of Neighborhoods.

Short-term rentals (STRs) are legal in Queen Anne, Seattle, Washington, but operate under the city's comprehensive STR regulations implemented in 2017 and updated through 2023. Property owners must obtain a Short-Term Rental Operator License from the Seattle Department of Construction and Inspections, pay applicable taxes including the Seattle Tourism Improvement Area fee, and comply with safety requirements including smoke and carbon monoxide detectors. STRs are prohibited in certain zoned areas and buildings with rental restrictions, and operators face limitations including a maximum of two STR licenses per person, mandatory neighbor notification, and adherence to noise ordinances. Recent changes include stricter enforcement mechanisms, increased penalties for violations, and enhanced registration requirements, with the city conducting regular compliance audits. Queen Anne's upscale residential character means many properties operate as STRs given tourist demand, but operators must navigate both city-wide regulations and any additional homeowners association restrictions common in the neighborhood's condominiums and planned communities.

The most lucrative Airbnb investment areas in Queen Anne, Washington include Lower Queen Anne, which offers prime proximity to Seattle Center, Climate Pledge Arena, and the Space Needle, making it ideal for tourists attending events, concerts, and Mariners or Seahawks games, with consistent demand from business travelers visiting nearby tech companies like Amazon and Google. Upper Queen Anne provides a more residential, upscale atmosphere with stunning views of Elliott Bay and the Olympic Mountains, attracting longer-stay guests and families seeking quieter accommodations while remaining within walking distance of Seattle's main attractions. The South Lake Union border area of Queen Anne captures overflow demand from the tech corridor, benefiting from Amazon's headquarters proximity and the high concentration of biotech companies, ensuring steady business travel bookings. East Queen Anne, near Seattle Center and Belltown, offers excellent walkability to Pike Place Market, the waterfront, and downtown business district, making it attractive for both leisure tourists and corporate travelers, while the area's historic charm and tree-lined streets provide a unique Seattle experience that commands premium nightly rates year-round.

In Queen Anne, Washington, Airbnb hosts are subject to multiple lodging and occupancy taxes including Washington State's 6.5% sales tax, King County's 2.5% lodging tax, and Seattle's 14.25% lodging tax (which includes a 7% general lodging tax and 7.25% convention and trade center tax), totaling approximately 23.25% in combined taxes on short-term rental stays. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts must register with the Washington State Department of Revenue and obtain a business license. Seattle requires hosts to obtain a short-term rental operator's license and register with the city's tax system, with taxes due monthly if collections exceed $50. Exemptions may apply for stays exceeding 30 consecutive days, which are generally not subject to lodging taxes, and certain medical or government-related stays may qualify for exemptions with proper documentation, though standard vacation and business travelers are subject to the full tax rates.

To start an Airbnb in Queen Anne, Washington, the total costs would be approximately $1,150,000-$1,300,000. Property purchase represents the largest expense at $900,000-$1,100,000 for a median 2-bedroom condo or townhome in this upscale Seattle neighborhood as of 2024. Furnishing costs range from $25,000-$40,000 for quality furniture, appliances, linens, and décor suitable for short-term rentals. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,500. Seattle requires a short-term rental license ($75), business license ($110), and potential Master Use Permit ($2,000-$5,000) depending on zoning. Insurance including landlord and short-term rental coverage adds $3,000-$5,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable total $1,500-$2,500. First six months operating costs including utilities ($1,800), cleaning services ($3,600), supplies and maintenance ($2,000), platform fees at 3-5% of bookings ($6,000 estimated), property management if outsourced ($9,000), and miscellaneous expenses ($2,000) total approximately $24,400. Additional considerations include potential HOA fees ($300-$800 monthly) and city taxes on short-term rentals.

Airbnb properties in Queen Anne, Washington typically generate strong profitability due to the neighborhood's prime Seattle location near Seattle Center, Space Needle, and downtown business district. Properties in this area command average daily rates of $150-250 for entire homes and $80-120 for private rooms, with occupancy rates ranging from 65-80% annually. A typical 2-bedroom Queen Anne Airbnb generating $4,500-6,000 monthly revenue faces expenses including mortgage/rent ($2,500-3,500), utilities ($200-300), cleaning fees ($150-200), supplies and maintenance ($100-150), insurance ($100-150), and Seattle's 14.1% lodging tax, resulting in net profit margins of 15-25%. Success factors include proximity to tourist attractions like Pike Place Market and Kerry Park, professional photography showcasing city views, responsive host communication, and premium amenities. Case studies from 2022-2023 show Queen Anne properties outperforming Seattle's average by 20-30% in revenue per available room, with luxury units near Seattle Center achieving $8,000+ monthly revenue and 30%+ profit margins. Properties with parking, city views, and walkability to attractions consistently achieve higher occupancy and premium pricing, while those requiring significant renovation or lacking amenities struggle to maintain profitability above 10-15% margins.

Airbnb investments in Queen Anne, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in this Seattle neighborhood, with average purchase prices between $800,000-$1.2 million, can expect gross rental yields of 4-6% annually, with net returns after expenses, taxes, and management fees settling around 8-10%. The timeframe to profitability is generally 18-24 months, considering initial setup costs, furnishing expenses of $15,000-$25,000, and the learning curve for optimization. Queen Anne's proximity to Seattle Center, Space Needle, and downtown core drives strong occupancy rates of 70-80% annually, with average daily rates of $150-$220 depending on property size and amenities. Cash-on-cash returns of 6-10% are achievable with typical down payments of 20-25%, though investors should factor in Seattle's short-term rental regulations, seasonal demand fluctuations, and higher operating costs including utilities, cleaning, and property management fees that can consume 40-50% of gross rental income.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Queen Anne, Washington, providing market analytics and property recommendations. Local Seattle-based companies include Vacasa, which offers full-service Airbnb management and investment consulting, and AvantStay, specializing in group rental properties in upscale neighborhoods like Queen Anne. RedAwning and Awning provide national short-term rental investment services with Seattle market expertise. Real estate agents specializing in Airbnb investments in the Queen Anne area include teams from Windermere Real Estate, Redfin, and John L. Scott, particularly agents who focus on Capitol Hill and Queen Anne neighborhoods. Additional services include AirDNA for market data analysis, Mashvisor for investment property analytics, and local property management companies like Seattle Oasis and Pillow that help investors maximize rental returns in Queen Anne's competitive short-term rental market.