Is Sequim, Washington Good for Airbnb Investment?

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

• Presents a potentially attractive opportunity, largely influenced by its unique appeal as a tourism destination.
• Current market conditions in Sequim are characterized by steady property values, often more accessible than larger metropolitan areas.
• Tourism trends in Sequim are driven by its proximity to Olympic National Park, the Dungeness Spit, and a burgeoning lavender industry, drawing visitors year-round.
• This consistent tourist flow underpins a solid investment potential for short-term rentals.
• While property values are stable, the demand for unique, nature-access accommodations can lead to favorable rental income.
• However, investors should also consider local regulations and the relatively smaller market size compared to major cities.

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

• Based on available market data and regional analysis, Airbnb properties in Sequim, Washington typically generate monthly revenues ranging from $1,200 to $3,500, with an average of approximately $2,100 per month for well-managed listings.
• Seasonal variations are significant, with peak earnings occurring during summer months when revenues can increase by 40-60% above winter averages.
• Winter months typically see the lowest occupancy rates at around 45-55%, while summer months can achieve 75-85% occupancy.
• Key factors affecting earnings include property size and amenities, with entire homes outperforming private rooms by roughly 65%, proximity to downtown Sequim or natural attractions.
• Properties offering unique features like hot tubs, water views, or pet-friendly accommodations command premium rates of $20-40 per night above standard listings.
• The average daily rate ranges from $85-140 depending on season and property type, with successful hosts maintaining consistent 4.8+ star ratings and implementing dynamic pricing strategies to maximize revenue during peak demand periods.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods averaging 7-10 years depending on property acquisition costs and renovation expenses.
• The Sequim market benefits from its proximity to Olympic National Park and appeal as a retirement destination, with average nightly rates ranging from $120-180 for typical 2-3 bedroom properties.
• Compared to long-term rentals in Sequim that typically yield 6-8% ROI with monthly rents averaging $1,200-1,800 for similar properties, short-term rentals can outperform by 2-4 percentage points annually.

Sequim, Washington averages 55–65% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Sequim, Washington typically average around 55-65% annually, with significant seasonal variation driven by the area's appeal as a summer destination and gateway to Olympic National Park.
• Peak occupancy occurs from June through September, reaching 75-85% during July and August when visitors flock to the region for hiking, lavender festivals, and outdoor recreation.
• Spring and fall shoulder seasons maintain moderate occupancy rates of 50-60% as travelers visit for milder weather and fewer crowds.
• Compared to Washington state's average Airbnb occupancy of approximately 60-70%, Sequim performs slightly below the state average due to its smaller market size and seasonal nature.

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

• The best Airbnb investment neighborhoods in Sequim include the Dungeness area, which offers proximity to the Dungeness Spit and lighthouse with strong pricing power due to waterfront access and outdoor recreation opportunities attracting nature enthusiasts and retirees.
• Downtown Sequim provides excellent walkability to restaurants, shops, and the farmers market, appealing to tourists seeking convenience and local culture with moderate pricing potential.
• The Bell Hill neighborhood offers elevated views of the Olympic Mountains and Strait of Juan de Fuca.
• Carlsborg, just west of Sequim, provides more affordable investment entry points while still offering access to lavender farms and rural tourism.
• The Sequim Bay area near the marina attracts boating enthusiasts and water recreation visitors, supporting higher nightly rates during summer months.
• River Road corridor properties benefit from proximity to the Dungeness River and hiking trails, appealing to outdoor adventure travelers willing to pay premium rates for nature access.
• The Bell Tower Road area offers a balance of rural charm and accessibility to town amenities, attracting both retirees and vacation rental guests seeking peaceful retreats with moderate pricing power.

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

• Sequim, Washington allows short-term rentals in most residential zones but requires operators to obtain a business license and conditional use permit through the city's planning department.
• Properties are limited to a maximum occupancy of two guests per bedroom plus two additional guests, with a total cap of 10 people regardless of bedroom count.
• Owner-occupancy is not required for short-term rentals, allowing investment properties to operate as vacation rentals.
• The city requires annual registration renewal, compliance with fire safety codes including smoke and carbon monoxide detectors.
• Recent changes implemented in 2022 include stricter enforcement of parking requirements, mandatory posting of emergency contact information, and increased penalties for violations.

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

• Short-term rentals in Sequim, Washington are subject to several fees and taxes including Washington State's retail sales tax of 6.5%.
• Property owners must obtain a business license from the City of Sequim costing approximately $25-50 annually, register for a Washington State business license (around $19).
• The Washington State Department of Revenue requires registration for retail sales tax collection with potential fees of $15-25.
• Clallam County may impose additional transient accommodation taxes of 1-3%, and operators typically need to pay annual permit renewal fees ranging from $100-300.
• Some properties may also be subject to utility taxes of 1-6% and potential impact fees for tourism infrastructure.