Is Spokane, Washington Good for Airbnb Investment?

To start an Airbnb in Spokane, Washington, begin by researching the city's short-term rental regulations, which require hosts to obtain a business license from the City of Spokane and comply with zoning restrictions that typically allow short-term rentals in residential areas with certain limitations on the number of guests and parking requirements. Next, secure the necessary permits including a Washington State business license, register for state and local taxes, and ensure your property meets fire safety codes and building requirements. Find a suitable property by analyzing Spokane's popular neighborhoods like South Hill, Browne's Addition, or near Gonzaga University, considering factors like proximity to attractions such as Riverfront Park, downtown venues, and seasonal demand from visitors to nearby ski resorts and outdoor recreation areas. Furnish the space with quality essentials including comfortable bedding, kitchen supplies, Wi-Fi, heating for Spokane's cold winters, and local touches that reflect the Pacific Northwest aesthetic. Create your listing on Airbnb and other platforms like VRBO with professional photos highlighting mountain views or historic architecture, competitive pricing based on Spokane's market rates of approximately $80-150 per night depending on size and location, and detailed descriptions emphasizing proximity to local attractions. Finally, manage your property by establishing cleaning protocols, coordinating guest check-ins, maintaining responsive communication, and staying compliant with Spokane's occupancy limits and noise ordinances while tracking income for tax purposes and potentially hiring local property management companies if needed.

To identify profitable short-term rental properties in Spokane, Washington, focus on locations within 2-3 miles of downtown, near Gonzaga University, close to Riverfront Park, or in historic neighborhoods like Browne's Addition and South Hill which attract both business and leisure travelers. Target properties with 2-4 bedrooms, updated kitchens and bathrooms, reliable WiFi infrastructure, parking availability, and unique character features that photograph well for listings. Conduct pricing analysis by researching comparable STRs on Airbnb and VRBO in your target areas, aiming for properties where monthly rental income can exceed 1.5-2x the mortgage payment, with Spokane's average daily rates ranging from $80-150 depending on location and amenities. Research competition density using AirDNA or Mashvisor to identify undersaturated neighborhoods, analyze competitor occupancy rates and guest reviews to find service gaps you can fill. Utilize Spokane-specific resources including the Spokane Association of Realtors MLS data, City of Spokane zoning maps to ensure STR compliance, local property management companies like RedAwning or Vacasa for market insights, and connect with the Spokane Landlord Association for regulatory updates, while monitoring seasonal demand patterns around Gonzaga basketball season, summer outdoor activities, and business travel to the medical district.

To obtain an Airbnb/STR permit in Spokane, Washington, you must apply through the City of Spokane's Planning and Development Services Department located at 808 W Spokane Falls Blvd. The application process requires submitting a Short-Term Rental Business License application along with required documents including proof of property ownership or lease agreement, floor plan of the rental unit, contact information for a local responsible party within 60 miles, proof of liability insurance (minimum $500,000), and a completed life safety inspection checklist. The application fee is approximately $200-300 with an annual renewal fee of around $150-200. Spokane requires STR operators to obtain both a business license and comply with zoning regulations, with properties limited to no more than two short-term rental units per owner within city limits, mandatory registration with the Washington State Department of Revenue for tax collection, and adherence to occupancy limits based on bedrooms (typically 2 guests per bedroom plus 2 additional). The approval timeline is generally 4-6 weeks after submitting a complete application, and operators must maintain a guest registry, respond to complaints within 2 hours, and ensure quiet hours compliance between 10 PM and 7 AM.

Short-term rentals (STRs) are legal in Spokane, Washington, but operate under specific regulations established by the city. As of 2023, Spokane requires STR operators to obtain a business license and comply with zoning restrictions that generally allow STRs in residential zones with certain limitations. The city prohibits STRs in some multi-family residential areas and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards. Spokane has implemented occupancy limits based on property size and parking requirements, while also establishing noise and nuisance regulations to protect neighborhood character. Recent changes include stricter enforcement mechanisms and enhanced registration requirements, with the city conducting periodic reviews of STR impacts on housing availability and neighborhood stability, though STRs remain permitted throughout most residential areas with proper licensing and compliance with local ordinances.

The best Airbnb investment areas in Spokane, Washington include Downtown Spokane for its proximity to the Convention Center, Davenport Grand Hotel area, and business district which attracts corporate travelers and event attendees year-round. The South Hill neighborhood offers upscale residential appeal with historic homes and walkability to Manito Park, attracting leisure travelers and families visiting Gonzaga University. Browne's Addition provides a trendy, walkable historic district with Victorian architecture near downtown amenities and the Spokane River, appealing to tourists seeking authentic local experiences. The Logan neighborhood benefits from its proximity to Gonzaga University, generating consistent demand from visiting families, prospective students, and sports fans during basketball season. Riverside and Peaceful Valley areas along the Spokane River offer scenic locations near Riverfront Park and the Centennial Trail, attracting outdoor enthusiasts and tourists visiting the area's recreational attractions. The West Central area provides affordable investment opportunities while still maintaining reasonable access to downtown attractions, hospitals, and universities, making it suitable for budget-conscious travelers and extended-stay guests.

In Spokane, Washington, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The Washington State Lodging Tax is 0.2% of the rental amount, while Spokane County imposes a 2% lodging tax, and the City of Spokane adds an additional 2% lodging tax, bringing the total lodging tax rate to approximately 4.2%. Additionally, hosts must collect Washington State Sales Tax at 6.5% plus local sales tax of approximately 3.1%, totaling around 9.6% sales tax on rental income. These taxes are collected from guests at the time of booking and must be remitted monthly to the Washington State Department of Revenue for state taxes and quarterly to Spokane County and the City of Spokane for local lodging taxes. Airbnb may collect and remit some of these taxes automatically through their platform since 2017, but hosts remain ultimately responsible for ensuring compliance. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered residential rather than transient lodging, and certain government or nonprofit organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Spokane, Washington, the total initial investment would be approximately $385,000-$425,000. Property purchase costs around $350,000 based on median home prices in Spokane as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including beds, sofas, dining sets, linens, kitchenware, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total approximately $2,000-$3,000. Permits and fees vary but generally include business license ($50-$100), short-term rental permit ($200-$500), and potential HOA approvals. Insurance specifically for short-term rentals costs $1,200-$2,000 annually through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable run $500-$800 initially. First six months of operating costs including utilities ($200/month), cleaning services ($75 per turnover), supplies and maintenance ($150/month), platform fees (3% of bookings), and property management software ($50/month) total approximately $4,500-$6,000, assuming 60-70% occupancy rates typical for Spokane's market.

Airbnb properties in Spokane, Washington typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $75-$140 depending on location and property type. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), insurance ($1,200-$2,000 annually), property management (10-20% of revenue if outsourced), maintenance, and supplies. Properties near Gonzaga University, downtown Spokane, and Riverfront Park command premium rates, particularly during graduation weekends and summer events when occupancy can reach 85-90%. A typical 2-bedroom home generating $28,000 annually might incur $16,000 in expenses (cleaning $3,600, utilities $2,400, insurance $1,500, maintenance $2,500, supplies $1,200, taxes $4,800), yielding a net profit margin of approximately 43% or $12,000. Success factors include strategic location within 3 miles of downtown or universities, professional photography, competitive pricing ($10-15 below comparable hotels), consistent 4.8+ star ratings, and seasonal rate optimization during Hoopfest, Bloomsday, and university events. Properties that maintain 70%+ occupancy rates and implement dynamic pricing strategies typically achieve the highest profitability, with some hosts reporting 15-25% returns on investment when factoring in property appreciation alongside rental income.

Airbnb investments in Spokane, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Spokane and near Gonzaga University command higher nightly rates of $80-120, while suburban locations average $60-90 per night with occupancy rates of 65-75% annually. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with vacation rental management companies like Vacasa and RedAwning reporting strong performance in the Spokane market since 2019. The city's growing tourism sector, proximity to outdoor recreation, and relatively affordable real estate prices compared to Seattle create favorable conditions for short-term rental investments, though seasonal fluctuations during winter months can impact cash flow by 20-30%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Spokane, Washington. Local real estate agents like Windermere Real Estate and Keller Williams Spokane have agents who focus on investment properties and understand the Airbnb market dynamics in the area. AirDNA provides market data and analytics specifically for short-term rental investments in Spokane, while Mashvisor offers property analysis tools for the local market. BiggerPockets connects investors with local professionals and resources in the Spokane area. Local property management companies like Vacasa and RedAwning can help investors identify and manage profitable Airbnb properties. Real estate investment firms such as Roofstock and Fundrise have expanded their services to include short-term rental opportunities in secondary markets like Spokane. Additionally, local real estate agents at Century 21 Beutler & Associates and RE/MAX of Spokane have experience helping investors find properties suitable for Airbnb conversions, particularly in neighborhoods near Gonzaga University and downtown Spokane where rental demand is typically higher.