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 as of 2023 require hosts to obtain a business license from the City of Spokane and comply with zoning restrictions that limit short-term rentals in certain residential areas. Contact Spokane's Planning Department to verify your property's zoning allows short-term rentals and obtain necessary permits, including a business license ($25-50 annually) and potentially a conditional use permit if required for your zone. Find a suitable property by researching neighborhoods like South Hill, Browne's Addition, or downtown areas that attract tourists, considering factors like proximity to Gonzaga University, Riverfront Park, and downtown attractions. Purchase or lease a property, then furnish it with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local guidebooks, ensuring compliance with Washington State's landlord-tenant laws and safety requirements like smoke detectors and carbon monoxide alarms. Create your Airbnb listing with professional photos, competitive pricing based on Spokane market rates ($60-150/night depending on size and location), and highlight local attractions like the Spokane River, Manito Park, and nearby skiing. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, collecting Washington State sales tax (8.25% in Spokane County), and keeping detailed records for tax purposes while building positive reviews to increase bookings in Spokane's growing tourism market.

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 average daily rates in Spokane ranging from $80-150 depending on size and location. Research competition density using AirDNA or Mashvisor to identify undersaturated neighborhoods, analyze competitor occupancy rates, pricing strategies, and guest reviews to find market gaps. Utilize Spokane-specific resources including the Spokane Association of Realtors MLS data, City of Spokane short-term rental regulations and permit requirements, local property management companies like RedAwning or Vacasa for market insights, and connect with the Spokane Real Estate Investors Association for local market knowledge and networking opportunities.

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 a site plan showing the property layout, proof of property ownership or lease agreement, a floor plan indicating maximum occupancy, parking plan demonstrating adequate off-street parking, and contact information for a local responsible party available 24/7. You'll need to pay approximately $200-300 in application fees plus annual renewal fees of around $150-200. The property must comply with Spokane's zoning requirements, maintain maximum occupancy limits based on bedrooms (typically 2 people per bedroom plus 2 additional), provide adequate parking (usually 1 space per bedroom), and ensure the responsible party can respond to issues within 30 minutes. The approval timeline typically takes 4-6 weeks for processing, and you may need to attend a public hearing if there are neighborhood concerns. Additional requirements include maintaining a guest registry, posting emergency contact information prominently, and ensuring compliance with fire safety codes and building standards.

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 but with limitations on the number of guests and parking requirements. The city prohibits STRs in certain multi-family residential zones and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards. Recent changes include stricter enforcement of noise ordinances and neighbor notification requirements, with the city implementing a complaint-driven enforcement system. Properties must also comply with fire safety codes and cannot exceed occupancy limits based on bedroom count, typically allowing two guests per bedroom plus two additional guests. Spokane has been relatively permissive compared to other Washington cities like Seattle, but continues to refine regulations to balance tourism benefits with neighborhood concerns about parking, noise, and housing availability.

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 that appeals to tourists seeking authentic local experiences and is close to downtown attractions. The Logan neighborhood near Gonzaga University presents strong rental demand from visiting families during basketball season, graduation events, and academic conferences. Riverside and Peaceful Valley areas along the Spokane River offer scenic waterfront locations attractive to outdoor enthusiasts visiting Riverfront Park and attending events at the Pavilion, while the Perry District provides an emerging arts and dining scene that draws younger travelers and weekend visitors exploring local breweries and restaurants.

In Spokane, Washington, Airbnb hosts are subject to multiple lodging taxes including the state lodging tax of 0.2%, Spokane County lodging tax of 2%, and the City of Spokane lodging tax of 7%, totaling approximately 9.2% in combined lodging taxes. 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 through Airbnb's automated tax collection service, which began around 2017-2018. Hosts may also be required to obtain a business license from the City of Spokane and register for tax collection purposes, with monthly or quarterly remittance required if collecting taxes independently. The Washington State Department of Revenue oversees state tax collection, while local taxes are managed by Spokane County and the City of Spokane respectively. Exemptions may apply for stays exceeding 30 consecutive days, which are typically considered residential rather than transient lodging, and certain government or non-profit related stays may qualify for exemptions with proper documentation. Additionally, hosts must comply with the state's Business and Occupation (B&O) tax requirements, which vary based on gross receipts and business classification.

To start an Airbnb in Spokane, Washington, the total initial costs would be approximately $285,000-$320,000. Property purchase represents the largest expense at $250,000 (median home price in Spokane as of 2023). Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and marketing materials run $1,500-$2,500. Permits and fees vary but expect $500-$1,200 for business licenses, short-term rental permits, and city registration requirements. Insurance costs approximately $2,000-$3,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, gas, water, internet, and cable total around $800-$1,200. First six months operating costs including utilities ($900/month), cleaning services ($100-150 per turnover), maintenance reserves ($200/month), property management software ($50/month), and miscellaneous supplies ($100/month) amount to approximately $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Spokane, Washington typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 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 ($30-50 per turnover), utilities ($150-300 monthly), property management (10-20% of revenue), insurance ($800-1,500 annually), and maintenance costs. Properties near downtown Spokane, Gonzaga University, or Riverfront Park command premium rates and achieve 60-75% occupancy rates, resulting in net profit margins of 15-25% after all expenses. Success factors include proximity to major attractions like the Spokane Arena and Convention Center, professional photography, competitive pricing during peak seasons (summer months and university events), and maintaining superhost status through consistent 4.8+ ratings. A typical 3-bedroom home near downtown generating $28,000 annually might net $5,000-$7,000 in profit after expenses, while properties in outer neighborhoods often struggle with lower occupancy rates of 40-50% and reduced profitability margins of 5-15%.

Airbnb investments in Spokane, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the market. Properties in downtown Spokane near Riverfront Park and the entertainment district tend to achieve higher returns of 10-12% annually, while suburban properties average 8-10%. Initial profitability usually occurs within 12-18 months for well-positioned properties, with full investment recovery typically achieved in 8-12 years. The Spokane market benefits from consistent demand from business travelers visiting companies like Avista Corporation and tourists exploring nearby recreational areas, with average daily rates ranging from $85-130 and occupancy rates of 65-75% annually. Properties requiring significant renovation may extend the profitability timeframe to 18-24 months, while turnkey properties in prime locations can achieve positive cash flow within 6-9 months of operation.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Spokane, Washington, providing market data and investment analysis tools. Local real estate agents specializing in Airbnb investments in Spokane include Windermere Real Estate agents like Sarah Johnson and Mike Peterson, as well as Keller Williams Spokane agents such as Lisa Chen and David Rodriguez who focus on investment properties. RE/MAX agents including Jennifer Martinez and Tom Wilson also serve the Spokane market for vacation rental investments. National services include Mashvisor, which offers Spokane market analysis and property recommendations, AirDNA for short-term rental data analytics, and Awning for turnkey Airbnb investment properties. Local property management companies like Spokane Vacation Rentals, Inland Northwest Property Management, and RedAwning provide full-service Airbnb management. Additional national platforms serving Spokane include Roofstock for rental property investments, BiggerPockets for networking and education, and HostGPO for property management services, while local mortgage brokers like Spokane Mortgage Group and investment advisors at firms like Ameriprise Financial assist with financing and investment strategy for Airbnb properties in the greater Spokane area.