Is Vashon Island, Washington Good for Airbnb Investment?

To start an Airbnb on Vashon Island, Washington, begin by researching King County's short-term rental regulations, which require registration and compliance with zoning laws that typically allow vacation rentals in residential areas with specific occupancy limits and parking requirements. Obtain necessary permits including a King County business license, short-term rental permit, and ensure compliance with Washington State tax requirements including collecting 10.4% sales tax and potential lodging taxes. Find a suitable property considering Vashon Island's rural character and proximity to ferry terminals, with many successful rentals located near Burton, Vashon town center, or waterfront areas, expecting property costs ranging from $400,000-$800,000 for typical island homes. Furnish the space with comfortable, durable furniture emphasizing the island's natural aesthetic, including essential amenities like WiFi, full kitchen, linens, and outdoor seating to capitalize on the island's scenic environment, budgeting approximately $15,000-$25,000 for complete furnishing. List your property on Airbnb and VRBO with professional photography highlighting water views, forest settings, and proximity to local attractions like Point Robinson Lighthouse and local farms, setting competitive rates typically ranging $150-$300 per night depending on size and location. Manage the property by establishing relationships with local cleaning services, maintenance providers, and potentially property management companies familiar with island logistics, while maintaining clear communication about ferry schedules and island-specific guidelines for guests, ensuring compliance with noise ordinances and neighbor relations important in Vashon's close-knit community.

To identify profitable short-term rental properties on Vashon Island, Washington, focus on waterfront or water-view locations within walking distance of popular attractions like Point Robinson Lighthouse, Vashon Island Coffee Roasterie, or downtown Vashon, as these command premium rates of $200-400 per night compared to $120-180 for inland properties. Target 2-4 bedroom homes built after 1980 with modern amenities, outdoor spaces, hot tubs, and unique character features like artist studios or farmhouse aesthetics that appeal to Seattle-area visitors seeking weekend retreats. Analyze pricing by monitoring AirDNA and Mashvisor data showing Vashon's average occupancy rates of 65-75% with seasonal peaks during summer months and weekends year-round, while comparing your potential property against the island's approximately 150-200 active STR listings. Research competition by studying successful properties offering similar amenities and guest capacity, noting that pet-friendly and family-oriented rentals perform particularly well given the island's outdoor recreation focus. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, and local Facebook groups like "Vashon Island Community" for insider market knowledge, while ensuring compliance with King County's STR regulations requiring business licenses and adherence to occupancy limits, as properties near ferry terminals and beaches consistently outperform those in residential-only areas by 20-30% in revenue generation.

To obtain an Airbnb/STR permit on Vashon Island, Washington, you must apply through King County's Department of Local Services since Vashon Island is unincorporated. Submit your application online via the King County Permitting Portal or in person at the Permit Center in Seattle, providing required documents including a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, parking plan, septic system approval (if applicable), and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $500-800 with additional inspection fees of $200-400, and you'll need to pay annual renewal fees of around $300-500. The process typically takes 4-8 weeks including plan review and required inspections for safety, septic systems, and parking compliance. Vashon Island-specific requirements include adherence to rural zoning regulations, maximum occupancy limits based on septic capacity, adequate off-street parking (typically 2 spaces minimum), compliance with noise ordinances due to the island's residential character, and potential additional environmental review for properties near critical areas or shorelines. You must also register for business licensing, collect and remit lodging taxes to King County, and maintain a 24-hour contact person available to address any issues that arise during guest stays.

Short-term rentals (STRs) are legal on Vashon Island, Washington, but are subject to King County regulations since the island is unincorporated. As of 2023, King County requires STR operators to obtain a business license and comply with zoning restrictions, with STRs generally permitted in residential zones but limited to owner-occupied properties or properties where the owner lives on-site at least 275 days per year. The county implemented stricter regulations around 2019-2020 following community concerns about housing availability and neighborhood impacts, requiring operators to register their properties, maintain liability insurance, and follow occupancy limits based on bedrooms and septic capacity. Vashon Island has seen particular scrutiny due to its rural character and limited housing stock, with some areas near critical environmental zones having additional restrictions. Recent changes include enhanced enforcement mechanisms and increased penalties for non-compliance, though the island's unique community character has led to ongoing discussions about potentially more restrictive local regulations through King County's rural zoning framework.

The most attractive areas for Airbnb investment on Vashon Island, Washington include the Burton Peninsula area near Burton Acres Park, which offers waterfront access and proximity to popular kayaking and beachcombing spots that draw outdoor enthusiasts year-round. The Vashon Heights neighborhood provides elevated properties with stunning Puget Sound views and easy access to hiking trails, appealing to tourists seeking scenic retreats just 20 minutes from Seattle via ferry. Downtown Vashon near the business district attracts visitors attending events at the Vashon Theatre, local farmers markets, and art galleries, while offering walkable access to restaurants and shops. The Maury Island area, particularly near Dockton Park, draws families and groups interested in camping alternatives and beach activities, with properties here commanding premium rates during summer months. The Lisabeula area offers a quieter, more secluded experience for guests seeking digital detox retreats while still maintaining reasonable access to island amenities, making it ideal for longer-stay bookings from remote workers and wellness tourists.

Airbnb hosts on Vashon Island, Washington are subject to multiple lodging taxes including Washington State's 6.5% sales tax, King County's 2.5% lodging tax, and potentially a local Vashon-Maury Island Community Council accommodation tax of approximately 2-4%. The Washington State Department of Revenue requires hosts to register for a business license and collect the 6.5% state sales tax on all rental income, which must be remitted monthly if collections exceed $1,200 annually or quarterly for smaller amounts. King County's 2.5% lodging tax applies to stays under 30 days and is collected by the host and remitted quarterly to King County, with registration required through their tax division. Airbnb may collect and remit some taxes on behalf of hosts through their platform for certain jurisdictions, but hosts remain responsible for ensuring compliance with all applicable taxes. Exemptions typically include stays of 30 days or longer which are considered residential rather than transient lodging, and some jurisdictions may exempt rentals under a certain annual revenue threshold, though hosts should verify current exemption criteria as they can change frequently.

Starting an Airbnb on Vashon Island, Washington requires significant upfront investment with property purchase being the largest expense at approximately $750,000 based on the island's median home prices as of 2023. Furnishing costs typically range from $15,000-25,000 for a complete setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, West Elm, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-5,000. Permits and fees in King County include business license ($110), short-term rental permit ($250 annually), and potential HOA approval costs totaling around $500-1,000. Insurance premiums for short-term rental coverage through companies like Proper Insurance or CBIZ run $2,000-3,500 annually. Utility setup and deposits for electricity, water, internet, and cable typically cost $500-800 initially, with monthly utilities averaging $200-300. First six months of operating costs including cleaning services ($100-150 per turnover), supplies, maintenance, platform fees to Airbnb (3% host fee), and marketing expenses total approximately $8,000-12,000. The total estimated startup cost ranges from $779,000-797,000, making Vashon Island a premium market requiring substantial capital investment due to its desirable ferry-accessible location near Seattle.

Airbnb properties on Vashon Island, Washington typically generate annual revenues between $35,000-$65,000 for well-positioned homes, with average daily rates ranging from $150-$280 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance costs averaging $3,000-$6,000 yearly. Properties within walking distance of ferry terminals or featuring waterfront views command premium rates and achieve 65-75% occupancy during peak summer months (June-September), while inland properties typically see 45-55% annual occupancy. Successful operators on the island focus on targeting Seattle professionals seeking weekend retreats, emphasizing the 20-minute ferry ride convenience, and properties featuring hot tubs, fire pits, or water views consistently outperform basic accommodations by 25-35% in revenue. Net profit margins for well-managed properties typically range from 25-40% after all expenses, with waterfront cabins and artist retreats near Vashon Center performing particularly well, generating $40,000-$50,000 in annual net income for owners who actively manage guest communications and maintain high property standards.

Airbnb investments on Vashon Island, Washington typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the island's strong tourism appeal as a ferry-accessible destination near Seattle. Properties averaging $600,000-$800,000 can expect gross rental income of $45,000-$65,000 annually, with net returns after expenses (property management, cleaning, maintenance, insurance) settling around $25,000-$40,000 per year. The timeframe to profitability is generally 18-24 months, accounting for initial setup costs, furnishing, and marketing expenses of $15,000-$25,000. Vashon Island's unique position as a rural retreat with easy Seattle access, combined with limited hotel inventory, supports occupancy rates of 65-75% during peak season (May-September) and 40-50% off-season, with average daily rates of $150-$220 depending on property size and amenities.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in the Vashon Island, Washington market. Locally, Windermere Real Estate and Coldwell Banker Bain serve the Vashon Island area with agents experienced in investment properties, while RE/MAX and John L. Scott also have presence in the region. National services include Mashvisor (founded 2014), which provides Airbnb analytics and property search tools, AirDNA (established 2015) offering market data and investment analysis, and Awning (launched 2020) providing end-to-end Airbnb investment services. BiggerPockets, the real estate investment community founded in 2004, connects investors with local professionals and resources. Roofstock (2015) and Arrived Homes (2019) offer platforms for purchasing rental properties, though their Vashon Island inventory may be limited. Local property management companies like RedAwning and Vacasa (founded 2009) can assist with both property acquisition advice and subsequent Airbnb management. Seattle-based firms such as Compass and Redfin also serve the Vashon Island market and have agents familiar with short-term rental investments.