10 Best Short-Term Rental Markets in Washington for 2025

The short-term rental market is booming, and Washington State is one of the hottest regions for investors seeking profitable Airbnb or vacation rental properties. With its diverse landscapes, tech-driven economy, tourism appeal, and consistent inflow of business travelers, Washington offers ample opportunities for high-yield short-term rentals in 2025. 

In this blog, we’ll break down the 10 best short-term rental markets in Washington for 2025, based on factors like average occupancy rates, daily rates, tourism growth, and property appreciation potential. 

10 Best Short-Term Rental Markets in Washington for 2025 

1. Seattle 

Position: 1 
Regulation: Strict 
No. of Listings: 5,461 
Avg. Occupancy Rate: 72% 
Avg. Daily Rate: $148 
Annual Revenue: $38,020 

Seattle remains the flagship short-term rental market, despite its strict regulatory environment. The city’s blend of business and tourism continues to drive high occupancy and solid returns. Areas like Capitol Hill and South Lake Union offer the best returns, with boutique apartments and executive-friendly properties in demand. 

2025 Forecast: Focus on professionally managed, fully licensed rentals that cater to business travelers and tourists alike. 

2. Snohomish County 

Position: 2 
Regulation: Lenient 
No. of Listings: 1,283 
Avg. Occupancy Rate: 64% 
Avg. Daily Rate: $146 
Annual Revenue: $33,638 

Snohomish County, located just north of Seattle, offers a more relaxed regulatory environment and strong potential for short-term rental income. The county is popular with outdoor enthusiasts, families, and Seattle overflow traffic. 

2025 Forecast: Properties with easy access to hiking trails, local events, and family-friendly amenities will attract year-round bookings. 

3. Spokane 

Position: 3 
Regulation: Lenient 
No. of Listings: 793 
Avg. Occupancy Rate: 64% 
Avg. Daily Rate: $108 
Annual Revenue: $25,347 

Spokane continues to grow as an affordable short-term rental market. With a solid 64% occupancy rate and increasing property appreciation, it’s ideal for investors seeking medium-risk, medium-reward opportunities. 

2025 Forecast: Invest in properties near downtown Spokane, university campuses, and cultural hotspots to maximize occupancy. 

4. Tacoma 

Position: 4 
Regulation: Lenient 
No. of Listings: 788 
Avg. Occupancy Rate: 70% 
Avg. Daily Rate: $114 
Annual Revenue: $29,646 

Tacoma is rapidly emerging as a profitable short-term rental market with a 70% occupancy rate. Its vibrant waterfront, business travel demand, and cultural venues make it an excellent market for investors. 

2025 Forecast: Focus on properties in the North End and Proctor District with mid-term rental potential for professionals and military personnel. 

5. Long Beach 

Position: 5 
Regulation: Lenient 
No. of Listings: 186 
Avg. Occupancy Rate: 51% 
Avg. Daily Rate: $166 
Annual Revenue: $29,492 

Long Beach is a seasonal destination with high daily rates despite lower occupancy. Investors can capitalize on summer tourism, events, and coastal charm. 

2025 Forecast: Invest in larger properties for family stays and pet-friendly accommodations to boost shoulder-season bookings. 

6. White Salmon 

Position: 6 
Regulation: Lenient 
No. of Listings: 86 
Avg. Occupancy Rate: 57% 
Avg. Daily Rate: $226 
Annual Revenue: $45,336 

White Salmon stands out with the highest average daily rate on this list. Its popularity among adventure tourists, kayakers, and hikers makes it a premium short-term rental market. 

2025 Forecast: Focus on upscale homes and unique stays with proximity to the Columbia River Gorge. 

7. Winthrop 

Position: 7 
Regulation: Lenient 
No. of Listings: 84 
Avg. Occupancy Rate: 57% 
Avg. Daily Rate: $200 
Annual Revenue: $40,464 

Winthrop’s small-town appeal combined with outdoor adventure opportunities makes it a magnet for tourists. Properties with rustic charm and mountain views perform exceptionally well. 

2025 Forecast: Look for investment properties near hiking trails and ski resorts for year-round profitability. 

8. Friday Harbor 

Position: 8 
Regulation: Lenient 
No. of Listings: 84 
Avg. Occupancy Rate: 58% 
Avg. Daily Rate: $192 
Annual Revenue: $42,090 

Friday Harbor, located in the San Juan Islands, commands high daily rates and steady demand from tourists seeking island getaways. 

2025 Forecast: Waterfront homes and boutique vacation rentals will continue to attract premium guests. Focus on properties offering ferry access and scenic views. 

9. Port Townsend 

Position: 9 
Regulation: Lenient 
No. of Listings: 68 
Avg. Occupancy Rate: 71% 
Avg. Daily Rate: $176 
Annual Revenue: $47,045 

Port Townsend tops the list with the highest annual revenue. Known for its Victorian architecture and thriving arts scene, it’s a favorite destination for cultural tourists and retirees. 

2025 Forecast: Luxury rentals with water views and historical appeal will outperform. Look for investment opportunities in the historic downtown area. 

10. Pacific Beach 

Position: 10 
Regulation: Lenient 
No. of Listings: 49 
Avg. Occupancy Rate: 46% 
Avg. Daily Rate: $184 
Annual Revenue: $36,892 

Pacific Beach is a hidden gem for investors looking for high daily rates. Although occupancy is on the lower side, premium pricing and exclusivity drive solid revenue. 

2025 Forecast: Properties with direct beach access or ocean views will continue to attract affluent travelers looking for weekend escapes. 

What Makes Washington a Hot Spot for Short-Term Rental Investments in 2025? 

• Tech & Business Travel: Seattle and surrounding markets thrive on business travel, with continuous demand for executive short-term stays. 

• Diverse Natural Attractions: Coastal towns, wine countries, and mountain retreats make Washington a well-rounded destination for all types of tourists. 

• Balanced Regulations: Outside of Seattle, most markets have lenient regulations that are investor-friendly. 

• Consistent Year-Round Demand: Between business, leisure, and seasonal tourism, investors can enjoy steady occupancy and revenue growth. 

Tips for Investing in Washington Short-Term Rentals in 2025 

1. Know the Local Laws: Regulations vary, and markets like Seattle have strict policies, while smaller markets are more lenient. 

2. Prioritize Premium Amenities: Properties with hot tubs, game rooms, pet-friendly features, and outdoor spaces perform best. 

3. Consider Seasonal Pricing: Adjust rates for peak and off-seasons to maximize returns. 

4. Focus on Location: Waterfront views, mountain access, and proximity to tourist attractions are key drivers of success. 

5. Professional Management: Using a professional property management service can help improve guest satisfaction and streamline operations. 

6. Smart Investment: Choose properties that balance occupancy rates with daily rates to optimize annual revenue potential. 

Conclusion 

Washington’s short-term rental market continues to thrive in 2025, offering diverse opportunities across urban and rural markets. Whether you’re eyeing Seattle’s urban demand, Port Townsend’s cultural charm, or White Salmon’s adventure tourism, there’s potential for impressive returns. 

By analyzing key metrics like occupancy rates, average daily rates, and revenue, investors can make informed decisions and secure long-term profitability. 

Ready to explore investment opportunities in Washington’s top short-term rental markets? 
Use Pulsereal for real-time data analysis and location scouting tailored for short-term rental investors in the USA.