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Anacortes, WA

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STR Regulations for Anacortes, Washington

Overview

  • Are short-term rentals allowed? No. Short-term rental of dwelling units (less than 30 consecutive nights) is not permitted in Anacortes. This prohibition applies in all residential zones (R1, R2, R2A, R3, R3A, Old Town, R4, and R4A) and, as of 2024, in all mixed-use/commercial zones (C, CBD, MMU, and CM). The city’s policy aims to preserve long-term housing and mitigate affordability pressures.
  • Bed and breakfast operations remain allowed when the owner resides on site and obtains the appropriate approvals. Long-term rentals (30+ consecutive nights) remain permitted in all zones.
  • “Grandfathered” units: Some STRs that had an approved city business license prior to code changes can continue operating if they maintain a current city business license and comply with all applicable local and state regulations.
  • Unpermitted STRs are prohibited. Operating without an approved city business license is not allowed in Anacortes.

Definitions and City Policy

  • Short-term rental (STR): An overnight lodging use that is not a hotel/motel or a bed and breakfast, in which a dwelling unit (or portion thereof) is offered or provided to a guest for a fee for fewer than 30 consecutive nights.
  • Policy rationale: The City cites a housing affordability and supply crisis and has adopted rules to protect long-term housing stock. STRs have been prohibited in residential zones since 2019 and in mixed-use zones since 2024.
  • Bed and breakfast (B&B): A permitted lodging use in a single-family residential unit that provides transient lodging by renting up to six sleeping rooms, where the owner resides on premises and operates the facility.

Regulatory Timeline (Anacortes)

  • 2019: STRs prohibited in residential zones.
  • March 2023: Moratorium on new STRs in the Commercial (C), Central Business District (CBD), Marine Mixed Use (MMU), and Commercial Marine (CM) zones.
  • May 2023–March 27, 2024: Moratorium extended.
  • April 2024: Ordinance finalized to prohibit new STRs in the C, CBD, MMU, and CM zones; existing licensed STRs in those zones may continue to operate under city business license and compliance.

Current Regulations by Zone

  • Residential zones (R1, R2, R2A, R3, R3A, Old Town, R4, R4A): STRs prohibited.
  • Mixed-use/commercial zones (C, CBD, MMU, CM): New STRs prohibited; units lawfully established with a city business license prior to the adoption of Ordinance 4046 (March 27, 2023) may continue if they maintain a current city business license and comply with local and state regulations.
  • Lodging types still allowed (subject to requirements):
    • Bed and breakfast (owner-occupied, up to six sleeping rooms, additional parking for guests, and residential neighborhood compatibility).
    • Hotels/motels and youth hostels (as defined in the code), subject to applicable zoning and code requirements.
  • Long-term rentals (30+ nights) are allowed in all zones.

How to Start a Short-Term Rental in This Market

  • In the City of Anacortes, you cannot initiate a new short-term rental business (i.e., renting for fewer than 30 consecutive nights) in any zone. If you are committed to operating in the city, pivot to:
    • Long-term rentals (30+ nights) in any zone.
    • A bed and breakfast operation in a residential zone, subject to owner-occupancy, six-room limit, and parking requirements.
  • If you are looking for short-term rental exposure in Skagit County:
    • Anacortes within city limits is not viable for new STRs. Research opportunities in unincorporated Skagit County and other Skagit municipalities (e.g., Mount Vernon, Sedro-Woolley). Confirm current local rules, as municipal policies can change.
  • Confirm zoning and licensing status before acquisition or listing.

Required Documents, Permits, Licenses, and Guidelines

  • For continuing STRs (grandfathered units only):
    • Current City of Anacortes business license (must be maintained).
    • Compliance with all applicable local and state regulations.
  • For bed and breakfast operations:
    • Approval through the city’s appropriate permit process.
    • Owner must reside on premises and be the operator.
    • Guest accommodations limited to up to six sleeping rooms.
    • Additional parking required (one space per guest room in addition to parking for the primary residence), and the use must not give the outward appearance of a business in residential zones.
  • For long-term rentals:
    • No STR-specific city approvals required for leases of 30+ nights; ensure general compliance with landlord-tenant laws and city code (e.g., parking, neighborhood compatibility).

Compliance and Enforcement

  • Unpermitted STR operations are prohibited. If you have concerns about an existing STR or need guidance, contact the Planning, Community & Economic Development Department (PCED).

State-Level Requirements (Washington)

  • Washington’s Lodging taxes:
    • Operators who provide lodging (including STRs) are generally required to collect and remit state and local lodging taxes. Establish a Washington Department of Revenue (DOR) tax account and register for applicable lodging taxes.
    • Comply with Washington’s Transient Rental Income Tax and any county/municipal lodging tax programs that apply to the property’s location.
  • Business registration:
    • A state business registration (e.g., UBI) may be required depending on the entity structure and activities.

Contacts and Resources (Anacortes and Skagit)

  • Planning, Community & Economic Development (PCED) Department
  • City of Anacortes Main Line
    • Phone: 360-293-1900
    • Website: www.cityofanacortes.org
    • Useful for routing business licensing and other city service inquiries.
  • Skagit County and Municipal Contacts
    • For STR opportunities outside Anacortes, contact the relevant city or county planning/zoning departments. Confirm whether any county-level STR rules apply to unincorporated areas.

Source Links

Investor Takeaways

  • New STRs are not allowed in Anacortes. Only existing licensed STRs in C, CBD, MMU, and CM zones may continue, and even those require a current city business license and compliance.
  • If you must operate inside Anacortes, consider long-term rentals or an owner-occupied bed and breakfast.
  • If you want STR exposure in Skagit County, prioritize unincorporated Skagit County or other municipalities and verify local regulations and zoning prior to purchase.
  • State-level lodging taxes apply to any STR operations in Washington; register and collect remits through DOR.

What do Airbnb hosts actually earn in Anacortes?

Anacortes hosts earn a median $35,232/year with $188 ADR and 64% occupancy.

Top performers pull in $45,273+ per year.

See the full Anacortes market breakdown

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Anacortes

Market Saturation Score

036912
Mild Saturation
4/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
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Photos of Anacortes

Overview of Anacortes

Anacortes sits in Skagit County in the northwestern part of Washington State, perched on the northern tip of Fidalgo Island overlooking the Salish Sea. With a population of roughly 17,000 to 19,000 residents, the city carries the feel of a working maritime town that doubles as a launchpad for outdoor adventure. Long known as the primary gateway to the San Juan Islands, Anacortes is also a frequent port of call for cruise ships heading to Alaska and a hub for the region's commercial fishing fleet. The city lies about 80 miles north of Seattle, roughly a 90-minute to two-hour drive depending on traffic, and about an hour south of Bellingham.

Just south of town, about a 15- to 20-minute drive, Deception Pass State Park anchors one of the most iconic stretches of Pacific Northwest coastline. The park sprawls across both Fidalgo and Whidbey Islands, joined by the dramatic Deception Pass Bridge, and offers tide-pooling, old-growth forest trails, rugged cliffside viewpoints, and a pair of intertidal lagoons. It draws photographers, hikers, and day-trippers year-round and routinely appears on lists of Washington's most-visited state parks.

Anacortes' ferry terminal, run by Washington State Ferries, is the jumping-off point for the San Juan Islands, an archipelago of forested isles known for kayaking, orca watching, art galleries, and small-village charm. Day-trippers can catch a ferry to Friday Harbor on San Juan Island or to Orcas Island, while longer stays open up opportunities to explore Lopez, Shaw, and the more remote outer islands. The ferry terminal itself is a constant source of foot traffic during the warmer months.

Within the city limits, Cap Sante Park offers a short drive or a brisk uphill walk to a bluff with panoramic views of the marina, the Guemes Channel, and the surrounding islands. A bit further afield, Mount Erie rises about 1,500 feet and rewards visitors with one of the highest drive-up vistas in the region, especially at sunset. The Anacortes Community Forest Lands, a network of trails threading the hills above town, give hikers and mountain bikers a convenient option that begins just minutes from the historic downtown core.

Anacortes pulls in a steady stream of travelers year-round, from summer ferry riders and shoulder-season hikers to cruise-ship passengers seeking a quieter base than the larger port cities. Its compact waterfront downtown, deep-water marinas, and proximity to Deception Pass, the San Juan Islands, and the broader North Cascades region give short-term rental owners a versatile audience of nature lovers, ferry hoppers, and weekend escapees. For investors, the combination of year-round draw and a relatively limited supply of traditional lodging makes the city an unusually resilient corner of the Washington coast.

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