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Eastsound, WA

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STR Regulations for Eastsound, Washington

Overview

Short-term rentals ARE ALLOWED in Eastsound, WA, but under specific regulatory conditions that have recently changed. As of June 25, 2025, property owners in Eastsound Village Commercial designations must obtain a provisional use permit to operate vacation rentals, even though these properties previously did not require permits. This change was implemented through Ordinance 10-2025.

What do Airbnb hosts actually earn in Eastsound?

Eastsound hosts earn a median $51,141/year with $362 ADR and 57% occupancy.

Top performers pull in $75,321+ per year.

See the full Eastsound market breakdown →

How to Start a Short-Term Rental Business in Eastsound

Phase 1: Eligibility Assessment

  1. Verify Zoning: Confirm your property is located within Eastsound Village Commercial land use designation
  2. Check Existing Operations: If you operated a vacation rental prior to June 25, 2025, you have until June 25, 2026 to apply for a provisional use permit
  3. Assess Permit Availability: New permits are currently on hold until a lottery system is approved by the County Council

Phase 2: Application Process

  1. Determine Permit Type:
    • Provisional Use Permit ($1,000 fee) - Required for Eastsound Village Commercial properties
    • Conditional Use Permit ($2,300 fee) - Required for other land use designations
  2. Submit Application: Apply through the San Juan County Department of Community Development (DCD)
  3. Provide Required Documentation: See comprehensive list below

Phase 3: Operational Setup

  1. Obtain Business Registration: Secure your Uniform Business Identifier (UBI) number from Washington State Department of Revenue
  2. Complete Annual Compliance: Submit Certificate of Compliance annually ($145 online/$160 paper)
  3. Prepare for Inspections: Fire Marshal inspections occur every 2-3 years
  4. Display Permit Number: Include your permit/compliance number in all advertisements

Required Documents, Permits, and Guidelines

Essential Documents

  1. Vacation Rental Application (PDF form available from San Juan County)
  2. San Juan County Sample Vacation Rental Rules of Conduct
  3. Property deed or ownership documentation
  4. Insurance documentation
  5. Floor plan and property details

Business Requirements

  1. UBI Number (Washington State Department of Revenue)
  2. Sales and Lodging Tax Registration (State of Washington)
  3. Local Business License (if applicable)

Annual Compliance Requirements

  1. Certificate of Compliance (due October-December annually)
  2. 24-Hour Emergency Contact Information
  3. On-Island Property Manager Documentation
  4. Updated Rules of Conduct (if changes made)

Permit-Specific Requirements

  • Provisional Use Permit ($1,000) - Required for Eastsound Village Commercial properties
  • Conditional Use Permit ($2,300) - Required for other land use designations

Specific Regulations for Short-Term Rentals

Eastsound Village Commercial (Post-Ordinance 10-2025)

  • Permit Required: Provisional use permit now mandatory
  • Application Deadline: June 25, 2026 for existing operations
  • Compliance: Must comply with all vacation rental requirements
  • Cap Status: Exempt from island permit caps under Section 5 of Ordinance 10-2025

General San Juan County Regulations

  1. Permit Caps by Island:

    • San Juan Island: 337 permits
    • Orcas Island: 211 permits
    • Lopez Island: 135 permits
    • Outer islands: 10 permits (Shaw and Waldron Islands prohibited)

  2. Prohibited Areas/Structures:

    • Natural and conservancy shoreline designations
    • Agricultural and forest resource land use designations
    • Shaw Island and Waldron Island
    • Owner-builder exempt structures
    • Town of Friday Harbor water system parcels
    • Boats, tents, vehicles, or unpermitted structures

  3. Advertising Requirements:

    • Mandatory: All advertisements must include San Juan County vacation rental permit number or compliance number
    • Penalty: $2,300 for advertising or operating unpermitted vacation rental

  4. Accessory Dwelling Unit (ADU) Rules:

    • Allowed only if ADU was constructed with a permit prior to June 29, 2007
    • Or if located in an Urban Growth Area (UGA)
    • Detached ADUs constructed after June 29, 2007 require UGA location

  5. Annual Requirements:

    • Certificate of Compliance submission (October-December)
    • Active rentals must have UBI number for tax collection
    • Fire inspections approximately every 2-3 years

Washington State Requirements

  • Sales and Lodging Tax: Required for all active vacation rentals
  • Business Registration: UBI number through Washington State Department of Revenue
  • Consumer Protection: Compliance with Washington State landlord-tenant laws

Contact Information

Primary Authority

San Juan County Department of Community Development (DCD)

Supporting Agencies

San Juan County Planning/Permits

  • Phone: 360-378-2354

Washington State Department of Revenue

  • UBI Number Applications: Contact for business registration requirements

San Juan County Fire Marshal

  • Fire Inspections: Contact through DCD for inspection scheduling

Source References

  1. San Juan County Vacation Rentals Information: www.sanjuancountywa.gov/1579/Vacation-Rentals-Information-and-Applica
  2. Ordinance 10-2025 Announcement: www.sanjuancountywa.gov/m/newsflash/Home/Detail/1988
  3. Ordinance 10-2025 Full Text: www.sanjuancountywa.gov/DocumentCenter/View/32837/Ordinance-10-2025-Regarding-Vacation-Rental-Permits-in-Eastsound-Village-Commercial-and-Lopez-Village-Commercial-Designations
  4. Vacation Rental Application Form: www.sanjuancountywa.gov/DocumentCenter/View/15349/Vacation-Rental-Application-PDF
  5. Sample Rules of Conduct: www.sanjuancountywa.gov/DocumentCenter/View/17721/San-Juan-County-Sample-Vacation-Rental-Rules-of-Conduct
  6. San Juan County Code Section 18.40.275: www.codepublishing.com/WA/SanJuanCounty/#!/SanJuanCounty18/SanJuanCounty1840.html#18.40.275
  7. Online Permit Center: co-sanjuan-wa.smartgovcommunity.com/Public/Home
  8. GIS Vacation Rental Data: sjcgis.maps.arcgis.com/apps/webappviewer/index.html?id=f7a2a4a0e8e040ddbbc387c9ecfa0773
  9. Ordinance 05-2022 (Permit Caps): www.sanjuancountywa.gov/DocumentCenter/View/26153/Ord-05-2022-Cap-Permits-for-Vacation-Rentals_ADUs---signed

Important Note: The vacation rental regulatory environment in Eastsound is currently transitioning. Investors should regularly check for updates to lottery systems, permit processes, and fee structures. The deadline for existing Eastsound Village Commercial vacation rental operations to apply for provisional use permits is June 25, 2026.

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Eastsound

Market Saturation Score

036912
Moderate Saturation
6/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Eastsound Market Analysis →

Photos of Eastsound

Overview of Eastsound

Eastsound is a charming village located on Orcas Island in the San Juan Islands of Washington State. Known for its picturesque landscapes, serene environment, and vibrant community, Eastsound serves as the main hub for visitors to the island. Orcas Island is recognized for its unique blend of natural beauty and small-town charm, attracting tourists year-round.

The population of Eastsound is around 3,000 residents, which provides a tight-knit community feel. The closest major city is Seattle, located approximately 85 miles to the southeast. A ferry ride departing from Anacortes or a scenic flight can easily access the island, with the journey adding to the overall appeal of the destination.

Key landmarks in Eastsound include Moran State Park, which offers extensive hiking trails, fishing spots, and camping areas. Within the park, you can find Mount Constitution, the highest point in the San Juan Islands, offering breathtaking panoramic views (learn more at Moran State Park).

Another notable site is the Orcas Island Historical Museum, where visitors can explore artifacts and exhibits detailing the island's history (visit Orcas Island Historical Museums). For outdoor enthusiasts, the Cascade Lake area provides opportunities for swimming, kayaking, and picnicking.

Eastsound is also home to unique attractions like the Island Hoppin' Brewery, where visitors can enjoy locally crafted beers, and the Rosario Resort and Spa, a historic resort offering luxurious accommodations and a range of recreational activities (Rosario Resort & Spa).

The appeal for short-term rentals in Eastsound is significant because of its beautiful settings and variety of activities. Whether visitors are interested in nature walks, historical tours, or simply relaxing by the water, Eastsound provides an ideal destination for a serene getaway.

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