Chelan, WA

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Chelan short-term rental market based on reliable data.

Listings

365 / 639

Reliable / Active

Cap Rate

9%

Middle-Earners Gross Yield

Revenue

$47,310

Middle-Earners Revenue

Occupancy

49%

Middle-Earners Occupancy

Home Value

$511,974

Median Home Sale Price

Top Earners

$104,684

Top-Earners Revenue

Chelan

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Chelan.

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C

Challenging to Investors

Chelan Regulations

STRs are explicitly allowed citywide and countywide, but investors face moderate hurdles: high annual licensing fees ($500–$900), mandatory liability insurance ($1M), inspections and biennial fire checks, strict occupancy caps (8/12/16) by tier, zoning limits, late renewal penalties (2–3x), and detailed documentation. The overall framework is clear and actively enforced with modest constraints, making it workable but not truly investor-friendly.

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About Chelan

Chelan is a small resort city in Chelan County, Washington, perched at the southeastern tip of Lake Chelan, one of the deepest natural lakes in the United States. With a population of roughly 4,300, it has a relaxed, small-town character shaped by its lakeside setting, sunny summer climate, and surrounding vineyards. The city is best known as the main entry point to the Lake Chelan recreation area and as a destination for boating, wine tasting, and outdoor adventure. It sits approximately 180 miles east of Seattle, about a three-and-a-half-hour drive over the Cascade Range, and roughly 35 miles north of Wenatchee, the nearest larger city.

The lake itself defines the region. Stretching about 50 miles from the city of Chelan into the northern Cascades, Lake Chelan draws visitors for swimming, boating, paddleboarding, and sport fishing during the warmer months, and its shoreline is lined with parks, marinas, and public beaches. The waters are notably clear and deep, with the lower basin reaching several hundred feet, and the upper basin, fed by glaciers, runs even deeper. From the city, the historic Lady of the Lake ferry runs up-lake service toward Stehekin, a community at the lake's remote northern end that has no road access.

At the upper end of the lake lies the Lake Chelan National Recreation Area, which is part of the larger North Cascades National Park Complex. The area preserves the wild upper valley of the lake and offers backcountry hiking, river running on the Stehekin River, and access to remote trails. Visitors typically reach the recreation area via the ferry from Chelan, making the city the natural launch point for exploring this corner of the North Cascades.

The hills and benches surrounding the city are home to the Lake Chelan Wine Valley, where dozens of wineries and tasting rooms have established vineyards on the glacial soils. The wineries range from small family operations to larger estates, and many are concentrated within a short drive of downtown. Wine touring, often paired with farm-to-table dining, has become a signature draw alongside the lake, and the vineyards give the surrounding landscape a distinctly Mediterranean feel in summer.

Chelan is a compelling base for short-term rentals because it offers a rare combination of small-town charm and year-round appeal. Summer brings lake recreation, hiking, and wine touring, while shoulder seasons and winter add skiing at the nearby Echo Valley ski area and quieter, scenic visits. The mix of natural beauty, outdoor activities, a walkable downtown, and proximity to both the Seattle metro area and the broader North Cascades makes the city a versatile draw for vacationers throughout much of the year.

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