South Lake Union, WA

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the South Lake Union short-term rental market based on reliable data.

Listings

11 / 99

Reliable / Active

Revenue

$42,937

Middle-Earners Revenue

Occupancy

40%

Middle-Earners Occupancy

Top Earners

$61,857

Top-Earners Revenue

South Lake Union

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in South Lake Union.

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C

Challenging to Investors

South Lake Union Regulations

STRs are allowed in South Lake Union, but Seattle’s regime is high‑regulation: moderate permitting and inspection burden, strict unit caps (two units) with limited exemptions tied to continued/legacy operation, heavy tax load ($14/night STR tax plus ~10.25% sales and 8.5% lodging taxes), and 24/7 contact and reporting requirements—constraints that deter new investors and elevate compliance risk.

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About South Lake Union

Union is a small unincorporated community on the southeastern shore of Hood Canal in Mason County, Washington. Tucked into the eastern edge of the Olympic Peninsula, it has a population of only a few hundred residents and carries the laid-back character of a working waterfront and recreational retreat. The community is best known for its scenic tidal flats, shellfish harvesting traditions, and its position as a convenient base for visitors exploring both Hood Canal and the interior of Olympic National Park. It lies roughly 80 miles west-southwest of Seattle, with a drive that typically takes around two to two-and-a-half hours via the Kitsap Peninsula and the Hood Canal Bridge.

Just minutes from the heart of Union, Potlatch State Park stretches along the Hood Canal shoreline and offers picnic areas, a playground, a short forested trail, and excellent opportunities for crabbing, clamming, and beachcombing at low tide. Its location directly on the canal makes it a favorite for families looking to wade into the cold saltwater or watch the sun set over the Olympic Mountains to the west. The park's proximity to Union means short-term rental guests can easily spend a casual morning or evening here without venturing far from their lodging.

A short drive northwest of Union leads to the Staircase Ranger Station, one of the southern entrances to Olympic National Park. This area of the park is known for old-growth Douglas fir and western hemlock forests, the mossy stretch of the North Fork Skokomish River, and the Staircase Rapids Loop Trail, a relatively accessible hike that introduces visitors to the temperate rainforest ecosystems the park is famous for. The drive from Union to the Staircase area generally takes under an hour, making it feasible for a day trip into a much wilder landscape.

Lake Cushman, a glacier-carved reservoir on the Olympic Peninsula's eastern flank, sits just a few miles north of Union. The lake is ringed by Olympic National Forest land and offers swimming, kayaking, fishing, and shoreline camping, with the Olympic Mountains rising dramatically above the water. Closer to town, the neighboring community of Hoodsport draws visitors for its small galleries, seafood markets, and annual shrimpfest, providing a gentle, low-key complement to the bigger outdoor adventures nearby.

Union's appeal as a short-term rental base lies in its rare combination of solitude and access. Guests can spend their days shelling on quiet tidelands, hiking into old-growth forests, paddling a mountain lake, and return to a peaceful waterfront community in the evening, all without the crowds of more heavily trafficked Pacific Northwest gateways. Its proximity to Seattle, the Olympic National Park interior, and the Hood Canal's seafood-rich shoreline makes it a versatile anchor for travelers who want nature, water, and small-town character in equal measure.

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