Short-Term Rental Investment Guide: Centralia, WA

Overview: Are Short-Term Rentals Allowed in Centralia, WA?

YES, short-term rentals are explicitly allowed in Centralia, WA. The city has established a comprehensive regulatory framework for short-term rentals (STRs) in their zoning code (Centralia Municipal Code Title 20). Short-term rentals, including both homestays and vacation rentals, are permitted uses in specified zoning districts as outlined in CMC 20.11 (Land Use Tables). The regulations cover all aspects from operational requirements to safety standards, demonstrating that Centralia welcomes STR operations within a structured regulatory environment.

What do Airbnb hosts actually earn in Centralia?

Centralia hosts earn a median $21,439/year with $156 ADR and 47% occupancy.

Top performers pull in $31,100+ per year.

See the full Centralia market breakdown

How to Start a Short-Term Rental Business in Centralia, WA

Step 1: Zoning Compliance Verification

Confirm your property is located in a zoning district that permits short-term rentals per CMC 20.11
Properties in R-5A, R-2A, R:2, R:4, and R:8 zoning districts allow up to two STRs per property
Properties in R:15, R:20, and other zoning districts may require a Conditional Use Permit for additional STRs on the same property

Step 2: Utility Connections

R:4, R:8, R:15, R:20, and other zoning districts: Connect to all city utilities
R-5A, R-2A, and R:2 zoning districts: Connect to city electric and water, and city sewer if within 200 feet
Properties not required to connect to city sewer must meet Lewis County septic system requirements

Step 3: Pre-Application Requirements

Provide courtesy notice to all property owners within 300 feet of your proposed STR location
Include operation description, number of bedrooms for overnight guests, and owner/operator contact information
Obtain any required city and State business licenses

Step 4: Application Process

Submit application for short-term rental permit
Provide proof of liability insurance meeting RCW 64.37.050 requirements
Designate a local contact person who resides within 15 miles of the STR or within Lewis County

Step 5: Operational Setup

Ensure property meets all applicable state and local health, safety, and building code regulations
Install required parking (one stall per rental unit) with designated signage
Comply with setback requirements for the underlying zoning district

Required Documents, Permits, Licenses, and Guidelines

Permits and Licenses:

City Business License - Required for all STR operators
State Business License - Required per Washington State regulations
Short-term Rental Permit - Issued by City of Centralia
Conditional Use Permit - Required for additional STRs in R:15, R:20, and other specified districts

Required Documentation:

Liability Insurance Certificate - Must comply with RCW 64.37.050
Utility Connection Documentation - Proof of required utility connections
Property Ownership Verification - Title report or deed documentation
Local Contact Information - Name, phone number, and address of responsible party within 15 miles
Building Code Compliance Certification - Fire protections, egress, accessibility standards

Operational Guidelines:

Guest Capacity Limits: Maximum of 2 adults per bedroom (children under 12 may share with parents)
Maximum Occupancy: 10 adults total or building code maximum, whichever is less
Structure Requirements: STRs must operate within legally established dwelling units only
Exclusions: Cannot operate outdoors, in accessory structures, mobile homes, RVs, or wheeled vehicles

Specific Regulations for Short-Term Rentals

City-Level Regulations (Centralia Municipal Code):

Operational Requirements:

Parking: One parking stall per rental unit with designated tenant signage per CMC 20.72
Setbacks: Must comply with underlying zoning district requirements
Safety Standards: Fire, smoke protections, egress, accessibility, structural design compliance
Waste Management: Cannot generate solid waste beyond typical residential levels

Neighbor Relations:

Noise/Disturbance Limits: Must not generate measurable levels of dust, smoke, odor, glare, or noise beyond residential use
Agreement Provisions: STR agreements must include provisions encouraging renter consideration for neighbors
Local Contact: Must have designated representative for immediate response to city requests

Business Restrictions:

Subleasing: STRs cannot be subleased
Owner-Occupancy: Not required to be owner-occupied
Tax Remittance: Operator responsible for timely lodging excise tax payments

County-Level Regulations (Lewis County):

Septic System Requirements: Properties not connecting to city sewer must meet all Lewis County septic system requirements
Critical Areas: STRs prohibited where development is restricted due to proximity to sewage infrastructure, critical areas, or unsuitable physical characteristics per CMC Title 16

State-Level Regulations (Washington State):

RCW Chapter 64.37: Must comply with all Washington State short-term rental regulations
Liability Insurance: Must meet RCW 64.37.050 insurance requirements
Business Licensing: Washington State business license requirements
Tax Obligations: State lodging excise tax and other applicable tax requirements
WAC Compliance: Washington Administrative Code health, safety, and building standards

Contact Information for Local STR Authority

City of Centralia Community Development Department

Address: 118 West Maple Street, P.O. Box 609, Centralia, WA 98531-0609
Phone: (360) 330-7662
Fax: (360) 330-7673
Email: www.centraliaguide.com
Website: www.cityofcentralia.com

Key Staff Contacts:

Emil Pierson, AICP - Community Development Director
Hillary Hoke - Assistant Community Development Director

Meeting Information:

Planning Commission Meetings: Generally held at 6:00 PM on specified Thursdays
Meeting Location: Centralia City Hall, First Floor, 118 W Maple Street, Centralia, WA
Zoom Access: Available for remote participation (meeting-specific credentials provided)

Source Pages

Centralia Municipal Code - Chapter 20.04 General Provisions (Draft 8/22/2025)
- www.cityofcentralia.com/DocumentCenter/View/4648
- Contains detailed STR regulations in Section 20.04.110
Centralia Municipal Code - Chapter 20.06 Definitions (Draft 8/22/2025)
- www.cityofcentralia.com/DocumentCenter/View/4648
- Provides definitions for housing types and regulatory terms
City of Centralia Official Website
- www.cityofcentralia.com
- Additional resources and updates

Note: This guide is based on draft municipal code documents dated August 22, 2025. Investors should verify current requirements with the City of Centralia Community Development Department before proceeding with any STR investments or operations.

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Ask the AI Advisor about Centralia

Centralia sits in Lewis County in southwestern Washington, a small city of roughly 18,000 residents that carries a quiet, blue-collar charm rooted in its 19th-century founding. Straddling the I-5 corridor, it has long served as a convenient rest stop and supply town for travelers and truckers moving between Portland and Seattle, and its revitalized historic downtown gives it a slightly unexpected dose of small-city character. Centralia is also widely known as a gateway to the volcanic landscapes of the Pacific Northwest: Mount Rainier rises to the northeast and the Mount St. Helens National Volcanic Monument lies to the southeast, both within roughly a 90-minute to two-hour drive. The nearest major city is Seattle, located about 80 miles to the north.

One of the city's most distinctive draws is the Chehalis-Centralia Railroad, more popularly known as the Centralia Steam Train. The heritage line runs vintage steam excursions between the two neighboring towns during the warmer months, and on certain occasions guests can even ride in a beautifully restored dining car for a special meal on the rails. From downtown Centralia, the train depot is only a short walk away. More information can be found on the Chehalis-Centralia Railroad Wikipedia page.

A second anchor of the city is its collection of hand-painted outdoor murals, which is among the largest of its kind in the Pacific Northwest. Scattered through the historic downtown and along the freeway corridor, these large-scale works depict local history, agricultural life, and the natural surroundings of the Chehalis River valley, and a self-guided walking tour map is typically available from the local visitor center. The murals are free to view and tend to be a pleasant surprise for visitors who associate Centralia only with its freeway exit.

For outdoor time, Seminary Hill Natural Area sits just on the edge of town and offers a network of forested walking trails and a hilltop view that, on clear days, looks out toward the snow-capped silhouette of Mount Rainier. The area is maintained as a public natural space and is a favorite of local walkers and birdwatchers, especially at sunrise and sunset.

Centralia appeals to short-term rental owners because it sits at an unusually useful crossroads: close enough to Seattle and Portland to catch spillover travelers, but cheaper and calmer than either, and within easy striking distance of two of the most iconic natural landmarks in the Cascades. Pair that proximity with a walkable historic core, a working heritage railroad, and a steady stream of road-trippers along I-5, and the city offers a flexible base for guests who want either a quick overnight or a longer stay built around volcanoes, old-growth forests, and small-town Washington character.

Centralia, Washington

Generally Investor Friendly

STR Regulations for Centralia, Washington