Eastsound, Washington Short Term Rental Regulations Guide for Airbnb hosts

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 $48,860/year with $363 ADR and 58% occupancy.

Top performers pull in $74,927+ per year.

See the full Eastsound market breakdown

How to Start a Short-Term Rental Business in Eastsound

Phase 1: Eligibility Assessment

Verify Zoning: Confirm your property is located within Eastsound Village Commercial land use designation
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
Assess Permit Availability: New permits are currently on hold until a lottery system is approved by the County Council

Phase 2: Application Process

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
Submit Application: Apply through the San Juan County Department of Community Development (DCD)
Provide Required Documentation: See comprehensive list below

Phase 3: Operational Setup

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

Required Documents, Permits, and Guidelines

Essential Documents

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

Business Requirements

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

Annual Compliance Requirements

Certificate of Compliance (due October-December annually)
24-Hour Emergency Contact Information
On-Island Property Manager Documentation
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

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)
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
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
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
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)

Phone: 360-378-2354
Address: 135 Rhone Street, Friday Harbor, WA 98250
Website: www.sanjuancountywa.gov/1778/Community-Development
Online Permit Center: co-sanjuan-wa.smartgovcommunity.com/Public/Home

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

San Juan County Vacation Rentals Information: www.sanjuancountywa.gov/1579/Vacation-Rentals-Information-and-Applica
Ordinance 10-2025 Announcement: www.sanjuancountywa.gov/m/newsflash/Home/Detail/1988
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
Vacation Rental Application Form: www.sanjuancountywa.gov/DocumentCenter/View/15349/Vacation-Rental-Application-PDF
Sample Rules of Conduct: www.sanjuancountywa.gov/DocumentCenter/View/17721/San-Juan-County-Sample-Vacation-Rental-Rules-of-Conduct
San Juan County Code Section 18.40.275: www.codepublishing.com/WA/SanJuanCounty/#!/SanJuanCounty18/SanJuanCounty1840.html#18.40.275
Online Permit Center: co-sanjuan-wa.smartgovcommunity.com/Public/Home
GIS Vacation Rental Data: sjcgis.maps.arcgis.com/apps/webappviewer/index.html?id=f7a2a4a0e8e040ddbbc387c9ecfa0773
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 is a small unincorporated village and census-designed place on the eastern shore of Orcas Island in Washington's San Juan County, with a year-round population of roughly five hundred residents. The community sits along a sheltered, horseshoe-shaped bay and carries the laid-back, artsy character typical of the San Juan Islands — a working harbor, a compact downtown of locally owned shops and galleries, working artists' studios, and farm-to-table restaurants. Eastsound functions as the commercial and civic hub of Orcas Island and serves as the primary gateway for visitors heading to the island's largest public park and the highest point in the San Juan archipelago. The nearest major city is Seattle, located roughly 80 miles to the southeast across the Puget Sound; reaching Eastsound from the mainland typically involves a drive of about two hours north to Anacortes followed by a one-hour Washington State Ferry crossing to the island.

Just a few miles west of the village, Moran State Park is one of Washington's largest and most popular state parks, encompassing more than five thousand acres of old-growth and second-growth forest, freshwater lakes, waterfalls, and campgrounds. The park is the marquee draw on Orcas Island and offers hiking, swimming, boating, and mountain biking within a short drive of the village. At its summit, Mount Constitution rises to nearly 2,400 feet and is crowned by a stone observation tower, the highest point in the San Juan Islands, with panoramic views that on clear days reach from the Olympic Mountains to the North Cascades and across the water to British Columbia.

A short walk from the waterfront brings visitors to the Orcas Island Historical Museum, a small but well-curated institution in Eastsound that interprets the island's homesteading, maritime, and early-tourism eras through photographs, artifacts, and period interiors. For a quieter natural outing, the Turtleback Mountain Preserve, owned and managed by the San Juan County Land Bank, sits just south of the village and offers a network of forested trails climbing to open ridgelines with views over the surrounding islands and the Salish Sea.

Eastsound's appeal for short-term rental ownership lies in this combination: a walkable, picturesque village with genuine small-town character, immediate access to a marquee state park, and a steady year-round flow of visitors drawn by island weddings, summer sailing and kayaking, and the broader San Juan Islands tourism trade. With limited on-island lodging supply and consistent seasonal demand, the community offers a logical base for travelers who want a slower-paced island experience while remaining within reach of ferry and seaplane connections back to the mainland.