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Ocean Shores

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Ocean Shores, WA

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STR Regulations for Ocean Shores, Washington

Overview: Are Short-Term Rentals Allowed in Ocean Shores?

  • Yes. In the City of Ocean Shores (incorporated city), short-term rentals (rentals for fewer than 30 consecutive days) are allowed, but only in commercial zoning districts. The City imposes a business license and a 5% lodging tax on such rentals.
  • Grays Harbor County also allows short-term rentals under County code within several unincorporated zoning districts. If your property is within the City of Ocean Shores, City rules apply; if it’s in unincorporated Grays Harbor County, County rules apply.

How to Start a Short-Term Rental Business in This Market

If the property is inside the City of Ocean Shores:

  • Confirm zoning. Overnight rentals are permitted only in commercial zones.
  • Obtain a City of Ocean Shores business license ($50).
  • If a Fire Department inspection is required for your lodging setup, budget an additional $50 inspection fee.
  • Collect and remit the 5% lodging tax on transient rentals (rentals <30 consecutive days). The lodging tax is reported to the Washington Department of Revenue and passed through to the City.
  • Assess whether additional city permits or safety measures are needed (e.g., building, fire, special events, signage, etc.) based on your property’s specific use and layout.
  • For tsunami preparedness, provide guests with evacuation information. FEMA V‑1011 tsunami preparedness materials and local tsunami evacuation maps are available through the County (see resources below).

If the property is in unincorporated Grays Harbor County:

  • Confirm zoning. STRs are a permitted use in multiple districts (General Development G‑1 and G‑5, General Residential R‑2, Resort Residential R‑3, Rural Residential RR, Lake Quinault LQ, and General Commercial C‑2).
  • Complete a three-step County process:
    1. Site Plan Review Application (must be completed first).
    2. Obtain any other required permits/approvals identified in Step 1.
    3. Short-Term Rental Permit Application (annual renewal required at least 30 days prior to expiration).
  • Ensure compliance with all applicable state and local health, safety, and building regulations.
  • Understand enforcement procedures and use the County’s reporting tools if issues arise (contact information and reporting link provided below).
  • Consider adopting a property management plan and emergency preparedness (e.g., tsunami evacuation guidance) for guest safety.

Required Documents, Permits, Licenses, and Guidelines

City of Ocean Shores (incorporated):

  • Business License (Finance Department). Annual fee $50.
  • Fire Department inspection, if required (additional $50 fee).
  • Lodging tax compliance (5% transient lodging tax on rentals <30 days; remitted via Washington DOR and passed through to the City).
  • Other operational considerations (e.g., signage, noise, special events permits, building permits if applicable). Consult City departments as needed.

Grays Harbor County (unincorporated):

  • Site Plan Review Application (Step 1).
  • Related permits/approvals identified in Step 1 (Step 2).
  • Short-Term Rental Permit Application (Step 3). Annual renewal required at least 30 days before expiration.
  • Compliance with state and local health, safety, and building regulations; County code (GHCC 17.06.020 – Short-term rentals) governs STRs.
  • Submittal resources include the STR Submittal Checklist, example floor plans, and example property management plan.
  • Emergency preparedness resources (tsunami evacuation maps and FEMA V‑1011).

Specific Regulations

City of Ocean Shores:

  • Zoning: Overnight rentals allowed only in commercial zones.
  • Taxes: 5% lodging tax on transient rentals (<30 days), collected by the operator and remitted to the state, which passes it through to the City.
  • Business licensing: $50 annual fee; $50 Fire Department inspection fee when applicable.
  • Noise, safety, and building requirements may apply; consult relevant City departments.

Grays Harbor County:

  • Allowed zoning districts (with a valid STR permit): G‑1, G‑5, R‑2, R‑3, RR, LQ, C‑2.
  • Permit process: Site Plan Review (Step 1); Related permits/approvals (Step 2); STR Permit Application (Step 3). Annual reapplication/renewal required.
  • STR Permit not required if an STR was approved under a Conditional Use Permit or Planned Unit Development prior to March 22, 2022 (Ordinance 469).
  • Reporting: Concerns can be reported online or by phone; see enforcement resources below.
  • Emergency preparedness: Guests should receive tsunami-related safety information; evacuation maps and FEMA V‑1011 materials are available.

State-level context (Washington):

  • Definitions and insurance requirements are governed by Washington law (RCW 64.37). Operators must follow all applicable state and local regulations. Use this as general context and confirm specific obligations with local authorities.

Contact Information

City of Ocean Shores:

Grays Harbor County Planning Division:

Links to Source Pages (City + County)

Notes for Investors:

  • Always confirm your property’s exact jurisdiction (City vs. County) and zoning before proceeding.
  • City rules are controlling for properties within the City of Ocean Shores; County rules are controlling for properties in unincorporated Grays Harbor County.
  • Given Ocean Shores’ coastal location, integrate emergency preparedness (e.g., tsunami evacuation plans and guest instructions) into your operating procedures.

What do Airbnb hosts actually earn in Ocean Shores?

Ocean Shores hosts earn a median $32,526/year with $238 ADR and 42% occupancy.

Top performers pull in $45,904+ per year.

See the full Ocean Shores market breakdown

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Ocean Shores

Market Saturation Score

036912
Oversaturated
12/ 12
months with declining YoY revenue
11–12 declining months: sustained YoY revenue decline - market is oversaturated.
View Full Ocean Shores Market Analysis

Photos of Ocean Shores

Overview of Ocean Shores

Ocean Shores is a small coastal city situated on a long, narrow peninsula at the mouth of Grays Harbor on Washington's Pacific coast, in Grays Harbor County. With a year-round population of roughly 6,000, the town has the feel of a relaxed beach community that swells considerably during the warmer months and holiday weekends. It is best known for its wide, drivable sandy beaches, a famous jetty at the harbor entrance, and its role as a launching point for exploring the beaches, rain forests, and fishing towns of Washington's southwest coast. Ocean Shores sits about 115 miles southwest of Seattle and roughly 90 miles west of Tacoma, with typical drive times of two-and-a-half to three hours from the Seattle–Tacoma metro area via US 101 and State Route 109.

Just north of town, Griffiths-Priday Ocean State Park protects a stretch of dune-backed beach and lowland forest where visitors can walk among the surf, picnic, and watch for shorebirds and migrating gray whales. The park is only a short drive from the main Ocean Shores access points, making it an easy addition to a beach day. To the south, Westport is a working fishing port and surf town across the south side of Grays Harbor, roughly 30 to 40 minutes away by car. It offers a small boardwalk, charter and sport-fishing departures, and a surf-friendly beach that draws a different crowd than the calmer bay side of Ocean Shores.

Inland from the coast, Lake Quinault lies within the Olympic National Forest and on the边缘 of Olympic National Park, about an hour's drive north and east of Ocean Shores. The lake and its surrounding old-growth rain forest offer hiking, kayaking, and the chance to see some of the largest Douglas firs, spruces, and cedars in the Pacific Northwest. From there, the wider Olympic National Park is within reach for day trips or overnight excursions, with destinations such as the Hoh Rain Forest, Ruby Beach, and the coastal strip all accessible in roughly two to three hours of driving from Ocean Shores.

Taken together, Ocean Shores is a compelling base for short-term rentals because it combines the simple appeal of a quiet peninsula beach town with unusually broad day-trip access to the Olympic Peninsula. Guests can spend mornings walking the jetty or driving on the hard-packed sand, afternoons charter-fishing in Westport, and the next day wandering old-growth forests in Olympic National Park, all while returning to the same rental each evening. The combination of small-town atmosphere, year-round accessibility from the Seattle and Puget Sound region, and the diversity of nearby outdoor experiences gives the market a wide, family-friendly appeal that tends to perform steadily through the summer season and around storm-watching and holiday weekends.

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