Executive Overview

Short-term rentals are currently allowed in Packwood, WA, but new regulations are being implemented that will significantly impact how STRs operate in the area.

Lewis County (which governs Packwood as it is unincorporated) has moved from having virtually no STR regulations in 2022 to proposing comprehensive new rules in 2025. As of August 2025, the Lewis County Planning Commission has approved proposed STR regulations that include permit requirements, safety standards, and potentially restrictive caps, though these are still pending final approval by the Board of County Commissioners.

Starting a Short-Term Rental Business in Packwood, WA

Step 1: Understand the Current Regulatory Environment

• As of August 2025: New regulations have been approved by the Planning Commission but require final approval by the Lewis County Board of County Commissioners (BOCC) in September 2025
• Permit System: A county permit will be required for all STRs (estimated fee: $150)
• One-Year Term: Permits must be renewed annually through self-certification

Step 2: Property Requirements

Your property must meet these basic requirements:

• Legal Residential Structure: Must be a lawful dwelling unit
• Functioning Septic or Sewer: Inspected and compliant wastewater system
• Water Source: Meet minimum water quality standards
• Safety Equipment: Smoke detectors, carbon monoxide detectors, and fire extinguisher
• Solid Waste Service: Active garbage service or secure waste storage (no longer "inside")
• Parking: One on-site parking space per bedroom

Step 3: Business Licensing (State Requirements)

• State Business License: Required for all STRs as they are considered business operations
• Unified Business Identifier (UBI): State business tax identification number
• Personal Property Tax: Annual listing of all rental furnishings and equipment to Lewis County Assessor
• State Insurance Requirements: Proof of appropriate insurance coverage

Required Documents, Permits, Licenses, and Guidelines

Local (Lewis County) Requirements:

1. STR Permit (One-year term, renewable)

   • Estimated fee: $150
   • Transferable to new property owners
   • Annual self-certification required

2. Health and Safety Inspection

   • Structure safety verification or owner waiver
   • Septic/sewer system inspection
   • Water quality verification

State (Washington) Requirements:

1. State Business License

   • UBI number registration
   • State business tax compliance

2. Personal Property Listing

   • Annual form to Lewis County Assessor
   • Must include all rental furnishings, bedding, electronics, appliances, etc.
   • UBI number required on listing

Lodging Tax:

• Local Lodging Tax: 8% (as referenced in management company materials)
• Collection and Remittance: Required on all bookings

Specific Regulations by Jurisdiction

City/County Level (Lewis County - Packwood Governance):

Definition of Short-Term Rental:

• Lodging use, not hotel/motel/B&B
• Dwelling unit or portion offered for fewer than 30 consecutive nights
• Maximum 180 days per calendar year
• Exemptions:
  • Owner-occupied dwellings with 3 or fewer rooms rented
  • Month-by-month leases (full month commitment required)
  • Charitable organization-operated temporary housing

Proposed Zoning Allowances (2025):

• Residential High (RH) Zone: STRs allowed
• Residential Medium (RM) Zone: STRs allowed
• Residential Low (RL) Zone: STRs allowed
• Rural Residential Center (RRC) Zone: STRs allowed
• Mixed Use (MU) Zone: STRs allowed
• Commercial Business District (CBZ) Zone: STRs allowed

Capacity and Operational Limits:

• Occupancy: 2 persons per bedroom plus 3 additional people (max)
• Dwelling Unit Limits:
  • 1 dwelling unit = 1 STR
  • 2 dwelling units = 1 STR
  • 3 dwelling units = 2 STRs
  • 4 dwelling units = 0 STRs

Operational Requirements:

• Quiet Hours: To be specified (mentioned but details not provided)
• Burn Restrictions: Fire safety limitations apply
• Basic Information: Guest information requirements to be provided

State Level (Washington State):

Business Regulations:

• State business license and tax obligations
• Personal property tax on rental furnishings and equipment
• UBI number requirements

Definition (RCW 64.37.020):

• "Lodging use, that is not a hotel or motel or bed and breakfast, in which a dwelling unit, or portion thereof, is offered or provided to a guest by a short-term rental operator for a fee for fewer than thirty consecutive nights"

Lodging Tax Requirements:

• Local and state lodging taxes apply
• 8% local lodging tax rate referenced

Important Note on Proposed Caps:

25% Neighborhood Cap (Under Consideration): The Planning Commission has proposed limiting STRs to 25% of existing dwelling units per neighborhood, but this was controversial and may be modified. The August 2025 blog post from Packwood Homes suggests this cap may have been removed from the final approved version.

Contact Information

Primary Authority:

Lewis County Community Development

• Planning Director: Mindy Brooks
• Email: mindy.brooks@lewiscountywa.gov
• Phone: (360) 740-2680

Physical Address: Lewis County Community Development 351 NW North Street Chehalis, WA 98532

Meetings and Public Comment:

• Planning Commission Public Hearings: 125 NW Chehalis Avenue, Chehalis (with Zoom option)
• Board of County Commissioners: Final approval authority for STR regulations

Additional Resources:

• Lewis County Assessor: For personal property tax questions
• Lewis County GIS: Interactive zoning maps at gis.lewiscountywa.gov/webmap/

Links to Source Pages

Primary Official Sources:

1. Lewis County Comprehensive Plan Updates: lewiscountywa.gov/departments/community-development/comprehensive-plan-and-development-regulation-amendments/comprehensive-plan-periodic-update/
2. Packwood FAQ (2022): lewiscountywa.gov/media/documents/2022-02-22_PackwoodFAQ_Updated.pdf
3. Community Meeting Presentation (June 2025): lewiscountywa.gov/media/documents/2025-06-23_PackwoodCommunityMeeting.pdf

News and Community Coverage:

4. The Daily Chronicle - STR Meeting Coverage: www.chronline.com/stories/lewis-county-meeting-draws-large-crowd-ahead-of-potential-short-term-rental-regulations,383915

Local Real Estate and Industry Sources:

5. Packwood Homes - STR Regulations Overview: www.packwoodhomes.com/blog/packwood-short-term-rental-regulations/
6. Packwood Homes STR Category: www.packwoodhomes.com/blog/category/short-term-rentals/

Industry Management Resources:

7. Go Summer - Packwood Market Overview: www.gosummer.com/vacation-rental-management/packwood-washington

Community Opposition:

8. Change.org Petition: www.change.org/p/protect-packwood-s-short-term-rental-industry

Current Status and Next Steps

As of August 2025:

• Planning Commission has approved proposed regulations
• Board of County Commissioners approval pending (expected September 2025)
• Community remains divided on proposed restrictions
• Industry stakeholders continue advocacy against restrictive measures

For Current STR Operators:

• Existing operators may receive grace period for compliance
• Transferable permits protect property investments
• Annual renewal and self-certification required

For New Entrants:

• Monitor final regulatory adoption
• Ensure property meets safety and zoning requirements
• Prepare for permit application process
• Budget for annual regulatory compliance costs

This regulatory environment remains fluid, with community input actively shaping final rules. Investors should stay engaged with the public process and prepare for compliance with evolving requirements.