Packwood, Washington Short Term Rental Regulations Guide for Airbnb hosts

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.

What do Airbnb hosts actually earn in Packwood?

Packwood hosts earn a median $39,984/year with $256 ADR and 56% occupancy.

Top performers pull in $56,340+ per year.

See the full Packwood market breakdown

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:

STR Permit (One-year term, renewable)
- Estimated fee: $150
- Transferable to new property owners
- Annual self-certification required
Health and Safety Inspection
- Structure safety verification or owner waiver
- Septic/sewer system inspection
- Water quality verification

State (Washington) Requirements:

State Business License
- UBI number registration
- State business tax compliance
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

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.

Next step

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Ask the AI Advisor about Packwood

Packwood is a small unincorporated community tucked into the Cascade Range of southwestern Washington, in Lewis County. With a year-round population of only a few hundred residents, it has the feel of a quiet mountain village, the kind of place where visitors come to slow down and spend time outdoors. The town is best known as a gateway to Mount Rainier National Park, particularly the Paradise area reached via the park's Stevens Canyon entrance. It sits along US Route 12, roughly 130 miles southeast of Seattle and a comparable distance north of Portland, Oregon.

Mount Rainier National Park is the area's marquee attraction, and the southeastern approach through Stevens Canyon delivers visitors to the Paradise area, one of the park's most visited destinations. The drive from Packwood to the Stevens Canyon entrance is about half an hour, and from there the road climbs another eighteen miles or so through old-growth forest and subalpine meadows, with views of the glaciers crowning the mountain. Hiking in summer and snowshoeing or skiing in winter draw visitors year-round.

A short drive east on US 12 brings travelers to White Pass Ski Area, a family-friendly mountain that has been a fixture of the Washington ski scene for decades. With a base elevation and summit offering a few thousand feet of vertical and views back toward Rainier and the surrounding Cascades, the resort sees steady winter traffic and is one of the closer ski areas to the south Puget Sound region.

To the west and south of Packwood stretches the Gifford Pinchot National Forest, a vast expanse of old-growth forest, rivers, and volcanic terrain that includes the heavily visited Mount St. Helens National Volcanic Monument on its western edge. Locals and visitors use the surrounding forest for hiking, fishing, and rafting on the Cowlitz and Nisqually rivers, while the higher country offers snowmobiling and backcountry skiing in winter.

Further east along US 12, the Goat Rocks Wilderness rises along the spine of the Cascades, a rugged section of the Pacific Crest Trail often cited as one of the more scenic stretches of the entire long-distance route. Hikers can reach trailheads within roughly an hour of Packwood, and the area sees heavy use from backpackers each summer.

Packwood's appeal as a short-term rental base comes down to geography: a small, walkable mountain community sitting at the crossroads of three of Washington's most dramatic landscapes. From a single rental, guests can reach a national park, a ski resort, a major national forest, and a designated wilderness within an hour or two in any direction, all while staying in a town with the quiet, outdoorsy character that travelers planning a Cascades getaway are looking for.