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Port Ludlow, WA

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STR Regulations for Port Ludlow, Washington

Overview: Are short-term rentals allowed in Port Ludlow, WA?

  • Yes—short-term rentals (rentals for 29 days or fewer) are allowed in Port Ludlow, subject to Jefferson County rules and approvals.
  • Port Ludlow is within unincorporated Jefferson County. There is no separate city-level STR code; county regulations govern.
  • In the Port Ludlow Master Planned Resort (MPR), short-term rentals are only permitted within the area zoned Resource Complex (MPR-RC/CF). STRs are not permitted in other zoning designations within the Port Ludlow MPR.
  • Countywide, STRs are also permitted in Rural Residential (1:5, 1:10, 1:20), Rural Village Center, and Resource Lands (Agriculture and Forest).
  • A 4% cap on STR permits applies in unincorporated Jefferson County but explicitly excludes Master Planned Resorts (including Port Ludlow). When the 4% cap is reached in a zip code, new applications are placed on a waitlist.
  • A countywide prohibition on unpermitted STR operation is enforceable, including civil injunctive relief.

What do Airbnb hosts actually earn in Port Ludlow?

Port Ludlow hosts earn a median $34,409/year with $221 ADR and 58% occupancy.

Top performers pull in $50,631+ per year.

See the full Port Ludlow market breakdown

How to start a short-term rental business in this market

  1. Confirm zoning and use eligibility
  • Use the Jefferson County GIS portal to confirm your parcel is zoned for STRs:
    • Port Ludlow MPR: Only allowed in MPR-RC/CF.
    • Elsewhere in unincorporated Jefferson County: Permitted in Rural Residential, Rural Village Center, and Resource Lands (Agriculture and Forest).
    • Parcel-level zoning can be verified at: gisweb.jeffcowa.us/LandRecords/
  1. Verify septic and water capacity
  • The dwelling must have a legally established/permitted septic system or connection to sewer and potable water.
  • Maximum occupancy is determined by septic capacity: each bedroom is allocated 120 gallons per day (GPD) and supports up to 2 people.
  • Prepare to submit the current Operations and Monitoring (O&M) report for your septic system at application.
  1. Complete and submit the county STR application package
  • Application includes:
    • Standard Permit Application form (PDF)
    • Short-Term Rental Supplemental Application (PDF)
    • Jefferson County STR Pre-Inspection Checklist (PDF)
    • Site plan and floor plan
    • Current septic O&M report
  • How to submit:
    • Email: planning@co.jefferson.wa.us (subject line: “Short-Term Rental application”)
    • Or deliver to: Department of Community Development (DCD), 621 Sheridan St, Port Townsend, WA 98368; business hours M–Th 9:00–4:30 (closed 12–1)
  • After intake, DCD issues an invoice for permit fees. Payment triggers review and inspection scheduling.
  1. Engage Fire Marshal for life-safety inspection
  • After application and fee payment, the Office of the Fire Marshal will contact you to schedule the fire/life safety inspection.
  • Use the STR Pre-Inspection Checklist to prepare your unit (posting requirements, safety equipment, etc.).
  1. Post required information inside each STR unit
  • Owner/manager contact information in a conspicuous location.
  • Evacuation plan posted conspicuously.
  • Noise Ordinance posted conspicuously.
  • Ensure compliance with all posted requirements at all times.
  1. Renewal and inspections
  • Annual renewal required. Submit renewal application at least 30 days before permit expiration.
  • Annual fire/life safety inspections are required to maintain an active permit.
  • If your STR has 6 or more guest rooms or will have more than 10 occupants, a Conditional (Discretionary) land use permit is required in place of the standard STR permit, along with additional building requirements.

Required documents, permits, licenses, and guidelines

  • Annual STR permit/license from Jefferson County Department of Community Development.
  • Business liability insurance (proof required at application and each renewal).
  • Pre-issuance and annual fire/life safety inspections by the Office of the Fire Marshal.
  • Site plan, floor plan, and current septic O&M report.
  • Permitted dwelling types: attached single-family, detached single-family, two-family dwellings, townhomes, Central Business District housing, condominiums, and landominiums (where STRs are otherwise allowed by zoning).
  • Occupancy limits:
    • Countywide: determined by septic capacity (120 GPD per bedroom; 2 people per bedroom).
    • Port Ludlow (City-level Chapter 119): maximum six adults per rental; no more than two adults per bedroom; stays limited to 29 consecutive days.
  • Parking: Adequate on-site parking for guests in addition to any parking required for residents.
  • Operating standards:
    • Prevent unreasonable disturbances to neighbors.
    • Comply with Noise Ordinance and post a copy in each unit.
    • Provide adjacent neighbors with owner/manager contact information.
  • Renewals:
    • Apply at least 30 days prior to expiration; DCD invoices renewal fees; annual inspection required.

Specific regulations (city, county, and state)

City of Port Ludlow (Chapter 119 – Short-Term Rental Regulations)

  • Permit:
    • Annual license required for each STR unit; fee $300.00; valid April 15 to April 14; no proration.
    • Proof of business liability insurance required annually; failure to provide results in denial.
    • Inspection by the Building Inspector prior to issuance and at all renewals.
  • Eligible unit types: attached/detached single-family, two-family dwellings, townhomes, Central Business District housing, condominiums, and landominiums.
  • Stay limits: Guests shall not stay more than 29 consecutive days.
  • Building code compliance required for all STR buildings and units.
  • Postings inside unit: owner/manager contact info; evacuation plan.
  • Occupancy: Max two adults per bedroom; maximum six adults per STR.
  • Noise Ordinance compliance; copy of Noise Ordinance must be posted in unit.
  • Neighbor notice: landlord must give adjoining neighbors contact information.
  • Revocation: Two or more substantiated civil/criminal complaints may result in permit revocation by the Zoning Administrator.
  • Penalties:
    • First violation: $500 fine; second and each additional violation: $1,000; daily fines may be issued until corrected; attorney fees and costs may be recovered; fines may be liens against the property.
    • Civil injunctive relief available against unpermitted rentals; landlords agree violations constitute immediate and irreparable harm to the City.

Jefferson County (Unincorporated)

  • Zoning allowances:
    • STRs allowed in Rural Residential (1:5, 1:10, 1:20), Rural Village Center, Resource Lands (Agriculture and Forest).
    • Port Ludlow MPR: STRs only allowed in the area zoned Resource Complex (MPR-RC/CF).
  • Permit process:
    • Standard STR permit (3-part application plus septic O&M, site and floor plans).
    • If 6+ guest rooms or >10 occupants: Conditional use permit required; additional building requirements apply.
  • Inspections:
    • Fire/life safety inspections required prior to issuance and annually thereafter.
  • Occupancy:
    • Determined by septic capacity (120 GPD per bedroom; 2 people per bedroom).
  • Operating standards:
    • Must prevent unreasonable disturbances to area residents.
    • Provide adequate on-site parking for guests, in addition to any resident parking.
  • 4% STR cap:
    • Applies countywide in unincorporated areas; excludes Master Planned Resorts (including Port Ludlow).
    • Cap is distributed by zip code based on housing stock estimates from the Office of Financial Management; once a zip code cap is reached, applicants go on a waitlist.
  • Permit limit:
    • One STR permit per operator in unincorporated Jefferson County (statewide one-permit rules under RCW 19.510 do not apply to Jefferson County; the county codified its own one-permit rule). Master Planned Resorts are excluded from the 4% cap; it is not stated whether the one-permit limit applies inside the MPR. If operating inside the Port Ludlow MPR, confirm current county policy before acquiring multiple permits.
  • Renewal:
    • Annual renewal at least 30 days prior to expiration; DCD invoices fees and conducts annual inspection.
  • Enforcement tools:
    • County can issue fines and pursue injunctive relief; a moratorium adopted in 2024 for planning purposes expired 4/7/2025.

State of Washington (RCW 19.510)

  • State law caps short-term rental platform liability at $1,000 per violation, prohibits platforms from listing without a permit number, and requires platforms to remit lodging taxes.
  • The statute prohibits local governments from requiring more than one permit per operator statewide, but Jefferson County codified a one-permit rule before the state law took effect; the city’s code does not address the one-permit limit.
  • Investors must obtain a State of Washington business license and may be required to collect and remit state sales tax and local lodging taxes depending on the rental structure.

Local authority contact information

  • Jefferson County Department of Community Development (DCD)
  • Office of the Fire Marshal
  • City of Port Ludlow (for references to Chapter 119)
    • City contact details not provided in the source documents; permit administration is through the city code, with inspection by the Building Inspector; see Chapter 119 details in the cited ordinance document.

Source links

Note: Port Ludlow is in unincorporated Jefferson County. City-level Chapter 119 (Ludlow) is advisory in the sense that the county issues permits and enforces county code and state law; however, the city code sets additional requirements (e.g., $300 annual license, occupancy limits, and enforcement mechanisms). In the Port Ludlow MPR, the county’s 4% cap does not apply, but STRs are limited to the Resource Complex zoning, and standard county permitting and inspections still apply.

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Port Ludlow

Market Saturation Score

036912
Moderate Saturation
6/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Port Ludlow Market Analysis

Photos of Port Ludlow

Overview of Port Ludlow

Port Ludlow is an unincorporated community and census-designated place in Jefferson County, Washington, situated on the northeastern Olympic Peninsula along the shores of Puget Sound's Hood Canal. With a population of approximately 2,500 to 3,000 residents, it has the feel of a quiet, wooded waterfront enclave that blends forested residential neighborhoods with a working marina and resort amenities. The community is best known as a gateway to the broader Olympic Peninsula, including Olympic National Park, and as a scenic stop along the route between the Seattle metropolitan area and the Victorian seaport of Port Townsend. It lies roughly 50 miles northwest of Seattle by road, typically reached via a drive of about two hours that includes crossing the Tacoma Narrows Bridge and winding through the Kitsap Peninsula.

A short drive east of Port Ludlow brings visitors to Port Townsend, a Victorian-era seaport town on the Quimper Peninsula with a preserved downtown, art galleries, and a strong maritime heritage. The drive typically takes about 35 to 45 minutes, and the town is home to Fort Worden State Park, where visitors can explore historic coastal defense buildings, walk the beaches, and attend the well-known Centrum arts programming. Port Townsend, Washington offers a striking contrast to Port Ludlow's quieter residential character and is a popular day trip for those staying in the area.

Further afield, Olympic National Park lies to the west and south of Port Ludlow, drawing visitors with its varied landscapes of glacier-capped mountains, temperate rainforests, and a rugged Pacific coastline. The main park entrances are roughly one to two hours' drive away, with destinations like Hurricane Ridge and the Hoh Rain Forest among the most popular. For owners of short-term rentals, this proximity to one of the Pacific Northwest's marquee national parks is a significant draw, particularly during summer and shoulder seasons when the Seattle area's travelers begin planning longer Peninsula getaways.

Closer to home, the waters of Hood Canal frame the community, supporting boating, kayaking, and wildlife viewing right from the local marina and surrounding inlets. Nearby state parks such as Mystery Bay State Park and Fort Flagler State Park on Marrowstone Island offer camping, beachcombing, and views of Admiralty Inlet within a roughly 20- to 30-minute drive. These local outdoor offerings help extend the appeal of a Port Ludlow stay beyond a single-day excursion and provide convenient options for families and active travelers.

The combination of quiet waterfront living, easy access to the Olympic Peninsula's biggest draws, and a manageable distance from Seattle makes Port Ludlow an appealing base for travelers seeking nature without isolation. Short-term rental owners benefit from a steady flow of visitors drawn to Olympic National Park, Port Townsend's cultural scene, and the scenic driving routes that connect them. The community's established resort infrastructure, forested setting, and proximity to both saltwater and mountain wilderness give it a distinctive character that distinguishes it from more crowded destinations further south along the Puget Sound.

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