Sequim, Washington Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Sequim?

Explicit answer: Yes, short-term rentals (STRs) are allowed in Sequim, WA, with important caveats. The City has historically treated STRs as a residential use when no other commercial activity occurs on-site and has not adopted formal STR regulations as of April 2022. However, enforcement has been inconsistent. Hosts have occasionally received letters (primarily in R4‑8 residential areas) interpreting certain zoning provisions against “transient accommodations,” while the City’s official fact sheet also lists R4‑8 as a permitted zone for single‑family residences and does not impose time limits on such rentals. The City Council’s last formal discussion was in 2019, when it directed staff to monitor the market informally rather than regulate. The overall environment is permissive but volatile, with zoning enforcement occasionally impacting operations.

What do Airbnb hosts actually earn in Sequim?

Sequim hosts earn a median $34,179/year with $195 ADR and 63% occupancy.

Top performers pull in $47,375+ per year.

See the full Sequim market breakdown

How to Start a Short-Term Rental Business in Sequim

Confirm zoning compliance
- Verify that your property is located in a permitted zone for STRs (see Regulatory Details).
- Note that ADUs (accessory dwelling units) are prohibited from short‑term rental use in Sequim (see SEPA record 201906229 under Regulatory Details).
Comply with state requirements
- Follow RCW 64.37 (Washington’s STR law) for consumer safety, liability insurance, and platform obligations (e.g., registration numbers must be displayed on listings).
Set up taxes
- Collect and remit all applicable state lodging taxes, and any county lodging tax that applies to your location. There is no evidence in the provided documents of a separate City of Sequim lodging tax; if other sources mention a city lodging tax, treat it as unconfirmed unless validated by the City Finance/Revenue Department.
Establish operational standards
- Implement quiet hours and a noise policy, manage parking, arrange garbage and recycling service, and set clear guest rules.
Maintain documentation
- Keep insurance proof, tax remittance records, guest logs/contracts, and platform registration numbers (RCW 64.37).
Monitor the regulatory environment
- Follow City Council meetings and planning updates; enforcement interpretations have changed, and the City may adopt new rules in the future.

Required Documents, Permits, Licenses, and Guidelines

State (Washington) requirements:
- Registration number (from Washington State Department of Revenue) displayed on STR platform listings.
- Liability insurance appropriate for lodging use (RCW 64.37).
- Compliance with consumer safety provisions (RCW 64.37).
- Collection and remittance of lodging taxes (state and any applicable county tax).
City of Sequim:
- No city‑specific STR business license or permit was required as of April 2022; the City does not formally regulate STRs. If you see a “city business license” claim elsewhere, treat it as unconfirmed for STRs unless the City provides written confirmation.
Operational guidelines (best practices):
- Enforce occupancy limits consistent with fire safety and zoning.
- Maintain waste management arrangements and provide clear recycling/composting rules.
- Establish parking plans and quiet hours to prevent neighborhood complaints.

Specific Regulations for Short-Term Rentals

City of Sequim

Current status: The City does not regulate STRs and treats them as residential use when no other commercial activity occurs on‑site (as of April 2022).
Zoning allowances and prohibitions:
- Permitted zones for STRs (single‑family residence): R4‑8; Downtown; Lifestyle; Planned Resort Community.
- Prohibited: Accessory Dwelling Units (ADUs); commercial/warehouse zones; travel trailers/RVs; retail business space designated for storage.
ADU prohibition: City documents specifically prohibit ADUs from being used as short‑term rentals (see SEPA record 201906229).
Enforcement notes: Some hosts in R4‑8 have received letters interpreting zoning to disallow STRs; yet the City’s fact sheet lists R4‑8 as a permitted zone. The City has not adopted formal STR rules and directs complaints to police if guests create disturbances.

County (Clallam County)

Clallam County Code Chapter 33.51 governs “Vacation Rentals,” primarily in unincorporated areas of the county, not within Sequim’s city limits.
Chapter 33.51 defines “vacation rental” and establishes standards for parking, occupancy, and operations.
If your property is in unincorporated Clallam County (outside Sequim city limits), you must comply with County Chapter 33.51 requirements.

State (Washington)

RCW 64.37 defines short‑term rentals, establishes consumer safety and liability requirements, and mandates collection/remittance of lodging taxes.
STRs are not considered a commercial use if no other commercial activity occurs on the property.
Operators must obtain and display a registration number and collect all applicable taxes.

Contact Information

City of Sequim (general)
- Phone: (360) 683‑4139
- Address: 690 S. Ennis Street, Sequim, WA 98382
- Website: sequimwa.gov
- Planning Department: zoning compliance questions
Clallam County Department of Community Development (for county vacation rental standards in unincorporated areas)
- Phone: (360) 417‑2500
- Address: 223 E. 4th Street, Port Angeles, WA 98362
- Website: www.clallam.net

Source Links

City of Sequim Short-Term Rentals Fact Sheet (April 8, 2022): sequimwa.gov/DocumentCenter/View/19739
Clallam County Code Chapter 33.51: Vacation Rentals: clallam.county.codes/CCC/33.51
Washington State Department of Ecology SEPA Register – ADU Amendment: apps.ecology.wa.gov/separ/Main/SEPA/Record.aspx?SEPANumber=201906229
Airbnb Community Thread – Sequim STR Enforcement Reports (Oct 2021): community.withairbnb.com/t5/Help-with-your-business/Airbnb-ban-in-Sequim-Washington/td-p/1519923

Important: Regulations evolve. Verify current requirements with the City of Sequim and Clallam County before launching or expanding operations.

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Ask the AI Advisor about Sequim

Sequim is a small city on the northern Olympic Peninsula in Washington State, situated in Clallam County just inland from the Strait of Juan de Fuca. With a population of roughly 7,000 residents, it has a quiet, agricultural character and a notably drier climate than the rest of the peninsula, thanks to the rain shadow cast by the Olympic Mountains. The town is best known as a hub for lavender cultivation—often promoted as the "Lavender Capital of North America"—and as a convenient eastern gateway to Olympic National Park. Sequim lies about 65 miles northwest of Seattle across Puget Sound, though the drive typically runs two to three hours by car via the Tacoma Narrows area or longer with a Washington State Ferry crossing from Edmonds or Kingston.

Just west of town, Olympic National Park draws the majority of visitors to the area, and Hurricane Ridge, one of the park's most accessible alpine viewpoints, is about a 30-minute drive from Sequim. The road climbs from sea level to meadows and rocky ridgelines with panoramic views of the Olympic Mountains, and it serves as a starting point for short hikes and ranger-led snowshoe walks in winter. For travelers who prefer to stay closer to sea level, the park's other famous ecosystems—Hoh Rain Forest and the Pacific coastline—are reached by a longer drive westward through Port Angeles and Forks, generally two to three hours depending on the destination.

Northwest of Sequim, the Dungeness National Wildlife Refuge protects one of the longest natural sand spits in the United States. A roughly 5-mile round-trip hike leads to the historic New Dungeness Lighthouse at its tip, with sweeping views across the Strait of Juan de Fuca toward the San Juan Islands and Vancouver Island. The refuge is about a 20-minute drive from downtown Sequim and is popular with birdwatchers, especially during spring and fall migrations.

Closer in, the Sequim Bay area offers gentler recreation at Sequim Bay State Park, a small waterfront park with camping, a boat launch, and crabbing and clamming opportunities. In town and on its outskirts, a cluster of working lavender farms—open seasonally from late spring through summer—lets visitors tour fields, browse handmade products, and take workshops, reinforcing the agricultural identity that gives the area its distinctive purple-tinted summers.

For short-term rental owners, Sequim offers a compelling mix of small-town calm and proximity to some of the Pacific Northwest's most iconic outdoor destinations. Its dry weather, scenic farmland, and easy access to Olympic National Park, the Strait of Juan de Fuca, and the surrounding trail network attract a steady flow of retirees, road-trippers, and outdoor travelers throughout the year, supporting a lodging market that benefits from both summer peak demand and quieter shoulder seasons anchored by storm-watching and fall foliage.