Short-Term Rental Laws in Bellingham, Washington

Bellingham operates a two-tier STR licensing system (2023 ordinance): Type 1 (Owner-Occupied) STRs are permitted citywide in all residential zones. Type 2 (Non-Owner-Occupied / Whole-Home Investor) STRs are restricted to commercial, mixed-use, and a narrow set of residential zones — and subject to a citywide cap on new Type 2 licenses tied to housing-affordability metrics. The 2023 framework explicitly addresses housing supply concerns near Western Washington University.

Type 1 (owner-occupied): permitted in all residential zones (Residential Single, Residential Multi, Urban Village, Mixed-Use). Type 2 (non-owner-occupied): permitted in Commercial, Industrial-Mixed, Urban Village Mixed-Use core, and certain master-planned residential overlays — NOT in standard single-family residential zones. Cap on new Type 2 licenses re-evaluated annually by City Council based on housing vacancy rate. ADU STRs follow underlying zoning. Confirm parcel's zoning + Type eligibility before any offer.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Bellingham Planning + Community Development administers the program with annual renewal. Application requires WA State UBI, designated local 24/7 contact, proof of insurance, life-safety inspection (smoke + CO + fire extinguisher + egress + posted occupancy), parking plan, and HOA/landlord consent where applicable. Operating without an STR license: civil penalty + back-tax + escalating daily fines. Code Enforcement cross-references Airbnb/Vrbo listings against the license registry.

Combined short-term lodging tax in Bellingham is approximately 12.600% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Washington State sales tax 6.5% + Whatcom County + Bellingham city sales/lodging stack — combined ~12.6% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.