Issaquah, Washington

Issaquah does not have a standalone short-term-rental ordinance. The city treats STR activity as a business requiring a City of Issaquah business license (approximately $60 per year, renewed annually, plus a Washington state Business Licensing Service handling fee). Because no dedicated STR land-use category exists, the city applies its bed-and-breakfast and home-business zoning standards. In residential zones, a bed-and-breakfast-style operation generally requires the owner or proprietor to live on the premises, provide separate guest bathroom facilities, and comply with home-business standards under the Issaquah Municipal Code. This means whole-home, non-owner-occupied short-term rentals sit in a regulatory grey area and may not be clearly permitted under current zoning. At the state level, Washington’s RCW 64.37 requires STR operators to carry at least $1,000,000 in liability insurance (or rely on platform coverage), register with the Department of Revenue for a UBI and state business license if renting three or more times per year, and collect and remit applicable taxes. Guests pay state retail sales tax plus Issaquah’s 1% local lodging tax (which funds tourism promotion), in addition to King County sales taxes, bringing total tax well above 10% on short-term stays. Critically, many Issaquah subdivisions and HOAs impose stricter restrictions: Issaquah Highlands, one of the largest planned communities in the area, prohibits short-term leasing and requires written leases of six months or longer. Investors must verify HOA rules for any specific property before purchase. No Issaquah-specific STR ordinance change was identified as of early 2026.