Lynnwood, WA Short-Term Rentals: Occupancy Limits (2026)

Lynnwood has not adopted a dedicated short-term rental ordinance, and no LMC section sets a per-bedroom or maximum-guest occupancy figure for STRs. The state-law floor in RCW 64.37 (the Short-Term Rental Operations Act) defines an STR as a dwelling unit, or portion of one, offered for fewer than 30 consecutive nights, and requires the operator to maintain primary liability insurance of at least one million dollars or rent through a platform that provides equal or greater coverage, post required safety information including the operator's contact in a conspicuous place, and comply with carbon monoxide and smoke alarm requirements. RCW 64.37 also requires the operator to register with the Washington Department of Revenue. Within Lynnwood, the relevant zoning definitions in LMC 21.02 distinguish a boarding, lodging, or rooming house (defined in LMC 21.02.100 as a building, other than a hotel, where meals or rooms are provided for compensation to two or more nontransient persons) from a hotel under LMC 21.02.435; transient short-stay use does not fit either definition and is not enumerated as an allowed use in LMC 21.42.100 (Uses Allowed in Single-Family Residential Zones). LMC 21.42.110 (Limitations on Use) addresses ADUs, design compatibility, home occupations, and STEP housing but does not list STR standards. Practical occupancy in any rental unit is therefore bounded by Lynnwood's adopted building, residential, and fire codes (occupant load by sleeping room area and egress) and by any conditions on the operator's Title 5 general business license issued under LMC Chapter 5.06. Operators must also confirm zoning eligibility for the address before listing. Lodging tax is the state-shared 2 percent under RCW 67.28.180; Snohomish County cities are not authorized to layer an additional 2 percent local hotel-motel tax on top of the basic rate.