Olympia, WA Short-Term Rentals: Short-Term Rental Permits (2026)

Olympia layers licensing on top of zoning for short-term rentals. Under OMC § 18.04.060(JJ)(1)(c), every short-term rental operator shall obtain any required City and State business license(s), and (JJ)(1)(d) adds compliance with Revised Code of Washington Chapter 64.37 and payment of all applicable local, state, and federal taxes. The operator must post a copy of the City of Olympia business license, and the land use permit if applicable, in a conspicuous location in the rental.

The permit tier depends on the type. A homestay needs no land use permit. A vacation rental is different: in addition to other required permits and licenses, a land use permit is required from the Department for each vacation rental unit. Vacation rental permits are valid for two years from the date of issuance, and may be renewed by the City upon application.

The code then caps how many units one person can run. No short-term rental operator may own, operate, or have any interest in more than two vacation rental units in the City of Olympia. Operators that already held more than two such units as of September 26, 2021 may be approved as long as those units stay in continuous use as vacation rentals and every other applicable requirement is met. On the parcel level, no more than two vacation rental units are permitted on any legal parcel of land containing a single-family home. Where a legal parcel, or adjacent parcels in common ownership, holds one or more buildings with two or more units, a vacation rental unit may be permitted in one dwelling unit or three percent of the non-income-restricted dwelling units, whichever is greater.

Two bars apply regardless of permit status. No short-term rental is allowed on a property with a Final Certificate of Tax Exemption issued under OMC 3.57, and none is allowed in any dwelling unit under income restrictions from any local, state, or federal authority.