Airbnb City Guide: The Best Places To Invest in Tacoma, Washington

Airbnb Rules and Regulations in Tacoma, Washington

As of 2024, Tacoma, Washington, has implemented a comprehensive set of short-term rental regulations to balance the interests of hosts, guests, and the community. Hosts are required to obtain a permit from the city and comply with occupancy limits, parking requirements, and noise restrictions. The city has also introduced zoning regulations, limiting the number of short-term rentals allowed in certain residential areas to preserve neighborhood character and housing availability.

Hosts must collect and remit applicable taxes, including the lodging and state sales taxes. The city mandates that all short-term rentals meet specific fire, health, and building codes to address safety concerns. While navigating the regulatory landscape may seem daunting, the city has provided resources and support to help hosts understand and comply with the rules. By operating responsibly and in accordance with local regulations, Airbnb hosts can contribute to Tacoma's thriving tourism industry while being good neighbors in their communities.

Tacoma Airbnb Market Data:

• Average Revenue – $39.3K per year
• Average Daily Rate – $176.5 per night
• Average Occupancy Rate – 61%
• Average RevPAR – $108.5
• Average Home Prices – $485,018

1. Top Place to Invest in Tacoma, Washington - Downtown

Downtown Tacoma, the vibrant heart of this Pacific Northwest city, has emerged as a prime location for Airbnb and short-term rental investments. With its rich cultural offerings, diverse dining scene, and proximity to major attractions, Downtown Tacoma offers a unique blend of urban sophistication and natural beauty.

Downtown Airbnb Market Data:

• Average Revenue – $29.5K per year
• Average Daily Rate – $146.9 per night
• Average Occupancy Rate – 55%
• Average RevPAR – $84.6

Convenience - 9/10

One of Downtown Tacoma's greatest strengths is its exceptional walkability. Residents and visitors can easily access a wide array of amenities, including shops, restaurants, cafes, and services, all within a compact and pedestrian-friendly area. The Tacoma Link light rail system provides convenient transportation options, connecting downtown to other parts of the city. Downtown's proximity to major highways, such as I-5 and I-705, ensures quick travel to other parts of the region.

Tourist Attractions - 8/10

Downtown Tacoma boasts a variety of tourist attractions that cater to diverse interests. The Museum of Glass, with its stunning architectural design and impressive glass art exhibits, is a must-visit destination. The Chihuly Bridge of Glass, a pedestrian bridge adorned with vibrant glass sculptures, offers a unique and visually stunning experience. Nearby, the Washington State History Museum and the Tacoma Art Museum provide cultural enrichment opportunities. Downtown also hosts numerous festivals and events throughout the year, such as the Tacoma Film Festival and the Tacoma Studio Tour.

Things to Do - 9/10

From cultural attractions to outdoor recreation, Downtown Tacoma offers a plethora of entertainment options. The Broadway Center for the Performing Arts hosts diverse performances, including theater, dance, and music. The Foss Waterway offers opportunities for scenic walks, dining with waterfront views, and access to the Thea Foss Waterway Esplanade. Downtown's vibrant nightlife scene, with its array of bars, clubs, and live music venues, can become a great potential local partner for your rental.

Average Home Prices - 7/10

According to Zillow data, the typical home value in Downtown Tacoma, as of 2024, is around $450,000. This represents a modest 4.2% increase over the past year, indicating a stable and growing housing market. While home prices in Downtown Tacoma may be higher than some other neighborhoods in the city, the area's strong rental demand, unique property types, and potential for appreciation make it an attractive option for Airbnb and short-term rental investors.

Proximity to Work-Related Travel - 9/10

Downtown Tacoma's central location makes it an ideal base for work-related travel. The area is home to numerous businesses, government offices, and the Greater Tacoma Convention Center, which hosts conventions, trade shows, and other events. The nearby MultiCare Tacoma General Hospital and St. Joseph Medical Center are easily accessible, making downtown a convenient choice for medical professionals. The Tacoma Dome, a popular venue for concerts and sporting events, is just a short drive away. This makes it the premier Tacoma location for a corporate rental.

X-Factor - 9/10

What sets Downtown Tacoma apart is its unique blend of urban vibrancy and natural beauty. The area's historic buildings, many of which have been beautifully restored and repurposed, create a charming and inviting atmosphere. Downtown's thriving arts and cultural scene, exemplified by the numerous museums, galleries, and public art installations, adds to its appeal. The proximity to the Puget Sound and the stunning views of Mount Rainier further enhance Downtown Tacoma's allure. As more people discover the hidden gems of Downtown Tacoma, the area is poised for continued growth and investment potential, particularly in the short-term rental market.

2. Top Place to Invest in Tacoma, Washington - North End

The North End, a historic and charming neighborhood in Tacoma, has emerged as a hidden gem for Airbnb and short-term rental investments. With its tree-lined streets, well-preserved homes, and proximity to local amenities, the North End offers a perfect blend of small-town charm and urban convenience.

North End Airbnb Market Data:

• Average Revenue – $45.3K per year
• Average Daily Rate – $197.1 per night
• Average Occupancy Rate – 63%
• Average RevPAR – $124.5

Convenience - 8/10

One of the North End's greatest strengths is its walkability and easy access to essential amenities. Residents can find grocery stores, pharmacies, and local shops within the neighborhood, while the nearby Proctor District offers additional dining and shopping options. The North End's proximity to major highways, such as I-5 and SR-16, ensures quick travel to other parts of Tacoma and the surrounding region.

Tourist Attractions - 6/10

While the North End itself may not be a primary tourist destination, its location near several popular Tacoma attractions enhances its appeal for short-term rental investors. The Point Defiance Park, a 760-acre urban oasis featuring gardens, beaches, and hiking trails, is just a short drive away. Visitors can also explore the Fort Nisqually Living History Museum or attend events at the Tacoma Dome, a popular venue for concerts and sporting events.

Things to Do - 7/10

The North End offers a variety of community events and outdoor activities that cater to different interests. The neighborhood is home to several parks, including Kandle Park and Garfield Gulch, which feature playgrounds, walking trails, and picnic areas. The nearby Ruston Way waterfront provides opportunities for scenic walks, dining with views of the Puget Sound, and access to the Chihuly Bridge of Glass. The North End also hosts annual events, such as the Proctor District Farmers' Market and the Proctor Arts Fest, which showcase the neighborhood's vibrant community spirit.

Average Home Prices - 8/10

According to Zillow data, the typical home value in the North End, as of 2024, is around $525,000. This represents a steady 5.3% increase over the past year, indicating a stable and growing housing market. While home prices in the North End may be higher than some other Tacoma neighborhoods, the area's historic charm, desirable location, and potential for steady rental income make it an attractive option for Airbnb and short-term rental investors.

Proximity to Work-Related Travel - 7/10

The North End's location provides reasonable access to major work-related destinations. The neighborhood is within a 10-15 minute drive of downtown Tacoma, which is home to numerous businesses and government offices. Nearby healthcare facilities, such as MultiCare Tacoma General Hospital and St. Joseph Medical Center, are also easily accessible. For those attending events at the Tacoma Dome or visiting nearby attractions, the North End offers a convenient and charming home base.

X-Factor - 9/10

What sets the North End apart is its unique blend of historic charm, community spirit, and natural beauty. The neighborhood's well-preserved homes, many dating back to the early 20th century, create a visually appealing and inviting atmosphere. The North End's tight-knit community, fostered by active neighborhood associations and regular events, adds to its desirability for both residents and visitors. The proximity to Puget Sound and the stunning views of Mount Rainier further enhance the North End's allure. As more people discover the hidden gems of this neighborhood, it is poised for continued growth and investment potential, particularly in the short-term rental market.

3. Top Place to Invest in Tacoma, Washington - Proctor District

The Proctor District, a charming and vibrant neighborhood in North Tacoma, has emerged as a prime investment opportunity for Airbnb and short-term rental investors. With its tree-lined streets, historic homes, and thriving commercial district, the Proctor District offers a perfect blend of small-town charm and urban convenience.

Proctor District Airbnb Market Data:

• Average Revenue – $46.4K per year
• Average Daily Rate – $205 per night
• Average Occupancy Rate – 62%
• Average RevPAR – $128

Convenience - 9/10

One of the Proctor District's greatest strengths is its exceptional walkability and easy access to a wide range of amenities. Residents and visitors can find a variety of local shops, restaurants, cafes, and services within the compact commercial district, making it easy to navigate without relying on a car. The neighborhood's proximity to major thoroughfares, such as North 30th Street and North Union Avenue, ensures quick travel to other parts of Tacoma and the surrounding region.

Tourist Attractions - 7/10

While the Proctor District itself may not be a primary tourist destination, its location near several popular Tacoma attractions enhances its appeal for short-term rental investors. The Point Defiance Park, a 760-acre urban oasis featuring gardens, beaches, and hiking trails, is just a short drive away. Visitors can also explore the Fort Nisqually Living History Museum or attend events at the Tacoma Dome, a popular venue for concerts and sporting events.

Things to Do - 9/10

The Proctor District offers a variety of entertainment options and community events that cater to different interests. The neighborhood hosts the annual Proctor Arts Fest, showcasing the work of local artists and craftspeople. The Proctor Farmers' Market, held every Saturday from May to October, is a beloved local tradition that attracts visitors from across the region. The Blue Mouse Theatre, a historic movie theater, provides a unique cinematic experience, while the Chalet Bowl offers bowling and other family-friendly activities.

Average Home Prices - 8/10

According to Zillow data, the typical home value in the Proctor District, as of 2024, is around $707,000. This represents a steady 5.8% increase over the past year, indicating a stable and growing housing market. While home prices in the Proctor District may be higher than some other Tacoma neighborhoods, the area's desirable location, historic charm, and potential for strong rental income make it an attractive option for Airbnb and short-term rental investors.

Proximity to Work-Related Travel - 7/10

The Proctor District's location in North Tacoma provides reasonable access to major work-related destinations. The neighborhood is within a 10-15 minute drive of downtown Tacoma, which is home to numerous businesses and government offices. Nearby healthcare facilities, such as MultiCare Tacoma General Hospital and St. Joseph Medical Center, are also easily accessible. The Proctor District offers a convenient and charming home base for those attending events at the Tacoma Dome or visiting nearby attractions.

X-Factor - 9/10

What sets the Proctor District apart is its unique blend of historic charm, community spirit, and urban amenities. The neighborhood's well-preserved homes, many dating back to the early 20th century, create a visually appealing and inviting atmosphere. The Proctor District's tight-knit community, fostered by active neighborhood associations and regular events, adds to its desirability for both residents and visitors. The thriving commercial district's diverse array of local businesses contributes to the neighborhood's vibrant and welcoming atmosphere. As more people discover the hidden gems of the Proctor District, the area is poised for continued growth and investment potential, particularly in the short-term rental market.

4. Top Place to Invest in Tacoma, Washington - South Tacoma

South Tacoma, a diverse and rapidly evolving neighborhood in the southern part of the city, has emerged as a promising investment opportunity for aspiring Airbnb beginners and veteran STR owners.. With its convenient location, affordable housing options, and proximity to local amenities, South Tacoma offers a unique blend of urban accessibility and community spirit.

South Tacoma Airbnb Market Data:

• Average Revenue – $37.9K per year
• Average Daily Rate – $179 per night
• Average Occupancy Rate – 58%
• Average RevPAR – $106.2

Convenience - 8/10

One of South Tacoma's greatest strengths is its convenient location and easy access to essential amenities. The neighborhood is situated along major thoroughfares, such as South Tacoma Way and Pacific Avenue, providing quick access to shopping centers, restaurants, and local businesses. Residents can also enjoy the nearby Wapato Park, which offers ample opportunities for outdoor recreation. South Tacoma's proximity to major highways, such as I-5 and SR-16, ensures quick travel to other parts of Tacoma and the surrounding region.

Tourist Attractions - 5/10

While South Tacoma itself may not be a primary tourist destination, its location near several popular Tacoma attractions enhances its appeal for short-term rental investors. The Chambers Bay Golf Course, a world-class golf destination that hosted the 2015 U.S. Open, is just a short drive away. Visitors can also explore the nearby Point Defiance Park or attend events at the Tacoma Dome, a popular venue for concerts and sporting events.

Things to Do - 6/10

South Tacoma offers a variety of community events and outdoor activities that cater to different interests. The neighborhood is home to several parks, including Wapato Park and Meadow Park Golf Course, which provide hiking, picnicking, and golfing opportunities. The nearby Pacific Brew Putt, a unique miniature golf course and brewery, offers a fun and family-friendly experience. South Tacoma also hosts regular community events, such as the South Tacoma Neighborhood Council meetings and the annual South Tacoma Street Fair.

Average Home Prices - 7/10

According to Zillow data, the typical home value in South Tacoma, as of 2024, is around $375,000. This represents a steady 4.8% increase over the past year, indicating a stable and growing housing market. While home prices in South Tacoma may be lower than some other Tacoma neighborhoods, the area's affordable housing options, combined with its potential for rental income and appreciation, make it an attractive option for those who want to buy a house solely for Airbnb.

Proximity to Work-Related Travel - 7/10

South Tacoma's location provides reasonable access to major work-related destinations. The neighborhood is within a 15-20 minute drive of downtown Tacoma, which is home to numerous businesses and government offices. Nearby healthcare facilities, such as MultiCare Tacoma General Hospital and St. Joseph Medical Center, are also easily accessible. For those attending events at the Tacoma Dome or visiting nearby attractions, South Tacoma offers a convenient and affordable home base.

X-Factor - 7/10

What sets South Tacoma apart is its unique blend of urban accessibility and community spirit. The neighborhood's diverse population, which includes a mix of long-time residents, young families, and professionals, creates a welcoming and inclusive atmosphere. South Tacoma's active neighborhood associations and regular community events foster a strong sense of pride and belonging among residents. As more people discover the hidden gems of South Tacoma, the area is poised for continued growth and investment potential, particularly in the short-term rental market.

5. Top Place to Invest in Tacoma, Washington - Northshore

Northshore, a picturesque waterfront community in Tacoma, has emerged as a prime investment opportunity for Airbnb and short-term rental investors. With its stunning views of the Puget Sound, proximity to local amenities, and easy access to outdoor recreation, Northshore offers a unique blend of natural beauty and urban convenience.

Northshore Airbnb Market Data:

• Average Revenue – $50.5K per year
• Average Daily Rate – $238.4 per night
• Average Occupancy Rate – 58%
• Average RevPAR – $138.8

Convenience - 7/10

One of Northshore's greatest strengths is its convenient location and easy access to essential amenities. The neighborhood is situated along the shores of the Puget Sound, providing quick access to waterfront parks, marinas, and local businesses. Residents can also enjoy the nearby Point Defiance Park, which offers ample opportunities for outdoor recreation. Northshore's proximity to major highways, such as I-5 and SR-16, ensures quick travel to other parts of Tacoma and the surrounding region.

Tourist Attractions - 8/10

Northshore itself is a popular tourist destination, thanks to its stunning waterfront location and proximity to several popular Tacoma attractions. The Point Defiance Park, a 760-acre urban oasis featuring gardens, beaches, and hiking trails, is just a short drive away. Visitors can also explore the Fort Nisqually Living History Museum or attend events at the Tacoma Dome, a popular venue for concerts and sporting events. The nearby Ruston Way waterfront offers scenic walks, dining with views of the Puget Sound, and access to the Chihuly Bridge of Glass.

Things to Do - 8/10

Northshore offers a variety of outdoor activities and community events that cater to different interests. The neighborhood is home to several waterfront parks, including Dash Point State Park and Norpoint Park, which provide opportunities for swimming, fishing, and beachcombing. The nearby Chambers Creek Regional Park offers hiking trails, picnic areas, and a disc golf course, exciting news for fitness-focused guests. Northshore also hosts regular community events like the annual Salmon Bake and the Ruston Way Waterfront Market.

Average Home Prices - 9/10

According to Zillow data, the typical home value in Northshore, as of 2024, is around $850,000. This represents a steady 6.2% increase over the past year, indicating a stable and growing housing market. While home prices in Northshore may be higher than some other Tacoma neighborhoods, the area's desirable waterfront location, stunning views, and potential for strong rental income make it an attractive option for Airbnb and short-term rental investors.

Proximity to Work-Related Travel - 6/10

Northshore's location on the northern edge of Tacoma may be less convenient for work-related travel compared to more central neighborhoods. However, the area is still within a 20-25 minute drive of downtown Tacoma, which is home to numerous businesses and government offices. Nearby healthcare facilities, such as MultiCare Tacoma General Hospital and St. Joseph Medical Center, are also accessible. For those attending events at the Tacoma Dome or visiting nearby attractions, Northshore offers a convenient and scenic home base.

X-Factor - 9/10

What sets Northshore apart is its unique blend of natural beauty, waterfront living, and community spirit. The neighborhood's stunning views of the Puget Sound, combined with its proximity to parks and outdoor recreation opportunities, create a serene and inviting atmosphere. Northshore's tight-knit community, fostered by active neighborhood associations and regular events, adds to its desirability for both residents and visitors. As more people discover the hidden gems of Northshore, the area is poised for continued growth and investment potential, particularly in the short-term rental market.

6. Top Place to Invest in Tacoma, Washington - Yakima Hill

Yakima Hill, a historic and charming neighborhood in Tacoma, has emerged as a hidden gem for Airbnb and short-term rental investments. With its tree-lined streets, well-preserved homes, and proximity to local amenities, Yakima Hill offers a perfect blend of small-town charm and urban convenience.

Yakima Hill Airbnb Market Data:

• Average Revenue – $45.3K per year
• Average Daily Rate – $193.8 per night
• Average Occupancy Rate – 64%
• Average RevPAR – $124.6

Convenience - 7/10

One of Yakima Hill's strengths is its convenient location and easy access to essential amenities. The neighborhood is situated near major thoroughfares, such as South 19th Street and South Yakima Avenue, providing quick access to shopping centers, restaurants, and local businesses. Residents can also enjoy the nearby Wapato Park, which offers ample opportunities for outdoor recreation. Yakima Hill's proximity to major highways, such as I-5 and SR-16, ensures relatively quick travel to other parts of Tacoma and the surrounding region.

Tourist Attractions - 6/10

While Yakima Hill itself may not be a primary tourist destination, its location near several popular Tacoma attractions enhances its appeal for short-term rental investors. The Chambers Bay Golf Course, a world-class golf destination that hosted the 2015 U.S. Open, is just a short drive away. Visitors can also explore the nearby Point Defiance Park or attend events at the Tacoma Dome, a popular venue for concerts and sporting events.

Things to Do - 7/10

Yakima Hill offers a variety of community events and outdoor activities that cater to different interests. The neighborhood is home to several parks, including Wapato Park and Meadow Park Golf Course, which provide opportunities for hiking, picnicking, and golfing. The nearby Pacific Brew Putt, a unique miniature golf course and brewery, offers a fun and family-friendly experience. Yakima Hill also hosts regular community events, such as the annual Yakima Hill Neighborhood Picnic and the Yakima Hill Neighborhood Council meetings.

Average Home Prices - 7/10

According to Zillow data, the typical home value in Yakima Hill, as of 2024, is around $425,000. This represents a steady 4.5% increase over the past year, indicating a stable and growing housing market. While home prices in Yakima Hill may be slightly higher than some other Tacoma neighborhoods, the area's historic charm, desirable location, and potential for steady rental income make it an attractive option for Airbnb and short-term rental investors.

Proximity to Work-Related Travel - 7/10

Yakima Hill's location provides reasonable access to major work-related destinations. The neighborhood is within a 15-20 minute drive of downtown Tacoma, which is home to numerous businesses and government offices. Nearby healthcare facilities, such as MultiCare Tacoma General Hospital and St. Joseph Medical Center, are also easily accessible. For those attending events at the Tacoma Dome or visiting nearby attractions, Yakima Hill offers a convenient and charming home base.

X-Factor - 8/10

What sets Yakima Hill apart is its unique blend of historic charm, community spirit, and natural beauty. The neighborhood's well-preserved homes, many dating back to the early 20th century, create a visually appealing and inviting atmosphere. Yakima Hill's tight-knit community, fostered by active neighborhood associations and regular events, adds to its desirability for both residents and visitors. The proximity to parks and outdoor recreation opportunities, such as Wapato Park and the Chambers Bay Golf Course, further enhances Yakima Hill's allure. As more people discover the hidden gems of this neighborhood, it is poised for continued growth and investment potential, particularly in the short-term rental market.

7. Top Place to Invest in Tacoma, Washington - North East

Northeast Tacoma, a vibrant and rapidly growing area, has emerged as a prime investment opportunity for Airbnb and short-term rental investors. With its convenient location, diverse amenities, and proximity to local attractions, Northeast Tacoma offers a unique blend of urban accessibility and suburban charm.

North East Airbnb Market Data:

• Average Revenue – $32.9K per year
• Average Daily Rate – $266.7 per night
• Average Occupancy Rate – 54%
• Average RevPAR – $148.3

Convenience - 8/10

One of Northeast Tacoma's greatest strengths is its exceptional convenience. The area boasts a wide array of shops, restaurants, cafes, and services within easy reach, catering to the needs of residents and visitors alike. The nearby Westgate and Proctor Districts provide additional shopping and dining options, while major thoroughfares like I-5 and SR-16 ensure quick travel to other parts of Tacoma and the surrounding region.

Tourist Attractions - 7/10

While Northeast Tacoma itself may not be a primary tourist destination, its location near several popular Tacoma attractions enhances its appeal for short-term rental investors. The Point Defiance Park, a 760-acre urban oasis featuring gardens, beaches, and hiking trails, is just a short drive away. Visitors can also explore the Fort Nisqually Living History Museum or attend events at the Tacoma Dome, a popular venue for concerts and sporting events.

Things to Do - 8/10

Northeast Tacoma offers a variety of entertainment options and recreational activities for residents and visitors alike. The area is home to several parks, including Norpoint Park and Dash Point State Park, which provide opportunities for hiking, picnicking, and enjoying the stunning views of the Puget Sound. The nearby Chambers Creek Regional Park offers a disc golf course, walking trails, and a variety of outdoor activities. Northeast Tacoma also hosts regular community events, such as the annual Salmon Bake and the Ruston Way Waterfront Market.

Average Home Prices - 8/10

According to Zillow data, the typical home value in Northeast Tacoma, as of 2024, is around $604,103. This represents a steady 5.8% increase over the past year, indicating a stable and growing housing market. While home prices in Northeast Tacoma may be higher than some other Tacoma neighborhoods, the area's desirable location, diverse housing options, and potential for strong rental income make it an attractive option for Airbnb and short-term rental investors.

Proximity to Work-Related Travel - 7/10

Northeast Tacoma's location provides reasonable access to major work-related destinations. The area is within a 15-20 minute drive of downtown Tacoma, which is home to numerous businesses and government offices. Nearby healthcare facilities, such as MultiCare Tacoma General Hospital and St. Joseph Medical Center, are also easily accessible. For those attending events at the Tacoma Dome or visiting nearby attractions, Northeast Tacoma offers a convenient and welcoming home base.

X-Factor - 9/10

What sets Northeast Tacoma apart is its unique blend of urban amenities, natural beauty, and community spirit. The area's diverse housing options, ranging from historic homes to modern apartments, cater to a wide range of residents and visitors. Northeast Tacoma's proximity to the Puget Sound and stunning waterfront parks creates a serene and inviting atmosphere. The tight-knit community, fostered by active neighborhood associations and regular events, adds to the area's desirability for both residents and investors alike. As more people discover the hidden gems of Northeast Tacoma, the area is poised for continued growth and investment potential, particularly in the short-term rental market.