Can You Use a Home as an Airbnb in Bellingham, WA? A 2026 Guide to City and County Rules
If you are considering buying a second home in Bellingham and using it part-time as a short-term rental, you are not alone. Many buyers from places like Palm Springs, Seattle, or California are drawn to Bellingham for its lifestyle, mild summers, access to water and mountains, and strong tourism season.
But here is the key truth: whether you can legally operate an Airbnb in Bellingham depends entirely on where the property is located.
This guide will walk you through what is allowed inside Bellingham city limits, what changes in unincorporated Whatcom County, and what special overlays like the Lake Whatcom Watershed mean for you as a buyer.
Short-Term Rentals Inside Bellingham City Limits
Within the City of Bellingham, short-term rentals are primarily allowed only in designated Urban Village zoning areas.
These Urban Village areas include:
• Barkley
• The Fountain District
• Downtown
• A smaller Urban Village area along the east flank of Sehome
• Fairhaven
The boundaries are strict. In some cases, one side of a street qualifies while the other does not. You cannot assume eligibility based on neighborhood name alone. Zoning must be verified parcel by parcel.
Why this Matters
It is not possible to set up a simple MLS search that says “Urban Village only.” Zoning is not always clearly displayed in standard listing feeds. Many agents do not verify zoning carefully and may unintentionally misstate whether a property qualifies for short-term rental use.
Before writing an offer, zoning must be manually confirmed through the City of Bellingham’s planning resources.
Grandfathered Airbnbs
Prior to the current regulations, which were adopted in late 2018 and took effect May 5, 2019, some homes outside Urban Village areas were operating legally as short-term rentals. Those were allowed to continue operating under a grandfather provision.
However, that status does not transfer to a new owner. When the property sells, the new owner must comply with current zoning rules. This is one of the most common misunderstandings I see with out-of-area buyers.
Short-Term Rentals in Unincorporated Whatcom County
Once you move outside Bellingham city limits, the rules change.
Short-term rentals in unincorporated Whatcom County are generally permitted as an accessory use in many residential, rural, and agricultural zones. However, they are not unrestricted.
In 2023, Whatcom County adopted updated short-term rental regulations that include:
• Registration requirements
• Occupancy limits
• Off-street parking standards
• Safety requirements
• Compliance with nuisance and noise regulations
The County has been rolling out the registration and enforcement framework, and compliance standards are active. The key takeaway is that county properties have broader zoning flexibility than the City of Bellingham, but they still operate within a regulatory structure.
The Lake Whatcom Watershed Overlay
If you are looking at areas like Sudden Valley or other properties within the Lake Whatcom Watershed Overlay District, there is an additional layer.
Because of environmental protections tied to the watershed, short-term rentals in this overlay require a Conditional Use Permit. Approval is not automatic and involves additional review.
This makes watershed properties more complex from an Airbnb standpoint. The property may look attractive and affordable, but regulatory approval must be evaluated before assuming rental income potential.
Do Not Forget HOA Rules
Even if zoning allows short-term rentals, a homeowners association can prohibit them outright.
HOA restrictions are private covenants and operate independently of city or county zoning. It is critical to review governing documents carefully before moving forward.
City vs County: The Big Picture
Inside Bellingham city limits
Short-term rentals are largely restricted to Urban Village zones. Boundaries are strict. Grandfathered uses do not transfer.
Outside city limits in Whatcom County
Short-term rentals are allowed in many zones as an accessory use, but subject to 2023 regulations and performance standards.
Lake Whatcom Watershed
Requires Conditional Use Permit and additional review.
HOAs
Can prohibit short-term rentals regardless of zoning.
What This Means for Buyers
If you are buying a seasonal home with plans to rent it part-time, this is not a casual detail. It is a front-end due diligence issue.
Before writing an offer, you should verify:
• City or County jurisdiction
• Exact zoning designation
• Overlay districts such as the Lake Whatcom Watershed
• HOA restrictions
• Parking feasibility
• Realistic income expectations based on seasonality
Bellingham has strong summer demand, particularly near Fairhaven, Downtown, and waterfront areas. Winter demand is softer but supported by proximity to Mount Baker and Western Washington University. Income potential varies significantly by location, property type, and regulatory constraints.
A Strategy Conversation Matters
Some buyers prioritize lifestyle first and treat rental income as a bonus. Others want a property that meaningfully offsets ownership costs.
The strategy will influence whether we focus on Urban Village properties, county homes with acreage, Sudden Valley, or something entirely different.
There is no single right answer. There is only the right fit for your goals, risk tolerance, and desired involvement level.
If you are considering purchasing a second home in Bellingham and want clarity on short-term rental viability before you start touring properties, I am happy to walk through it with you.
We will verify zoning. We will review overlays. We will look at HOA documents. And we will make decisions based on facts rather than assumptions.
That is how you protect both your lifestyle and your investment.
If you would like to explore options, you can book a call here:
Brandon Nelson
Bellingham and Whatcom County Real Estate
Helping buyers make informed and fearless decisions
