2025 Guide to Thurston County Short-Term Rentals: Rules, Zoning & Legal Requirements

THURSTON COUNTY SHORT-TERM RENTAL (STR) FACT SHEET

For Hosts, Buyers & Investors - 2025 Edition

(Washington State • Unincorporated Thurston County • City of Olympia)

First Things First: State-Wide Requirements

Across Washington state, all short-term rentals are subject to the requirements under RCW 64.37 (“Short-Term Rentals”) which apply to any dwelling unit offered for fewer than 30 consecutive nights. Washington State Legislature+1
Key statewide obligations include:

• An STR operator must maintain primary liability insurance of at least $1 million in aggregate, or use a platform that provides equal or greater coverage. Washington State Legislature+1

• All applicable local, state and federal taxes (sales tax, lodging tax, B&O tax, etc) must be collected and remitted unless the platform does so on behalf of the operator. Washington State Legislature+1

• Consumer-safety obligations: operators must provide guest contact information, comply with building code fire/carbon-monoxide alarm rules, post the dwelling’s address, emergency contacts, guest occupancy limits, etc. Washington State Legislature+1

• Definitions matter: A “short‐term rental” means a dwelling unit offered for fewer than 30 consecutive nights; specifically excludes stays of 30 nights or more, or units where the owner occupies at least six months of the year and rents fewer than three rooms. Washington State Legislature

Takeaway: Before diving into Thurston County specifics, ensure you’re aligning with these state rules. They form the baseline.

Deep Dive: Unincorporated Thurston County

What’s allowed, what to check

If your property is in unincorporated Thurston County (i.e., not inside a city boundary), you will work with the county’s permits and land-use rules. thurstoncountywa.gov+1
Here are key considerations:

1. Jurisdiction and zoning

• Use the county’s “Plan Your Project” tool: check whether your property falls under county permitting jurisdiction (versus a city) and confirm the zoning and any mapped critical/environmental areas. thurstoncountywa.gov+1

• If the lot is under county jurisdiction and zoning allows residential use, then you may proceed but STR specific rules may still apply (see state law above).

2. Permits and “short stay” nature

• The county’s permit pages show: “Short stays only” language under guest-house/guest‐house accessory portion; tiny homes etc are restricted or defined more narrowly. thurstoncountywa.gov

• However, I could not locate a dedicated “STR permit” page for unincorporated Thurston County at the time of review. That means you need to check whether your specific zone allows an STR, whether your home is considered an “accessory dwelling guest house” or “family member unit”, and whether renting short‐term is allowed under your current land use.

3. Critical areas & environmental review
Because many properties in Thurston County are in rural or forested areas, check for mapped critical areas (wetlands, streams, tree/forest buffers) early in your site-analysis. The county emphasises this as Step 1 and Step 2 in the “Plan Your Project” workflow. thurstoncountywa.gov+1

4. Tax and state obligations still apply
Even though the county may not have a city-style STR permit (or at least not obviously published), you must still comply with the state requirements (liability insurance, taxes, safety) plus any applicable county business license or zoning rule.

Takeaway: Unincorporated Thurston County hosts should do a full zoning/land-use check, make sure the property is eligible (residential zoning, no conflicting use), and treat the STR as a regulated business state requirements + careful county compliance.

Deep Dive: Incorporated Cities (Focus Example: Olympia)

While your primary interest may be county‐areas, it helps to contrast with city regulation because cities often have more explicit STR ordinances.

Olympia’s approach:

• In Olympia, a “Vacation Rental Unit” (whole-home short-term rental) requires a city STR permit, must renew bi-annually, and the operator is limited to owning two vacation rental units. Avalara+1

• Homestays (where the host is present) may have simpler rules. Avalara+1

• Hosts must have local contact person available 24/7 (within 15 miles or within Thurston County). Avalara

• Guest limits: max overnight guests often 10 people or two per bedroom - whichever less. Avalara

What this means for you (in or near city boundaries):

• If your Airbnb or STR is inside a city boundary (or near one) you must check the local city’s STR ordinance rather than just county rules.

• If working in county land but near a city, verify whether any city jurisdiction/UGA lines affect your lot.

Compliance Checklist for STR Hosts in Thurston County Region

Here’s a practical checklist to help you ensure compliance:

Key Takeaways for Hosts & Investors

• Even if you’re operating in unincorporated Thurston County, don’t assume no rules: state law applies + land-use zoning may restrict short-term rentals.

• Always check whether you fall under county or city jurisdiction - boundaries matter.

• Liability insurance, tax obligations and guest safety postings are non-negotiable.

• Be proactive: regulatory changes in STR space are common. Keep informed.

• If you lack clarity on zoning or permitted use, consider engaging a local land-use attorney or the county planning department for guidance.