Court Rules Against Bellingham, WA, STR Ban on Detached Units

9/30/2026

A Whatcom County Superior Court judge has ruled that the Bellingham, Washington, prohibition on short-term rentals in detached accessory dwelling units is unconstitutional. The city allowed STRs in attached accessory units, such as apartments above garages, while prohibiting them in detached units. Judge Robert Olson found that although the city has a legitimate interest in regulating STRs and protecting long-term housing, the distinction between attached and detached accessory units was not sufficiently connected to that objective. The ruling allows the property owner who brought the lawsuit to operate his detached unit as an STR, although the city is considering its response and a potential appeal. A separate lawsuit challenging Bellingham’s limits on owning multiple STRs remains pending.

Cascadia Daily News (09/29/26) Annie Todd

Why It Matters: The ruling reinforces that local governments must be able to connect distinctions within STR regulations to a legitimate regulatory purpose. For the vacation rental industry, the case is another example of courts scrutinizing local restrictions that treat similar residential properties differently and could influence future challenges to local STR ordinances.