How to Start an Airbnb Business in Oregon

Why Oregon Is a Top Market for Short-Term Rentals

Oregon attracts over 30 million overnight visitors annually, spending upwards of $13 billion across the state’s tourism economy. That spending doesn’t just stay in Portland hotels. It spreads across coastal towns like Cannon Beach and Lincoln City, mountain destinations like Bend and Mt. Hood, wine country in the Willamette Valley, and outdoor adventure corridors from the Columbia River Gorge to Crater Lake.

What makes Oregon stand apart from neighboring Washington or California for STR operators? Three things: geographic diversity that creates year-round demand pockets, a population that genuinely values unique travel experiences over chain hotels, and a regulatory environment that — while strict in Portland — remains workable in dozens of high-demand smaller markets.

Bend alone has become one of the most talked-about STR markets in the Pacific Northwest. A former timber town turned craft beer and outdoor recreation capital, Bend draws skiers in winter, mountain bikers and hikers in summer, and remote workers year-round. The Oregon Coast operates on a different cycle entirely, peaking from June through September but pulling steady weekend traffic from Portland residents escaping the rain October through May.

Oregon also benefits from what I’d call the “California spillover effect.” As California’s STR regulations tighten and cost of living continues climbing, both travelers and operators look north. Southern Oregon — Ashland, Jacksonville, the Rogue Valley — sees increasing demand from Northern California visitors who want a quick getaway without the California price tag. That trend has only accelerated since 2023.

For rental arbitrage operators specifically, Oregon’s mid-size cities offer attractive rent-to-revenue ratios. A two-bedroom in Bend that rents for $1,800/month can generate $45,000-$55,000 annually on Airbnb during peak performance. The math gets interesting fast.

Oregon Short-Term Rental Laws and Regulations

Oregon doesn’t have a single statewide STR law that governs everything. Instead, the state sets a tax framework and leaves operational regulation almost entirely to cities and counties. This means the rules for running an Airbnb in Portland look nothing like the rules in Bend, and neither resembles what you’ll encounter in a small coastal town like Manzanita.

State-Level Requirements

At the state level, Oregon requires all short-term rental operators to:

• Register with the Oregon Department of Revenue for state transient lodging tax collection
• Collect and remit the statewide 1.5% state lodging tax (separate from local taxes)
• Comply with the Oregon Residential Landlord and Tenant Act if operating under a lease (relevant for arbitrage operators)
• Maintain appropriate business registration — Oregon does not require a general state business license, but you need a Business Identification Number (BIN) for tax purposes
• Follow Oregon’s building and fire safety codes for any structure used as lodging

Oregon passed SB 694 in 2023, which expanded local government authority to regulate STRs while also protecting existing operators from retroactive bans in certain circumstances. The bill requires cities that choose to restrict STRs to provide a transition period for hosts who were legally operating before the new rules took effect. This is significant — it means if you establish a compliant operation now, you have some protection against future regulatory crackdowns.

Key City Regulations

Portland: Portland’s STR regulations are among the most restrictive in Oregon. The city requires an annual permit ($178) and limits non-owner-occupied rentals. If you don’t live in the unit, you can only rent it for a maximum of 95 nights per year (the “Type B” permit). Owner-occupied units where you share the space or rent while away have fewer restrictions (“Type A”). Portland also mandates that hosts include their permit number on all listings and caps the number of bedrooms you can rent at five. The Bureau of Development Services enforces these rules and has issued fines exceeding $5,000 for repeat violations.

Bend: Bend allows short-term rentals but distinguishes between zones. Properties in the “Resort Zone” (areas near Mt. Bachelor and Sunriver) face fewer restrictions than those in residential neighborhoods. In residential zones, Bend caps the total number of STR permits and requires a Conditional Use Permit for non-owner-occupied whole-home rentals. The application process takes 4-8 weeks and includes a neighborhood notification requirement. Bend’s regulations have tightened since 2022, with the city conducting active enforcement sweeps against unpermitted listings.

Cannon Beach: This iconic coastal town requires a Vacation Rental Dwelling License. Cannon Beach caps the total number of VRD licenses based on zone — once the cap is reached, new applicants join a waitlist. Properties must meet specific safety and parking requirements. The town also enforces quiet hours and occupancy limits strictly, with local enforcement officers responding to complaints within hours during peak summer season.

Lincoln City: Lincoln City has been more STR-friendly than many coastal communities. The city requires a Vacation Rental Dwelling permit and enforces occupancy limits (typically 2 per bedroom plus 2), parking requirements, and mandatory 24-hour local contact availability. Lincoln City does not cap the total number of permits in most zones, making it one of the more accessible coastal markets for new operators.

Recent Regulatory Changes (2025-2026)

Portland expanded its enforcement program in 2025, partnering with Host Compliance (a short-term rental monitoring service) to identify unpermitted listings across Airbnb, VRBO, and Booking.com. The city sent violation notices to over 400 operators in the first half of 2025.

Bend’s City Council approved a new STR overlay map in late 2025 that redesignated several neighborhoods from “restricted” to “conditional” for short-term rentals, potentially opening up 150-200 new eligible properties. The change took effect January 2026.

At the state level, Oregon’s 2025 legislative session introduced HB 3127, which proposed requiring all STR platforms to share host data with local jurisdictions for tax compliance verification. The bill passed the House but stalled in the Senate. A revised version is expected in the 2026 session.

For up-to-date regulatory information, check the Oregon Secretary of State business registration portal and your target city’s planning department.

Tax Obligations for Oregon Airbnb Hosts

Oregon’s tax burden on STR operators is moderate compared to states like California but noticeably higher than Washington or Nevada. Understanding the full tax picture before you run your first revenue projection is essential — these taxes eat directly into your margins.

State Transient Lodging Tax: Oregon imposes a 1.5% statewide transient lodging tax on all rentals of 30 days or fewer. This is collected by the Oregon Department of Revenue.

Local Transient Lodging Taxes: Cities and counties layer their own taxes on top of the state rate. These vary significantly:

• Portland: 6% city tax + 2.5% Multnomah County tax + 2.725% TID (Tourism Improvement District) = 11.225% local, plus the 1.5% state = 12.725% total
• Bend: 10.4% local + 1.5% state = 11.9% total
• Cannon Beach: 7% local + 1.5% state = 8.5% total
• Lincoln City: 9.5% local + 1.5% state = 11% total
• Ashland: 9% local + 1.5% state = 10.5% total

Airbnb collects and remits Oregon state and many local lodging taxes automatically. However, some smaller jurisdictions still require hosts to register independently and file quarterly returns. Always confirm with your specific city or county tax office.

Oregon State Income Tax: Unlike Nevada or Washington, Oregon has a state income tax — and it’s steep. The top marginal rate is 9.9% on income over $125,000 (single filers) or $250,000 (joint filers). Your net STR income flows through to your state return if you’re operating as a pass-through entity. This is the single biggest tax difference between operating in Oregon vs. Washington or Nevada.

Corporate Activity Tax (CAT): If your total commercial activity (gross revenue from all Oregon business activities) exceeds $1 million, the CAT applies at 0.57% of taxable commercial activity above $1 million. Most individual hosts won’t hit this threshold, but multi-property operators with additional business income should track it.

A qualified CPA familiar with Oregon STR taxation can often save you more than their fee through proper deduction structuring. Depreciation, repairs, supplies, platform fees, insurance, and mileage are all deductible — but Oregon has specific conformity rules with federal tax law that affect how some deductions apply at the state level.

Best Cities for Airbnb in Oregon

Bend

Bend is Oregon’s STR powerhouse outside Portland, and arguably offers better operator economics than Portland itself. The city’s identity as an outdoor recreation mecca — 300+ days of sunshine, world-class skiing at Mt. Bachelor, the Deschutes River trail system, 30+ craft breweries — creates demand that doesn’t quit even in shoulder seasons.

Average daily rates in Bend range from $150 to $300, with premium properties near the Old Mill District or with mountain views pushing above $400 in peak season. Annual occupancy rates for well-managed listings run 65-78%. A solid three-bedroom Bend property can gross $50,000-$75,000 annually. The key is securing a permit in one of the eligible zones — once you have that, you’re operating in a supply-constrained market.

Portland

Portland remains Oregon’s largest STR market by volume, but the 95-night cap on non-owner-occupied rentals fundamentally changes the math for investors. If you live in the property and rent a spare room or your whole home while traveling, Portland works beautifully — high nightly rates ($120-$250 ADR), strong occupancy, and a guest base that skews toward food tourism, business travel, and cultural events.

For non-resident investors or arbitrage operators, the 95-night limit means you’re capped at roughly $11,000-$24,000 in gross revenue from STR bookings alone. Some operators bridge the gap with 30+ day mid-term rentals (which don’t count against the cap), creating a hybrid model. Annual gross for owner-occupied Portland STRs without the cap restriction: $40,000-$65,000.

Cannon Beach

Cannon Beach is one of Oregon’s premier coastal destinations, anchored by Haystack Rock and a downtown that feels like a New England village transplanted to the Pacific. Vacation rental demand here is intense from June through September, with nightly rates for oceanview properties regularly exceeding $300. Even modest two-bedroom cottages command $175-$250 per night during summer.

The annual occupancy picture is more seasonal: 80-90% in summer, dropping to 40-55% in winter. Annual gross revenue for a well-positioned Cannon Beach property ranges from $45,000 to $80,000, depending on ocean proximity and property size. The VRD license cap means you’re either buying a property with an existing license or waiting on the list. Properties sold with active licenses command a premium — budget an extra $20,000-$40,000 over comparable non-licensed homes.

Lincoln City

Lincoln City stretches seven miles along the Oregon coast and has built its identity around being more accessible and affordable than Cannon Beach or Newport. That accessibility translates to broader guest appeal — families on budget, couples on weekend escapes, retirees spending a week watching storms. Nightly rates run $125-$225, with occupancy patterns similar to Cannon Beach but slightly stronger in shoulder seasons due to Lincoln City’s casino (Chinook Winds) and annual kite festivals.

The lack of a strict permit cap makes Lincoln City one of the easiest coastal markets to enter. Annual gross revenue: $35,000-$55,000 for a typical two-three bedroom property. The trade-off is lower peak rates compared to Cannon Beach, but the more consistent year-round demand can actually produce similar annual totals for mid-tier properties.

Ashland

Ashland is a niche market with outsized potential. Home to the Oregon Shakespeare Festival (which runs February through November), this Southern Oregon town of 22,000 draws 400,000+ visitors annually. STR demand peaks during festival season, particularly June through October, but Ashland’s proximity to Mt. Ashland ski area and the Rogue Valley’s emerging wine scene creates winter demand too.

Average daily rates in Ashland run $140-$260, with charming downtown properties near the festival theaters commanding premium pricing. Occupancy hovers at 60-72% annually. What makes Ashland interesting is the guest demographic — theater-goers and wine tourists tend to be older, higher-income, and significantly less likely to cause property damage than the average weekend party rental. That translates to lower maintenance costs and fewer headaches per booking.

City	Avg Daily Rate	Occupancy Rate	Avg Annual Revenue	Regulation Level
Bend	$150-$300	65-78%	$50,000-$75,000	Moderate (zone-based caps)
Portland	$120-$250	70-82%	$40,000-$65,000	High (95-night cap non-owner)
Cannon Beach	$175-$350	55-75%	$45,000-$80,000	High (license cap + waitlist)
Lincoln City	$125-$225	55-72%	$35,000-$55,000	Low-Moderate (no cap most zones)
Ashland	$140-$260	60-72%	$38,000-$60,000	Moderate

How Much Do Airbnbs Make in Oregon?

Oregon’s STR revenue picture splits along two axes: coastal vs. inland, and seasonal vs. year-round. Understanding where your target market falls on each axis determines whether you’re building a lifestyle business or a serious income stream.

Coastal properties (Cannon Beach, Lincoln City, Newport, Seaside): Seasonal revenue concentration is the defining characteristic. A well-run oceanview property might generate 60% of its annual revenue in just four months (June-September). Total annual gross for a two-three bedroom coastal rental: $35,000-$80,000, with the higher end reserved for oceanfront locations with hot tubs and direct beach access. Winter months require aggressive pricing and marketing to maintain even 40% occupancy.

Bend and Central Oregon: More balanced seasonality than the coast. Ski season (December-March) and summer (June-September) are both strong, with shoulder months buoyed by fall foliage tourism and spring climbing/hiking season. Annual gross: $45,000-$75,000 for a well-positioned property. Top-performing luxury cabins with hot tubs and mountain views can exceed $90,000.

Portland metro: Year-round demand with peaks around Rose Festival (June), Portland food/beer events, and business travel cycles. The 95-night cap for non-owner-occupied units limits maximum revenue. Owner-occupied listings without the cap generate $40,000-$65,000 annually. Hybrid operators who mix STR bookings with 30+ day mid-term rentals can push total revenue to $50,000-$75,000.

Southern Oregon (Ashland, Jacksonville, Medford area): Festival-driven demand creates strong summer and fall revenue. Annual gross: $35,000-$60,000. Properties within walking distance of Ashland’s theater district consistently outperform suburban locations by 25-35% on ADR.

The operators pulling the highest revenue across all Oregon markets share consistent traits. They price dynamically — adjusting nightly rates based on local events, weather forecasts, and competitor supply. They maintain Superhost status. And they invest in amenities that photograph well and generate five-star reviews: outdoor fire pits, curated local guide books, premium coffee setups, and design-forward interiors that reflect Oregon’s aesthetic. In a market where guest expectations run high, mediocre execution means mediocre returns.

How to Start Your Oregon Airbnb Business

Step 1: Pick your market based on your model. Oregon’s STR landscape rewards specificity. If you’re doing rental arbitrage without owning property, focus on Lincoln City, Bend’s resort zones, or areas outside Portland’s 95-night cap zone. If you’re buying, the coast and Bend offer the strongest long-term appreciation plus rental income. For co-hosting other people’s properties, Portland has the highest volume of homeowners who want help managing their listings.

Step 2: Verify regulations for your exact address. Oregon’s city-by-city approach means you cannot generalize. Pull up the specific permit requirements, zoning maps, and cap status for your target area. In Bend, check whether your property falls in a Resort Zone or residential zone. In Cannon Beach, check the VRD license waitlist length before committing to a property. Call the planning department — not just the website — because online information is often months behind current policy.

Step 3: Register your business. File with the Oregon Secretary of State if forming an LLC (recommended). Register for a Business Identification Number (BIN) with the Oregon Department of Revenue. The LLC formation fee in Oregon is $100, and the annual report costs $100. No state business license is required at the Oregon level, but your city will almost certainly require a local business license or permit.

Step 4: Secure and prepare your property. For arbitrage operators, Oregon landlords in smaller cities tend to be more open to STR arrangements than Portland landlords. Present a professional package: LLC docs, proof of insurance, a management plan that addresses noise, parking, and property maintenance. For the coast, emphasize your storm damage and winter property monitoring plan — coastal landlords worry about off-season neglect.

Step 5: Get your permits and tax registrations. Apply for your local STR permit (timelines range from 2 weeks in Lincoln City to 8+ weeks in Bend for a Conditional Use Permit). Register with the Oregon Department of Revenue for state transient lodging tax. Register with your county tax office for local lodging tax. Confirm whether Airbnb handles your specific jurisdiction’s tax collection automatically.

Step 6: Design for your guest profile. Oregon guests expect a different aesthetic than Vegas or Arizona tourists. Pacific Northwest style — warm wood tones, local art, outdoor gear storage, quality rain jackets for guest use — resonates. Coastal properties need storm-watching amenities (binoculars, blankets, window seats). Bend properties need gear storage and mountain bike wash stations. Every design choice should reflect where you are, not a generic Airbnb template.

Step 7: Launch across platforms with strategic pricing. List on Airbnb, VRBO, and Booking.com. Oregon’s coastal market performs particularly well on VRBO, where the vacation rental audience skews toward families planning week-long stays. Set your launch rate 20% below your target to build momentum and reviews. After 8-10 positive reviews, increase to market rate.

Step 8: Build systems and consider scaling. Automate guest communication, cleaning coordination, and pricing adjustments. Oregon’s geographic spread means you can diversify across microclimates — a Bend property and a coast property create portfolio balance, since their peak seasons don’t fully overlap. Compare Oregon to other top Airbnb states to decide if expanding within Oregon or going multi-state fits your growth plan.

Oregon STR Insurance and Liability

Oregon’s climate creates insurance considerations you won’t face in dry states like Arizona or Nevada. Coastal properties deal with storm damage, wind-driven rain intrusion, and salt air corrosion. Mountain properties face wildfire proximity risks — the 2020 Oregon wildfires destroyed over 4,000 homes and dramatically shifted how insurers assess mountain and rural properties statewide.

Short-term rental insurance: Standard Oregon homeowner’s policies exclude commercial rental activity. You need a dedicated STR policy from providers like Proper Insurance, CBIZ, or Safely. Annual premiums in Oregon typically run $1,800-$3,500 per property, with coastal and fire-zone properties at the higher end. Coverage should include guest injury, property damage, income loss, and personal liability. Read our full guide on whether insurance covers Airbnb hosting.

Wildfire and flood considerations: If your property falls within an Oregon Department of Forestry wildfire risk zone or a FEMA flood zone (common on the coast), you may need supplemental policies. Flood insurance through the National Flood Insurance Program (NFIP) is separate from your STR policy. Wildfire coverage has become harder to obtain in parts of Central and Southern Oregon — shop multiple providers and consider a broker who specializes in Oregon properties.

Liability minimums: Most Oregon cities don’t specify a minimum liability amount for STR permits, but $1 million is the industry standard. Properties with hot tubs, fire pits, or waterfront access should carry $2 million. An umbrella policy ($200-$500/year for $1-2 million in additional coverage) is inexpensive peace of mind when you’re hosting strangers in your property.

Airbnb AirCover: Airbnb’s built-in protection covers up to $3 million in property damage and $1 million in liability. But AirCover has significant exclusions (no coverage for normal wear, slow claims processing, no coverage for VRBO or direct bookings). Treat it as supplemental protection, never your primary policy.

Why 10XBNB Gives You the Edge in Oregon

Oregon’s market rewards operators who understand the nuances — the difference between Bend’s resort zone and residential zone regulations, the seasonal pricing dynamics of coastal markets, the hybrid STR/mid-term model that makes Portland pencil out despite the 95-night cap. General Airbnb advice from national content creators misses these details entirely.

10XBNB’s program was designed for exactly this kind of market complexity. The system teaches you how to identify which Oregon submarkets offer the best regulation-to-revenue ratio, how to structure lease proposals that Oregon landlords actually sign, and how to build listings that convert Oregon’s specific guest demographic — outdoor enthusiasts, foodies, and experience-seekers who read every detail of your listing before booking.

Students in Pacific Northwest markets have used 10XBNB strategies to launch compliant Bend listings that hit $5,000/month within 60 days, negotiate arbitrage agreements in coastal towns where landlords had previously refused every STR request, and build multi-property portfolios spanning the coast and inland markets for year-round revenue stability. The playbook works because it’s built on real operator experience, not theory.

Frequently Asked Questions

Can I run an Airbnb in Portland without living in the property?

You can, but with restrictions. Portland’s Type B permit allows non-owner-occupied short-term rentals for a maximum of 95 nights per calendar year. To rent your property more than 95 nights, you must hold a Type A permit, which requires the unit to be your primary residence. Many Portland operators work around the 95-night cap by filling the remaining months with 30+ day mid-term rentals, which don’t require an STR permit.

How much does it cost to get an Airbnb permit in Oregon?

Permit costs vary by city. Portland charges $178 annually for an STR permit. Bend’s Conditional Use Permit for residential zones costs $800-$1,200 depending on the type. Cannon Beach’s VRD license is approximately $250 annually. Lincoln City’s permit is around $150. Add state business registration ($100 for LLC formation) and you’re looking at $300-$1,500 total in first-year licensing costs, depending on your location.

What taxes do Oregon Airbnb hosts pay?

Oregon STR hosts pay a 1.5% state transient lodging tax plus local transient lodging taxes that range from 7% to 11.225% depending on the city. You also owe Oregon state income tax on net rental profits at rates up to 9.9%. Airbnb automatically collects and remits lodging taxes in many Oregon jurisdictions, but you should verify with your local tax office. Federal income tax also applies to net rental income.

Is Bend a good market for Airbnb rental arbitrage?

Bend can work for arbitrage, but it’s more challenging than some markets. Properties in Bend’s Resort Zone face fewer STR restrictions and are your best bet for arbitrage. Residential zone properties require a Conditional Use Permit that can take 4-8 weeks to obtain and involves a neighborhood notification process. Lease costs for arbitrage-suitable properties run $1,800-$2,800/month, and you’ll need landlord approval. The revenue potential ($50,000-$75,000 gross annually) can justify those costs, but permitting is the bottleneck.

Do I need special insurance for an Oregon coastal Airbnb?

Yes. Coastal properties need dedicated short-term rental insurance (standard homeowner’s policies won’t cover commercial activity), and many also need flood insurance if they’re in a FEMA flood zone. Storm damage, wind-driven rain, and salt air corrosion are ongoing risks that your policy should specifically address. Annual premiums for coastal STR properties in Oregon typically run $2,500-$3,500. Wildfire coverage may also be required depending on the property’s proximity to forested areas.

What’s the best Oregon coast town for starting a vacation rental?

Lincoln City offers the easiest entry point — no permit cap in most zones, reasonable property prices, and consistent year-round demand boosted by the Chinook Winds casino and community events. Cannon Beach has higher revenue potential but a license cap and waitlist. Newport balances decent rates ($150-$250/night) with a more moderate regulatory environment. Seaside is the most accessible from Portland (highest weekend demand) but faces increasing regulatory scrutiny. Your best choice depends on whether you prioritize ease of entry or maximum revenue per property.