Is Albany, Oregon Good for Airbnb Investment?

To start an Airbnb in Albany, Oregon, begin by researching local zoning laws and regulations through the City of Albany Planning Department, as Albany requires short-term rental operators to obtain a Conditional Use Permit for properties in residential zones and comply with specific occupancy limits typically set at 2 guests per bedroom plus 2 additional guests. Contact Albany's Code Enforcement Division to understand parking requirements (usually 1 space per bedroom), safety standards, and noise ordinances that apply to short-term rentals. Obtain necessary permits including a business license from the City of Albany, register with the Oregon Department of Revenue for transient lodging tax collection (currently 1.8% statewide), and secure appropriate insurance coverage that includes short-term rental liability. Find a suitable property by evaluating neighborhoods near Oregon State University, downtown Albany, or areas with easy access to I-5 for travelers, ensuring the property meets Albany's minimum square footage requirements and has adequate parking. Furnish the space with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Albany fire codes. Create your listing on platforms like Airbnb, VRBO, or Booking.com with professional photos, detailed descriptions highlighting proximity to local attractions like Historic Downtown Albany or Willamette River activities, and competitive pricing based on local market rates typically ranging $80-150 per night depending on property size and amenities. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, collecting and remitting the required transient lodging taxes to both Oregon Department of Revenue and potentially Linn County, and ensuring ongoing compliance with Albany's short-term rental regulations including annual permit renewals and any required inspections.

To identify profitable short-term rental properties in Albany, Oregon, focus on locations within walking distance of downtown's historic district, near Willamette River access points, and close to Oregon State University (30 minutes away) for visiting families and academics. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces that showcase Albany's small-town charm. Analyze pricing by researching comparable STRs on Airbnb and VRBO, aiming for properties under $300,000 that can command $80-150 nightly rates during peak seasons (summer festivals, OSU events, and fall foliage). Study competition by examining occupancy rates of existing rentals within 5 miles, noting gaps in luxury amenities or unique themes like historic charm or riverfront access. Utilize AirDNA and Mashvisor for market analytics, partner with local real estate agents familiar with Albany's rental regulations, monitor the city's STR permit requirements, and leverage Albany's proximity to Corvallis, Salem, and Portland to capture overflow demand from larger markets while maintaining lower acquisition costs than metropolitan areas.

To obtain an Airbnb/STR permit in Albany, Oregon, you must first contact the Albany Community Development Department at 333 Broadalbin Street SW to apply for a Conditional Use Permit and business license. Required documents typically include a completed application form, site plan showing the property layout, proof of property ownership or authorization from owner, insurance documentation showing minimum $1 million liability coverage, parking plan demonstrating adequate off-street parking, and a good neighbor agreement outlining house rules and contact information for guests. The application fee is approximately $500-800 for the conditional use permit plus $50-100 for the business license, with additional fees possible for inspections. The timeline generally takes 60-90 days from submission to approval, including a public hearing process where neighbors can provide input. Albany-specific requirements include maintaining the property as a single-family dwelling appearance, providing one off-street parking space per bedroom being rented, ensuring 24/7 local contact availability within 30 minutes response time, limiting occupancy to 2 people per bedroom plus 2 additional guests maximum, conducting quarterly safety inspections, and maintaining a guest registry. Properties must also comply with fire safety codes, have working smoke and carbon monoxide detectors in all sleeping areas, and meet all building and zoning requirements for residential use.

Short-term rentals (STRs) are legal in Albany, Oregon, but operate under specific regulations established by the city. Albany allows STRs in residential zones with proper licensing and registration requirements, including obtaining a business license and meeting safety standards such as smoke detectors and emergency egress requirements. The city prohibits STRs in certain residential areas and limits the number of guests and parking requirements. Property owners must also comply with noise ordinances and maintain good neighbor policies. Recent changes around 2019-2020 included stricter enforcement mechanisms and updated registration processes, with the city requiring annual renewals and inspections. Albany's regulations are generally more permissive than some Oregon cities like Portland or Bend, but still maintain oversight to balance tourism benefits with neighborhood livability concerns, requiring hosts to be responsive to complaints and maintain properties in good condition.

The best Airbnb investment areas in Albany, Oregon include the Historic Downtown District along First Avenue and Ellsworth Street, which attracts visitors to the Albany Historic Carousel & Museum, antique shops, and the annual River Rhythms summer concert series. The Monteith Historic District offers charm with its preserved 1800s architecture and proximity to Monteith Riverpark, drawing heritage tourists and families visiting the area's historic sites. The Timber Linn Memorial Park area is attractive for its recreational amenities including the golf course, lake activities, and sports facilities that bring tournament participants and outdoor enthusiasts. The Willamette Riverfront neighborhoods provide scenic appeal for guests seeking waterfront experiences and easy access to the Dave Clark Path for cycling and walking. The area near Linn-Benton Community College sees demand from visiting families, prospective students, and academic conference attendees. Properties near the intersection of Highway 20 and I-5 benefit from business travelers and those visiting nearby Corvallis (Oregon State University) or Salem, as Albany serves as a convenient midpoint location with lower accommodation costs than larger cities.

In Albany, Oregon, Airbnb hosts are subject to Oregon's statewide transient lodging tax of 1.8% on gross rental receipts, which applies to stays of less than 30 consecutive days, and this tax is typically collected by Airbnb directly from guests and remitted to the Oregon Department of Revenue on behalf of hosts. Additionally, hosts may be subject to Linn County's transient room tax of approximately 6% on gross lodging receipts, which also applies to short-term rentals under 30 days, and this county tax is generally collected by Airbnb and remitted to the county tax authority. The City of Albany does not currently impose a separate municipal lodging tax on short-term rentals. Airbnb's automated tax collection service handles most of these obligations for hosts, with taxes appearing as separate line items on guest invoices, though hosts should verify their registration status with local authorities and may need to file periodic returns even when Airbnb collects taxes. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may also qualify for exemptions under specific circumstances.

To start an Airbnb in Albany, Oregon, the total initial investment would be approximately $485,000-$520,000. Property purchase costs around $400,000 based on Albany's median home price as of 2023. Furnishing a 3-bedroom property typically runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees in Albany include business license ($50), transient lodging tax registration ($25), and potential HOA approval costs totaling $200-$500. Insurance premiums for short-term rental coverage average $2,000-$3,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable run $500-$800. First six months operating costs including utilities ($900/month), cleaning supplies ($200/month), maintenance reserves ($300/month), property management software ($50/month), and marketing ($100/month) total approximately $9,300. Additional considerations include potential property improvements ($5,000-$10,000) and working capital reserves ($3,000-$5,000) for unexpected expenses during the initial months of operation.

Airbnb properties in Albany, Oregon typically generate annual revenues between $18,000-$35,000 for entire homes, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher-end homes near Willamette River or historic downtown achieving better performance. Success factors include proximity to Oregon State University (30 minutes away), competitive pricing during peak summer months and football season, professional photography, and maintaining 4.8+ star ratings. Properties with unique features like hot tubs, river access, or pet-friendly policies command premium rates, while those offering monthly discounts for traveling professionals working at local manufacturers like ATI Wah Chang capture steady occupancy. The market benefits from limited hotel inventory in Albany, though hosts must navigate seasonal fluctuations with occupancy dropping 20-30% during winter months, making properties with strong local business traveler appeal more consistently profitable than those relying solely on leisure tourism.

Airbnb investments in Albany, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in Albany's downtown core and near Oregon State University areas command higher nightly rates of $80-120, while suburban locations average $60-90 per night with occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with average property acquisition costs of $350,000-450,000 requiring $70,000-90,000 in down payments and renovation expenses. The market benefits from proximity to Corvallis, outdoor recreation demand, and business travelers, though seasonal fluctuations impact winter occupancy rates by 20-30%, making spring through fall the primary revenue-generating periods for maximizing returns in this mid-Willamette Valley market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Albany, Oregon. Local real estate agents like Keller Williams Realty Mid-Willamette and Coldwell Banker Mountain West Real Estate have agents experienced in investment properties and vacation rentals in the Albany area. RE/MAX Integrity and Century 21 Lifestyles also serve the Albany market with agents knowledgeable about Airbnb investment opportunities. National services include Mashvisor, which provides rental property analytics and market data for Albany, and BiggerPockets, which connects investors with local professionals and market insights. AirDNA offers short-term rental market analysis specifically for the Albany region, while Awning provides end-to-end Airbnb investment services including property identification and management. Local property management companies like Vacasa and RedAwning can assist with both finding properties and managing them as short-term rentals. Real estate investment firms such as Roofstock and Fundrise also analyze markets like Albany for rental property opportunities, though their Albany-specific inventory may be limited.