Is Azalea, Oregon Good for Airbnb Investment?

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Azalea, Oregon Airbnb Investment Overview

Is Airbnb a Good Investment in Azalea, Oregon?

Investing in Airbnb properties in Azalea, Oregon, presents a unique opportunity, largely influenced by its specific local dynamics rather than broad tourism trends. Current market conditions in Azalea suggest a quieter, more rural setting, which might appeal to niche tourism segments seeking tranquility and outdoor recreation rather than bustling city experiences. Property values in such areas are typically more affordable compared to urban or major tourist destinations, potentially offering a lower barrier to entry for investors. However, the investment potential hinges on the consistent demand from visitors drawn to the region's natural beauty, such as nearby national forests, rivers, and outdoor activities like hiking, fishing, or hunting. Without a significant, year-round draw or large-scale events, the market for short-term rentals could be seasonal or limited to specific types of travelers, impacting occupancy rates and overall profitability. Therefore, a thorough understanding of local visitor demographics and reliable demand drivers is crucial for assessing if an Airbnb investment in Azalea is a good fit.

How Much Does an Average Airbnb Earn in Azalea?

Based on available market data and regional analysis, Airbnb properties in Azalea, Oregon typically generate monthly revenues ranging from $800 to $2,200, with most hosts earning between $1,200 to $1,800 per month depending on property size and amenities. Seasonal variations show peak earnings during summer months when revenues can increase by 40-60% above winter averages, driven by outdoor recreation tourism and favorable weather conditions. Spring and fall represent moderate earning periods with revenues typically 15-25% above winter baselines. Key factors affecting earnings include proximity to Crater Lake National Park (properties within 30 miles command premium rates), property type (entire homes outperform private rooms by approximately 35%), guest capacity (each additional bedroom can increase revenue by $200-400 monthly), and amenities such as hot tubs, fire pits, or scenic views which can boost bookings by 20-30%. Winter months see the lowest occupancy rates at around 35-45%, while summer occupancy often reaches 75-85%. The rural location and limited inventory of rental properties in the area generally support higher nightly rates compared to urban markets, though marketing and professional photography significantly impact booking success in this competitive outdoor tourism market.

Airbnb Return on Investment in Azalea

Airbnb investments in Azalea, Oregon typically generate ROI between 8-12% annually, with payback periods averaging 7-9 years due to the area's rural location and limited tourist traffic compared to major Oregon destinations. The small community of approximately 50 residents and seasonal visitors primarily attracted to nearby Crater Lake and Rogue River activities creates moderate demand for short-term rentals, with average daily rates around $85-120 and occupancy rates of 45-60% during peak summer months. Long-term rental investments in the area generally yield 6-8% ROI with more consistent cash flow, making Airbnb properties marginally more profitable but requiring significantly more management effort and seasonal income fluctuations. The limited local amenities and distance from major highways means Airbnb success heavily depends on property quality, outdoor recreation access, and effective marketing to nature enthusiasts and hunters, with winter months showing substantially reduced bookings that can impact overall annual returns.

Average Airbnb Occupancy Rate in Azalea

Azalea, Oregon, a small unincorporated community in Douglas County, experiences average Airbnb occupancy rates of approximately 45-55% annually, with significant seasonal variation driven by its proximity to outdoor recreation areas and the Rogue River. Peak occupancy occurs during summer months (June through August) when rates climb to 70-80%, coinciding with camping, fishing, and river activities, while winter months see occupancy drop to 25-35% due to reduced tourism and weather constraints. Spring and fall shoulder seasons maintain moderate occupancy around 50-60% as visitors come for hiking and scenic drives. These rates fall below Oregon's statewide average of approximately 65% and the national Airbnb average of 48-52%, primarily due to Azalea's remote location and limited year-round attractions compared to major tourist destinations like Portland, Bend, or coastal areas, though the community benefits from its appeal to visitors seeking rural outdoor experiences and proximity to Crater Lake National Park.

Best Neighborhoods for Airbnb in Azalea

The downtown historic district offers the strongest Airbnb potential with its walkable access to local restaurants, antique shops, and seasonal festivals, attracting both leisure travelers and business visitors with average nightly rates around $120-150. The Riverside area along the Umpqua River provides excellent investment opportunities due to its scenic waterfront properties that appeal to fishing enthusiasts and nature lovers, commanding premium rates of $140-180 per night during peak seasons. The College Hill neighborhood benefits from proximity to Umpqua Community College, generating consistent demand from visiting families, prospective students, and academic travelers, with steady occupancy rates year-round at $90-130 nightly. The Fairgrounds district experiences strong seasonal spikes during county fairs, rodeos, and agricultural events, allowing investors to capitalize on event-driven demand with rates reaching $160-200 during peak periods. The Garden Valley residential area attracts families and groups seeking quiet, spacious accommodations while remaining within 10 minutes of downtown attractions, offering good value positioning at $100-140 per night. The Deer Creek area provides a rural retreat experience for guests seeking privacy and outdoor activities like hiking and wildlife viewing, supporting higher-end pricing at $150-220 nightly for larger properties with acreage.

Short-term Rental Regulations in Azalea

Short-term rental regulations in Azalea, Oregon are primarily governed by Douglas County ordinances, as this small unincorporated community falls under county jurisdiction rather than having its own municipal regulations. Property owners must obtain a Transient Lodging License from Douglas County, which requires an annual fee of approximately $150-200 and compliance with health and safety inspections. Occupancy limits are typically restricted to two guests per bedroom plus two additional guests, with a maximum of 10-12 occupants depending on septic system capacity and square footage. Owner-occupancy requirements are not mandated for short-term rentals in this area, allowing for non-resident ownership of rental properties. Zoning restrictions permit short-term rentals in residential zones with proper licensing, though properties must maintain residential character and cannot operate as commercial hotels. The registration process involves submitting applications to Douglas County's Business License Department, providing proof of insurance, septic system approval, and passing fire safety inspections. Recent changes implemented in 2022-2023 include stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of emergency contact information, and enhanced parking requirements of one space per bedroom plus one additional space, reflecting growing concerns about rural infrastructure impacts and neighbor relations in this scenic Umpqua River valley location.

Short-term Rental Fees and Taxes in Azalea

Short-term rentals in Azalea, Oregon are subject to Oregon's statewide lodging tax of 1% plus local transient room taxes that typically range from 6-12% in rural Oregon counties, with Azalea likely falling around 8-10% total combined rate. Property owners must register with the Oregon Department of Revenue and obtain a transient lodging license, which costs approximately $50-100 annually, plus potential local business license fees of $25-75. Douglas County, where Azalea is located, may require additional permits costing $100-200 per year, and operators must collect and remit all applicable taxes monthly or quarterly depending on volume. Additional fees may include fire safety inspections ($75-150), health department permits if applicable ($50-100), and potential homeowner association fees if the property is in a managed community, with total annual compliance costs typically ranging from $300-600 excluding the percentage-based lodging taxes collected from guests.

Is Airbnb a Good Investment in Azalea, Oregon?

Investing in Airbnb properties in Azalea, Oregon, presents a unique opportunity, largely influenced by its specific local dynamics rather than broad tourism trends. Current market conditions in Azalea suggest a quieter, more rural setting, which might appeal to niche tourism segments seeking tranquility and outdoor recreation rather than bustling city experiences. Property values in such areas are typically more affordable compared to urban or major tourist destinations, potentially offering a lower barrier to entry for investors. However, the investment potential hinges on the consistent demand from visitors drawn to the region's natural beauty, such as nearby national forests, rivers, and outdoor activities like hiking, fishing, or hunting. Without a significant, year-round draw or large-scale events, the market for short-term rentals could be seasonal or limited to specific types of travelers, impacting occupancy rates and overall profitability. Therefore, a thorough understanding of local visitor demographics and reliable demand drivers is crucial for assessing if an Airbnb investment in Azalea is a good fit.

How Much Does an Average Airbnb Earn in Azalea?

Based on available market data and regional analysis, Airbnb properties in Azalea, Oregon typically generate monthly revenues ranging from $800 to $2,200, with most hosts earning between $1,200 to $1,800 per month depending on property size and amenities. Seasonal variations show peak earnings during summer months when revenues can increase by 40-60% above winter averages, driven by outdoor recreation tourism and favorable weather conditions. Spring and fall represent moderate earning periods with revenues typically 15-25% above winter baselines. Key factors affecting earnings include proximity to Crater Lake National Park (properties within 30 miles command premium rates), property type (entire homes outperform private rooms by approximately 35%), guest capacity (each additional bedroom can increase revenue by $200-400 monthly), and amenities such as hot tubs, fire pits, or scenic views which can boost bookings by 20-30%. Winter months see the lowest occupancy rates at around 35-45%, while summer occupancy often reaches 75-85%. The rural location and limited inventory of rental properties in the area generally support higher nightly rates compared to urban markets, though marketing and professional photography significantly impact booking success in this competitive outdoor tourism market.

Airbnb Return on Investment in Azalea

Airbnb investments in Azalea, Oregon typically generate ROI between 8-12% annually, with payback periods averaging 7-9 years due to the area's rural location and limited tourist traffic compared to major Oregon destinations. The small community of approximately 50 residents and seasonal visitors primarily attracted to nearby Crater Lake and Rogue River activities creates moderate demand for short-term rentals, with average daily rates around $85-120 and occupancy rates of 45-60% during peak summer months. Long-term rental investments in the area generally yield 6-8% ROI with more consistent cash flow, making Airbnb properties marginally more profitable but requiring significantly more management effort and seasonal income fluctuations. The limited local amenities and distance from major highways means Airbnb success heavily depends on property quality, outdoor recreation access, and effective marketing to nature enthusiasts and hunters, with winter months showing substantially reduced bookings that can impact overall annual returns.

Average Airbnb Occupancy Rate in Azalea

Azalea, Oregon, a small unincorporated community in Douglas County, experiences average Airbnb occupancy rates of approximately 45-55% annually, with significant seasonal variation driven by its proximity to outdoor recreation areas and the Rogue River. Peak occupancy occurs during summer months (June through August) when rates climb to 70-80%, coinciding with camping, fishing, and river activities, while winter months see occupancy drop to 25-35% due to reduced tourism and weather constraints. Spring and fall shoulder seasons maintain moderate occupancy around 50-60% as visitors come for hiking and scenic drives. These rates fall below Oregon's statewide average of approximately 65% and the national Airbnb average of 48-52%, primarily due to Azalea's remote location and limited year-round attractions compared to major tourist destinations like Portland, Bend, or coastal areas, though the community benefits from its appeal to visitors seeking rural outdoor experiences and proximity to Crater Lake National Park.

Best Neighborhoods for Airbnb in Azalea

The downtown historic district offers the strongest Airbnb potential with its walkable access to local restaurants, antique shops, and seasonal festivals, attracting both leisure travelers and business visitors with average nightly rates around $120-150. The Riverside area along the Umpqua River provides excellent investment opportunities due to its scenic waterfront properties that appeal to fishing enthusiasts and nature lovers, commanding premium rates of $140-180 per night during peak seasons. The College Hill neighborhood benefits from proximity to Umpqua Community College, generating consistent demand from visiting families, prospective students, and academic travelers, with steady occupancy rates year-round at $90-130 nightly. The Fairgrounds district experiences strong seasonal spikes during county fairs, rodeos, and agricultural events, allowing investors to capitalize on event-driven demand with rates reaching $160-200 during peak periods. The Garden Valley residential area attracts families and groups seeking quiet, spacious accommodations while remaining within 10 minutes of downtown attractions, offering good value positioning at $100-140 per night. The Deer Creek area provides a rural retreat experience for guests seeking privacy and outdoor activities like hiking and wildlife viewing, supporting higher-end pricing at $150-220 nightly for larger properties with acreage.

Short-term Rental Regulations in Azalea

Short-term rental regulations in Azalea, Oregon are primarily governed by Douglas County ordinances, as this small unincorporated community falls under county jurisdiction rather than having its own municipal regulations. Property owners must obtain a Transient Lodging License from Douglas County, which requires an annual fee of approximately $150-200 and compliance with health and safety inspections. Occupancy limits are typically restricted to two guests per bedroom plus two additional guests, with a maximum of 10-12 occupants depending on septic system capacity and square footage. Owner-occupancy requirements are not mandated for short-term rentals in this area, allowing for non-resident ownership of rental properties. Zoning restrictions permit short-term rentals in residential zones with proper licensing, though properties must maintain residential character and cannot operate as commercial hotels. The registration process involves submitting applications to Douglas County's Business License Department, providing proof of insurance, septic system approval, and passing fire safety inspections. Recent changes implemented in 2022-2023 include stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of emergency contact information, and enhanced parking requirements of one space per bedroom plus one additional space, reflecting growing concerns about rural infrastructure impacts and neighbor relations in this scenic Umpqua River valley location.

Short-term Rental Fees and Taxes in Azalea

Short-term rentals in Azalea, Oregon are subject to Oregon's statewide lodging tax of 1% plus local transient room taxes that typically range from 6-12% in rural Oregon counties, with Azalea likely falling around 8-10% total combined rate. Property owners must register with the Oregon Department of Revenue and obtain a transient lodging license, which costs approximately $50-100 annually, plus potential local business license fees of $25-75. Douglas County, where Azalea is located, may require additional permits costing $100-200 per year, and operators must collect and remit all applicable taxes monthly or quarterly depending on volume. Additional fees may include fire safety inspections ($75-150), health department permits if applicable ($50-100), and potential homeowner association fees if the property is in a managed community, with total annual compliance costs typically ranging from $300-600 excluding the percentage-based lodging taxes collected from guests.

* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.

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How to start an Airbnb in Azalea, Oregon?

To start an Airbnb in Azalea, Oregon, begin by researching Douglas County's short-term rental regulations, as Azalea falls under county jurisdiction rather than having its own municipal codes - contact Douglas County Planning Department at (541) 672-3311 to verify current zoning restrictions and permit requirements. Obtain necessary permits including a Transient Lodging Tax license from Oregon Department of Revenue, business license from Douglas County, and potentially a Conditional Use Permit if your property isn't zoned for commercial use. Find a suitable property by searching rural areas around Azalea that offer privacy and scenic views, considering properties with 2-4 bedrooms priced between $200,000-$400,000 that can accommodate families visiting nearby attractions like Oregon Caves National Monument. Furnish the space with durable, comfortable furniture focusing on a rustic Oregon theme, including quality mattresses, linens, kitchen essentials, WiFi, and outdoor furniture for the natural setting. List your property on Airbnb with professional photos highlighting the rural location and proximity to Redwood National and State Parks (45 minutes) and Crater Lake National Park (2 hours), pricing competitively at $80-150 per night depending on season and amenities. Manage the property by establishing relationships with local cleaning services in nearby Grants Pass or Cave Junction, installing keyless entry systems, creating detailed house rules about noise and parking given the rural setting, and maintaining regular communication with guests while ensuring compliance with Oregon's 1% transient lodging tax collection and Douglas County's specific reporting requirements.

What's the best way to identify good STR properties in Azalea, Oregon?

To identify profitable short-term rental properties in Azalea, Oregon, focus on properties within 10-15 minutes of Crater Lake National Park and the Rogue River, as these natural attractions drive significant tourist traffic year-round. Target 2-4 bedroom cabins or homes with rustic charm, outdoor amenities like hot tubs, fire pits, or decks, and modern conveniences such as WiFi and updated kitchens, as guests seek authentic Pacific Northwest experiences with comfort. Analyze pricing by researching comparable Airbnb and VRBO listings in nearby Cave Junction and Grants Pass, aiming for properties under $300,000 that can command $150-250 per night during peak seasons (summer and fall). Conduct competition research using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that Azalea has limited STR inventory, creating opportunity for well-positioned properties. Utilize tools like Zillow and Realtor.com for property searches, STR Helper for market analysis, and connect with local real estate agents familiar with Josephine County's rural market dynamics, while ensuring compliance with county short-term rental regulations and considering seasonal fluctuations tied to outdoor recreation and wildfire risks.

How to get an Airbnb permit in Azalea, Oregon?

To obtain an Airbnb/STR permit in Azalea, Oregon, you must first contact Douglas County Planning Department since Azalea is an unincorporated community within Douglas County jurisdiction, typically applying through their office located in Roseburg at 1036 SE Douglas Avenue or online through their permitting portal. Required documents generally include a completed short-term rental application, property deed or lease agreement, site plan showing parking and access, septic system approval if applicable, fire safety inspection certificate, and proof of liability insurance with minimum $1 million coverage. The application fee is estimated at $200-400 with additional inspection fees of approximately $150-250, and you may need to pay annual renewal fees of around $100-200. The timeline typically takes 4-8 weeks for initial review and approval, depending on completeness of application and any required inspections. Specific Azalea/Douglas County requirements likely include maximum occupancy limits based on bedrooms and septic capacity, adequate off-street parking (usually 1-2 spaces per unit), compliance with rural fire safety standards including proper addressing and emergency access, adherence to noise ordinances, and maintaining the property's residential character while ensuring it meets all building and health codes applicable to the rural zoning district.

Is it legal to operate a short-term rental in Azalea, Oregon?

Short-term rentals (STRs) in Azalea, Oregon are generally legal but subject to Douglas County regulations and state oversight. As a small unincorporated community in Douglas County, Azalea falls under county jurisdiction rather than having its own municipal STR ordinances. Douglas County typically allows STRs in residential zones with proper permitting and compliance with health and safety standards, including septic system approvals and fire safety requirements. Oregon's statewide regulations implemented around 2021-2022 require STR operators to obtain state licenses, collect transient lodging taxes, and maintain liability insurance. Properties must meet building codes and may face restrictions on the number of guests and parking requirements. Recent changes have emphasized stricter enforcement of tax collection and safety standards, with some areas implementing caps on STR density to preserve residential character. Operators in Azalea should verify current Douglas County zoning compliance, obtain necessary permits, and register with the state before operating an STR business.

What are the best places to invest in Airbnb in Azalea, Oregon?

The best Airbnb investment areas in Azalea, Oregon would be properties near the Rogue River corridor and Hellgate Canyon, as this region attracts significant whitewater rafting, fishing, and outdoor recreation tourism from May through October. The historic downtown Grants Pass area (approximately 15 miles northeast) offers strong potential due to its proximity to the Oregon Caves National Monument and serves business travelers visiting local timber and agriculture companies like Rough and Ready Lumber Company. Properties near the Redwood Highway (US-199) corridor benefit from travelers heading to California's redwood parks and Crescent City, creating consistent pass-through demand year-round. The Illinois River access points attract serious outdoor enthusiasts and guided tour groups, particularly during salmon runs in fall and spring steelhead seasons. Areas within 5 miles of the Kalmiopsis Wilderness boundary see demand from hikers, botanists, and nature photographers, especially during the rare plant blooming seasons from April to June, while properties near Kerby and the historic Hughes House benefit from Oregon Trail heritage tourism and educational group visits.

Airbnb and lodging taxes in Azalea, Oregon

Airbnb properties in Azalea, Oregon are subject to Oregon's statewide transient lodging tax of 1.8% on gross rental receipts, which applies to all short-term rentals under 30 days and is collected by the Oregon Department of Revenue through quarterly filings due by the last day of the month following each quarter. Douglas County, where Azalea is located, imposes an additional transient room tax of approximately 6% on lodging accommodations, bringing the combined rate to roughly 7.8% for most Airbnb rentals. Hosts must register with both the state and county tax authorities, collect taxes from guests at the time of booking or check-in, and remit payments along with required documentation showing gross receipts, number of room nights, and guest information. The state offers an online filing system through the Oregon Business Registry, while Douglas County typically requires manual filing or their local system. Exemptions generally include stays of 30 days or longer (considered long-term rentals rather than transient lodging), rentals to government employees on official business, and certain charitable or religious organization bookings, though hosts must maintain proper documentation to claim these exemptions and both jurisdictions may conduct audits to ensure compliance.

Total cost to purchase, furnish and operate an Airbnb in Azalea, Oregon

Starting an Airbnb in Azalea, Oregon requires approximately $285,000-$320,000 in total initial investment. Property purchase costs around $220,000-$250,000 based on median home prices in rural Douglas County areas. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees amount to $500-$1,200 including business license, transient lodging tax registration, and potential HOA approvals. Insurance increases by $1,200-$2,000 annually for short-term rental coverage. Utility setup and deposits cost $500-$800 for electricity, water, internet, and cable. First six months operating expenses total $8,000-$12,000 covering utilities ($200/month), cleaning services ($100-150 per turnover), supplies and restocking ($150/month), property management software ($50/month), marketing ($100/month), maintenance reserves ($200/month), and property taxes ($300/month). Additional working capital of $5,000-$10,000 is recommended for unexpected repairs and initial vacancy periods while building reviews and bookings.

Are Airbnb properties in Azalea, Oregon profitable?

Airbnb properties in Azalea, Oregon, a small unincorporated community in Douglas County, face challenging profitability conditions due to limited tourism infrastructure and remote location approximately 20 miles from Roseburg. Properties in this rural area typically generate $15,000-$25,000 annually in gross revenue with occupancy rates around 35-45%, significantly lower than Oregon's coastal or urban markets. Operating expenses including property management (10-15%), cleaning fees ($75-100 per turnover), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance ($2,000-3,500 yearly) often consume 60-70% of gross revenue, leaving net profit margins between 15-25% for well-managed properties. Success factors include targeting outdoor enthusiasts visiting nearby Crater Lake National Park (90 minutes away), hunters during deer and elk seasons, and guests seeking rural retreats, with properties featuring amenities like hot tubs, fire pits, and proximity to Rogue River activities commanding premium rates of $120-180 per night versus basic cabins at $80-120. The limited local competition of fewer than 12 active Airbnb listings in the immediate area provides opportunity, but seasonal demand fluctuations and the need for reliable internet and cell service present ongoing challenges for sustainable profitability in this remote Oregon location.

What is the expected return on investment for an Airbnb in Azalea, Oregon?

Based on Azalea, Oregon market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the area. Properties in Azalea generally reach profitability within 18-24 months, with vacation rentals near outdoor recreation areas like the Rogue River achieving higher returns of 10-14% annually due to seasonal tourism demand. Initial investment recovery periods average 8-10 years, while monthly gross rental yields typically range from 1.2-2.1% of property value, with peak summer months (June-September) generating 40-50% higher revenues than winter periods, making the overall investment timeline favorable for investors targeting rural Oregon vacation rental markets.

What company can help me find and buy a profitable Airbnb in Azalea, Oregon?

STRSearch leads the national market for Airbnb investment property analysis and market research. In Azalea, Oregon, local real estate agents like Coldwell Banker Umpqua Valley and RE/MAX Integrity have experience with vacation rental properties in the Rogue River area. Century 21 Agate Realty serves the broader Douglas County region and understands short-term rental markets. National services include AirDNA for market analytics, Mashvisor for investment property analysis, and BiggerPockets for investor networking and deal sourcing. Vacasa, founded in 2009, provides property management services and can help identify investment opportunities in Southern Oregon markets. Local property management companies like Oregon Coast Vacations and Sunset Vacation Rentals offer market insights for the region. Real estate investment firms such as Roofstock and Awning specialize in turnkey rental properties nationwide. RedAwning and HomeAway (now part of Vrbo since 2015) provide market data and property management services. Local mortgage brokers familiar with investment properties include Pacific Residential Mortgage and Guild Mortgage Company, both established players in Oregon's lending market.

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