Is Bandon, Oregon Good for Airbnb Investment?

To start an Airbnb in Bandon, Oregon, begin by researching local regulations through Coos County and the City of Bandon, as Oregon requires short-term rental operators to register with the state and pay transient lodging taxes, while Bandon may have specific zoning restrictions and occupancy limits that typically require properties to be in residential or commercial zones with proper permits. Obtain necessary permits including a Oregon Department of Revenue transient lodging tax license, potential city business license from Bandon City Hall, and ensure compliance with fire safety codes and building inspections that may require smoke detectors, carbon monoxide detectors, and emergency exit plans. Find a suitable property by purchasing or leasing in approved zones, considering proximity to Bandon Beach, Face Rock, and golf courses which are major attractions, with properties typically ranging from $300,000-$800,000 for purchase or $1,500-$3,000 monthly for long-term leases suitable for short-term rental conversion. Furnish the property with coastal-themed decor, essential amenities like WiFi, full kitchen, linens, towels, and outdoor furniture to capitalize on Bandon's scenic coastline, budgeting approximately $15,000-$30,000 for complete furnishing depending on property size. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting ocean views, beach access, and local attractions, setting competitive rates typically ranging $150-$400 per night depending on season and property type. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services in Bandon, implementing keyless entry systems, maintaining responsive communication with guests, and partnering with local property management companies if needed, while ensuring ongoing compliance with tax obligations and permit renewals through Coos County and Oregon state agencies.

To identify profitable short-term rental properties in Bandon, Oregon, focus on locations within 1-2 miles of Bandon Beach Golf Resort, Bandon Dunes Golf Resort, and the historic Old Town waterfront, as these areas attract high-paying golf tourists and coastal visitors year-round. Target 2-4 bedroom properties with ocean views, golf course proximity, modern amenities like hot tubs, fireplaces, and updated kitchens, as these command premium rates of $200-400+ per night during peak golf season (May-October). Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that oceanfront homes typically achieve 65-75% occupancy with average daily rates 40-60% higher than inland properties. Research competition by monitoring active Airbnb and VRBO listings within a 3-mile radius, identifying gaps in luxury amenities or underpriced properties, while noting that Bandon's limited inventory of 150-200 active STRs creates less saturation than larger coastal markets. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with local property management companies like Bandon Beach Vacation Rentals to understand operational costs, which typically run 25-35% of gross revenue including cleaning, maintenance, and management fees in this premium coastal golf destination market.

To obtain an Airbnb/STR permit in Bandon, Oregon, you must first contact the Bandon City Hall at 555 2nd Street SE or call (541) 347-2437 to obtain a Short-Term Rental Business License application. Required documents include a completed application form, proof of property ownership or lease agreement, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), fire safety inspection certificate from Bandon Fire Department, septic system inspection (if applicable), and parking plan showing adequate off-street parking. The application fee is approximately $150 annually with an additional $75 inspection fee. You must also register with the Oregon Department of Revenue for transient lodging tax collection and obtain a Coos County business license if operating commercially. The approval timeline is typically 30-45 days after submitting a complete application. Bandon-specific requirements include maximum occupancy limits based on bedrooms and septic capacity, mandatory 24-hour local contact person, compliance with residential zoning restrictions, and adherence to noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also meet building code requirements and pass annual safety inspections, with renewals required each January.

Short-term rentals (STRs) are legal in Bandon, Oregon, but operate under specific regulations established by the city. Bandon requires STR operators to obtain a business license and comply with local zoning requirements, with most residential zones allowing STRs as a conditional use. The city has implemented occupancy limits, parking requirements, and noise restrictions to address neighborhood concerns. STRs must meet safety standards including smoke detectors and emergency egress requirements. Recent changes around 2019-2020 included stricter enforcement of existing regulations and enhanced complaint procedures for neighbors. The city does not currently cap the total number of STR permits but monitors their impact on housing availability and neighborhood character. Operators must also comply with Oregon state tax requirements and may need additional permits depending on the property's location and use intensity.

The best areas for Airbnb investment in Bandon, Oregon include the Beach Loop Road corridor and Old Town Bandon waterfront district, which attract tourists year-round due to proximity to Bandon State Natural Area's dramatic rock formations and easy beach access. The Bandon Dunes Golf Resort vicinity on Round Lake Drive commands premium rates from golf enthusiasts visiting the world-renowned courses, with peak seasons during spring through fall tournaments. The historic Port Orford-Bandon area near the Coquille River mouth appeals to fishing enthusiasts and offers scenic water views, while properties within walking distance of Bandon's cranberry bogs capitalize on harvest season tourism from September to November. The residential neighborhoods along 11th Street and Beach Loop provide quieter alternatives for families and longer-stay visitors, benefiting from Bandon's growing reputation as a coastal retreat destination, with occupancy rates typically highest during summer months and golf season, supported by the town's position as a gateway to Oregon's southern coast attractions.

In Bandon, Oregon, Airbnb hosts are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8%, Coos County's transient room tax of 7%, and the City of Bandon's transient lodging tax of 9%, totaling approximately 17.8% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the appropriate tax authorities on behalf of hosts. Hosts must register with the Oregon Department of Revenue, Coos County, and the City of Bandon to obtain the necessary permits and tax identification numbers. Monthly or quarterly remittance is required depending on the jurisdiction and volume of bookings, with returns due by the 15th of the following month for most localities. Exemptions may apply for stays exceeding 30 consecutive days, certain government employees on official business, and in some cases for disabled veterans or other qualifying individuals, though hosts should verify current exemption criteria with each taxing authority as requirements can change.

Starting an Airbnb in Bandon, Oregon requires approximately $650,000-750,000 in total initial investment. Property purchase costs around $550,000-650,000 based on median home prices in this coastal market as of 2023-2024. Furnishing a 2-3 bedroom property runs $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and coastal-themed decor. Initial setup costs total $3,000-5,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees range $500-1,500 including business license, transient lodging tax registration, and any local short-term rental permits required by Coos County. Insurance costs $2,000-3,500 annually for short-term rental coverage. Utility setup and deposits require $500-800 for electricity, water, sewer, internet, and cable services. First six months operating costs total approximately $8,000-12,000 including utilities ($200-300/month), cleaning services ($100-150 per turnover), supplies and maintenance ($300-500/month), property management software ($50-100/month), and marketing expenses, assuming 50-60% occupancy rates typical for Bandon's seasonal tourism market.

Airbnb properties in Bandon, Oregon demonstrate strong seasonal profitability with average daily rates ranging from $150-300 during peak summer months (June-September) and $80-150 in off-season periods. Properties within walking distance of Bandon Dunes Golf Resort command premium rates of $250-400 nightly, generating annual revenues of $45,000-75,000 for well-managed 2-3 bedroom homes. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for property management fees, 8-12% for utilities and supplies, and 3-5% for Airbnb service fees, resulting in net profit margins of 35-50% for successful properties. Ocean-view properties and golf course proximity drive the highest occupancy rates at 65-80% annually, while inland properties average 45-60% occupancy. Success factors include professional photography showcasing coastal views, responsive guest communication, partnerships with local golf concierges, and amenities like hot tubs or game rooms. Properties purchased in 2019-2021 for $400,000-600,000 have shown strong ROI of 12-18% annually, though recent interest rate increases and higher acquisition costs have compressed returns for new investors to 8-12% in 2023-2024.

Airbnb investments in Bandon, Oregon typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the town's proximity to Bandon Dunes Golf Resort and Pacific coastline tourism. Properties within 2-3 miles of the golf resort or beachfront areas command premium nightly rates of $180-350, while inland properties average $120-200 per night during peak summer and golf seasons (May through October). Initial profitability usually occurs within 18-24 months for well-positioned properties, with vacation rental occupancy rates averaging 65-75% annually. The market benefits from consistent demand from golf tourists visiting Bandon Dunes, Pacific Dunes, and Sheep Ranch courses, plus summer beach visitors, though winter months see reduced occupancy of 35-45%. Properties requiring minimal renovation in desirable locations near Bandon Beach State Park or within Bandon city limits typically achieve break-even faster, while those requiring significant improvements may extend profitability timelines to 30-36 months but can achieve higher long-term returns of 15-20% annually once established.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Bandon, Oregon, using data analytics and market insights. Local real estate agents specializing in Airbnb investments in the Bandon area include Bandon Beach Realty, Coastal Properties Oregon, and Century 21 Agate Realty, who understand the unique coastal rental market dynamics. National services like AirDNA provide market data and revenue projections for Bandon properties, while Mashvisor offers investment property analysis tools specific to the Oregon coast. RedAwning and Vacasa, both operating in Oregon since the mid-2010s, offer property management services that can help investors evaluate potential returns. Local property management companies such as Oregon Coast Vacations and Bandon Vacation Rentals provide insights into which properties perform best as short-term rentals. Investment-focused platforms like Roofstock and BiggerPockets connect investors with Bandon-area properties and local experts, while companies like AvantStay specialize in identifying and optimizing premium short-term rental properties in coastal markets like Bandon.