Is Bay City, Oregon Good for Airbnb Investment?

To start an Airbnb in Bay City, Oregon, begin by researching local regulations through Tillamook County and Bay City municipal offices, as Oregon requires short-term rental operators to register with the state and obtain a Transient Lodging Tax license, while Tillamook County may require additional permits and zoning compliance checks. Contact Bay City's planning department to verify zoning allows short-term rentals in your target area and obtain any required business licenses, which typically cost $50-200 annually. Find a suitable property within Bay City's residential zones, focusing on areas near the beach or downtown that attract tourists, with purchase prices ranging from $300,000-800,000 depending on proximity to the ocean. Furnish the property with coastal-themed, durable furniture including quality mattresses, linens, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $15,000-25,000 for a complete setup. Create your Airbnb listing with professional photos highlighting ocean views or beach access, competitive pricing around $100-250 per night based on seasonality and property size, and detailed descriptions emphasizing Bay City's attractions like the beach, nearby Tillamook Cheese Factory, and outdoor activities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and ensuring compliance with Oregon's 1% statewide transient lodging tax plus any local taxes, while considering hiring a local property management company if you live outside the area.

To identify profitable short-term rental properties in Bay City, Oregon, focus on properties within 2-3 blocks of the beach or with ocean views, as proximity to Tillamook Bay and the Pacific Ocean drives demand. Target 2-4 bedroom homes or condos built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces like decks or patios that capitalize on the coastal setting. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for nightly rates between $150-300 depending on size and location, with peak summer occupancy rates of 70-85%. Research competition by studying existing STR listings on Airbnb and VRBO within a 1-mile radius, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu and AllTheRooms for market analysis, check Tillamook County's STR regulations and permit requirements, and leverage local resources such as the Bay City Chamber of Commerce and Oregon Coast Visitors Association data to understand seasonal tourism patterns, with summer months (June-September) typically generating 60-70% of annual revenue in this coastal market.

To obtain an Airbnb/STR permit in Bay City, Oregon, you must first contact the Bay City Planning Department at City Hall located at 5525 B Street, as Bay City requires a Conditional Use Permit for short-term rentals. Submit an application including property deed, site plan, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, septic system approval if applicable, and a detailed operating plan addressing noise control, trash management, and guest check-in procedures. Required documents also include proof of liability insurance (minimum $1 million), Oregon business license, and completed neighborhood notification forms. The application fee is approximately $750-$1,200 plus additional fees for public hearings if required. The process typically takes 60-90 days and includes a public comment period and potential Planning Commission review. Bay City specific requirements include maximum occupancy limits based on bedrooms and septic capacity, mandatory 24-hour local contact person, quiet hours enforcement from 10 PM to 7 AM, and compliance with parking requirements of one space per bedroom plus one additional space. Properties must also meet all building and fire safety codes, maintain current septic system certifications, and renew permits annually with the city while maintaining compliance with Tillamook County health department regulations.

Short-term rentals (STRs) are legal in Bay City, Oregon, but operate under Tillamook County's regulations since Bay City is an unincorporated community. As of 2023, Tillamook County allows STRs in residential zones with proper licensing and registration requirements, including obtaining a business license, paying transient lodging taxes, and meeting safety standards such as smoke detectors and emergency egress. Properties must comply with occupancy limits typically based on bedrooms plus two additional guests, maintain adequate parking, and cannot operate in areas zoned exclusively for long-term residential use. Recent changes around 2022-2023 have strengthened enforcement mechanisms and increased penalties for non-compliant operators, while also requiring more detailed reporting of rental activity. The county has implemented a complaint-driven enforcement system and requires annual license renewals, with some neighborhoods having additional homeowner association restrictions that may further limit STR operations beyond county requirements.

The best Airbnb investment areas in Bay City, Oregon include the beachfront neighborhoods along Bayocean Road and areas near the Bay City Arts Center, which attract tourists year-round due to direct beach access, stunning ocean views, and proximity to crabbing and clamming activities that draw visitors from Portland and other Oregon cities. The historic downtown district near the Tillamook Bay offers strong potential due to its proximity to local restaurants, antique shops, and the working waterfront atmosphere that appeals to visitors seeking authentic coastal experiences. Properties near Cape Meares State Scenic Viewpoint and the Three Capes Scenic Loop benefit from consistent tourist traffic, particularly during summer months and fall storm-watching season, while areas close to the Tillamook Creamery (approximately 10 miles away) capture overflow visitors from this major regional attraction that draws over 1.3 million visitors annually.

Bay City, Oregon imposes a transient lodging tax of 9% on short-term rental accommodations including Airbnbs, which is collected by the city and applies to stays of less than 30 consecutive days. The tax is typically collected directly from guests at the time of booking through platforms like Airbnb's automatic tax collection system, or hosts must collect it manually and remit it to Bay City's finance department on a monthly basis by the 15th of the following month using the city's transient lodging tax return form. Additionally, Oregon state lodging tax of 1.8% applies statewide to all transient accommodations, and Tillamook County may impose an additional transient room tax of approximately 3-5% depending on current ordinances. Hosts must register with the city to obtain a transient lodging tax license before operating, and exemptions typically include stays of 30 days or longer, certain government employees on official business, and accommodations provided to homeless individuals through social service programs, though hosts should verify current exemption criteria with Bay City's municipal offices as rates and regulations can change annually.

The total cost to start an Airbnb in Bay City, Oregon would be approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median coastal Oregon home prices in small towns like Bay City. Furnishing costs typically range $15,000-$25,000 for a complete vacation rental setup including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Tillamook County include business license ($100), transient lodging tax registration ($50), and potential conditional use permits ($500-$1,500). Insurance for short-term rentals costs approximately $2,000-$3,000 annually. Utilities including electricity, water, sewer, garbage, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning supplies, maintenance, marketing, property management software, and miscellaneous expenses total approximately $4,000-$6,000. Additional considerations include potential HOA fees, property taxes (approximately $4,000-$5,000 annually), and emergency repair funds of $2,000-$3,000.

Airbnb properties in Bay City, Oregon, typically generate annual revenues of $25,000-$45,000 for oceanfront properties and $15,000-$30,000 for inland properties, with average daily rates ranging from $120-$280 depending on proximity to the beach and property size. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$80 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs averaging $3,000-$6,000 yearly. Net profit margins typically range from 15-35%, with successful properties achieving higher margins through strategic pricing during peak summer months (June-September) when rates can increase 50-80% above off-season levels. Success factors include professional photography showcasing ocean views, maintaining 4.8+ star ratings through consistent cleanliness and guest communication, offering amenities like hot tubs or fire pits, and implementing dynamic pricing strategies that capitalize on events like the Tillamook County Fair or storm-watching seasons. Properties within 2-3 blocks of the beach consistently outperform inland properties by 40-60% in both occupancy rates (65-80% vs 45-60%) and revenue per available night, with oceanfront vacation rentals in Bay City achieving some of the highest returns in Lincoln County's short-term rental market.

Based on Bay City, Oregon market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location proximity to the beach. Properties within walking distance of the coastline and popular attractions like Cape Lookout State Park command higher nightly rates of $150-250, while inland properties average $100-180 per night during peak summer months (June-September) which represent 60% of annual bookings. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points accelerated by Oregon's strong tourism market driven by coastal recreation and the scenic Three Capes Loop. Properties requiring significant renovation may extend profitability timelines to 30-36 months, but established vacation rentals in prime locations near Nestucca Bay or with ocean views consistently achieve the higher end of ROI ranges due to premium pricing power and occupancy rates of 65-75% annually.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Bay City, Oregon. Local real estate agents like Coastal Properties Group and Pacific West Real Estate have experience with vacation rental investments along the Oregon coast. Vacasa, a national vacation rental management company founded in 2009, offers property acquisition services and has a strong presence in Oregon coastal markets. RedAwning provides investment analysis tools for short-term rental properties nationwide including Oregon markets. Local agents such as Century 21 Agate Realty and Windermere Real Estate have knowledge of Bay City's rental market dynamics. AirDNA offers market data and analytics specifically for Airbnb investments in coastal Oregon communities. Mashvisor provides investment property analysis tools that cover Bay City and surrounding areas. Local property management companies like Oregon Beach Vacations can provide insights into profitable rental properties while also offering management services. BiggerPockets marketplace connects investors with local agents experienced in short-term rental investments throughout Oregon's coastal region.