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 Bay City may have specific zoning restrictions and occupancy limits that typically require properties to be in residential or commercial zones with proper fire safety compliance. Obtain necessary permits including a business license from Bay City, state registration through Oregon's Department of Revenue, and potentially a land use permit if required by local zoning laws, with fees typically ranging $100-500 annually. Find a suitable property by purchasing or leasing a home, condo, or apartment in Bay City's residential areas near the beach or downtown, ensuring it meets local occupancy standards and has adequate parking as required by most Oregon coastal communities. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as mandated by Oregon fire codes, while creating an appealing coastal theme that attracts visitors to the Oregon coast. List your property on Airbnb and other platforms like VRBO with professional photos highlighting Bay City's proximity to beaches and outdoor activities, setting competitive rates based on seasonal demand patterns typical of Oregon coastal towns where summer rates can be 2-3 times higher than winter rates. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries and bookings, coordinating key exchanges or lockbox systems, maintaining the property regularly, and ensuring compliance with ongoing tax obligations including Oregon's statewide transit tax and any local lodging taxes that Bay City may impose on short-term rentals.

To identify profitable short-term rental properties in Bay City, Oregon, focus on oceanfront or ocean-view properties within walking distance of the beach, particularly along Highway 101 and streets like 5th Avenue NW that offer easy beach access. 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 by researching comparable Airbnb and VRBO listings in Bay City, Rockaway Beach, and Manzanita, aiming for properties that can command $150-300 per night during peak summer months while maintaining 60-70% occupancy rates. Research competition using AirDNA and Mashvisor to assess market saturation, with Bay City having fewer STR options than neighboring Cannon Beach or Lincoln City, creating opportunities for well-positioned properties. Utilize Zillow, Realtor.com, and local MLS data through Oregon coast realtors, while leveraging STR-specific tools like Rabbu and AllTheRooms to analyze revenue potential, and consider properties near attractions like the Tillamook Rock Lighthouse viewpoint or Cape Meares that can justify premium pricing for the Bay City 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 operational plan addressing noise control, waste management, and guest management procedures. Required documents also include proof of liability insurance (minimum $1 million), Oregon business license, and Tillamook County transient lodging tax registration. The application fee is approximately $500-750 plus additional fees for public notices and hearings if required. The process typically takes 60-90 days and includes a public hearing before the Planning Commission where neighbors can provide input. Bay City specific requirements include maximum occupancy limits based on bedrooms and septic capacity, mandatory quiet hours from 10 PM to 8 AM, designated parking spaces for each rental unit, proper waste disposal arrangements, and compliance with all building and fire safety codes. Once approved, you must also register with the Oregon Department of Revenue for transient lodging tax collection and maintain current business licenses and insurance throughout the permit period.

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, transient lodging tax registration, and compliance with occupancy limits typically set at 2 people per bedroom plus 2 additional guests. Properties must meet safety standards including smoke and carbon monoxide detectors, and owners must provide 24-hour contact information for noise or emergency issues. The county implemented stricter regulations around 2021-2022 following community concerns about housing availability and neighborhood impacts, requiring annual renewals and allowing for complaint-based enforcement. Bay City's coastal location makes it popular for vacation rentals, but operators must also comply with any applicable homeowners association rules and ensure adequate parking for guests, with violations potentially resulting in fines or license revocation.

The most promising Airbnb investment areas in Bay City, Oregon include the beachfront neighborhoods along Bayocean Road and the historic downtown district near the Tillamook Bay waterfront. The oceanfront properties attract tourists year-round seeking beach access, crabbing, and scenic coastal views, with peak demand during summer months and crab season (October-January). The downtown area near the bay offers proximity to restaurants, shops, and the working waterfront where visitors come for fresh seafood and maritime activities. Properties within walking distance of Cape Meares State Scenic Viewpoint and Three Arch Rocks benefit from nature tourism and wildlife viewing opportunities. The residential areas along 5th Street and Pacific Avenue provide good value investments with easy beach access while maintaining lower acquisition costs than premium oceanfront locations, making them attractive to budget-conscious families and groups visiting for fishing, surfing, and coastal recreation activities.

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 by the host at the time of booking or check-in, and hosts must register with Bay City's finance department and remit taxes monthly by the 15th of the following month using the city's prescribed forms. Additionally, Oregon state transient lodging tax of 1.8% applies statewide and is collected through the same process, bringing the total occupancy tax rate to approximately 10.8% for Airbnb guests in Bay City. Tillamook County may also impose an additional transient room tax of around 3%, which would increase the total rate to approximately 13.8%. Exemptions typically include stays of 30 days or longer, government employees on official business, and certain nonprofit organization bookings, though hosts must maintain proper documentation to qualify for exemptions and are required to keep detailed records of all transactions for audit purposes.

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 a vacation rental typically runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and coastal-themed decor. Initial setup costs including professional photography, listing creation, and basic marketing materials total $2,000-$3,000. Permits and fees in Tillamook County include business license ($100), transient lodging tax registration ($50), and potential short-term rental permits ($200-$500). Insurance for short-term rentals costs $2,000-$3,500 annually. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable run $500-$800 initially. First six months operating costs including utilities ($1,200), cleaning supplies and services ($1,800), maintenance reserves ($2,000), property management software ($300), and marketing ($1,000) total approximately $6,300. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $8,000-$12,000 to initial capital requirements.

Airbnb properties in Bay City, Oregon, demonstrate moderate profitability with average nightly rates ranging from $120-180 for oceanfront properties and $80-120 for inland properties, generating annual revenues of $25,000-45,000 for well-managed listings with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $3,000-5,000 yearly. Net profit margins generally range from 15-25% for hands-on owners and 8-15% for those using full-service management companies like Vacasa or RedAwning. Success factors include proximity to the beach (properties within 2 blocks command 30-40% premium rates), professional photography, responsive guest communication, and seasonal pricing optimization that captures peak summer demand when rates can reach $250+ per night. Properties purchased around 2019-2020 for $300,000-450,000 have shown strong performance, with some owners reporting 12-18% annual returns when combining rental income with property appreciation, though newer entrants face higher acquisition costs and increased competition from the 200+ active Airbnb listings in the Bay City market as of 2024.

Based on Bay City, 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 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 vacation rental demand from Portland metro area visitors and California tourists. Properties purchased at Bay City's median home price of approximately $450,000-550,000 with 25% down payments typically achieve positive cash flow within the first year when occupancy rates reach 65-75% annually, factoring in property management fees of 15-25%, maintenance costs, and local transient lodging taxes of 9-11%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking to enter the Airbnb market in Bay City, Oregon. Local real estate agents like Coldwell Banker Coast Real Estate and RE/MAX Coast and Country have agents experienced in vacation rental investments along the Oregon coast. Century 21 Agate Realty and Prudential Real Estate Professionals also serve the Bay City area with agents knowledgeable about coastal rental properties. National services include Awning, which provides end-to-end Airbnb investment services including property identification and management, and Mashvisor, an analytics platform that helps investors evaluate rental property potential. AirDNA offers market data and analytics specifically for short-term rental investments in coastal Oregon markets. Local property management companies like Vacasa and RedAwning can provide insights into profitable properties while offering management services. Real estate investment firms such as Roofstock and BiggerPockets connect investors with vacation rental opportunities, while local mortgage brokers like Pacific Residential Mortgage and Umpqua Bank offer financing solutions for investment properties in the Bay City market.