Is Bend, Oregon Good for Airbnb Investment?

To start an Airbnb in Bend, Oregon, begin by researching the city's short-term rental regulations, which require a Transient Lodging License from the City of Bend and compliance with zoning restrictions that limit short-term rentals in certain residential areas. Obtain necessary permits including the transient lodging license ($200-400 annually), register for Oregon state lodging tax collection, and ensure your property meets fire safety requirements with smoke detectors and carbon monoxide alarms. Find a suitable property in zones that allow short-term rentals, typically in commercial or mixed-use areas, or in residential zones where grandfathered permits exist, with purchase prices ranging from $400,000-800,000 for suitable properties as of 2023. Furnish the space with outdoor recreation gear storage, high-quality bedding, full kitchen amenities, and mountain-themed decor that appeals to Bend's outdoor tourism market, budgeting $15,000-30,000 for complete furnishing. List your property on Airbnb and VRBO with professional photography highlighting proximity to Mount Bachelor, Cascade Lakes, and downtown Bend, setting competitive rates of $150-400 per night depending on season and property size. Manage the rental by implementing a 24/7 guest communication system, partnering with local cleaning services ($80-150 per turnover), coordinating with property management companies like Vacasa or RedAwning if desired, and maintaining compliance with Bend's noise ordinances and parking requirements while collecting and remitting the required 11.5% combined city and county lodging taxes.

To identify profitable short-term rental properties in Bend, Oregon, focus on locations within 10-15 minutes of downtown Bend or near outdoor recreation access points like the Deschutes River, Cascade Lakes Highway, or Mount Bachelor ski area, as these areas command premium nightly rates of $200-400+ during peak seasons. Target properties with 3-4 bedrooms, outdoor amenities like hot tubs or fire pits, mountain or river views, and modern furnishings that appeal to outdoor enthusiasts and families, as Bend's STR market thrives on vacation rentals rather than business travel. Conduct pricing analysis using AirDNA or Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically requiring purchase prices under $800,000-1,200,000 to maintain profitable cash flow after expenses. Research competition by analyzing similar properties within a 2-mile radius using Airbnb and VRBO data, focusing on occupancy rates above 65% annually and average daily rates, while noting that Bend's market shows strong seasonality with peak demand during summer months and ski season. Utilize tools like Rabbu, AirDNA, and local MLS data through Bend-area realtors familiar with STR regulations, while monitoring Deschutes County's STR permit requirements and caps, as the city has implemented registration systems and occupancy limits that affect property eligibility and profitability in this competitive Central Oregon market.

To obtain an Airbnb/STR permit in Bend, Oregon, you must apply through the City of Bend's Community Development Department by submitting an application online via their permit portal or in person at City Hall located at 710 NW Wall Street. Required documents include a completed short-term rental application, proof of property ownership or authorization letter from owner, site plan showing parking spaces and emergency exits, floor plan indicating maximum occupancy, proof of liability insurance (minimum $1 million), contact information for a local responsible party within 30 minutes of the property, and a good neighbor agreement. The application fee is approximately $400-500 with an annual renewal fee of around $200-300. The timeline typically takes 4-6 weeks for processing once all required documents are submitted. Bend-specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests (maximum 10 people), providing adequate off-street parking (minimum 1 space per bedroom), maintaining quiet hours from 10 PM to 7 AM, posting the permit number and emergency contact information prominently, and ensuring the property meets all building and fire safety codes including smoke and carbon monoxide detectors in each bedroom and common area.

Short-term rentals (STRs) are legal in Bend, Oregon, but operate under strict regulations implemented by the city. As of 2023, Bend requires STR operators to obtain a business license and conditional use permit, with properties limited to a maximum of 30 rental days per year for Type 1 STRs (owner-occupied) and unlimited days for Type 2 STRs (non-owner-occupied) which face more stringent requirements. The city prohibits STRs in certain residential zones and requires operators to maintain liability insurance, provide 24/7 contact information, and comply with occupancy limits typically based on two people per bedroom plus two additional guests. Recent changes include increased enforcement measures and potential caps on the total number of STR permits issued, as Bend has been grappling with housing affordability concerns and neighborhood impacts from vacation rentals, leading to ongoing discussions about further restrictions particularly in residential areas near downtown and popular recreational zones.

The most attractive Airbnb investment areas in Bend, Oregon include the Old Mill District, which offers proximity to shopping, dining, and the Deschutes River with strong appeal to tourists and business travelers visiting the area's corporate offices and events; the Northwest Crossing neighborhood, featuring newer developments close to hiking trails and outdoor recreation that attract adventure tourists year-round; the Westside/Awbrey Butte area, providing upscale accommodations with mountain views that command premium rates from affluent visitors; Downtown Bend, offering walkability to breweries, restaurants, and cultural attractions while serving business travelers and weekend tourists; and the Pine Nursery Park/Southeast Bend area, which provides more affordable investment opportunities while still maintaining access to outdoor activities and downtown amenities, making it attractive to budget-conscious families and groups visiting for skiing at Mount Bachelor, hiking, fishing, and attending events at venues like the Les Schwab Amphitheater.

In Bend, Oregon, Airbnb hosts must collect and remit several lodging taxes including the Oregon state transient lodging tax of 1.8%, Deschutes County's transient room tax of 7%, and the City of Bend's transient lodging tax of 9.7%, totaling approximately 18.5% in combined lodging taxes as of 2023. These taxes are collected from guests at the time of booking and must be remitted monthly to the respective jurisdictions, with the state tax due by the 15th of the following month, county tax due by the last day of the following month, and city tax due by the 15th of the following month. Airbnb may collect and remit these taxes automatically for hosts through their platform in some cases, but hosts remain ultimately responsible for compliance and should verify collection and remittance. Registration is required with each taxing authority before beginning operations, and stays of 30 days or longer are typically exempt from these transient lodging taxes, though hosts should verify current exemption criteria as regulations can change.

Starting an Airbnb in Bend, Oregon requires approximately $850,000-$950,000 in total initial investment. Property purchase represents the largest expense at $750,000-$800,000 based on median home prices in Bend as of 2023-2024. Furnishing costs typically range $25,000-$35,000 for a complete setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials add approximately $2,000-$3,000. Permits and fees vary but generally cost $500-$1,500 depending on city requirements and short-term rental licensing. Insurance specifically for short-term rentals runs $2,000-$4,000 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable total approximately $1,000-$2,000. First six months of operating costs including utilities ($300-$500 monthly), cleaning services ($100-$150 per turnover), maintenance reserves ($200-$400 monthly), property management if outsourced (20-30% of revenue), and platform fees (3-5% of bookings) typically require $8,000-$15,000 in working capital depending on occupancy rates and seasonal demand in the Bend market.

Airbnb properties in Bend, Oregon demonstrate strong profitability potential with average daily rates ranging from $150-300 depending on property type and season, generating annual revenues of $35,000-75,000 for well-positioned properties. A typical 3-bedroom vacation rental near downtown Bend can achieve 65-75% occupancy rates, with peak winter ski season (December-February) and summer outdoor recreation months (June-September) commanding premium rates of $250-400 per night. Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for property management fees, 8-12% for utilities and insurance, and 3% Airbnb service fees, resulting in net profit margins of 35-45% for owner-operated properties. Success factors include proximity to Mount Bachelor ski resort, downtown Bend attractions, and outdoor recreation access, with properties featuring hot tubs, mountain views, and modern amenities achieving 15-25% higher rates. Case studies from 2022-2023 show that investors purchasing $600,000-800,000 properties in desirable neighborhoods like Northwest Crossing or near the Deschutes River achieved 8-12% annual returns after mortgage payments, with some luxury properties exceeding $100,000 in annual gross revenue during peak market conditions.

Airbnb investments in Bend, Oregon typically generate annual ROI of 12-18% due to the city's strong tourism market driven by outdoor recreation activities like skiing at Mount Bachelor and summer hiking. Cash-on-cash returns generally range from 8-14% annually, with properties near downtown or recreational areas performing at the higher end of this range. Most investors achieve profitability within 18-24 months, with peak earning potential during ski season (December-March) and summer months (June-September) when nightly rates can reach $200-400 for well-positioned properties. The market benefits from Bend's growing population, limited hotel inventory, and year-round tourist appeal, though investors should factor in seasonal occupancy fluctuations of 60-85% and higher property acquisition costs averaging $600,000-900,000 for suitable investment properties as of 2023-2024.

STRSearch leads the market in Airbnb investment property analysis nationwide including Bend, Oregon, providing comprehensive data on rental performance and market trends. In Bend specifically, Windermere Real Estate and Coldwell Banker Bain have agents experienced in short-term rental investments, while Century 21 Cascade Realty offers local market expertise for vacation rental properties. Vacasa, founded in 2009, provides property management services and investment guidance for Bend Airbnb properties. National services include BiggerPockets for investor networking, Mashvisor for rental property analytics since 2014, and AirDNA for short-term rental market data analysis. Local Bend specialists include High Desert Realty Group and Stellar Realty Northwest, both focusing on investment properties in Central Oregon's vacation rental market. Additional services include RedAwning for property management consultation, AvantStay for luxury short-term rental investments, and local property management companies like Central Oregon Property Management that assist investors in identifying profitable Airbnb opportunities in Bend's growing tourism market.