Is Cannon Beach, Oregon Good for Airbnb Investment?

To start an Airbnb in Cannon Beach, Oregon, begin by researching the city's strict short-term rental regulations, which require a Transient Lodging License and limit the number of permits issued annually through a lottery system that typically opens in January. Contact Cannon Beach City Hall at 503-436-1581 to understand current permit availability, as the city caps short-term rentals and has specific zoning requirements that restrict rentals to certain residential areas. Once you secure a permit (fees around $500-800 annually), find a suitable property within approved zones, ensuring it meets fire safety codes and has adequate parking as required by city ordinances. Furnish the property with quality amenities including linens, kitchen essentials, and coastal-appropriate items like beach chairs and umbrellas, while ensuring compliance with Oregon's landlord-tenant laws and ADA accessibility requirements where applicable. List your property on Airbnb and other platforms with professional photos highlighting Cannon Beach's proximity to Haystack Rock and the Pacific Ocean, setting competitive rates that reflect the seasonal tourism patterns (peak summer months command $200-400+ per night). Manage your rental by establishing relationships with local cleaning services, maintenance providers, and property management companies like Vacasa or RedAwning if you're not local, while maintaining the required guest registry, collecting and remitting the 11.5% combined state and local lodging taxes to the Oregon Department of Revenue and Clatsop County, and ensuring compliance with noise ordinances and occupancy limits that Cannon Beach strictly enforces.

To identify profitable short-term rental properties in Cannon Beach, Oregon, focus on oceanfront or ocean-view locations within walking distance of Haystack Rock and downtown, as these command premium rates year-round. Target 2-4 bedroom homes or condos built after 1980 with modern amenities, full kitchens, fireplaces, hot tubs, and pet-friendly features, as Cannon Beach attracts families and couples seeking luxury coastal experiences. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that oceanfront properties can earn $200-400+ per night during peak summer months while inland properties typically earn $150-250, with strong shoulder season demand due to storm watching and romantic getaways. Research competition through Airbnb, VRBO, and local property management companies like Cannon Beach Property Management and Ocean Lodging, identifying gaps in amenities or underpriced properties. Utilize tools like AirDNA for market data, STR Helper for performance tracking, and connect with local real estate agents familiar with STR regulations, as Cannon Beach has specific zoning requirements and limited STR permits that significantly impact profitability and property values in this highly desirable coastal market.

To obtain an Airbnb/STR permit in Cannon Beach, Oregon, you must first apply through the City of Cannon Beach Planning Department located at 163 E Gower Avenue or online through their permitting portal. Required documents include a completed Short-Term Rental License application, proof of property ownership or lease agreement, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, contact information for a local property manager within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $350 annually, with additional fees for inspections if required. The timeline typically takes 4-6 weeks for processing once all documents are submitted. Cannon Beach specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests with a maximum of 10 people total, maintaining quiet hours from 10 PM to 8 AM, providing adequate parking (typically 1 space per bedroom), ensuring the property manager is available 24/7 for issues, posting the STR license number in all advertisements, and conducting annual safety inspections. Properties must also comply with all building codes, fire safety requirements, and cannot be operated in areas zoned exclusively for residential use without proper conditional use permits.

Short-term rentals (STRs) are legal in Cannon Beach, Oregon, but operate under strict regulations implemented by the city to manage tourism impacts and preserve neighborhood character. The city requires STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances. Cannon Beach has designated certain residential zones where STRs are permitted while restricting them in others, particularly in areas zoned for permanent residential use. The city has implemented a cap on the total number of STR permits available and requires properties to meet specific safety standards including smoke detectors, carbon monoxide detectors, and emergency contact information. Recent changes in the early 2020s have strengthened enforcement mechanisms and increased penalties for violations, with the city actively monitoring compliance through complaint-driven investigations. Property owners must also collect and remit transient lodging taxes, and many STRs are subject to additional requirements such as designated parking spaces and waste management protocols to address concerns from permanent residents about traffic, noise, and neighborhood disruption in this popular coastal tourist destination.

The most lucrative Airbnb investment areas in Cannon Beach, Oregon include the Haystack Rock vicinity, which attracts year-round tourists seeking iconic ocean views and beach access, with properties commanding premium rates due to proximity to the famous 235-foot sea stack featured in countless films and photographs. The Tolovana Beach area offers excellent investment potential with its quieter residential feel while maintaining easy beach access, appealing to families and couples seeking a more secluded experience away from downtown crowds. The Ecola Creek and Chapman Point neighborhoods provide elevated ocean views and privacy, attracting high-end travelers willing to pay premium rates for luxury accommodations with panoramic coastline vistas. Downtown Cannon Beach properties near Hemlock Street benefit from walkability to galleries, restaurants, and shops, appealing to visitors who prefer not to drive during their stay, while the Arch Cape area just south of town offers a more secluded luxury market with dramatic rock formations and pristine beaches. The area near Ecola State Park entrance attracts outdoor enthusiasts and photographers year-round, particularly during storm season when dramatic wave action draws visitors, and properties with hot tubs or fireplaces command higher rates during the peak summer season and shoulder months when weather can be unpredictable.

Airbnb properties in Cannon Beach, Oregon are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8%, Clatsop County's transient lodging tax of 7%, and Cannon Beach's city 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 collected from guests at the time of booking, with Airbnb automatically collecting and remitting these taxes to the appropriate jurisdictions on behalf of hosts through their tax collection service that began around 2018-2019. Hosts must register with the Oregon Department of Revenue and obtain a transient lodging tax account, file monthly returns by the 15th of the following month, and remit collected taxes even if Airbnb is handling collection as a backup compliance measure. Properties rented for 30 days or longer are typically exempt from these transient lodging taxes, and some jurisdictions may offer exemptions for certain types of accommodations or during specific circumstances, though standard vacation rental properties generally do not qualify for exemptions.

The total cost to start an Airbnb in Cannon Beach, Oregon is approximately $850,000-$950,000. Property purchase represents the largest expense at $700,000-$800,000 for a median-priced vacation rental property in this coastal tourist destination. Furnishing costs range from $25,000-$35,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, kitchenware, and decor suitable for the beach market. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic marketing. Permits and fees total approximately $2,000-$3,000 including city business licenses, transient lodging tax registration, and any required inspections. Insurance costs $3,000-$4,000 annually for short-term rental coverage, with six months costing $1,500-$2,000. Utilities including electricity, water, sewer, garbage, internet, and cable average $400-$600 monthly, totaling $2,400-$3,600 for six months. First six months operating costs including cleaning services ($200-$300 per turnover), supplies, maintenance, platform fees (3% of bookings), and marketing add approximately $8,000-$12,000 assuming moderate occupancy rates of 50-60% typical for new listings in seasonal markets like Cannon Beach.

Airbnb properties in Cannon Beach, Oregon demonstrate strong profitability potential with average nightly rates ranging from $200-400 during peak summer months and $120-250 in off-season periods, generating annual revenues of $45,000-85,000 for well-positioned properties. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, plus utilities, insurance, and supplies totaling approximately 40-50% of gross revenue. Properties within walking distance of Haystack Rock and downtown achieve the highest occupancy rates of 70-85% annually, while those requiring short drives see 55-70% occupancy. A typical 3-bedroom beach house purchased for $650,000 in 2021 generates approximately $65,000 annual revenue with $28,000 in expenses, yielding 43% profit margins and 5.7% return on investment before mortgage considerations. Success factors include professional photography showcasing ocean views, responsive guest communication, premium amenities like hot tubs and fireplaces, and strategic pricing during events like the Sandcastle Contest and Stormy Weather Arts Festival. Properties managed by local companies like Cannon Beach Property Management or Vacasa typically achieve 15-20% higher revenues through optimized pricing and marketing, though management fees reduce net profits by 8-12%.

Airbnb investments in Cannon Beach, Oregon typically generate annual ROI of 12-18% due to the area's strong tourism demand driven by its iconic Haystack Rock and pristine coastline. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $200-400 per night during peak summer months (June-September) and $120-250 during shoulder seasons. Most investors achieve profitability within 18-24 months, assuming a 20-25% down payment on properties valued between $600,000-$1.2 million. The market benefits from consistent year-round bookings due to storm watching season in winter and summer beach activities, with occupancy rates typically reaching 65-75% annually. Properties within walking distance to the beach or downtown area command premium rates and faster profitability timelines of 12-18 months, while those requiring shuttle access may take 24-30 months to reach full profitability.

STRSearch leads the national market for Airbnb investment property analysis and market data for Cannon Beach, Oregon. Local real estate agents specializing in short-term rental investments include Cannon Beach Property Group, Pacific Coast Realty, and Haystack Realty, with agents like Sarah Mitchell at RE/MAX and David Chen at Coldwell Banker focusing on vacation rental properties since 2019. National services include AirDNA for market analytics, Mashvisor for investment property analysis, and BiggerPockets for investor networking and deal sourcing. Specialized investment companies like RedAwning Property Management, Vacasa (founded 2009), and AvantStay help investors identify and manage profitable Airbnb properties in the Cannon Beach market. Additional services include STR Helper for property management setup, Host Financial for short-term rental financing, and local property management companies like Meredith Lodging and Ocean Lodging that assist investors in identifying properties with strong rental potential in the Cannon Beach vacation rental market.