Is Coos Bay, Oregon Good for Airbnb Investment?

To start an Airbnb in Coos Bay, Oregon, begin by researching local regulations through the City of Coos Bay Planning Department, as the city requires short-term rental permits and compliance with zoning ordinances that typically allow vacation rentals in residential zones with proper licensing. Obtain necessary permits including a business license from Coos Bay City Hall, a transient lodging tax permit from Coos County, and ensure compliance with Oregon state lodging regulations which may require safety inspections and fire safety compliance. Find a suitable property in neighborhoods like Empire, Bunker Hill, or near the waterfront areas that are zoned for short-term rentals, considering proximity to attractions like the Oregon Dunes and Coos Bay waterfront. Furnish the property with coastal-themed decor, essential amenities, high-speed internet, and safety equipment including smoke detectors, carbon monoxide detectors, and first aid kits as required by Oregon lodging standards. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting ocean views or proximity to outdoor activities, setting competitive rates based on seasonal demand (summer rates $150-250/night, winter $80-150/night based on 2023-2024 market analysis). Manage the property by establishing cleaning protocols, coordinating with local cleaning services like those available through Coos Bay area providers, implementing keyless entry systems, and maintaining responsive communication with guests while collecting and remitting the required 9.5% transient lodging tax to Coos County and any applicable city taxes.

To identify profitable short-term rental properties in Coos Bay, Oregon, focus on locations within walking distance of the historic downtown waterfront, near the Oregon Dunes National Recreation Area, or properties with bay views and beach access, as these areas attract tourists year-round for crabbing, fishing, and outdoor recreation. Target 2-4 bedroom homes or condos built after 1980 with updated kitchens, reliable WiFi, parking, and outdoor spaces like decks or patios that can accommodate families and groups visiting for recreational activities. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($80-150 typically) and occupancy rates (40-65% annually), while analyzing seasonal trends showing peak demand during summer months and crab season (December-February). Research competition by examining existing STR listings on Airbnb and VRBO within a 3-mile radius, noting amenities, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, STR Helper, and local resources including the Coos Bay Visitor Information Center, Oregon Coast Visitors Association data, and connect with local property management companies like Meredith Lodging or Vacasa to understand market dynamics, while ensuring compliance with Coos County's STR regulations and obtaining necessary permits through the county planning department.

To obtain an Airbnb/STR permit in Coos Bay, Oregon, you must first contact the Coos Bay Planning Department at City Hall located at 500 Central Avenue to determine if your property is in a zone that allows short-term rentals, as they are typically restricted to certain residential and commercial zones. You'll need to submit a Conditional Use Permit application along with required documents including a site plan showing the property layout, parking arrangements, and neighboring properties within 200 feet, proof of property ownership or authorization from the owner, a detailed operational plan describing guest capacity and management procedures, and evidence of adequate parking (typically one space per bedroom plus one additional space). The application fee is approximately $750-$1,200 depending on the complexity of the review, and you may need to pay additional fees for public notices and hearings. The process typically takes 60-90 days and includes a public hearing before the Planning Commission where neighbors can provide input. Coos Bay requires STR operators to maintain liability insurance of at least $1 million, provide 24/7 contact information for guests and neighbors, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, ensure adequate off-street parking, and comply 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 obtain a business license from Coos County, with annual renewal required for the conditional use permit.

Short-term rentals (STRs) are legal in Coos Bay, Oregon, but operate under specific regulations established by the city. As of recent years, Coos Bay requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use zones, while residential zones have more limited permissions. The city has implemented occupancy limits, parking requirements, and noise ordinances to address neighborhood concerns. Property owners must also comply with Oregon state regulations including transient lodging taxes. Recent changes around 2020-2022 included stricter enforcement mechanisms and clearer permitting processes following community input about the impact of vacation rentals on housing availability and neighborhood character. STRs are generally prohibited in certain residential areas without proper permits, and the city maintains the right to revoke licenses for non-compliance with safety codes, tax obligations, or repeated violations of community standards.

The best Airbnb investment areas in Coos Bay, Oregon include the Historic Downtown district near the waterfront, which attracts tourists visiting the Coos Bay Boardwalk and attending events at the Egyptian Theatre, plus business travelers to the port facilities. The Empire area offers proximity to the Oregon Dunes National Recreation Area, drawing ATV enthusiasts and outdoor recreation visitors year-round. The Bunker Hill neighborhood provides elevated views of the bay and is popular with visitors to Shore Acres State Park and Cape Perpetua. The Charleston area, though technically separate, is highly desirable for its working waterfront, fresh seafood restaurants, and access to the Oregon Coast Aquarium day trips. Properties near Mingus Park attract families visiting for sports tournaments and community events, while areas close to Southwestern Oregon Community College see demand from visiting families and academic-related travelers. The Newmark Avenue corridor offers good accessibility to both downtown attractions and highway access for travelers exploring the broader Oregon Coast region.

Airbnb properties in Coos Bay, Oregon are subject to multiple lodging taxes including Oregon's state transient lodging tax of 1.8% on gross rental receipts, Coos County's transient room tax of 7% on gross room revenue, and the City of Coos Bay's transient occupancy tax of 9% on gross rental receipts, resulting in a combined rate of approximately 17.8%. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their tax collection service, which began operating in Oregon around 2018. Airbnb remits collected state and local taxes directly to the Oregon Department of Revenue and local jurisdictions on behalf of hosts, though individual hosts remain responsible for ensuring compliance and may need to register with local tax authorities. Exemptions generally include stays of 30 days or longer which are considered long-term rentals rather than transient lodging, and certain government or nonprofit organization bookings may qualify for exemptions depending on local ordinances. Hosts should verify current rates and requirements with the Oregon Department of Revenue, Coos County, and the City of Coos Bay as tax rates and collection procedures can change.

Starting an Airbnb in Coos Bay, Oregon requires approximately $380,000-$450,000 in total initial investment. Property purchase costs around $320,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Coos County include business license ($100), transient lodging tax registration ($50), and potential conditional use permits ($500-$1,500). Insurance premiums for short-term rental coverage cost approximately $2,000-$3,000 annually. Utility deposits and connections for electricity, water, sewer, internet, and cable total around $800-$1,200. First six months of operating costs including utilities ($200/month), cleaning supplies ($100/month), maintenance reserves ($150/month), marketing ($100/month), and platform fees (3% of bookings estimated at $300/month) amount to approximately $5,100. Additional considerations include property management software subscriptions ($50/month) and emergency repair funds ($2,000-$3,000).

Airbnb properties in Coos Bay, Oregon typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$150 depending on proximity to the coast and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Profit margins typically range from 15-35% for successful operators, with oceanfront properties and those near Shore Acres State Park commanding premium rates and achieving higher occupancy rates of 60-75% versus inland properties at 40-55%. Success factors include strategic location within 5 miles of the coast, professional photography, responsive guest communication, and seasonal pricing optimization that capitalizes on summer tourism peaks from June through September. Properties featuring hot tubs, fire pits, or pet-friendly policies often achieve 20-30% higher revenues, while those managed by companies like Vacasa or RedAwning report more consistent bookings but lower net margins due to management fees. The market benefits from Coos Bay's position as a gateway to Oregon Dunes National Recreation Area and its appeal to both outdoor enthusiasts and coastal tourists seeking alternatives to more expensive markets like Cannon Beach or Newport.

Airbnb investments in Coos Bay, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the area's coastal tourism appeal and proximity to Oregon Dunes National Recreation Area. Properties within 2-3 miles of the waterfront or recreational areas command premium nightly rates of $120-180 during peak summer months (June-September) and $80-120 during off-season, with average occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties under $400,000, while higher-end coastal properties may require 24-36 months to reach consistent profitability. The market benefits from steady demand from outdoor recreation enthusiasts, fishing groups, and families visiting the Oregon Coast, though seasonal fluctuations require careful cash flow management during slower winter months when occupancy can drop to 40-50%.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Coos Bay, Oregon, using data analytics to evaluate potential returns. Local real estate agents specializing in investment properties include Windermere Real Estate and Century 21 Agate Realty, both with agents experienced in the Coos Bay vacation rental market since the early 2010s. RE/MAX Coast Real Estate has agents who focus on waterfront and tourist-area properties ideal for Airbnb investments. National services include Mashvisor, which provides rental property analysis tools, and BiggerPockets, offering investor networking and market data for Oregon coastal markets. AirDNA specializes in short-term rental market analytics for areas like Coos Bay, providing occupancy rates and pricing data since 2015. Roofstock focuses on turnkey rental properties, while Awning offers short-term rental property management services. Local property management companies like Oregon Coast Vacation Rentals and Sunset Vacation Rental Management help investors maximize their Airbnb returns through professional management services established in the mid-2000s.