Is Corvallis, Oregon Good for Airbnb Investment?

To start an Airbnb in Corvallis, Oregon, begin by researching local regulations as the city requires short-term rental permits and limits rentals to owner-occupied properties or those in specific zoning areas, with a maximum of 30 days per year for non-owner occupied units. Contact Corvallis Community Development Department to obtain a Conditional Use Permit ($1,200-$1,500) and Business License ($50-$100), ensuring compliance with fire safety codes and parking requirements of one space per unit. Find a suitable property in residential zones R-1, R-2, or R-3, considering proximity to Oregon State University for higher demand, with average home prices ranging $400,000-$600,000 or rental properties $1,500-$2,500 monthly. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks, budgeting $3,000-$8,000 for initial setup. Create your Airbnb listing with professional photos highlighting unique features, set competitive rates ($80-$150 per night based on season and OSU events), and write detailed descriptions mentioning walkability to campus and downtown. Manage bookings through Airbnb's platform or consider local property management companies like Vacasa or RedAwning (10-25% commission), maintain regular cleaning schedules, respond promptly to guests, and keep detailed records for tax purposes while monitoring occupancy limits and neighbor relations to maintain your permit status.

To identify profitable short-term rental properties in Corvallis, Oregon, focus on locations within 1-2 miles of Oregon State University campus, near downtown areas like Monroe Avenue and 2nd Street, or properties with easy access to outdoor recreation areas like McDonald-Dunn Forest and Marys Peak. Target 2-4 bedroom homes or condos built after 1980 with modern amenities, full kitchens, reliable Wi-Fi, parking, and outdoor spaces that appeal to visiting families, researchers, and outdoor enthusiasts. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for nightly rates between $80-150 depending on size and location, with higher rates during OSU events, graduation, and football season. Research competition by studying existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved areas, and monitor occupancy rates which typically range 60-75% annually in Corvallis. Utilize tools like Rabbu, STR Helper, and local MLS data through Zillow and Redfin, while consulting Benton County regulations and city zoning requirements, and consider partnering with local property management companies like Vacasa or RedAwning who understand the OSU academic calendar and seasonal demand patterns that drive the Corvallis STR market.

To obtain an Airbnb/STR permit in Corvallis, Oregon, you must apply through the City of Corvallis Community Development Department located at 501 SW Madison Avenue or online through their permitting portal. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, floor plan of the rental unit, parking plan showing adequate off-street parking, contact information for a local responsible party available 24/7, proof of liability insurance (minimum $1 million), and a good neighbor agreement. The application fee is approximately $200-300 with an annual renewal fee of around $150-200. Corvallis requires STRs to be owner-occupied or have an owner living within 200 miles, limits occupancy to 2 guests per bedroom plus 2 additional guests (maximum 10 people), mandates at least one off-street parking space per bedroom, requires posting of house rules and emergency contact information, and prohibits rentals in certain residential zones. The approval timeline is typically 4-6 weeks after submitting a complete application, though it may take longer if additional documentation is needed or if there are neighborhood concerns that require public hearings.

Short-term rentals (STRs) are legal in Corvallis, Oregon, but operate under strict regulations implemented by the city. As of 2023, Corvallis requires STR operators to obtain a business license and comply with specific zoning restrictions that limit where these rentals can operate, primarily allowing them in certain residential zones while prohibiting them in others to preserve neighborhood character. The city has implemented occupancy limits, parking requirements, noise ordinances, and mandates that operators provide contact information for a responsible party available 24/7. Recent changes include enhanced enforcement mechanisms and stricter penalties for violations, with the city conducting regular reviews of STR impacts on housing availability and neighborhood livability. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators are required to collect and remit transient lodging taxes. The regulations were strengthened in recent years due to community concerns about housing shortages and neighborhood disruption, with Corvallis taking a more restrictive approach compared to some other Oregon cities while still allowing the practice under controlled conditions.

The most promising Airbnb investment areas in Corvallis, Oregon include the downtown core near Oregon State University campus, particularly the neighborhoods around Monroe Avenue and 9th Street, which attract consistent demand from visiting parents, prospective students, and university staff year-round. The Timberhill and Lewisburg areas in south Corvallis offer excellent potential due to their proximity to major employers like Hewlett Packard Enterprise and other tech companies, generating steady business travel demand. The historic Avery Park neighborhood provides appeal for tourists seeking walkable access to downtown restaurants, breweries, and the Willamette River, while also serving OSU visitors. Areas near Good Samaritan Regional Medical Center attract medical professionals and patients' families requiring temporary housing. The neighborhoods around Crystal Lake Drive and Witham Hill offer a balance of accessibility to both OSU and local businesses while providing a quieter residential setting that appeals to longer-term stays from visiting researchers, sabbatical faculty, and corporate relocations to the growing tech sector.

In Corvallis, Oregon, Airbnb hosts are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8%, Benton County's transient room tax of 6%, and the City of Corvallis transient lodging tax of 9%, for a combined rate of approximately 16.8% on gross rental receipts. These taxes apply to stays of less than 30 consecutive days and are typically collected directly from guests by Airbnb through their automatic tax collection service, which remits payments quarterly to the respective jurisdictions on behalf of hosts. Hosts who collect taxes independently must register with the Oregon Department of Revenue, Benton County, and the City of Corvallis, filing returns monthly or quarterly depending on volume, with payments due by the 15th of the following month. Exemptions generally include stays of 30 days or longer, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria with each taxing authority as rates and regulations can change annually.

The total cost to start an Airbnb in Corvallis, Oregon is approximately $485,000-$520,000. Property purchase costs around $425,000 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, sofas, dining sets, linens, kitchenware, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total approximately $3,000-$5,000. Permits and fees vary but expect around $500-$1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance premiums for short-term rental coverage average $2,000-$3,000 annually. Utility deposits and first-month costs for electricity, water, gas, internet, and cable run about $800-$1,200. First six months of operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance reserves ($2,000), marketing ($600), and platform fees on bookings ($1,500) total approximately $7,100. Property taxes and HOA fees if applicable would add another $3,000-$4,000 for the initial six-month period.

Airbnb properties in Corvallis, Oregon typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $80-$150 depending on proximity to Oregon State University and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($100-200 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved by hosts who self-manage and maintain high occupancy rates of 60-75%. Success factors include strategic location within walking distance of OSU campus, professional photography, competitive pricing during peak periods like graduation and football season, and maintaining superhost status through consistent 4.8+ ratings. Properties near campus or downtown Corvallis command premium rates, with some hosts reporting annual profits of $8,000-$15,000 on single-family homes, while those in outlying areas may see profits of $3,000-$8,000 annually, making the market moderately profitable for investors who can maintain consistent bookings and control operational costs.

Based on Corvallis, 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 Oregon State University. Properties within 2 miles of campus or downtown generally achieve higher occupancy rates of 65-75% annually, while those further out see 50-65% occupancy. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically reached in 3-4 years. The student rental market drives strong demand from September through June, with summer months seeing increased tourism and family visits. Properties purchased in the $300,000-500,000 range with 20-25% down payments commonly generate $2,000-3,500 monthly gross revenue during peak periods, though investors should account for seasonal fluctuations, property management costs of 15-25%, and higher maintenance expenses due to frequent tenant turnover.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Corvallis, Oregon. Local real estate agents in Corvallis who work with Airbnb investors include Keller Williams Realty Mid-Willamette, Coldwell Banker Mountain West Real Estate, and RE/MAX Integrity, with agents like those at Berkshire Hathaway HomeServices Real Estate Professionals often having experience with investment properties. National services that help investors find Airbnb properties include AirDNA for market analysis, Mashvisor for property analytics, BiggerPockets for networking and deal finding, and Roofstock which occasionally features short-term rental opportunities. Local property management companies like Vacasa and RedAwning provide services for managing Airbnb properties once purchased, while investment-focused firms such as Awning and AvantStay help investors identify and acquire profitable short-term rental properties in college towns like Corvallis near Oregon State University.