Is Damascus, Oregon Good for Airbnb Investment?

To start an Airbnb in Damascus, Oregon, begin by researching Clackamas County's short-term rental regulations, as Damascus operates under county jurisdiction and typically requires a Conditional Use Permit for properties used as short-term rentals more than 30 days per year. Contact Clackamas County's Code Enforcement division to understand specific zoning requirements, as residential zones may have restrictions on commercial activities. Obtain necessary permits including a business license from Oregon's Secretary of State office, register for state and local taxes with the Oregon Department of Revenue, and ensure compliance with fire safety codes which may require smoke detectors, carbon monoxide detectors, and fire extinguishers. Find a suitable property by researching Damascus neighborhoods near outdoor attractions like Powell Butte Nature Preserve, ensuring the property allows short-term rentals per HOA or lease agreements. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks highlighting nearby attractions in the Portland metro area. Create your Airbnb listing with professional photos, competitive pricing around $80-120 per night based on Damascus market rates, and detailed descriptions emphasizing proximity to Portland while offering a quieter suburban experience. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or installing smart locks, and keeping detailed records for tax purposes while monitoring local regulation changes as Damascus continues developing its municipal framework.

To identify profitable short-term rental properties in Damascus, Oregon, focus on locations within 15-20 minutes of Portland's urban amenities while maintaining the area's rural charm, particularly properties near Boring or Happy Valley with easy Highway 212 access. Target 3-4 bedroom homes built after 1990 with modern amenities, outdoor spaces, hot tubs, and unique features like mountain or forest views that capitalize on the Pacific Northwest appeal. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in nearby Gresham and Clackamas, aiming for $150-250 per night depending on size and amenities. Research competition by analyzing existing STR listings within a 5-mile radius, identifying gaps in luxury or family-friendly accommodations since Damascus has limited hotel options. Utilize tools like Rabbu, STR Helper, and local MLS data through Zillow and Redfin, while connecting with Damascus-area real estate agents familiar with Clackamas County regulations and zoning requirements. Consider properties near outdoor recreation areas like Powell Butte Nature Preserve or Mount Hood National Forest access points, as these attract weekend visitors from Portland seeking nature escapes within 30 minutes of the city.

To obtain an Airbnb/STR permit in Damascus, Oregon, you must first contact the Clackamas County Planning Department since Damascus is an unincorporated community within Clackamas County jurisdiction. Submit your application through the county's online portal or in-person at 150 Beavercreek Road, Oregon City, OR 97045, providing required documents including property deed or lease agreement, site plan showing parking and access, proof of insurance, fire safety inspection certificate, and septic system approval if applicable. The application fee is approximately $350-500 with additional inspection fees of $150-250, and the process typically takes 6-8 weeks for review and approval. Damascus-specific requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring compliance with rural zoning regulations, obtaining neighbor notification within 250 feet of the property, meeting fire safety standards including smoke and carbon monoxide detectors, and adhering to occupancy limits based on septic capacity and square footage. You must also register for transient lodging tax collection with Clackamas County and maintain a local contact person available 24/7 for guest issues, with annual permit renewals required along with updated insurance documentation and compliance verification.

Short-term rentals (STRs) in Damascus, Oregon are generally legal but subject to Clackamas County regulations since Damascus is an unincorporated community. As of 2023, Clackamas County allows STRs in residential zones with proper permits and business licenses, requiring hosts to register with the county and comply with safety standards including smoke detectors, carbon monoxide detectors, and occupancy limits. Properties must meet building code requirements and hosts must provide contact information for a responsible party available 24/7. The county implemented stricter enforcement measures in 2022 following noise and parking complaints, requiring annual renewals and allowing for permit revocation if violations occur. STRs are prohibited in areas with HOA restrictions that specifically ban short-term rentals, and some residential zones have density limitations. Recent changes include increased application fees from approximately $200 to $350 and mandatory neighbor notification requirements within 150 feet of the proposed STR property, reflecting the county's effort to balance tourism revenue with residential community concerns.

The best Airbnb investment areas in Damascus, Oregon include the Happy Valley border region near Scouters Mountain Nature Park, which attracts outdoor enthusiasts and families visiting the extensive trail systems and natural areas. The neighborhoods along Highway 212 corridor offer convenient access to both Portland metro amenities and Mount Hood recreation areas, making them ideal for business travelers commuting to tech companies like Nike and Intel while also serving tourists heading to ski resorts and hiking destinations. The residential areas near Boring Station Trailhead provide excellent opportunities due to proximity to the Springwater Corridor trail system, attracting cyclists and runners year-round. Properties near the Damascus Community Park and surrounding family-friendly neighborhoods perform well due to youth sports tournaments and family gatherings. The eastern sections closer to the Mount Hood National Forest boundary are particularly attractive for investors targeting the growing adventure tourism market, as visitors use these locations as base camps for accessing Timberline Lodge, Government Camp, and numerous hiking trails, especially during peak seasons from May through October when outdoor recreation drives consistent booking demand.

In Damascus, Oregon, Airbnb hosts are subject to Oregon's statewide transient lodging tax of 1.8% on gross rental receipts, which applies to stays of less than 30 consecutive days. Clackamas County, where Damascus is located, imposes an additional transient lodging tax of 2.5%, bringing the total occupancy tax rate to approximately 4.3%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Oregon Department of Revenue and Clackamas County on behalf of hosts. Hosts who collect taxes independently must register with the Oregon Department of Revenue and file quarterly returns using Form OTC (Oregon Transit Tax), with payments due by the last day of the month following each quarter. Clackamas County requires separate registration and monthly remittance by the 15th of the following month. Exemptions generally apply to stays of 30 days or longer, government employees on official business, and certain nonprofit organizations, though documentation may be required to claim these exemptions.

To start an Airbnb in Damascus, Oregon, expect total costs around $485,000-$520,000. Property purchase represents the largest expense at approximately $425,000 based on median home prices in the Damascus area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, bedding, kitchen essentials, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Clackamas County include business license ($50), short-term rental permit ($200-$400), and potential HOA approvals totaling around $500-$1,000. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, gas, internet, and cable average $500-$800 initially, with monthly costs around $200-$300. First six months operating costs including utilities ($1,500), cleaning supplies ($300), maintenance reserves ($1,000), marketing ($500), and platform fees to Airbnb and VRBO ($2,000 estimated) total approximately $5,300. Additional considerations include potential property management fees if outsourced (20-30% of revenue) and emergency repair funds ($2,000-$3,000 recommended reserve).

Airbnb properties in Damascus, Oregon typically generate annual revenues between $18,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management costs (10-20% of revenue), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance reserves (5-10% of revenue). Profit margins for successful operators average 25-40% after expenses, with properties near Mount Hood recreation areas and those offering unique amenities like hot tubs or game rooms commanding premium rates. Success factors include strategic pricing during peak seasons (summer hiking months and winter ski season), maintaining 4.8+ star ratings through consistent cleanliness and communication, and optimizing listings with professional photography. Properties within 30 minutes of Portland International Airport or downtown Portland tend to outperform rural listings, with some hosts reporting $2,000-4,000 monthly profits on well-managed properties. The Damascus market benefits from its proximity to outdoor recreation while offering lower acquisition costs than Portland proper, though hosts must navigate Clackamas County's short-term rental regulations and obtain proper permits to operate legally.

Airbnb investments in Damascus, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, given the area's proximity to Portland and growing tourism interest in the Pacific Northwest region. Properties in Damascus generally achieve profitability within 18-24 months, with average nightly rates of $85-120 for entire homes and occupancy rates around 65-75% annually. The market benefits from outdoor recreation demand near Mount Hood and the Columbia River Gorge, with investors seeing stronger performance during summer months (June-September) when returns can spike to 15-18% due to hiking and outdoor activity tourism. Initial investment requirements typically range from $300,000-450,000 for suitable properties, with monthly operating expenses averaging 25-35% of gross rental income including cleaning, maintenance, and platform fees to Airbnb and VRBO.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Damascus, Oregon, by providing data analytics on rental performance and market trends. Local real estate agents in the Damascus area who specialize in investment properties include Keller Williams Realty professionals and Coldwell Banker agents who understand the Clackamas County market dynamics. National services like AirDNA and Mashvisor offer market analysis tools specifically for Airbnb investment properties in the Portland metro area including Damascus. RedAwning and Awning provide property management and investment guidance services that extend to Oregon markets. Local property management companies such as Oregon Short Term Rental Management and Portland Airbnb Management help investors optimize their Damascus properties for maximum profitability. Real estate investment firms like BiggerPockets connect investors with Damascus-area opportunities, while companies like Roofstock and Arrived Homes occasionally feature Oregon investment properties. Regional brokerages including John L. Scott Real Estate and Premiere Property Group have agents experienced in identifying profitable short-term rental opportunities in Damascus and surrounding Clackamas County communities.