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 following its disincorporation in 2016. Contact Clackamas County's Code Enforcement division to understand current STR ordinances, which typically require conditional use permits for properties not owner-occupied and may have occupancy limits of 2 guests per bedroom plus 2 additional. Obtain necessary permits including a business license from Oregon Secretary of State, register for Oregon tax accounts with the Department of Revenue for transient lodging taxes (estimated 1.8% local plus state taxes), and secure a Clackamas County STR permit which may cost $200-500 annually. Find a suitable property in Damascus considering zoning restrictions (residential zones may have stricter rules), proximity to outdoor attractions like Powell Butte Nature Preserve, and accessibility to Portland metro area. Furnish the space with quality basics including comfortable beds, full kitchen amenities, WiFi, and outdoor gear storage given the area's recreational appeal. Create your Airbnb listing emphasizing Damascus's rural charm, hiking access, and proximity to Portland (20 minutes), using professional photos and competitive pricing around $80-120/night based on local market rates. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, coordinating with local cleaning services, and ensuring compliance with noise ordinances and parking requirements that neighboring rural residents expect in this semi-rural community.

To identify profitable short-term rental properties in Damascus, Oregon, focus on locations within 15-20 minutes of Mount Hood recreational areas, Clackamas River access points, and major highways like Highway 212 for easy Portland access. Target 2-4 bedroom single-family homes or cabins with outdoor amenities like hot tubs, fire pits, decks, and parking for recreational vehicles, as guests often visit for outdoor activities. Analyze pricing by researching comparable Airbnb and VRBO listings in Damascus and nearby areas like Boring and Clackamas, aiming for properties that can generate $150-250 per night during peak seasons. Conduct competition research using AirDNA and Mashvisor to assess occupancy rates, seasonal demand patterns, and market saturation, particularly focusing on properties near outdoor recreation sites. Utilize tools like Zillow and Redfin for property searches, STR Helper for rental income projections, and consult Clackamas County's short-term rental regulations to ensure compliance, while leveraging local real estate agents familiar with Damascus's proximity to both urban Portland amenities and rural outdoor attractions that drive tourism demand.

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 a completed short-term rental application form, property deed or lease agreement, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, septic system approval if applicable, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $500-750 with additional inspection fees of $200-300, and the process typically takes 6-8 weeks for review and approval. Damascus-specific requirements include compliance with rural zoning regulations, maximum occupancy limits based on septic capacity and square footage, mandatory 24/7 local contact person within 30 minutes of the property, quiet hours enforcement from 10 PM to 7 AM, and annual renewal with fees around $200-300. You must also register for transient lodging tax collection with Clackamas County and maintain detailed guest records, with properties subject to periodic compliance inspections and potential neighbor complaint procedures.

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 zoning requirements and cannot exceed 30-day rental periods to qualify as STRs, with some restrictions on the number of guests and parking requirements. The county implemented stricter oversight around 2020-2021 following complaints about noise and neighborhood impacts, requiring annual renewals and allowing for complaint-based enforcement. STRs are prohibited in certain residential zones if they conflict with HOA agreements or specific neighborhood covenants, and hosts must collect and remit transient lodging taxes to both the county and state, with violations potentially resulting in fines or permit revocation.

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 excellent accessibility for business travelers commuting to Portland's tech companies like Nike and Intel while providing more affordable accommodation options than downtown Portland. Areas near Mount Hood Community College draw visiting families and prospective students, while properties near the Damascus Community Park and surrounding residential zones appeal to visitors attending local events and those seeking quiet suburban retreats close to Portland. The Boring-Damascus area benefits from proximity to Powell Butte Nature Preserve, attracting hikers and nature photographers, and the region serves as an ideal base for tourists exploring the Columbia River Gorge and Mount Hood recreation areas while avoiding higher Portland accommodation costs.

Damascus, Oregon does not have specific lodging or occupancy taxes that apply to Airbnb properties as it is an unincorporated community in Clackamas County. However, Airbnb hosts in Damascus are subject to Oregon state transient lodging tax of 1.8% on gross rental receipts, which Airbnb typically collects and remits directly to the Oregon Department of Revenue on behalf of hosts for stays of 30 days or less. Additionally, hosts must collect and remit Clackamas County's transient lodging tax of 7% on gross receipts, though this may need to be handled manually by the host depending on Airbnb's collection agreements with the county. Oregon sales tax does not apply as the state has no general sales tax. Hosts are also responsible for reporting rental income on their federal and state tax returns, and properties used for short-term rentals may be subject to different property tax assessments. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt rentals to government employees or during declared emergencies.

To start an Airbnb in Damascus, Oregon, the total initial costs would be approximately $485,000-$520,000. Property purchase represents the largest expense at $400,000-$425,000 based on median home prices in the Damascus area. Furnishing costs for a complete 2-3 bedroom home would range $15,000-$25,000 including beds, sofas, dining sets, linens, kitchenware, and electronics. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total approximately $2,000-$3,000 including business license, transient lodging tax registration, and potential HOA approvals. Insurance costs $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, water, sewer, garbage, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs of $8,000-$12,000 include cleaning services, maintenance, restocking supplies, platform fees, marketing, and property management if outsourced. Additional considerations include potential property improvements, emergency fund reserves, and marketing budget to establish initial bookings and reviews.

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 ($40-60 per turnover), property management costs (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance reserves (5-10% of revenue). Properties within 2-3 miles of Clackamas Town Center or with easy Portland access via Highway 212 command premium rates, while those offering unique amenities like hot tubs, game rooms, or proximity to Mount Hood recreation areas achieve 15-25% higher occupancy rates. A typical 3-bedroom home purchased for $450,000 in Damascus might generate $28,000 annually in Airbnb revenue with $16,000 in operating expenses, yielding a 43% profit margin before mortgage costs, though success heavily depends on professional photography, dynamic pricing strategies, and maintaining 4.8+ star ratings to compete with Portland's saturated short-term rental market.

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 daily rates of $85-120 depending on property size and amenities, while maintaining occupancy rates of 65-75% annually. The market benefits from outdoor recreation demand near Mount Hood and the Columbia River Gorge, with investors seeing stronger performance in 2-3 bedroom homes that can accommodate families and groups, particularly during peak seasons from May through September when returns can spike to 15-18% due to increased tourism and outdoor activity demand.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Damascus, Oregon, providing market analytics and property recommendations. Local real estate agents specializing in investment properties include Keller Williams Realty, RE/MAX, and Coldwell Banker Bain, with agents like those at Portland Metro Investment Properties focusing on Airbnb potential in the Damascus area. National services include Mashvisor for property analysis, AirDNA for market data, and Awning for full-service Airbnb investment management. Local property management companies such as RedAwning, Vacasa, and AvantStay offer turnkey solutions for investors purchasing in Damascus. Real estate investment firms like Roofstock and Arrived Homes occasionally feature Oregon properties, while local specialists such as Oregon Investment Properties and Damascus area Realtors with STR expertise help identify properties with strong rental potential near outdoor recreation areas and Portland's eastern suburbs.