Is Diamond, Oregon Good for Airbnb Investment?

To start an Airbnb in Diamond, Oregon, begin by researching Harney County's zoning regulations and contacting the county planning department to understand short-term rental requirements, as Diamond is an unincorporated community with minimal local governance. Obtain necessary permits through Harney County, which typically requires a conditional use permit for short-term rentals in residential zones, and register for Oregon state lodging taxes through the Department of Revenue. Find a suitable property by searching rural real estate listings or considering purchasing one of the historic buildings in this small desert community, keeping in mind that Diamond has limited infrastructure and the nearest services are in Frenchglen or Burns. Furnish the property with rustic, western-themed décor that appeals to visitors seeking authentic high desert experiences, ensuring reliable internet, heating for cold winters, and backup power solutions due to the remote location. List your property on Airbnb and other platforms, emphasizing unique selling points like proximity to Steens Mountain, Malheur National Wildlife Refuge, and the historic Diamond Craters, while setting competitive rates considering the limited accommodation options in the area. Manage the property by establishing relationships with local service providers in Burns (45 miles away) for maintenance and cleaning, create detailed check-in instructions due to the remote location, and maintain emergency contact information for guests, as cell service can be spotty and the nearest hospital is over an hour away in Burns.

To identify profitable short-term rental properties in Diamond, Oregon, focus on properties within 15-20 minutes of Malheur National Forest and Steens Mountain recreational areas, as outdoor enthusiasts represent the primary market in this rural southeastern Oregon community. Target 2-4 bedroom homes or cabins with rustic charm, outdoor amenities like fire pits, hot tubs, or large decks, and reliable internet for remote workers seeking rural retreats. Properties should be priced between $150,000-$400,000 to maintain reasonable acquisition costs while generating $80-150 per night during peak seasons (May-October). Research competition by analyzing the limited existing STR inventory on Airbnb and VRBO within a 30-mile radius, noting that scarcity can work in your favor with fewer than 10-15 active listings in the immediate area. Utilize AirDNA for market data, though data may be limited for this small market, supplement with broader Harney County tourism statistics from Travel Oregon, and leverage local real estate agents familiar with recreational property trends. Consider properties near the Diamond Craters Outstanding Natural Area or along scenic routes to attract geology enthusiasts and photographers, while ensuring year-round accessibility since winter weather can impact occupancy rates significantly in this high-desert region.

To obtain an Airbnb/STR permit in Diamond, Oregon, you must first contact the Harney County Planning Department at 450 N Buena Vista Ave, Burns, OR 97720, as Diamond falls under county jurisdiction rather than having its own municipal permitting system. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, floor plan showing maximum occupancy, septic system inspection certificate, well water testing results, fire safety plan, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $150-200 with an additional $75 annual renewal fee, though exact amounts should be confirmed with the county. The approval timeline ranges from 30-60 days depending on application completeness and inspection scheduling. Specific Diamond area requirements include compliance with rural zoning regulations, maximum occupancy limits based on septic capacity (typically 2 people per bedroom plus 2 additional), parking for all guests on-site, noise ordinance compliance particularly important in this rural setting, and potential restrictions during fire season due to the area's high wildfire risk. You must also register with the Oregon Department of Revenue for transient lodging tax collection and may need to obtain a business license from Harney County depending on your operation scale.

Short-term rentals (STRs) in Diamond, Oregon are generally legal but subject to Harney County regulations and state oversight. As a small unincorporated community in rural eastern Oregon, Diamond falls under Harney County's jurisdiction, which typically allows vacation rentals with basic requirements such as business licenses, safety compliance, and tax registration. The area must comply with Oregon's statewide STR regulations implemented around 2021-2022, including occupancy limits, parking requirements, and good neighbor policies. There are no specific prohibited zones in Diamond itself due to its rural nature and limited residential density, though properties must meet fire safety standards and septic system requirements common in remote areas. Recent changes include enhanced enforcement of noise ordinances and stricter oversight of septic systems for rental properties, with Harney County requiring STR operators to register with the county and maintain liability insurance, while the Oregon Department of Revenue requires collection of transient lodging taxes.

Diamond, Oregon is a small unincorporated community in Harney County with limited Airbnb investment opportunities due to its remote location and minimal population. However, the most promising area would be properties near the Malheur National Wildlife Refuge (approximately 30 miles southeast), which attracts birdwatchers, wildlife photographers, and nature enthusiasts year-round, particularly during spring and fall migration seasons. The Diamond Craters Outstanding Natural Area, located just south of the community, draws geology enthusiasts and researchers studying volcanic formations. Properties with easy access to Steens Mountain (about 40 miles south) could capitalize on hiking, camping, and stargazing tourism, as the area offers some of the darkest skies in Oregon. The nearby Diamond Loop Road scenic drive attracts RV travelers and road trip enthusiasts exploring the high desert landscape. Given Diamond's location along Highway 205, properties could serve as waypoints for travelers heading to Burns, Frenchglen, or the Alvord Desert, though occupancy rates would likely be seasonal and modest compared to more established tourist destinations.

In Diamond, 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. Harney County, where Diamond is located, does not impose an additional county-level lodging tax as of 2023. The state tax is typically collected by Airbnb directly from guests and remitted to the Oregon Department of Revenue on behalf of hosts through their Host Service Fee collection program, though hosts can opt out and handle remittance themselves by registering with the state and filing quarterly returns using Form OTC (Oregon Transit Tax). Stays of 30 days or longer are generally exempt from the transient lodging tax, and certain government employees on official business may qualify for exemptions with proper documentation. Diamond itself, being an unincorporated community, does not impose municipal lodging taxes, making the 1.8% state rate the primary tax obligation for short-term rental operators in the area.

Starting an Airbnb in Diamond, Oregon requires approximately $180,000-220,000 in total initial investment. Property purchase represents the largest expense at $150,000-180,000 for a median 2-3 bedroom home in this rural Eastern Oregon community, based on 2023-2024 market conditions. Furnishing costs typically range $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and outdoor amenities suitable for the area's recreational tourism. Initial setup expenses of $1,500-2,500 cover professional photography, listing creation, welcome materials, and basic technology like smart locks and WiFi equipment. Permits and fees total approximately $500-800, including business license registration with Baker County and potential short-term rental permits. Insurance costs run $1,200-1,800 annually for landlord and short-term rental coverage. Utility setup and deposits require $300-500 for electricity, water, sewer, internet, and propane if applicable. First six months of operating costs including utilities, cleaning supplies, maintenance reserves, platform fees, and marketing average $3,000-4,500, assuming moderate occupancy rates typical for rural Oregon destinations near outdoor recreation areas like the Malheur National Forest.

Airbnb properties in Diamond, Oregon, a small unincorporated community in Harney County, face unique profitability challenges due to the area's remote location and limited tourist infrastructure, with average nightly rates typically ranging from $75-120 for basic accommodations. Revenue potential is constrained by seasonal demand patterns, with peak occupancy occurring during hunting seasons (fall) and summer outdoor recreation periods, resulting in annual occupancy rates of approximately 25-35% compared to urban markets. Operating expenses include property management costs averaging $200-400 monthly, utilities running $150-250 per month, cleaning fees of $50-75 per turnover, and insurance premiums that can be 15-20% higher due to rural location risks. Profit margins for Diamond Airbnb properties typically range from 10-25% annually, significantly lower than Oregon's coastal or Portland metro markets which average 35-45%. Success factors include targeting niche markets such as hunters, bird watchers visiting the nearby Malheur National Wildlife Refuge, and adventure travelers seeking authentic rural experiences, with properties featuring amenities like equipment storage, local guides, or proximity to outdoor activities commanding premium rates. The limited competition in the area can be advantageous, but the small market size and seasonal nature of demand make profitability heavily dependent on effective marketing to specialized visitor segments and maintaining low operational overhead.

Airbnb investments in Diamond, Oregon can expect annual ROI of 8-12% based on the rural mountain location and seasonal tourism patterns. Cash-on-cash returns typically range from 6-10% annually, with properties averaging $85-120 per night during peak summer and winter seasons when outdoor recreation drives demand. Initial profitability usually occurs within 18-24 months for well-positioned properties near Crater Lake National Park access points, with average property acquisition costs of $180,000-280,000 and annual gross revenues of $18,000-32,000. The market benefits from limited hotel inventory and strong demand from visitors to nearby attractions, though occupancy rates fluctuate seasonally between 45-65% annually, with peak months of July-September and December-February driving the majority of bookings and revenue generation.

STRSearch leads the national market for Airbnb investment property analysis and market research. In Diamond, Oregon, local real estate agents like those at Coldwell Banker Reed Brothers Realty and Century 21 Agate Realty have experience with vacation rental properties in rural Oregon markets. National services include Mashvisor for property analytics, AirDNA for short-term rental market data, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as High Desert Property Management and Central Oregon Vacation Rentals can assist with identifying properties suitable for short-term rental conversion. RedAwning and Vacasa offer property acquisition consulting services for investors seeking Airbnb opportunities in smaller Oregon markets. RE/MAX agents in nearby Bend and Burns often work with investors looking at rural properties throughout Harney County. National platforms like Roofstock and HomeUnion occasionally feature Oregon investment properties, while local investment groups through the Oregon Real Estate Investors Association provide market insights and deal flow for the Diamond area vacation rental market.