Is Florence, Oregon Good for Airbnb Investment?

To start an Airbnb in Florence, Oregon, begin by researching local regulations through the City of Florence Planning Department, as the city requires short-term rental permits and has specific zoning restrictions limiting STRs to certain residential areas with a maximum of 10% of dwelling units per neighborhood. Obtain a business license from the City of Florence ($50-100 annually), apply for a short-term rental permit ($200-400), and register for Oregon state lodging tax collection with the Department of Revenue. Find a suitable property in approved zones (typically R-1 and R-2 residential areas), ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the property with coastal-appropriate amenities like rain gear, beach equipment, and sturdy furniture that can handle Oregon's humid climate, focusing on the area's appeal to tourists visiting the Oregon Dunes, Heceta Head Lighthouse, and coastal beaches. Create your Airbnb listing with professional photos highlighting ocean proximity and dune access, pricing competitively with Florence's average rates of $120-200 per night depending on season and location. Manage the property by establishing relationships with local cleaning services ($75-150 per turnover), maintenance contractors familiar with coastal property challenges, and consider using property management companies like Vacasa or RedAwning which operate in the Oregon coast region, while maintaining compliance with Florence's noise ordinances, parking requirements (typically 1-2 spaces per unit), and guest registration requirements that may include providing guest information to city officials upon request.

To identify profitable short-term rental properties in Florence, Oregon, focus on locations within 1-2 miles of the Siuslaw River, Old Town Florence, or the Oregon Dunes National Recreation Area, as these areas attract the highest tourist traffic year-round. Target properties with 2-4 bedrooms, ocean or river views, outdoor spaces like decks or patios, and amenities such as hot tubs, fireplaces, or pet-friendly features since Florence draws many families and outdoor enthusiasts. Conduct pricing analysis using AirDNA or Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40-60%, typically finding sweet spots in the $300,000-$600,000 purchase range for optimal cash flow. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underpriced properties, while noting that Florence's peak seasons run May through September and during storm-watching months of November through February. Utilize tools like Rabbu, STR Helper, and local MLS data through Windermere or Coldwell Banker offices, while connecting with Florence Area Chamber of Commerce for tourism trends and ensuring compliance with Lane County's STR regulations which require permits and limit occupancy based on property size.

To obtain an Airbnb/STR permit in Florence, Oregon, you must first contact the Florence Planning Department at City Hall located at 250 Highway 101, Florence, OR 97439, or call (541) 997-3437 to begin the Transient Rental Permit application process. Required documents typically include a completed application form, proof of property ownership or lease agreement, site plan showing parking and access, septic system approval if applicable, and proof of liability insurance coverage of at least $1,000,000. The application fee is approximately $200-300 with an annual renewal fee of around $150-200. You must also obtain a business license from the city for approximately $50-75 annually and register with the Oregon Department of Revenue for transient lodging tax collection. Florence requires STRs to have adequate off-street parking (typically 2 spaces), meet fire safety requirements including smoke and carbon monoxide detectors, provide a local contact person available 24/7 within 30 minutes of the property, and comply with occupancy limits based on bedrooms and septic capacity. The property must pass a safety inspection conducted by the Florence Fire Department, and you must provide neighbors within 200 feet written notification of your STR application. The entire approval process typically takes 4-8 weeks from submission of a complete application, and permits must be renewed annually with the city while maintaining compliance with all zoning, health, and safety regulations.

Short-term rentals (STRs) are legal in Florence, Oregon, but operate under specific regulations established by the city. Florence requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and some residential zones, while prohibiting them in certain residential neighborhoods to preserve community character. The city has implemented occupancy limits, parking requirements, noise restrictions, and mandates that operators provide 24-hour contact information for complaints. Recent changes around 2019-2021 included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental versus long-term housing. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators face penalties for violations including potential license revocation. The regulations aim to balance tourism revenue with neighborhood livability concerns, particularly in Florence's coastal residential areas where housing availability for locals has become a growing issue.

The best Airbnb investment areas in Florence, Oregon include the Historic Old Town district near Bay Street, which attracts tourists visiting the charming waterfront shops, restaurants, and the iconic Siuslaw River Bridge built in 1936. The Heceta Head area offers premium rental potential due to its proximity to the famous Heceta Head Lighthouse and dramatic coastal views, drawing photographers and lighthouse enthusiasts year-round. The Dunes City vicinity near the Oregon Dunes National Recreation Area is highly attractive for ATV enthusiasts, sandboarding visitors, and outdoor adventure seekers who frequent this unique landscape. Properties near South Jetty Road and the Siuslaw River mouth appeal to fishing enthusiasts, crabbers, and boaters accessing the Pacific Ocean, while areas close to Darlingtonia State Natural Site attract nature lovers and botanical tourists interested in the rare carnivorous plants. The residential neighborhoods within walking distance of Mo's Restaurant and the historic downtown core offer consistent bookings from culinary tourists and visitors attending local events like the Rhododendron Festival in May, with these central locations providing the highest occupancy rates due to their proximity to Florence's main attractions and dining establishments.

Florence, Oregon imposes a transient lodging tax of 9% on short-term rental accommodations including Airbnbs, which is collected by the City of Florence and applies to stays of 30 days or less. This tax is typically collected directly from guests at the time of booking through platforms like Airbnb, which automatically remits the tax to the city on behalf of hosts, though individual hosts may need to register with the city and file monthly returns if they collect taxes independently. Lane County also imposes an additional transient occupancy tax of approximately 7%, bringing the total lodging tax burden to around 16% for Airbnb guests. The Oregon Department of Revenue requires registration for transient lodging tax collection, and hosts must remit taxes by the 15th of the month following collection. There are generally no exemptions for stays under 30 days, though some jurisdictions may exempt stays by government employees on official business or certain medical-related accommodations, and hosts earning below specific annual thresholds may have simplified reporting requirements.

To start an Airbnb in Florence, Oregon, expect total costs around $420,000-$480,000. Property purchase represents the largest expense at $350,000-$400,000 based on median home prices in the coastal market. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and outdoor amenities. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Oregon coastal cities generally total $500-$1,500 covering business licenses, transient lodging taxes registration, and potential conditional use permits. Insurance costs run $2,000-$3,500 annually for short-term rental coverage. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable typically cost $500-$800 initially. First six months operating costs including utilities ($1,200), cleaning supplies ($300), maintenance reserves ($1,000), marketing ($500), and property management software ($300) total approximately $3,300, bringing the complete startup investment to roughly $425,000-$485,000 depending on property size and furnishing quality.

Airbnb properties in Florence, Oregon typically generate annual revenues between $25,000-$45,000 for well-positioned vacation rentals, with oceanfront properties commanding premium rates of $150-$300 per night during peak summer months and $80-$150 in off-season periods. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (20-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties within walking distance of Old Town Florence or offering direct beach access achieve occupancy rates of 65-75% annually, while inland properties typically see 45-55% occupancy. A typical 3-bedroom beach house purchased for $400,000-$500,000 can generate net profits of $15,000-$25,000 annually after all expenses, representing profit margins of 35-45% for successful operators. Success factors include professional photography showcasing coastal views, responsive guest communication, partnerships with local activity providers like Sandland Adventures or Mo's Restaurant for guest recommendations, and strategic pricing during events like the Rhododendron Festival in May. Properties managed by companies like Vacasa or local firms such as Oregon Beach Vacations often outperform individual operators due to professional marketing and dynamic pricing strategies, though management fees reduce overall profitability by 15-25%.

Airbnb investments in Florence, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the coastal tourism market and proximity to Oregon Dunes National Recreation Area. Properties within 2-3 blocks of Old Town or beach access command premium rates of $120-180 per night during peak summer months (June-September), while off-season rates drop to $80-120 per night. Initial investment recovery generally occurs within 7-10 years for properties purchased at median prices of $400,000-550,000, with annual gross rental income potential of $35,000-55,000 for well-positioned 2-3 bedroom homes. Cash-on-cash returns improve to 12-15% for investors utilizing 75-80% financing, though seasonal occupancy fluctuations between 45-65% annually require careful cash flow management during slower winter months when tourism decreases significantly.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Florence, Oregon, providing market analytics and investment insights. Local real estate agents specializing in Airbnb investments include Windermere Real Estate and RE/MAX Integrity, with agents like those at Century 21 Agate Realty having expertise in the Florence coastal market since 2018. National services include AirDNA (founded 2015) for market data analysis, Mashvisor for property investment analytics, and BiggerPockets for investor networking and deal sourcing. Vacasa, established in 2009, offers property management services specifically for short-term rentals in the Oregon coast region. Local property management companies like Oregon Coast Vacations and Meredith Lodging specialize in Airbnb management and can provide investment guidance. RedAwning and VRBO Pro also offer market insights and management services for Florence properties. Investment-focused real estate companies such as Roofstock and Awning (acquired by RedAwning in 2021) provide turnkey Airbnb investment opportunities, while local firms like Pacific Properties and Coldwell Banker Coast Real Estate have agents experienced in vacation rental investments along the Oregon coast.