Is Gearhart, Oregon Good for Airbnb Investment?

To start an Airbnb in Gearhart, Oregon, begin by researching local regulations through Clatsop County and the City of Gearhart, as coastal Oregon communities typically require short-term rental permits and business licenses, with Gearhart likely requiring annual permits costing around $200-400 and compliance with occupancy limits of 2 guests per bedroom plus 2 additional. Obtain necessary permits including a transient lodging tax license (Oregon charges 1.8% state tax plus local taxes around 9-12%), business registration with Oregon Secretary of State, and ensure compliance with fire safety codes and ADA requirements if applicable. Find property by targeting homes within 1-2 blocks of the beach or near recreational areas, with 2-3 bedroom properties typically renting for $150-300 per night depending on proximity to ocean and amenities. Furnish the space with coastal-themed decor, quality linens, full kitchen amenities, WiFi, and outdoor furniture for decks, budgeting $15,000-25,000 for complete furnishing of a 2-bedroom property. List your property on Airbnb, VRBO, and local rental sites, emphasizing beach access, proximity to Gearhart Golf Links, and nearby attractions like Seaside and Cannon Beach, with professional photography essential for bookings. Manage the property by establishing relationships with local cleaning services ($80-120 per turnover), maintenance contractors, and consider property management companies charging 20-30% of gross revenue, while maintaining 24/7 guest communication and ensuring compliance with noise ordinances and parking restrictions typical in residential beach communities.

To identify profitable short-term rental properties in Gearhart, Oregon, focus on locations within 2-3 blocks of the beach, particularly along Pacific Way and Cottage Avenue, as these command premium rates of $200-400 per night during peak summer months. Target 3-4 bedroom single-family homes or duplexes built after 1980 with ocean views, updated kitchens, outdoor spaces, and parking for 2+ vehicles, as these features attract families willing to pay $150-300 nightly even in shoulder seasons. Analyze comparable properties using AirDNA and Mashvisor to identify the $180-220 average daily rate sweet spot, while monitoring seasonal occupancy patterns that typically peak at 85-90% in July-August and drop to 40-50% in winter months. Research competition by studying the 150-200 active STRs in Gearhart through Airbnb and VRBO, noting that properties with hot tubs, game rooms, or pet-friendly policies often achieve 15-20% higher rates. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and consult with Gearhart city planning (503-738-5501) regarding zoning compliance, as the city requires business licenses and has specific occupancy limits that can impact profitability calculations.

To obtain an Airbnb/STR permit in Gearhart, Oregon, you must first contact the Gearhart City Hall at 1157 N Marion Avenue or call (503) 738-5501 to obtain a Short-Term Rental License application, as Gearhart requires all STR properties to be licensed before operating. Required documents typically include a completed application form, proof of property ownership or authorization from owner, a floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), emergency contact information for a local representative within 30 minutes of the property, and a good neighbor agreement outlining house rules. The application fee is approximately $200-300 annually with additional inspection fees around $100-150. You must also register with the Oregon Department of Revenue for transient lodging tax collection and obtain a business license from Oregon if operating as a business. The timeline for approval is typically 30-45 days after submitting a complete application, pending city review and any required inspections. Gearhart-specific requirements include occupancy limits based on bedrooms (typically 2 guests per bedroom plus 2 additional), mandatory posting of emergency contact information and house rules, compliance with parking requirements (usually 1-2 spaces per unit), and adherence to noise ordinances with quiet hours typically from 10 PM to 7 AM. Properties must also meet fire safety standards including smoke and carbon monoxide detectors, and owners must maintain a registry of guests and respond to complaints within 2 hours.

Short-term rentals (STRs) are legal in Gearhart, Oregon, but operate under specific regulations established by the city. Gearhart allows STRs in residential zones with proper licensing and registration requirements, including obtaining a business license and transient lodging tax permit. The city typically requires STR operators to comply with occupancy limits, parking requirements, noise ordinances, and maintain 24/7 local contact information for guests. Properties must meet safety standards and zoning compliance, with some restrictions on the total number of guests and vehicles allowed. Recent years have seen Gearhart, like many Oregon coastal communities, implementing stricter oversight of STRs due to housing availability concerns and neighborhood impacts, including enhanced enforcement mechanisms and potentially caps on the number of permits issued. The city generally prohibits STRs in certain residential areas or may have density restrictions to preserve neighborhood character, and operators must collect and remit transient lodging taxes to both the city and state, with violations potentially resulting in fines or permit revocation.

The best areas for Airbnb investment in Gearhart, Oregon are the beachfront neighborhoods along Pacific Way and Cottage Avenue, which offer prime oceanfront access and attract summer tourists seeking beach vacations, with properties here commanding premium rates during peak season from June through September. The historic downtown district near Highway 101 provides excellent investment potential due to its walkability to local restaurants, shops, and the beach, appealing to families and couples year-round. The residential areas between 3rd and 10th Streets offer more affordable entry points while still maintaining close beach proximity, attracting budget-conscious travelers and larger groups. The neighborhoods near McMahan Ridge provide elevated ocean views and attract higher-end travelers willing to pay premium rates for luxury accommodations. Properties near the Gearhart Golf Links area appeal to golf enthusiasts and business travelers attending corporate retreats, providing steady bookings during shoulder seasons when beach tourism slows.

Airbnb properties in Gearhart, Oregon are subject to multiple lodging taxes including Oregon's state transient lodging tax of 1.8%, Clatsop County's transient lodging tax of 7%, and the City of Gearhart's transient lodging tax of 8%, totaling approximately 16.8% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected by the host at the time of booking or payment. Hosts must register with the Oregon Department of Revenue, Clatsop County, and the City of Gearhart to obtain tax permits and remit taxes monthly or quarterly depending on volume, with returns generally due by the 15th of the following month. Airbnb may collect and remit some of these taxes on behalf of hosts through their automated tax collection service, but hosts remain responsible for ensuring compliance and may need to remit taxes directly to local jurisdictions. Exemptions typically include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though specific exemption criteria vary by jurisdiction and hosts should verify current requirements with each tax authority.

Starting an Airbnb in Gearhart, Oregon requires approximately $650,000-$750,000 in total initial investment. Property purchase represents the largest expense at $550,000-$650,000 based on median home prices in this coastal community as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete vacation rental setup including furniture, appliances, linens, and decor appropriate for beach visitors. Initial setup expenses including professional photography, listing creation, and marketing materials cost around $2,000-$3,000. Permits and fees in Clatsop County include short-term rental permits ($200-$500), business licenses ($100-$300), and potential HOA approvals. Insurance for short-term rentals runs $2,000-$4,000 annually, significantly higher than standard homeowner's policies. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable total approximately $1,000-$2,000. First six months of operating costs including utilities ($300-$500 monthly), cleaning services ($100-$150 per turnover), supplies and maintenance ($200-$400 monthly), platform fees (3% of bookings), and property management if outsourced (20-30% of revenue) can range $8,000-$15,000 depending on occupancy rates and seasonal demand in this popular Oregon coast destination.

Airbnb properties in Gearhart, Oregon demonstrate strong profitability potential with average daily rates ranging from $180-350 depending on property size and proximity to the beach, generating annual revenues of $45,000-85,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 35-45% of gross revenue, including cleaning fees ($75-125 per turnover), property management (15-25%), utilities ($200-400 monthly), insurance ($2,000-4,000 annually), and maintenance costs, resulting in net profit margins of 25-40% for successful operators. Properties within 2-3 blocks of the beach command premium rates and achieve higher occupancy, particularly during summer months (June-September) when nightly rates peak at $300-450, while shoulder seasons still maintain decent performance due to Gearhart's appeal for storm watching and off-season retreats. Success factors include professional photography, responsive guest communication, strategic pricing using dynamic tools, maintaining high cleanliness standards, and offering amenities like hot tubs, game rooms, or pet-friendly accommodations, with top-performing properties often featuring recent renovations and coastal-themed decor that capitalizes on the destination's charm as a quieter alternative to nearby Seaside and Cannon Beach.

Airbnb investments in Gearhart, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the coastal location's strong vacation rental demand and proximity to Cannon Beach. Properties in Gearhart, particularly those within walking distance of the beach or golf course, can achieve occupancy rates of 60-75% during peak summer months (June-September) with average daily rates of $200-350 for 2-3 bedroom homes. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing positive cash flow after accounting for mortgage payments, property management fees of 20-25%, cleaning costs, and seasonal maintenance. The market benefits from year-round demand due to storm watching season, golf tourism at Gearhart Golf Links, and weekend getaways from Portland metro area, though winter occupancy drops to 30-40% with lower daily rates of $150-250. Properties purchased in the $400,000-700,000 range with 20-25% down payments generally perform best, with gross rental yields of 10-15% before expenses in this established vacation rental market that has shown consistent growth since 2018.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Gearhart, Oregon. Local real estate agents like Windermere Real Estate and Coldwell Banker Coast Real Estate have extensive knowledge of the Gearhart market and work with Airbnb investors to identify properties near the beach and downtown areas. AirDNA provides comprehensive market data and analytics for short-term rental investments in the Oregon coast region, while Mashvisor offers property analysis tools specifically for vacation rental markets like Gearhart. National services such as Roofstock and BiggerPockets connect investors with turnkey Airbnb properties and local market experts. RE/MAX and Century 21 offices in nearby Seaside and Cannon Beach also serve the Gearhart area and have agents experienced in vacation rental investments. RedAwning and Vacasa, both vacation rental management companies operating in Oregon, can provide insights into which properties perform best as short-term rentals in the area. Local property management companies like Meredith Lodging and Ocean Lodging have been managing vacation rentals along the Oregon coast since the early 2000s and can advise on profitable property characteristics in Gearhart's beachfront and residential neighborhoods.