Is Grants Pass, Oregon Good for Airbnb Investment?

To start an Airbnb in Grants Pass, Oregon, begin by researching local regulations through the City of Grants Pass Planning Department, as the city requires short-term rental permits and has specific zoning restrictions that typically allow STRs in residential zones with conditions. Contact the city at (541) 450-6000 to obtain a Conditional Use Permit (approximately $500-800) and ensure compliance with occupancy limits, parking requirements, and neighbor notification processes. Find a suitable property in permitted zones, considering proximity to Rogue River attractions and downtown amenities, with properties typically ranging from $200,000-400,000 for investment purposes. Furnish the space with quality basics including comfortable beds, full kitchen amenities, Wi-Fi, and outdoor furniture to capitalize on the area's outdoor recreation appeal, budgeting $10,000-15,000 for a complete setup. Register for Oregon state taxes, obtain a Transient Lodging Tax license through Josephine County (2% county tax plus 9% state lodging tax), and secure appropriate insurance coverage. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting river access, hiking proximity, and local attractions like Oregon Caves and Crater Lake day trips. Manage bookings through property management software, establish relationships with local cleaning services (typically $75-125 per turnover), and maintain 24/7 guest communication while ensuring compliance with the city's noise ordinances and maximum occupancy limits of typically 2 people per bedroom plus 2 additional guests.

To identify profitable STR properties in Grants Pass, Oregon, focus on locations within 2-3 miles of the Rogue River for water recreation access, proximity to downtown's historic district, and areas near Oregon Caves National Monument (45 minutes away) as these drive tourist demand. Target 2-4 bedroom single-family homes or cabins with outdoor amenities like decks, fire pits, or hot tubs, as guests seek nature-based experiences with properties built after 1980 for better maintenance costs. Analyze pricing by researching comparable Airbnb listings in the $80-150/night range, calculating potential annual revenue of $25,000-45,000 against purchase prices typically between $300,000-500,000 for optimal ROI. Study competition using AirDNA and STR Helper to identify occupancy rates (averaging 60-70% in peak summer months), while monitoring listings from established hosts like those managing multiple Rogue River properties. Utilize Mashvisor for market analysis, connect with local STR management companies such as Rogue Valley Vacation Rentals, consult Grants Pass planning department for zoning compliance, and leverage tourism data from Travel Southern Oregon to understand seasonal demand patterns driven by rafting season (May-September), fall foliage, and winter travelers heading to Crater Lake.

To obtain an Airbnb/STR permit in Grants Pass, Oregon, you must first contact the Grants Pass Planning Department at City Hall located at 101 NW A Street to determine if your property is in a zone that allows short-term rentals, as they are typically restricted to certain residential and commercial zones. You'll need to submit a Conditional Use Permit application along with required documents including a site plan, floor plan showing maximum occupancy, proof of property ownership or authorization letter, business license application, and a good neighbor agreement outlining house rules and contact information for guests. The application fee is approximately $500-800 for the Conditional Use Permit plus additional fees for the business license (around $50-100 annually). You must also provide proof of adequate parking (typically 2 spaces minimum), demonstrate compliance with building and fire codes, and show that septic systems can handle increased occupancy if applicable. The process typically takes 6-10 weeks and includes a public hearing before the Planning Commission where neighbors can provide input. Once approved, you'll need to obtain a business license from the City Clerk's office, register with the Oregon Department of Revenue for transient lodging tax collection, and comply with ongoing requirements including annual renewals, occupancy limits (usually 2 people per bedroom plus 2 additional), quiet hours enforcement, and maintaining current contact information with the city for 24/7 guest management.

Short-term rentals (STRs) are legal in Grants Pass, Oregon, but operate under specific regulations established by the city. As of recent years, Grants Pass requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use zones, while residential zones have more limited permissions. The city implemented these regulations around 2019-2020 following community concerns about housing availability and neighborhood impacts. Current restrictions include occupancy limits, parking requirements, noise ordinances, and mandatory contact information for a local responsible party available 24/7. STRs are generally prohibited in certain residential neighborhoods, particularly R-1 single-family zones, though some grandfathered properties may continue operating. Recent legal changes have focused on strengthening enforcement mechanisms and clarifying permit requirements, with the city conducting periodic reviews of the ordinance to balance tourism benefits with community housing needs and neighborhood character preservation.

The best areas for Airbnb investment in Grants Pass, Oregon include the Historic Downtown District along 6th and 7th Streets, which attracts tourists visiting the Rogue River and attending events at the Grants Pass Performing Arts Center, plus business travelers accessing government offices and local businesses. The Riverside neighborhoods near Riverside Park and Tom Pearce Park are highly desirable due to proximity to the Rogue River for rafting, fishing, and water recreation activities that draw seasonal tourists from April through October. The areas around Three Pine Golf Course and Dutton Ranch attract golf enthusiasts and visitors to local wineries, while neighborhoods near Rogue River-Siskiyou National Forest boundaries appeal to outdoor enthusiasts, hikers, and hunters. The residential areas near Grants Pass High School and around NE 7th Street offer good value investments with easy access to I-5 for travelers heading to Crater Lake National Park or the Oregon Coast, making them attractive for both short-term tourist stays and longer business accommodations for contractors and healthcare workers at Three Rivers Medical Center.

In Grants Pass, Oregon, Airbnb hosts are subject to both state and local lodging taxes. The Oregon state transient lodging tax is 1.8% of gross rental receipts, while Josephine County imposes a 6% transient room tax on short-term rentals under 30 days. The City of Grants Pass also levies a 9% transient occupancy tax on lodging accommodations. These taxes are typically collected from guests at the time of booking through Airbnb's platform for participating jurisdictions, though hosts may need to register directly with local tax authorities and remit taxes quarterly or monthly depending on the jurisdiction. Airbnb began collecting and remitting Oregon state lodging tax in 2019 and works with various local jurisdictions for collection, but hosts should verify their specific obligations with Josephine County and the City of Grants Pass as collection agreements may vary. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt certain types of accommodations or provide reduced rates for extended stays.

The total cost to start an Airbnb in Grants Pass, Oregon would be approximately $425,000-$475,000. Property purchase represents the largest expense at $350,000-$400,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchen essentials, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees in Jackson County include business license ($100-$200), transient lodging tax registration ($50-$100), and potential HOA approval fees if applicable, totaling $500-$1,000. Insurance costs for short-term rental coverage average $2,000-$3,500 annually, with six months costing $1,000-$1,750. Utilities including electricity, water, sewer, garbage, internet, and cable for six months typically cost $3,000-$4,500 depending on property size and season. First six months operating costs including cleaning supplies, maintenance reserves, platform fees to Airbnb and VRBO, guest amenities, and marketing expenses add another $4,000-$6,000 to the total investment required.

Airbnb properties in Grants Pass, Oregon typically generate annual revenues between $18,000-$35,000 for well-positioned properties, with average daily rates ranging from $85-$150 depending on property type and location proximity to the Rogue River. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Properties near outdoor recreation areas like Hellgate Canyon or within walking distance of downtown achieve higher occupancy rates of 65-75% annually, while suburban locations average 45-60%. A typical 3-bedroom home purchased for $350,000 in 2022 generates approximately $28,000 in annual revenue with $16,000 in expenses, yielding a 3.4% net return before mortgage payments. Success factors include professional photography, responsive guest communication, proximity to Rogue River activities, and seasonal pricing strategies that capitalize on summer tourism peaks. Properties managed by companies like Vacasa or RedAwning in the area report 15-20% higher occupancy rates compared to self-managed listings, though management fees reduce overall profit margins to 25-35% of gross revenue.

Airbnb investments in Grants Pass, Oregon typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the city's proximity to outdoor recreation areas like the Rogue River and Oregon Caves National Monument which attract year-round tourists. Properties in desirable neighborhoods near downtown or riverfront locations can achieve occupancy rates of 65-75% with average daily rates of $120-180 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors like Vacasa and RedAwning reporting strong performance in the Southern Oregon market. The combination of relatively affordable property acquisition costs ($300,000-500,000 for investment-suitable homes) and steady tourism demand from outdoor enthusiasts visiting Crater Lake, wine country, and recreational activities creates favorable conditions for achieving positive cash flow within the first year of operation.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, including in Grants Pass, Oregon. Local real estate agents in the area who focus on investment properties include Keller Williams Realty Southern Oregon, Coldwell Banker Pro West Real Estate, and RE/MAX Integrity, with agents like those at Grant's Pass Realty and Rogue Valley Real Estate having experience with vacation rental investments. National services that can assist include Awning (formerly RedAwning), which provides market analysis and property management for short-term rentals, AirDNA for market data and analytics, Mashvisor for investment property analysis, and BiggerPockets for networking and education. Local property management companies such as Southern Oregon Vacation Rentals and Rogue River Vacation Rentals can provide insights into profitable areas and property types. Additionally, companies like Vacasa and RedAwning offer comprehensive services from property identification to management, while local mortgage brokers and investment advisors familiar with the Grants Pass market, such as those at Pacific Northwest Financial and Oregon Mortgage Group, can provide financing guidance for Airbnb investment properties in this growing southern Oregon market.