Is Gresham, Oregon Good for Airbnb Investment?

To start an Airbnb in Gresham, Oregon, begin by researching local regulations as Gresham requires short-term rental operators to obtain a business license and comply with zoning requirements, with most residential zones allowing STRs but requiring owner occupancy for properties in certain districts. Contact Gresham's Planning Department at 503-618-2460 to verify your property's zoning allows short-term rentals and obtain necessary permits including a business license ($50-100 annually) and potentially a conditional use permit depending on your zone. Find a suitable property in neighborhoods like Powell Valley, Centennial, or downtown Gresham where STRs are typically permitted, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $3,000-8,000 for a one-bedroom setup. Create your Airbnb listing with professional photos, competitive pricing ($75-150/night for typical Gresham properties), and highlight proximity to Portland (20 minutes), Mount Hood recreation, and local attractions like Oxbow Regional Park. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with Gresham's noise ordinances and parking requirements, while keeping detailed records for tax purposes and annual license renewal with the city.

To identify profitable short-term rental properties in Gresham, Oregon, focus on locations within 2-3 miles of major attractions like Powell Butte Nature Preserve, downtown Gresham's historic district, and properties with easy MAX Light Rail access to Portland (approximately 30 minutes). Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces, as these typically command $80-150 per night in the Gresham market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically requiring purchase prices under $400,000 for optimal ROI. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved areas, particularly near Gresham Station, Powell Valley Shopping Center, and the Springwater Corridor Trail. Utilize tools like Rabbu, STRData, and local MLS access through Redfin or Zillow, while consulting Gresham's municipal code for STR regulations and permit requirements, and consider partnering with local property management companies like Vacasa or RedAwning who have established operations in the Portland metro area since 2015-2018.

To obtain an Airbnb/STR permit in Gresham, Oregon, you must first apply through the City of Gresham's Planning Department by submitting a Conditional Use Permit application, as short-term rentals require special approval in most residential zones. Required documents include a completed CUP application form, site plan showing the property layout, floor plan of the rental unit, parking plan demonstrating adequate off-street parking, neighborhood notification list, and proof of property ownership or authorization from the owner. The application fee is approximately $1,500-$2,000 for the Conditional Use Permit process, plus additional fees for required public notices estimated at $200-$400. The timeline typically takes 8-12 weeks from application submission to final approval, including a mandatory public hearing before the Planning Commission. Gresham-specific requirements include maintaining the property as your primary residence if operating a home-share, providing one off-street parking space per bedroom being rented, ensuring compliance with all building and fire codes, obtaining a business license from the city, and adhering to occupancy limits based on bedroom count and square footage. You must also register with the Oregon Department of Revenue for transient lodging tax collection and may need to coordinate with Multnomah County for additional health and safety inspections depending on the property type and rental arrangement.

Short-term rentals (STRs) are legal in Gresham, Oregon, but operate under specific regulations established by the city. Gresham requires STR operators to obtain a business license and comply with zoning requirements, with rentals generally permitted in residential zones but subject to certain restrictions including occupancy limits, parking requirements, and noise ordinances. The city prohibits STRs in some multi-family residential areas and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards. Recent changes around 2019-2020 included stricter enforcement mechanisms and clearer permit processes, with the city requiring annual renewals and implementing complaint response procedures. Property owners must also comply with Oregon state tax requirements and may face additional restrictions in historic districts or areas with homeowner association rules that further limit STR operations.

The best areas for Airbnb investment in Gresham, Oregon include the Powell Valley area near Powell Butte Nature Park, which attracts outdoor enthusiasts and families seeking hiking, mountain biking, and nature experiences year-round. The historic downtown Gresham district offers proximity to local restaurants, breweries, and the Gresham Farmers Market, appealing to visitors wanting an authentic small-town Oregon experience. The Rockwood neighborhood, despite its reputation, is experiencing revitalization and offers affordable investment opportunities with good MAX light rail connectivity to Portland, making it attractive for budget-conscious travelers and business visitors commuting to Portland. Areas near the Gresham Golf Course attract golf tourists and provide a quieter suburban setting for families. The Powell Boulevard corridor benefits from easy highway access and proximity to both Portland International Airport and Mount Hood recreation areas, making it ideal for both business travelers and outdoor recreation visitors heading to skiing, hiking, and camping destinations.

In Gresham, Oregon, Airbnb hosts are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8%, Multnomah County's transient lodging tax of 11.5%, and Gresham's local transient lodging tax of 1%. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019. Airbnb remits these taxes quarterly to the respective jurisdictions on behalf of hosts, though hosts should verify their registration requirements with each taxing authority. The total effective tax rate is approximately 14.3% on short-term rental bookings. Stays of 30 days or longer are generally exempt from transient lodging taxes, and some jurisdictions may offer exemptions for certain types of travelers such as government employees or those displaced by emergencies, though specific exemption criteria vary by jurisdiction.

To start an Airbnb in Gresham, Oregon, expect total costs around $450,000-$500,000. Property purchase represents the largest expense at approximately $425,000 based on 2024 median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations or improvements average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections depending on Gresham's specific regulations. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable typically cost $500-$800 initially. First six months of operating costs including utilities ($200-$300 monthly), cleaning services ($75-$150 per turnover), supplies and maintenance ($100-$200 monthly), platform fees (3% of bookings), and marketing expenses total approximately $4,000-$7,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Gresham, Oregon typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved through properties near Powell Butte Nature Park or downtown Portland transit connections. Success factors include proximity to MAX Blue Line stations, competitive pricing 10-15% below Portland rates, professional photography, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. Properties within 2 miles of Gresham Station or featuring outdoor amenities like hot tubs or fire pits command premium rates and achieve 65-75% occupancy rates compared to the market average of 55-65%, with seasonal peaks during summer months (June-September) driving 40% of annual bookings.

Airbnb investments in Gresham, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near Powell Butte Nature Park or downtown Gresham command average daily rates of $85-120, with occupancy rates around 65-75% annually. Initial investment costs average $350,000-450,000 for suitable properties, requiring approximately $70,000-90,000 down payment, with monthly operating expenses including utilities, cleaning, and maintenance totaling $800-1,200. Most investors achieve profitability within 18-24 months, factoring in startup costs, furnishing expenses of $15,000-25,000, and initial marketing periods. The proximity to Portland (20 miles east) attracts business travelers and tourists seeking affordable alternatives to downtown accommodations, while outdoor enthusiasts visiting Mount Hood recreation areas provide steady seasonal demand. Properties near MAX light rail stations or major corridors like Powell Boulevard tend to outperform, with some achieving 14-16% ROI in optimal locations with proper management and competitive pricing strategies.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations in Gresham, Oregon. Local real estate agents like Windermere Realty Trust and Keller Williams Realty have agents experienced in investment properties who understand the Gresham market dynamics and Airbnb regulations. AirDNA provides detailed market data and revenue projections for short-term rentals in the Gresham area, while Mashvisor offers investment property analysis tools specifically for vacation rental properties. RE/MAX and Coldwell Banker have local offices with agents who work with investors seeking rental properties in Gresham's growing market. BiggerPockets connects investors with local professionals and provides educational resources for short-term rental investing. Awning offers turnkey Airbnb property management services and can help identify suitable investment properties in Gresham. Local property management companies like Vacasa and RedAwning provide full-service Airbnb management and often have insights into which properties perform best as short-term rentals. John L. Scott Real Estate has agents familiar with the Portland metro area including Gresham who work with real estate investors. Additionally, platforms like Roofstock and Fundrise occasionally feature short-term rental investment opportunities in the Pacific Northwest region including Oregon markets.