Is Medford, Oregon Good for Airbnb Investment?

To start an Airbnb in Medford, Oregon, begin by researching local regulations through the City of Medford Planning Department, as the city requires short-term rental permits and has specific zoning restrictions that limit STRs to certain residential areas while prohibiting them in others. Contact Medford's Code Compliance Division at (541) 774-2000 to obtain the required Conditional Use Permit (CUP) for short-term rentals, which costs approximately $1,500-2,000 and requires neighbor notification, planning commission review, and compliance with parking, occupancy, and noise requirements. Secure an Oregon business license through the Secretary of State's office and register for transient lodging taxes with both Jackson County (collecting 9% total lodging tax) and the State of Oregon. Find a suitable property in approved zones like R-1-7.5, R-1-10, or R-1-20 residential areas, ensuring it meets the city's requirement of being owner-occupied or having an on-site property manager within 25 miles. Purchase comprehensive STR insurance from companies like Proper Insurance or CBIZ, as standard homeowner's policies don't cover commercial rentals. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, fire extinguisher, and first aid kit as required by Medford's safety standards. Create your Airbnb listing with professional photos highlighting Medford's proximity to Crater Lake, Rogue River, and downtown attractions, pricing competitively with the local market average of $80-150 per night. Manage the property by establishing check-in procedures, maintaining 24/7 guest communication, coordinating cleaning between stays, and ensuring compliance with Medford's maximum occupancy limits and quiet hours ordinance to avoid violations that could result in permit revocation.

To identify profitable short-term rental properties in Medford, Oregon, focus on locations within 10-15 minutes of Rogue Valley International-Medford Airport, near downtown's Main Street corridor, or properties with proximity to outdoor recreation areas like Crater Lake National Park (90 minutes away) and the Rogue River. Target 2-4 bedroom homes or condos built after 1980 with updated kitchens, reliable Wi-Fi capability, parking, and outdoor spaces like decks or patios that showcase the region's natural beauty. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates between $80-150 depending on size and amenities, with occupancy rates typically ranging 60-75% annually in this market. Research competition by studying existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved property types, and monitor seasonal demand patterns driven by summer tourism, wine country visits, and winter travelers heading to nearby ski areas. Utilize tools like Rabbu, AllTheRooms, and local MLS data through Zillow or Realtor.com, while connecting with Medford-area property management companies like Vacasa or local operators who understand Jackson County's STR regulations and can provide market insights specific to this Southern Oregon tourism hub.

To obtain an Airbnb/STR permit in Medford, Oregon, you must first contact the City of Medford Planning Department at City Hall located at 411 W 8th Street to submit 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, proof of property ownership or authorization letter from owner, business license application, and a neighborhood notification list of properties within 200 feet of your rental. The application fee is approximately $1,200 for the Conditional Use Permit plus $150 for the business license, and you'll need to pay for required public notice postings estimated at $300. The timeline typically takes 60-90 days from submission to approval, including a mandatory public hearing before the Planning Commission where neighbors can provide input. Specific Medford requirements include maintaining the property as your primary residence if operating a homestay, limiting occupancy to no more than 10 guests, providing adequate off-street parking (typically 1 space per bedroom plus 1 additional space), ensuring compliance with fire safety codes including smoke detectors and fire extinguishers, maintaining a 24-hour contact number for noise complaints, and adhering to quiet hours from 10 PM to 7 AM. Once approved, you must renew your business license annually and comply with all ongoing conditions of approval to maintain your permit status.

Short-term rentals (STRs) are legal in Medford, Oregon, but operate under specific regulations established by the city. As of recent years, Medford requires STR operators to obtain a business license and comply with zoning restrictions that generally limit STRs to certain residential zones while prohibiting them in some neighborhoods to preserve housing stock for long-term residents. The city has implemented occupancy limits, parking requirements, noise restrictions, and mandates that operators provide contact information for a responsible party available 24/7. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators must collect and remit transient lodging taxes. Recent legal changes have included stricter enforcement mechanisms and potential caps on the total number of STR permits in certain areas, reflecting growing concerns about housing availability and neighborhood impacts. Medford's approach balances allowing property owners to operate STRs while addressing community concerns about housing displacement and maintaining residential character in established neighborhoods.

The best Airbnb investment areas in Medford, Oregon include downtown Medford near the Craterian Theater and Main Street corridor, which attracts business travelers and visitors attending cultural events and conferences. The neighborhoods around Rogue Valley Medical Center and Asante Rogue Regional Medical Center are excellent for medical tourism and visiting families. Areas near Southern Oregon University's extended campus and the airport corridor capture business travelers and conference attendees. The historic Railroad District and areas close to Lithia Park extensions offer charm for tourists exploring the Rogue Valley. Neighborhoods with easy access to Interstate 5, particularly near the Medford exits, are ideal for travelers heading to Crater Lake National Park, Oregon Shakespeare Festival in Ashland, or wine touring in the Applegate Valley. The west Medford areas near Bear Creek Park and the Greenway trail system attract outdoor enthusiasts and families visiting for recreational activities, while properties near the Justice Building and government offices serve legal professionals and government contractors visiting for extended business purposes.

In Medford, 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 Jackson County imposes an additional transient room tax of 8% on short-term rentals under 30 days. The City of Medford also levies a transient occupancy tax of 9% on lodging rentals less than 30 consecutive days. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for properties that qualify, though hosts remain ultimately responsible for ensuring proper remittance. For state taxes, payments are due monthly by the 25th of the following month to the Oregon Department of Revenue, while local taxes must be remitted to Jackson County and the City of Medford according to their respective schedules, usually monthly or quarterly depending on volume. Exemptions generally apply to stays of 30 days or longer, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria as they can change and vary by jurisdiction.

Starting an Airbnb in Medford, Oregon requires approximately $450,000-$550,000 in total initial investment. Property purchase costs around $400,000 based on median home prices in Medford as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic renovations total approximately $3,000-$5,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance costs roughly $2,000-$3,000 annually for landlord and short-term rental coverage. Utility deposits and connections average $500-$800 for electricity, water, gas, internet, and cable services. First six months of operating costs including utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $4,000-$6,000, bringing the complete startup investment to roughly $425,000-$540,000 depending on property condition and furnishing choices.

Airbnb properties in Medford, 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 $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Profit margins typically range from 15-35% for well-managed properties, with higher-end homes near Crater Lake or downtown achieving better performance due to proximity to Rogue Valley attractions and the regional airport. Success factors include strategic pricing during peak summer months (June-September) when tourism peaks, maintaining 4.8+ star ratings, offering amenities like hot tubs or mountain views, and targeting the growing wine tourism market as Medford sits in the heart of Southern Oregon's wine region. Properties within 10 miles of Crater Lake National Park or featuring unique characteristics like vineyard views consistently outperform standard residential listings, with some hosts reporting net profits of $12,000-$20,000 annually after accounting for mortgage interest, taxes, and all operating expenses.

Airbnb investments in Medford, 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 Rogue River or downtown areas can achieve higher returns of 12-15% annually, while standard residential properties average 8-10%. Initial profitability usually occurs within 18-24 months of operation, with break-even on cash investment typically reached in 2-3 years depending on property acquisition costs and renovation expenses. The Medford market benefits from year-round tourism due to outdoor recreation, wine country proximity, and medical tourism from the Asante Rogue Regional Medical Center, supporting consistent occupancy rates of 65-75% annually. Average daily rates range from $80-150 depending on property size and location, with peak seasons during summer months and wine harvest periods generating premium pricing that can boost annual returns to the higher end of the range.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Medford, Oregon. Local real estate agents like Keller Williams Realty Southern Oregon, Coldwell Banker Pro West Real Estate, and RE/MAX Integrity have agents experienced in investment properties and vacation rentals in the Medford market. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and investment analysis, and Awning for turnkey Airbnb investment properties. Local property management companies like RedAwning and Vacasa can help investors identify properties with strong rental potential while offering management services. Real estate investment firms such as Roofstock and Arrived Homes occasionally feature properties in the Southern Oregon market. Local agents specializing in investment properties include those at John L. Scott Real Estate and Century 21 Northstar, who understand the Medford tourism market driven by proximity to Crater Lake, the Rogue River, and wine country attractions that make the area attractive for short-term rentals.