Is Medford, Oregon Good for Airbnb Investment?

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Medford, Oregon market research

Medford, Oregon Airbnb Investment Overview

$1,200–$2,800Typical monthly host earnings
8–12%Typical annual ROI
65–70%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Medford, Oregon?

Potentially—Medford, Oregon combines visitor demand with long-term real estate upside.

  • Presents a unique investment opportunity, influenced by its local tourism draw and evolving market dynamics.
  • Current market conditions in Medford are shaped by a steady influx of visitors drawn to the region's burgeoning wine industry, outdoor recreational activities (such as Crater Lake National Park and the Rogue River).
  • Property values in Medford have seen a consistent upward trend, making initial investment costs a consideration, but also offering potential for appreciation.
  • The investment potential for short-term rentals in Medford is bolstered by these consistent tourism trends, which ensure a reliable demand for accommodations.
  • However, potential investors should also consider local regulations and the competitive landscape to maximize their returns.
Earnings

How Much Does an Average Airbnb Earn in Medford?

$1,200–$2,800 per month based on location, season, and property quality.

  • Based on available market data and rental analytics, Airbnb hosts in Medford, Oregon typically earn between $1,200 to $2,800 per month.
  • Seasonal variations show peak earnings during summer months (June through September) when revenue can increase by 25-40% due to tourism related to Crater Lake National Park, outdoor recreation.
  • Properties near downtown Medford, close to the airport, or with unique amenities like hot tubs or mountain views command premium rates of $120-180 per night compared to standard listings at $80-120 per night.
  • Key factors affecting earnings include property size and condition, proximity to attractions like Oregon Shakespeare Festival venues, seasonal demand fluctuations, local event calendars.
  • Occupancy rates generally range from 45-65% annually, with successful hosts maintaining higher occupancy through competitive pricing, professional photography, and responsive guest communication.
ROI Analysis

Airbnb Return on Investment in Medford

Potentially strong—typical annual ROI is 8–12%.

  • Typically generate ROI between 8-12% annually, with higher-end properties near Rogue River or downtown achieving up to 15% returns during peak tourist seasons from May through October.
  • The average payback period ranges from 7-10 years, depending on initial investment and property management efficiency.
  • Compared to traditional long-term rentals in Medford that average 6-8% ROI, short-term rentals can outperform by 2-4 percentage points.
  • Properties within 15 minutes of Crater Lake National Park access points or downtown Medford's medical district command premium nightly rates of $120-180, while suburban properties average $80-120 per night.
Occupancy Rate

Average Airbnb Occupancy Rate in Medford

Medford, Oregon averages 65–70% annual occupancy, with seasonal variation.

  • Airbnb occupancy rates in Medford, Oregon typically average around 65-70% annually, with significant seasonal variation driven by the region's tourism patterns and proximity to Crater Lake National Park and the Rogue River.
  • Peak occupancy occurs during summer months (June through September) when rates climb to 80-85%, coinciding with outdoor recreation season, wine tourism, and favorable weather conditions.
  • Winter months see occupancy drop to approximately 45-55%, with slight upticks during holiday periods and ski season at nearby Mount Ashland.
  • Spring and fall maintain moderate occupancy rates of 60-65%, supported by wine harvest activities and mild weather attracting visitors.
  • Medford's occupancy rates generally align closely with Oregon's statewide average of 67%, though they lag behind popular coastal destinations like Portland and Bend which achieve 70-75% annually.
  • Compared to national Airbnb averages of approximately 68%, Medford performs competitively, benefiting from its position as a gateway to southern Oregon attractions and its growing reputation as a wine region.
Best Neighborhoods

Best Neighborhoods for Airbnb in Medford

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The best Airbnb investment neighborhoods in Medford, Oregon include Downtown Medford for its walkability to restaurants, theaters.
  • West Medford offers excellent value with larger properties near Rogue Valley Medical Center and Southern Oregon University.
  • The Hillcrest-Lone Pine area provides upscale investment opportunities with higher-end properties that command premium rates due to scenic views and proximity to golf courses.
  • East Medford near Crater Lake Highway captures tourists heading to Crater Lake National Park and outdoor recreation areas, benefiting from seasonal demand spikes and adventure travelers.
  • The Jacksonville Highway corridor offers strategic positioning between Medford's amenities and the historic Jacksonville town.
  • Griffin Creek area provides a suburban feel with larger properties suitable for family groups and extended stays.
  • Phoenix Road vicinity offers emerging investment potential with developing infrastructure and proximity to both urban conveniences and natural attractions.
Regulations

Short-term Rental Regulations in Medford

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Medford, Oregon requires short-term rental operators to obtain a business license and conditional use permit through the city's planning department.
  • Owner-occupancy is not required for short-term rentals, but properties must be located in zones that allow transient lodging, primarily commercial and some mixed-use areas.
  • The registration process involves submitting an application with property details, floor plans, parking arrangements.
  • Properties must maintain adequate off-street parking, typically one space per bedroom, and operators must collect and remit transient lodging taxes to both the city and Jackson County.
  • Recent regulatory changes have included stricter enforcement of noise ordinances, enhanced neighbor notification requirements during the permit process, and increased penalties for operating without proper permits.
Fees and Taxes

Short-term Rental Fees and Taxes in Medford

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Medford, Oregon are subject to several fees and taxes including the Oregon state lodging tax of 1.8%, Jackson County transient lodging tax of 6%, and Medford city transient lodging tax of 9%.
  • Property owners must obtain a business license from the City of Medford costing around $75-150 annually, register for a transient lodging tax account with no initial fee.
  • Additional costs include fire safety inspections at approximately $100-200 per inspection, potential homeowner association fees if applicable, and standard business tax obligations.
  • Some properties may require special zoning permits or variances costing $300-800, and there may be annual renewal fees of $50-100 for maintaining short-term rental operations in compliance with city regulations.
Common questions

Medford, Oregon Airbnb investment FAQs

How to start an Airbnb in Medford, Oregon?

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.

Launch checklist

  • Contact Medford's Code Compliance Division at (541) 774 to 2000 to obtain the required Conditional Use Permit (CUP) for short term rentals, which costs approximately $1,500 to 2,000 and requires neighbor notification, planning commission review, and compliance with parking, occupancy.
  • 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 to 7.5, R 1 to 10, or R 1 to 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 to 150 per night.
  • Manage the property by establishing check in procedures, maintaining 24/7 guest communication, coordinating cleaning between stays.
What's the best way to identify good STR properties in Medford, Oregon?

To identify profitable short term rental properties in Medford, Oregon, focus on locations within 10 to 15 minutes of Rogue Valley International Medford Airport, near downtown's Main Street corridor.

What to prioritize

  • Target 2 to 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 to 150 depending on size and amenities, with occupancy rates typically ranging 60 to 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.
  • 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.
How to get an Airbnb permit in Medford, Oregon?

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.

Documents and approvals

  • 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.
  • 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 to 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).
  • Once approved, you must renew your business license annually and comply with all ongoing conditions of approval to maintain your permit status.
Is it legal to operate a short-term rental in Medford, Oregon?

Short term rentals (STRs) are legal in Medford, Oregon, but operate under specific regulations established by the city.

Core operating requirements

  • 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.
What are the best places to invest in Airbnb in Medford, Oregon?

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.

Areas to research

  • 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.
Airbnb and lodging taxes in Medford, Oregon

In Medford, Oregon, Airbnb hosts are subject to both state and local lodging taxes.

Taxes and filing responsibilities

  • 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.
  • 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.
Total cost to purchase, furnish and operate an Airbnb in Medford, Oregon

Starting an Airbnb in Medford, Oregon requires approximately $450,000 to $550,000 in total initial investment.

Cost breakdown

  • Property purchase costs around $400,000 based on median home prices in Medford as of 2023 to 2024.
  • Furnishing a 2 to 3 bedroom property typically costs $15,000 to $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 to $5,000.
  • Permits and fees vary but expect $500 to $1,500 for business licenses, short term rental permits, and city registration requirements.
  • Insurance costs roughly $2,000 to $3,000 annually for landlord and short term rental coverage.
  • Utility deposits and connections average $500 to $800 for electricity, water, gas, internet, and cable services.
  • First six months of operating costs including utilities ($200 to 300/month), cleaning services ($75 to 100 per turnover), maintenance reserves ($200/month), property management software ($50/month).
Are Airbnb properties in Medford, Oregon profitable?

Airbnb properties in Medford, Oregon typically generate annual revenues between $18,000 to $35,000 for entire homes and $8,000 to $15,000 for private rooms, with average daily rates ranging from $85 to $140 depending on property size and amenities.

Profitability indicators

  • Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($25 to $40 per turnover), property management (10 to 20% of revenue), utilities ($150 to $300 monthly), insurance ($800 to $1,500 annually).
  • Profit margins typically range from 15 to 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.
  • 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 to $20,000 annually after accounting for mortgage interest, taxes.
What is the expected return on investment for an Airbnb in Medford, Oregon?

Airbnb investments in Medford, Oregon typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% based on current market conditions.

Return planning figures

  • Properties in desirable neighborhoods near Rogue River or downtown areas can achieve higher returns of 12 to 15% annually, while standard residential properties average 8 to 10%.
  • Initial profitability usually occurs within 18 to 24 months of operation, with break even on cash investment typically reached in 2 to 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 to 75% annually.
  • Average daily rates range from $80 to 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.
What company can help me find and buy a profitable Airbnb in Medford, Oregon?

STRSearch is a national platform that specializes in identifying profitable short term rental properties for investors looking in Medford, Oregon.

Companies and resources

  • 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.

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Success Rate
100% profitable track record
Data Accuracy
Proprietary filters, precise forecasts
Service Scope
End-to-end STR investment support
Risk Mitigation
Only cash-flow-positive matches
Expert Network
Vetted realtors, lenders, designers included
Other Services
Success Rate
Inconsistent ROI, no guarantees
Data Accuracy
Generic metrics, inaccurate estimates
Service Scope
Partial services only
Risk Mitigation
No profitability screening
Expert Network
Limited or no partner access
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