Is Nehalem, Oregon Good for Airbnb Investment?

To start an Airbnb in Nehalem, Oregon, begin by researching local regulations through Tillamook County's planning department, as Nehalem falls under county jurisdiction for short-term rental permits, which typically require a Conditional Use Permit (CUP) costing approximately $1,500-2,500 and taking 60-90 days for approval. Contact the City of Nehalem directly at (503) 368-5436 to confirm any municipal requirements, as some coastal Oregon towns have specific STR ordinances. Obtain necessary permits including the county CUP, state lodging license from Oregon Department of Consumer and Business Services ($50 annually), and register for transient lodging tax collection with both the state (1.8%) and county (typically 5-8%). Find property by searching coastal real estate listings, focusing on homes within walking distance to Nehalem Bay or downtown, with prices ranging $300,000-600,000 for suitable properties as of 2023. Furnish the space with coastal-themed decor, essential amenities like WiFi, full kitchen, linens, and outdoor furniture for the Pacific Northwest climate, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and local vacation rental sites, emphasizing proximity to Nehalem Bay State Park, fishing, and beach access, with competitive nightly rates of $120-250 depending on size and season. Manage the property by establishing cleaning protocols between guests, creating detailed house rules regarding noise and occupancy limits to comply with county regulations, installing keyless entry systems, and either self-managing or hiring local property management companies like Manzanita Rental Company or Coast Cabins, which typically charge 20-30% commission but handle guest communication, cleaning coordination, and maintenance issues.

To identify profitable short-term rental properties in Nehalem, Oregon, focus on locations within walking distance of Nehalem Bay State Park and the beach access points, as proximity to the coastline drives the highest occupancy rates in this coastal market. Target 2-4 bedroom single-family homes or cabins built after 1980 with ocean views, outdoor spaces like decks or fire pits, and modern amenities including updated kitchens, reliable Wi-Fi, and parking for multiple vehicles, as these features command premium rates of $150-300 per night during peak summer months. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties, noting that Nehalem typically sees 60-70% occupancy rates with seasonal variations where summer months generate 3-4x winter revenue. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, paying attention to properties near Manzanita and Wheeler which compete for the same visitor demographic seeking Oregon coast experiences. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and consult with local property management companies like Meredith Lodging or Vacasa who have established operations in Tillamook County to understand operational costs, cleaning fees averaging $100-150, and local regulations including Tillamook County's STR permit requirements and occupancy limits.

To obtain an Airbnb/STR permit in Nehalem, Oregon, you must first contact the Tillamook County Planning Department since Nehalem falls under county jurisdiction for short-term rental regulations, typically requiring submission of a Conditional Use Permit application along with a site plan showing the property layout, parking arrangements, and septic system details if applicable. Required documents include proof of property ownership, a floor plan indicating maximum occupancy, neighbor notification forms, and evidence of adequate parking for guests plus one space per bedroom. The application fee is approximately $1,500-$2,000 for the conditional use permit process, with additional fees around $300-$500 for administrative processing. You must also obtain a Transient Lodging Tax license from Tillamook County, register with the Oregon Department of Revenue for lodging tax collection, and ensure compliance with fire safety codes including smoke detectors, carbon monoxide detectors, and fire extinguishers. The timeline typically takes 60-90 days from application submission to approval, including a public hearing process where neighbors can provide input. Nehalem-specific requirements include maintaining a local contact person available 24/7, limiting occupancy to two guests per bedroom plus two additional guests, providing adequate off-street parking, and ensuring the property meets all building and septic system requirements for the increased usage typical of short-term rentals.

Short-term rentals (STRs) are legal in Nehalem, Oregon, but operate under Tillamook County's regulations since Nehalem is an unincorporated community. As of 2023, Tillamook County allows STRs in residential zones with proper licensing and registration through the county's STR permit process. Property owners must obtain a Transient Lodging License, comply with occupancy limits (typically 2 people per bedroom plus 2 additional), maintain adequate parking, and follow noise ordinances. The county implemented stricter regulations around 2021-2022 including annual inspections, neighbor notification requirements, and mandatory local contact persons available 24/7. STRs are prohibited in some agricultural and forestry zones, and properties must meet fire safety and septic system requirements. Recent changes include increased fees, enhanced enforcement mechanisms, and requirements for properties to demonstrate compliance with septic capacity for the proposed occupancy levels, reflecting the county's effort to balance tourism revenue with community livability concerns in coastal areas like Nehalem.

The best areas for Airbnb investment in Nehalem, Oregon are the neighborhoods closest to Nehalem Bay and the Nehalem River, particularly properties within walking distance of the bay's recreational activities and crabbing spots, as these attract families and fishing enthusiasts year-round. The residential areas near Nehalem Bay State Park are highly desirable due to proximity to beach access, hiking trails, and the park's popularity with RV travelers and tent campers who often seek nearby cabin rentals as upgrades. Properties along the Nehalem River corridor appeal to kayakers, fishermen, and nature photographers, especially during salmon runs from September through November. The historic downtown district near Highway 101, though small, offers convenience for guests wanting walkable access to local restaurants and shops while serving as a base for exploring the broader North Oregon Coast. Neighborhoods with easy access to both Manzanita Beach (10 minutes south) and Cannon Beach (20 minutes north) command premium rates as they allow guests to experience multiple coastal destinations, while properties offering river and bay views or those with private beach access consistently achieve the highest occupancy rates and nightly rates among vacation rentals in the area.

Airbnb properties in Nehalem, Oregon are subject to Oregon's statewide transient lodging tax of 1.8% on gross rental receipts, which is collected by the Oregon Department of Revenue and applies to stays of less than 30 consecutive days. Tillamook County, where Nehalem is located, imposes an additional transient room tax of approximately 7% on lodging accommodations, bringing the total occupancy tax burden to around 8.8%. These taxes are typically collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits the state portion directly to Oregon's Department of Revenue as part of their voluntary collection agreement established in 2017. For the county portion, hosts may need to register with Tillamook County and remit taxes quarterly, though some platforms may also collect this on behalf of hosts. Properties rented for 30 days or longer are generally exempt from these transient lodging taxes, and certain nonprofit or government-related accommodations may qualify for exemptions, but standard vacation rental properties have no significant exemptions available.

The total cost to start an Airbnb in Nehalem, Oregon would be approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median home prices in the coastal Oregon market as of 2023-2024. Furnishing a 2-3 bedroom vacation rental requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor suitable for guests. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, transient lodging taxes registration, and any local short-term rental permits required by Tillamook County. Insurance for short-term rentals costs $2,000-$4,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable run $500-$1,000. First six months operating costs including utilities ($1,200), cleaning services ($2,400), maintenance and repairs ($1,500), property management software ($300), marketing ($500), and miscellaneous supplies ($600) total approximately $6,500. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add $10,000-$20,000 to initial capital requirements.

Airbnb properties in Nehalem, Oregon, typically generate annual revenues of $25,000-$45,000 for well-positioned coastal properties, with peak summer months (June-September) accounting for 60-70% of bookings at average daily rates of $150-$250. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (15-25% if outsourced), insurance ($1,200-$2,000 annually), utilities ($200-$400 monthly), and maintenance costs averaging $3,000-$5,000 yearly. Properties within walking distance of Nehalem Bay or offering unique amenities like hot tubs achieve occupancy rates of 65-75% during peak season, resulting in net profit margins of 25-35%. Success factors include proximity to outdoor recreation areas like Nehalem Bay State Park, professional photography showcasing coastal views, responsive guest communication, and strategic pricing during events like the Nehalem Bay Winery festivals. A typical 3-bedroom beach house purchased for $400,000 in 2019 and generating $35,000 annually in Airbnb revenue with $18,000 in expenses would yield a 4.25% cash-on-cash return, though appreciation in coastal Oregon real estate has added significant equity gains of 8-12% annually through 2023.

Airbnb investments in Nehalem, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's proximity to the Oregon coast and seasonal tourism demand. Properties within walking distance of Nehalem Bay or near recreational areas command premium nightly rates of $150-250, while standard residential properties average $100-180 per night during peak summer months (June-September) and $80-120 during off-season periods. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even typically achieved after covering mortgage, property management fees (10-15%), cleaning costs, and maintenance expenses. The market benefits from consistent demand from Portland-area visitors (90 minutes drive time), outdoor enthusiasts accessing nearby Oswald West State Park, and fishing tourism, though investors should expect 60-70% occupancy rates annually due to seasonal fluctuations and competition from established vacation rental markets in nearby Cannon Beach and Manzanita.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Nehalem, Oregon. Local real estate agents specializing in vacation rental investments include Windermere Real Estate on the Oregon Coast, with agents like those at the Manzanita office serving the Nehalem area since 2010, and Prudential Real Estate Professionals who have been active in Tillamook County investment properties since 2008. National services include Mashvisor (founded 2014) for property analysis, AirDNA (established 2015) for market data, and Awning (launched 2017) for full-service Airbnb investment management. Regional companies such as Oregon Coast Real Estate Partners and Nehalem Bay Properties have been facilitating vacation rental purchases since approximately 2012, while national platforms like Roofstock and BiggerPockets connect investors with Oregon coast properties. Additional services include RedAwning for property management, Vacasa (founded 2009) for comprehensive Airbnb management, and local property managers like Oregon Coast Vacation Rentals who have specialized in the Nehalem market since around 2015.