Is Nehalem, Oregon Good for Airbnb Investment?

To start an Airbnb in Nehalem, Oregon, begin by researching local regulations through Tillamook County and the City of Nehalem, as the area requires short-term rental permits and compliance with zoning ordinances that typically limit rentals to residential zones with specific occupancy limits. Obtain necessary permits including a Tillamook County Transient Lodging Tax license, Oregon state lodging tax registration, and any required business licenses, which can cost approximately $200-500 annually. Find a suitable property by searching coastal real estate markets, considering proximity to Nehalem Bay State Park and beach access, with typical investment properties ranging from $300,000-600,000 for homes suitable for vacation rentals. Furnish the property with coastal-themed decor, essential amenities like WiFi, full kitchen appliances, linens, and outdoor furniture for the Oregon coast climate, budgeting around $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting ocean proximity, hiking access, and local attractions like the Nehalem Bay Winery, setting competitive rates of $150-300 per night depending on season and property size. Manage the rental by establishing cleaning protocols between guests, coordinating with local cleaning services, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with the 14% combined state and local lodging taxes that must be collected and remitted monthly to Oregon Department of Revenue and Tillamook County.

To identify profitable short-term rental properties in Nehalem, Oregon, focus on properties 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 homes or cabins with ocean views, outdoor spaces like decks or fire pits, and pet-friendly features since many visitors travel with dogs to this beach destination. Analyze pricing by researching comparable Airbnb and VRBO listings in Nehalem and nearby Manzanita, aiming for properties that can command $150-300 per night depending on size and amenities, with peak summer rates reaching $400+ for premium oceanfront properties. Study competition using AirDNA and Mashvisor to assess occupancy rates, which typically range from 60-80% annually in this market, with strongest performance from June through September and holiday weekends. Research local regulations through Tillamook County's planning department, as Oregon coastal communities have varying STR restrictions, and utilize tools like Rabbu, Pricelabs for dynamic pricing, and local property management companies like Manzanita Rental Company for market insights. Consider properties near the Nehalem River for fishing enthusiasts and ensure adequate parking since many guests bring boats, kayaks, or multiple vehicles for beach access.

To obtain an Airbnb/STR permit in Nehalem, Oregon, you must first contact the Nehalem City Hall at 36910 9th Street or call (503) 368-5746 to request a short-term rental application, as the city requires all STR properties to be licensed and registered. Required documents typically include a completed application form, proof of property ownership or lease agreement, floor plan of the rental unit, parking plan showing adequate off-street parking, septic system inspection (if applicable), fire safety plan, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $200-300 with an annual renewal fee of around $150-200, and you may need additional fees for inspections or septic evaluations. The approval timeline is generally 4-6 weeks from submission of a complete application, though it can extend to 8-10 weeks during peak season or if additional documentation is required. Specific Nehalem requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate parking (typically 1 space per bedroom), ensuring the property meets all building and fire codes, maintaining a local contact person available 24/7 within 30 minutes of the property, posting the permit number in all advertising, and adhering to quiet hours from 10 PM to 7 AM with no outdoor amplified music or large gatherings.

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 requirements, including obtaining a transient lodging license and business license. Properties must comply with occupancy limits typically based on bedrooms plus two additional guests, maintain adequate parking, and follow noise ordinances. The county requires annual inspections, liability insurance, and 24/7 local contact information for guests. Recent changes around 2022-2023 have strengthened enforcement mechanisms and increased penalties for non-compliance, while also establishing clearer application processes. STRs are generally prohibited in areas zoned exclusively for long-term residential use, and some neighborhoods may have additional HOA restrictions. The county has been balancing tourism revenue with housing availability concerns, leading to ongoing discussions about potential caps on STR permits in high-density tourist areas near the coast.

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 this coastal town attracts tourists year-round for fishing, crabbing, kayaking, and beach access to nearby Manzanita Beach. The historic downtown area near Highway 101 offers strong potential due to its proximity to local restaurants, shops, and easy access for travelers exploring the Oregon Coast, while properties near Nehalem Bay State Park benefit from consistent visitor traffic seeking camping alternatives and RV overflow accommodations. The residential areas along North Fork Road and Miami River Road are attractive for investors targeting families and groups wanting more secluded, nature-focused stays with river access for fishing and outdoor activities. Properties near the Nehalem River mouth and Wheeler (just south) capture both the fishing tourism market and visitors attending seasonal events like crab feeds and local festivals, while the area's position between popular destinations like Cannon Beach and Tillamook makes it an ideal base for coast exploration, ensuring steady occupancy from spring through fall with winter storm watchers providing off-season revenue.

Airbnb properties in Nehalem, Oregon are subject to multiple lodging taxes including Oregon's state lodging tax of 1.8%, Tillamook County's transient lodging tax of 7%, and potentially a local Nehalem city lodging tax of approximately 2-3%. These taxes apply to short-term rentals under 30 days and are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Oregon Department of Revenue and Tillamook County on a monthly basis. Property owners must register with the Oregon Department of Revenue and obtain a transient lodging tax account, file monthly returns even if no rentals occurred, and maintain detailed records of all bookings and tax collections. Exemptions may include stays over 30 consecutive days, certain government employee stays, and rentals to permanent residents, though hosts should verify current exemption criteria as they can change. Failure to comply with registration, collection, or remittance requirements can result in penalties, interest charges, and potential legal action by tax authorities.

The total cost to start an Airbnb in Nehalem, Oregon would be approximately $485,000-$535,000. Property purchase represents the largest expense at $400,000-$450,000 for a median 2-3 bedroom home suitable for vacation rental in this coastal market as of 2024. Furnishing costs including beds, linens, kitchen essentials, living room furniture, and outdoor equipment would run $15,000-$20,000 for a complete setup. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total around $3,000-$5,000. Permits and fees including business license, transient lodging tax registration, and potential HOA approvals cost approximately $500-$1,500. Insurance including short-term rental coverage and liability protection runs $2,000-$3,000 annually. Utilities including electricity, water, sewer, garbage, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services at $75 per turnover, supplies, maintenance, property management software, and marketing would total $8,000-$12,000 assuming 60-70% occupancy rates typical for coastal Oregon vacation rentals.

Airbnb properties in Nehalem, Oregon, demonstrate moderate profitability with average annual revenues ranging from $25,000-$45,000 for typical 2-3 bedroom coastal homes, driven by the town's proximity to Manzanita Beach and Nehalem Bay State Park. Operating expenses typically consume 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($75-125 per turnover), utilities ($200-400 monthly), insurance premiums ($1,200-2,000 annually), and maintenance reserves (5-8% of revenue). Properties within walking distance of the beach or river access command premium rates of $150-250 per night during peak summer months (June-September), while off-season rates drop to $80-120 nightly. Success factors include professional photography showcasing ocean or forest views, responsive guest communication, and amenities like hot tubs, fire pits, or kayak access. A representative 3-bedroom home purchased for $400,000 in 2021 generated $38,000 in gross rental income with $18,500 in expenses, yielding a 4.9% net return before mortgage considerations. Properties with unique features like restored historic cabins or luxury finishes achieve occupancy rates of 65-75% annually, while standard rentals average 50-60% occupancy in this competitive coastal market.

Airbnb investments in Nehalem, Oregon typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the town's proximity to popular coastal destinations like Manzanita Beach and the Nehalem River. Properties in this market, particularly those within walking distance to outdoor recreation areas, can achieve profitability within 18-24 months due to strong seasonal demand from Portland-area visitors and tourists exploring the Oregon Coast. The average daily rate for well-positioned vacation rentals ranges from $150-250 depending on property size and amenities, with occupancy rates of 65-75% during peak summer months and 40-50% during off-season periods. Investment properties purchased in the $300,000-500,000 range typically generate $35,000-65,000 in annual gross rental income, with net returns after expenses, property management, and maintenance costs averaging 10-15% annually for investors who maintain competitive pricing and high guest satisfaction ratings.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Nehalem, Oregon, using data analytics and market insights. Local real estate agents specializing in Airbnb investments in the area include Windermere Pacific West Realty and RE/MAX Coast and Country, both established around 2010-2015 with agents experienced in vacation rental properties. Vacasa, founded in 2009, provides property management services for Airbnb investors in Nehalem and has extensive knowledge of profitable properties in the Oregon coast market. AirDNA offers market data and analytics specifically for short-term rental investments in Nehalem, helping investors identify high-performing properties since 2015. Mashvisor provides investment property analysis tools and has been serving the Oregon coast market since 2014. Local services include Oregon Coast Property Management and Sunset Empire Property Management, both specializing in vacation rental properties since approximately 2012-2016. National companies like BiggerPockets connects investors with local experts in the Nehalem market, while Roofstock focuses on turnkey rental properties including short-term rental opportunities in coastal Oregon markets.