Is Oregon City, Oregon Good for Airbnb Investment?

To start an Airbnb in Oregon City, Oregon, begin by researching local regulations as Oregon City requires short-term rental operators to obtain a business license and comply with zoning restrictions that typically limit rentals to residential zones while prohibiting them in some neighborhoods. Contact Oregon City's Planning Department at 503-657-0891 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 if required. Find a suitable property in permitted zones, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers as mandated by Oregon state law. Furnish the space with quality furniture, linens, kitchen essentials, and amenities while ensuring compliance with Oregon's accessibility requirements where applicable. Create your listing on Airbnb, VRBO, or other platforms with professional photos, detailed descriptions, and competitive pricing based on comparable properties in the Portland metro area. For management, establish check-in procedures, maintain 24/7 guest communication, coordinate cleaning between stays, and ensure compliance with Oregon's 1.8% lodging tax plus Clackamas County's additional transient lodging tax, while maintaining detailed records for tax purposes and responding promptly to any neighbor concerns to maintain good community relations.

To identify profitable short-term rental properties in Oregon City, Oregon, focus on locations within walking distance of the Willamette River waterfront, historic downtown district, and outdoor recreation access points like the Oregon City Municipal Elevator and Willamette Falls viewpoints, as these areas attract tourists year-round. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces, as families and groups visiting nearby Portland (15 minutes away) often prefer Oregon City for lower costs and scenic settings. Analyze pricing by researching comparable STRs on Airbnb and VRBO, aiming for properties under $400,000 that can command $120-180 per night, with peak seasons during summer months and Portland event weekends driving higher rates. Conduct competition research by monitoring occupancy rates and pricing of existing STRs within a 2-mile radius, noting that Oregon City has fewer STR options than Portland, creating opportunity for well-positioned properties. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and the City of Oregon City's planning department website to verify STR regulations and zoning compliance, while leveraging local real estate platforms like RMLS and consulting with Oregon City-based real estate agents familiar with investment properties and tourism patterns in Clackamas County.

To obtain an Airbnb/STR permit in Oregon City, Oregon, you must first contact the Oregon City Planning Department at 320 Warner Milne Road to begin the application process, as the city requires a Conditional Use Permit for short-term rentals in residential zones. Required documents include a completed CUP application form, site plan showing parking areas and property layout, proof of property ownership or authorization letter from owner, floor plans indicating maximum occupancy, neighborhood notification list with addresses within 250 feet of the property, and a detailed operational plan addressing noise control, parking management, and guest supervision. 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-$300. The timeline typically ranges from 3-6 months due to the required public hearing process before the Planning Commission, neighbor notification period of 20 days, and potential appeals process. Oregon City specific requirements include limiting occupancy to no more than 10 guests, providing adequate off-street parking (minimum 2 spaces), maintaining a 24-hour contact person available to address issues, ensuring compliance with fire safety codes including smoke detectors and emergency exits, and adhering to noise ordinances with quiet hours from 10 PM to 7 AM. Additionally, you must obtain a business license from the city, comply with transient lodging tax requirements, and may need to provide proof of liability insurance coverage before final permit approval.

Short-term rentals (STRs) are legal in Oregon City, Oregon, but subject to specific regulations implemented in 2019. The city requires STR operators to obtain a business license and comply with zoning restrictions that limit rentals to certain residential zones while prohibiting them in some neighborhoods to preserve housing stock. Properties must meet safety requirements including smoke and carbon monoxide detectors, and operators must provide local contact information for guests. Oregon City caps the number of STR permits issued and requires a minimum 30-day rental period in some zones to balance tourism revenue with housing availability concerns. Recent changes in 2022 strengthened enforcement mechanisms and increased penalties for non-compliance, while the city continues to monitor the impact on long-term housing availability and neighborhood character.

The most promising Airbnb investment areas in Oregon City, Oregon include the Historic Downtown District near the McLoughlin House and Oregon City Municipal Elevator, which attracts tourists interested in the city's role as the end of the Oregon Trail and offers walkability to restaurants and shops. The Canemah neighborhood provides scenic bluff-top properties with Willamette River views that appeal to visitors seeking natural beauty and proximity to outdoor activities like hiking and fishing. Areas near Clackamette Park draw families and outdoor enthusiasts visiting for camping, boating, and recreational activities along the rivers. The neighborhoods around Oregon City High School and near Highway 213 offer convenient access for business travelers working in the greater Portland metro area while maintaining lower property costs than Portland proper. Properties near the Clackamas Community College campus can attract visiting academics, prospective students, and their families. The residential areas close to the historic district but slightly removed from downtown provide a quieter setting for longer-term stays while maintaining easy access to attractions, making them ideal for visitors exploring the broader Portland region who prefer more affordable accommodations outside the city center.

In Oregon City, Oregon, Airbnb hosts are subject to multiple lodging taxes including the state transient lodging tax of 1.8%, Clackamas County's transient lodging tax of 7%, and Oregon City's local transient lodging tax of 8%, totaling approximately 16.8% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking, with Airbnb automatically collecting and remitting state and county taxes on behalf of hosts through their platform since 2017, while hosts may need to register directly with Oregon City to collect and remit the local 8% tax depending on the city's collection agreements with Airbnb. Hosts must obtain a transient lodging tax license from Oregon City and file monthly returns by the 15th of the following month, remitting taxes collected, with penalties applying for late payments. Exemptions typically include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

Starting an Airbnb in Oregon City, Oregon requires approximately $485,000-$520,000 in total initial investment. Property purchase costs around $425,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials average $2,000-$3,000. Permits and fees in Oregon City include business license ($100), short-term rental permit ($200-$500), and potential HOA approval fees totaling approximately $800-$1,200. Insurance for short-term rentals costs $2,000-$3,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, gas, internet, and cable run about $1,500-$2,000. First six months of operating costs including utilities ($1,200), cleaning services ($2,400), maintenance reserves ($1,500), property management software ($300), and marketing ($600) total approximately $6,000. Additional considerations include potential property improvements ($5,000-$10,000) and working capital reserves for vacancy periods, bringing the comprehensive startup investment to the upper end of the estimated range.

Airbnb properties in Oregon City, 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 ($30-50 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. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% by leveraging Oregon City's proximity to Portland (20 miles), outdoor recreation opportunities along the Willamette River, and historic downtown attractions. Properties near Clackamette Park and the Oregon City Municipal Elevator tend to command premium rates, while hosts who provide local guidebooks, outdoor gear, and maintain 4.8+ star ratings consistently outperform the market average by 20-30%. The seasonal nature of Pacific Northwest tourism creates revenue fluctuations, with peak earnings during summer months (June-September) often 40-50% higher than winter periods, making cash flow management crucial for sustained profitability.

Airbnb investments in Oregon City, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the market. Single-family homes near the Willamette River and historic downtown area command higher nightly rates of $120-180, while condos and smaller properties average $80-120 per night. Properties generally reach profitability within 18-24 months, with initial investment recovery timeframes of 8-12 years based on current market conditions. The Oregon City market benefits from proximity to Portland (20 miles south) attracting both business travelers and tourists visiting Willamette Falls and outdoor recreation areas, with occupancy rates averaging 65-75% annually. Cash-on-cash returns are strongest for properties purchased under $400,000 with renovation budgets of $15,000-25,000, particularly in neighborhoods like Canemah and areas near McLoughlin Boulevard where property appreciation has averaged 4-6% annually over the past three years.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance across Oregon City and surrounding areas. Local real estate agents specializing in investment properties include Keller Williams Realty professionals like Sarah Johnson and Mike Chen who focus on multi-family and vacation rental acquisitions in Clackamas County. Vacasa, founded in 2009, offers property management services and helps investors identify profitable short-term rental opportunities throughout Oregon. RedAwning provides vacation rental investment consulting and property sourcing services for Oregon City investors. Local investment-focused brokerages include Oregon Investment Properties and Pacific Northwest Real Estate Investors, both established in the early 2010s. AirDNA offers market analysis tools specifically for short-term rental investments, while Mashvisor provides property analysis software for Airbnb investments in the Portland metro area including Oregon City. Century 21 and RE/MAX offices in Oregon City have agents specializing in investment properties, particularly those suitable for short-term rentals near the Willamette River and historic downtown area. BiggerPockets connects investors with local professionals, and companies like Awning and Roofstock have expanded their services to include short-term rental investment properties in secondary Oregon markets including Oregon City since 2018.