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 for your zone. Find a suitable property by purchasing or leasing a home, condo, or apartment in permitted areas, focusing on neighborhoods near downtown Oregon City, Clackamette Park, or areas with easy access to Portland (20 minutes away). Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, TV, and local guidebooks, budgeting $3,000-8,000 for a one-bedroom setup. Create your Airbnb listing with professional photos, competitive pricing ($80-150/night for a one-bedroom based on 2023-2024 rates), and highlight proximity to Oregon City's historic downtown, Willamette Falls, and easy Portland access. Manage your property by responding to guests within an hour, maintaining cleanliness standards, coordinating check-ins/check-outs, and ensuring compliance with Oregon's 1.8% transient lodging tax plus Clackamas County's additional lodging taxes, while maintaining required insurance coverage and keeping detailed records for tax purposes.

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 attractions prefer these features. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates of $120-180 depending on size and location, with occupancy rates above 65% being profitable in this market. Research competition by analyzing existing STR listings within a 2-mile radius, identifying gaps in amenities or pricing, and studying seasonal demand patterns driven by summer tourism and proximity to Portland metro area visitors. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and the City of Oregon City's planning department resources to understand zoning restrictions and permit requirements, while leveraging local real estate platforms like RMLS and consulting with Oregon City-based property management companies familiar with STR regulations and market dynamics.

To obtain an Airbnb/STR permit in Oregon City, Oregon, you must first contact the Oregon City Community Development Department at 320 Warner Milne Road to apply for a Conditional Use Permit (CUP) for short-term rentals, as the city requires STRs to be treated as commercial uses in residential zones. Required documents include a completed CUP application, site plan showing parking and property layout, proof of property ownership or authorization letter, business license application, insurance documentation showing minimum $1 million liability coverage, and a good neighbor agreement outlining house rules and contact information. The application fee is approximately $1,500-$2,000 for the CUP process, plus additional fees for business license registration around $50-$100. The timeline typically takes 8-12 weeks including a public hearing before the Planning Commission, neighbor notification period, and staff review. Oregon City specific requirements include providing adequate off-street parking (minimum 2 spaces), maintaining the residential character of the neighborhood, having a local contact person available 24/7 within 30 minutes of the property, limiting occupancy based on bedroom count plus two additional guests, and ensuring compliance with all building and fire safety codes. You must also register for transient lodging taxes with both Clackamas County and the state of Oregon, and some properties may require additional land use reviews depending on zoning and location within the city.

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 STRs primarily to commercial and mixed-use zones, while generally prohibiting them in residential neighborhoods to preserve housing stock for long-term residents. Properties must meet safety requirements including smoke and carbon monoxide detectors, and operators must provide local contact information for guest issues. The city caps the total number of STR permits and requires annual renewals, with violations subject to fines up to $500 per day. Recent changes in 2022 strengthened enforcement mechanisms and clarified parking requirements, while the city continues to monitor impacts on housing availability and neighborhood character, particularly in historic downtown areas where some STRs are concentrated.

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 area's pioneer history 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. Areas near Clackamette Park draw families and outdoor enthusiasts visiting for camping, fishing, and river recreation. The neighborhoods around Oregon City High School and Warner Milne Road offer good access to Portland commuters and business travelers working in the metro area, being just 30 minutes from downtown Portland. Properties near the Clackamas Community College campus can attract visiting families, prospective students, and academic travelers. The South End Road area provides a more secluded, rural feel while maintaining reasonable access to both Oregon City amenities and Portland, appealing to guests seeking a quiet retreat with urban convenience.

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 approximately 8-10%. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking for most jurisdictions, with Airbnb remitting payments quarterly to the appropriate tax authorities. Hosts may need to register with the Oregon Department of Revenue, Clackamas County, and Oregon City depending on collection arrangements, and if Airbnb doesn't collect certain local taxes, hosts must collect them directly and remit monthly or quarterly along with required tax returns. Exemptions generally include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though documentation may be required to claim exemptions.

Starting an Airbnb in Oregon City, Oregon requires approximately $520,000-580,000 in total initial investment. Property purchase costs around $450,000 based on 2024 median home prices in the area. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-5,000. Permits and fees in Oregon City include business license ($100), transient lodging tax registration ($50), and potential zoning permits ($200-500). Insurance premiums for short-term rental coverage cost approximately $2,000-3,000 annually. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable total around $500-800 initially. First six months of operating costs including utilities ($1,200), cleaning services ($2,400), supplies and maintenance ($1,500), platform fees ($3,000 assuming $6,000 monthly revenue), and marketing expenses ($800) amount to approximately $8,900. Property taxes and HOA fees if applicable would add another $2,000-3,000 for the initial six-month period.

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 higher-end homes near the Willamette River or historic downtown achieving margins closer to 30-40%. Success factors include proximity to Portland (20 minutes away), competitive pricing during peak summer months (June-September), professional photography, consistent 4.8+ star ratings, and targeting business travelers and tourists visiting nearby attractions like the Oregon City Municipal Elevator and Willamette Falls. Properties with unique features such as river views, hot tubs, or historic charm command premium rates and achieve occupancy rates of 65-80%, while standard suburban homes typically see 45-65% occupancy with lower profit margins around 15-25%.

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 $80-130 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 historic sites, with occupancy rates typically running 65-75% annually. Cash-on-cash returns are strongest for properties purchased under $400,000 with renovation budgets of $15,000-25,000, where investors can expect monthly net cash flows of $800-1,500 after expenses including property management fees of 15-20%, cleaning costs, and local lodging taxes of 11.5%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Oregon City, Oregon. Local real estate agents who focus on investment properties in the Oregon City area include Keller Williams Realty professionals, Coldwell Banker agents specializing in rental investments, and RE/MAX agents with vacation rental expertise. National services that help investors find Airbnb properties include Mashvisor, which provides rental property analytics, AirDNA for market data and investment analysis, Awning for turnkey Airbnb investments, RedAwning for vacation rental property sourcing, and Vacasa which offers property management and investment guidance. Local property management companies like Evolve Vacation Rental and regional firms such as Pacific Northwest Property Management also assist investors in identifying and managing profitable short-term rental properties. Additionally, real estate investment groups and meetups in the Portland metro area, including Oregon City, often provide networking opportunities and property leads for Airbnb investors, while platforms like BiggerPockets connect investors with local market experts and deal flow in the Oregon City market.