Is Pacific City, Oregon Good for Airbnb Investment?

To start an Airbnb in Pacific City, Oregon, begin by researching Tillamook County's short-term rental regulations, which typically require a Transient Lodging Tax license and compliance with zoning ordinances that may restrict rentals in certain residential areas. Contact Tillamook County Planning Department to obtain necessary permits, including a business license and potentially a conditional use permit depending on your property's zoning. Find a suitable property within Pacific City's vacation rental zones, focusing on areas near the beach or Nestucca River where tourism demand is highest, with properties typically ranging from $400,000-$800,000 for oceanview homes. Furnish the space with coastal-themed, durable furniture from retailers like West Elm or local Oregon suppliers, ensuring you have essential amenities like high-speed internet, full kitchen appliances, and beach equipment since Pacific City attracts surfers and beach enthusiasts year-round. List your property on Airbnb, VRBO, and local vacation rental sites, highlighting proximity to Pacific City's famous dory boat launches, Pelican Pub & Brewery, and Cape Kiwanda, with rates typically ranging from $150-$400 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring Pacific City-based property management companies like Vacasa or local independents who understand the seasonal tourism patterns, peak summer demand from July-September, and the area's unique appeal to outdoor recreation visitors.

To identify profitable short-term rental properties in Pacific City, Oregon, focus on oceanfront or ocean-view locations within walking distance of the beach, Pelican Pub & Brewery, and Cape Kiwanda, as these areas command premium rates year-round. Target 2-4 bedroom properties with modern amenities, hot tubs, pet-friendly features, and parking for multiple vehicles, as families and groups visiting for surfing, sandboarding, and brewery tours represent the primary market. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $150-400 per night depending on size and proximity to beach, with peak summer rates 40-60% higher than off-season. Research competition by studying listings within a 2-mile radius, noting occupancy rates, amenities, and guest reviews to identify market gaps and positioning opportunities. Utilize tools like Rabbu, AllTheRooms, and local STR management companies such as Vacasa or RedAwning for market data, while consulting with Pacific City-based real estate agents familiar with vacation rental regulations and HOA restrictions that may impact profitability in this coastal tourism market.

To obtain an Airbnb/STR permit in Pacific City, Oregon, you must apply through Tillamook County since Pacific City is an unincorporated community within the county's jurisdiction. Start by contacting the Tillamook County Community Development Department at 1510-B Third Street, Tillamook, OR 97141, or call (503) 842-3408 to obtain the Short-Term Rental application packet. Required documents typically include a completed STR application form, property deed or lease agreement proving legal ownership/authorization, site plan showing parking and access, septic system inspection certificate, water quality test results, fire safety inspection certificate, liability insurance certificate ($1 million minimum coverage), emergency contact information for a local representative within 30 minutes of the property, and a good neighbor agreement outlining house rules. The application fee is approximately $350-500 with annual renewal fees around $200-300. Submit all materials to the Community Development Department for review, which includes neighbor notification requirements and a 14-day public comment period. The approval timeline is typically 60-90 days from complete application submission. Pacific City-specific requirements include compliance with coastal zone management regulations, adherence to maximum occupancy limits based on septic capacity (usually 2 people per bedroom plus 2 additional), mandatory parking provisions (typically 1 space per bedroom), and seasonal restrictions during certain wildlife protection periods. Once approved, you must display your permit number in all advertising and maintain compliance with ongoing requirements including annual inspections and renewal applications.

Short-term rentals (STRs) are legal in Pacific City, Oregon, but operate under Tillamook County's regulations since Pacific City is an unincorporated community. As of 2023, Tillamook County requires STR operators to obtain a Transient Lodging License and comply with specific requirements including occupancy limits (typically 2 people per bedroom plus 2 additional), parking requirements (one space per bedroom), noise restrictions, and 24-hour local contact information. The county implemented stricter regulations around 2020-2022 following community concerns about housing availability and neighborhood impacts, including enhanced enforcement mechanisms and higher fees. Properties must meet building and fire safety codes, and operators face penalties for violations including potential license revocation. While not prohibited in specific areas of Pacific City, STRs must comply with underlying zoning requirements and cannot operate in areas zoned exclusively for residential use without proper permits. Recent changes have focused on balancing tourism revenue with community livability concerns, particularly regarding the conversion of long-term housing stock to short-term rentals in this popular coastal destination.

The best areas for Airbnb investment in Pacific City, Oregon are the beachfront neighborhoods along the Nestucca Bay and Pacific Ocean shoreline, particularly the residential areas near Cape Kiwanda State Natural Area and the Pelican Pub & Brewery, which attract year-round tourists for surfing, sandboarding, and scenic dory boat launches. The neighborhoods within walking distance of the beach access points between Brooten Road and Sandlake Road offer prime investment opportunities due to their proximity to the famous Haystack Rock formation and consistent visitor traffic from outdoor enthusiasts. The residential areas near the Nestucca River provide excellent potential for fishing-focused rentals, as the region draws significant numbers of salmon and steelhead anglers, especially during peak seasons from September through March. Properties in the Cape Kiwanda Resort area and surrounding developments benefit from established tourism infrastructure and events like the annual Dory Days Festival, while homes near the Three Capes Scenic Loop attract road-trippers and nature photographers year-round, making these locations particularly attractive for short-term rental investments with strong occupancy rates driven by outdoor recreation, scenic tourism, and seasonal fishing activities.

Pacific City, Oregon imposes a transient lodging tax of 9% on short-term rental accommodations including Airbnbs, which is collected by Tillamook County as Pacific City is an unincorporated community within the county. The tax applies to stays of 30 days or less and is typically collected by the host at the time of booking or check-in, then remitted to Tillamook County on a monthly basis by the 15th of the following month using the county's transient lodging tax return form. Additionally, Oregon state lodging tax of 1% applies to all transient accommodations, bringing the total occupancy tax to approximately 10%. Hosts must register with Tillamook County to obtain a transient lodging tax license before operating, and exemptions are limited to stays exceeding 30 consecutive days by the same guest, government employees on official business, and certain nonprofit organization stays. The county may also impose additional fees for tourism promotion, and hosts are required to maintain detailed records of all bookings and tax collections for audit purposes.

To start an Airbnb in Pacific City, Oregon, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$650,000 for a median-priced coastal home suitable for vacation rental. Furnishing costs typically range $25,000-$35,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and coastal-themed decor. Initial setup costs including professional photography, listing creation, and marketing materials run $2,000-$3,000. Permits and fees vary but budget $1,500-$2,500 for business licenses, transient lodging tax registration, and any local short-term rental permits required by Tillamook County. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage. Utility setup and deposits for electricity, water, sewer, internet, and cable total around $1,000-$1,500. First six months operating costs including utilities ($800/month), cleaning services ($150 per turnover), supplies and maintenance ($300/month), platform fees (3% of bookings), and property management if outsourced (20-30% of revenue) can range $8,000-$15,000 depending on occupancy rates and seasonal demand in this popular Oregon coast destination.

Airbnb properties in Pacific City, Oregon typically generate annual revenues of $35,000-$65,000 for oceanfront properties and $20,000-$40,000 for inland properties, with peak summer months (June-September) accounting for 60-70% of total bookings at average daily rates of $180-$350 for beachfront units and $120-$200 for standard properties. Operating expenses generally range from 40-55% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance reserves (5-10% of revenue), resulting in net profit margins of 25-35% for well-managed properties. Success factors include proximity to the beach (properties within 2 blocks of the ocean consistently outperform by 30-40%), professional photography, responsive guest communication, and amenities like hot tubs, game rooms, and pet-friendly policies, with top-performing properties like those managed by Vacasa and local companies such as Oregon Beach Vacations achieving occupancy rates of 65-75% compared to the market average of 45-55%. Properties purchased in 2019-2020 for $400,000-$800,000 have generally seen strong returns, though rising property values, increased competition from new STR developments, and stricter local regulations implemented in 2022 have compressed margins for newer investors entering the market.

Airbnb investments in Pacific City, Oregon typically generate annual ROI of 12-18% due to the coastal location's strong vacation rental demand, with peak summer months driving occupancy rates of 75-85% and average daily rates of $200-350 for oceanfront properties. Cash-on-cash returns generally range from 8-14% annually, with investors seeing positive cash flow within 6-12 months of operation when purchasing properties in the $400,000-700,000 range with 20-25% down payments. The timeframe to profitability averages 8-15 months, factoring in initial setup costs, furnishing expenses of $15,000-25,000, and seasonal fluctuations where winter months see 30-40% occupancy but maintain rates of $150-250 nightly. Properties within walking distance of the beach and Pelican Pub typically outperform inland locations by 15-25%, with gross rental yields of 10-16% before expenses, making Pacific City a viable short-term rental market despite Oregon's regulatory environment and property management costs averaging 20-25% of gross revenue.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties across markets including Pacific City, Oregon. Local real estate agents serving the Pacific City area include Windermere Realty Trust, Coldwell Banker Coast Real Estate, and RE/MAX Coast and Country, with agents like those at Pacific City Realty Group who understand the vacation rental market dynamics. National services include Awning (formerly RedAwning) which provides Airbnb investment property analysis, Mashvisor for rental property analytics, and AirDNA for short-term rental market data. Regional companies such as Vacasa, which manages vacation rentals along the Oregon coast including Pacific City, can provide insights into profitable properties, while Coast Range Realty and Oregon Coast Vacation Rentals offer local market expertise. Additional services include BiggerPockets for investor networking, Roofstock for turnkey rental properties, and local property management companies like Meredith Lodging and Sand & Sea Vacation Rentals who understand which properties perform best as short-term rentals in the Pacific City market.