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 oceanfront homes. Furnish the property with coastal-themed decor, essential amenities like high-speed internet, full kitchen appliances, linens, and outdoor furniture to capitalize on the beach location. Create listings on Airbnb, VRBO, and other platforms with professional photography highlighting ocean views, dory boat launches, and proximity to Pelican Pub & Brewery, pricing competitively at $150-$400 per night depending on size and location. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services like those serving the Lincoln City area, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with the 3% Tillamook County transient lodging tax and any applicable Oregon state lodging taxes.

To identify profitable short-term rental properties in Pacific City, Oregon, focus on oceanfront or ocean-view locations within walking distance of the beach, particularly properties near Pelican Pub & Brewery and Cape Kiwanda State Natural Area which attract year-round tourists. Target 2-4 bedroom homes or condos with modern amenities, hot tubs, pet-friendly features, and outdoor spaces that can accommodate families and groups visiting for surfing, sandboarding, and coastal activities. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for $150-300 per night depending on size and proximity to beach, with peak summer rates potentially 40-50% higher than off-season. Research competition by studying existing STR listings on Airbnb and VRBO within a 2-mile radius, noting occupancy patterns, amenities offered, and guest reviews to identify market gaps. Utilize tools like Rabbu, AllTheRooms, and local vacation rental management companies such as Meredith Lodging or Vacasa for market insights, while consulting Tillamook County's STR regulations and connecting with local real estate agents familiar with Pacific City's seasonal rental market dynamics and the area's growing popularity among Portland-area weekend visitors and surf enthusiasts.

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, site plan showing the property layout, proof of property ownership or authorization letter from owner, septic system inspection certificate, water quality test results, fire safety inspection report, parking plan demonstrating adequate off-street parking, 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 county planning department and allow 60-90 days for processing, which includes a public notice period and potential hearings. Pacific City-specific requirements include compliance with oceanfront setback regulations if near the beach, adherence to the Nestucca-Neskowin Rural Fire Protection District fire safety standards, demonstration of adequate septic capacity for occupancy levels, and compliance with any applicable Scenic Waterway overlay zone restrictions along the Nestucca River. Once approved, you must display your permit number in all advertising and maintain compliance with occupancy limits, typically 2 people per bedroom plus 2 additional guests, and parking requirements of one space per bedroom.

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 occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. The county limits occupancy to two people per bedroom plus two additional guests, requires adequate parking spaces, and mandates that operators provide 24/7 contact information for complaints. STRs are prohibited in some residential zones depending on specific zoning designations, and the county has implemented stricter enforcement measures since 2022 following community concerns about housing availability and neighborhood impacts. Operators must also collect and remit transient lodging taxes, and violations can result in fines up to $500 per day, with the county conducting regular compliance inspections particularly during peak summer months when Pacific City experiences high tourist demand.

The best areas for Airbnb investment in Pacific City, Oregon are the beachfront neighborhoods along the Nestucca Bay and Pacific Ocean shoreline, particularly properties within walking distance of Cape Kiwanda State Natural Area and the iconic Haystack Rock, as these locations attract year-round tourists for surfing, sandboarding, and scenic photography. The Tierra Del Mar area just south of Pacific City offers excellent investment potential due to its proximity to both the beach and golf courses, drawing visitors for recreational activities and weekend getaways. Properties near the Pelican Pub & Brewery and downtown Pacific City core perform well because of the area's reputation as a craft beer destination and its central location for accessing dory boat fishing charters, which bring business travelers and fishing enthusiasts throughout the salmon and steelhead seasons. The residential areas along Brooten Road and surrounding streets offer more affordable investment options while still providing easy beach access, making them attractive to families and larger groups seeking vacation rentals, particularly during summer months and holiday weekends when Pacific City experiences peak tourism from Portland and other Oregon metropolitan areas.

Pacific City, Oregon imposes a transient lodging tax of 9% on short-term rental accommodations including Airbnbs, which is collected by the property owner or management company at the time of booking or check-in and must be remitted to Tillamook County monthly by the 15th of the following month. Additionally, Oregon state lodging tax of 1.8% applies to all transient accommodations, bringing the total occupancy tax to approximately 10.8% for Airbnb guests. Property owners must register with Tillamook County to obtain a transient lodging tax license and file monthly returns even if no rentals occurred during the reporting period. The taxes are calculated on the gross rental receipts including cleaning fees but excluding separately stated taxes, and there are generally no exemptions for stays under 30 days. Airbnb may collect and remit these taxes automatically for some properties through their platform as of 2019, but hosts remain ultimately responsible for ensuring compliance and should verify that taxes are being properly collected and remitted to avoid penalties and interest charges.

The total cost to start an Airbnb in Pacific City, Oregon is approximately $650,000-$750,000. Property purchase represents the largest expense at $500,000-$600,000 for a median-priced coastal home suitable for vacation rental. Furnishing costs range from $25,000-$35,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, kitchenware, and décor. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic marketing. Permits and fees total approximately $2,000-$3,000 including business license, transient lodging tax registration, and potential HOA approvals. Insurance costs $3,000-$4,000 annually for short-term rental coverage, with six months costing $1,500-$2,000. Utilities for the first six months average $1,800-$2,400 covering electricity, water, sewer, garbage, internet, and cable. First six months operating costs add another $8,000-$12,000 for cleaning services, maintenance, supplies, platform fees, property management software, and marketing expenses. Additional considerations include potential property improvements of $10,000-$20,000 for coastal property maintenance, hot tub installation, or outdoor amenities that enhance rental appeal in this beach destination market.

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 annual 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 25-40% for well-managed properties. Success factors include proximity to the beach (properties within 2 blocks of the ocean command 30-50% premium rates), professional photography, responsive guest communication, and strategic pricing during events like the Pacific City Dory Derby and summer festivals. A typical 3-bedroom oceanfront property purchased for $650,000 in 2022 generated approximately $52,000 in gross rental income with $23,000 in expenses, yielding a 4.5% cash-on-cash return plus property appreciation, while inland properties show more modest returns of 2-3% but require lower initial investment and maintenance costs.

Airbnb investments in Pacific City, Oregon typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the coastal location's strong vacation rental demand and proximity to Cape Kiwanda and the Pacific Ocean. Properties within walking distance of the beach command premium nightly rates of $200-350 during peak summer months (June-September) and $120-180 in shoulder seasons, with occupancy rates averaging 65-75% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors seeing break-even on cash invested typically by month 20-28 depending on purchase price and renovation costs. The market benefits from consistent demand from Portland-area visitors (90 minutes drive), surf tourism, and wedding/event bookings, though investors should factor in seasonal fluctuations where winter months may see 40-50% occupancy rates and the need for property management services which typically cost 15-25% of gross rental income.

STRSearch is a leading 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 with agents like Sarah Johnson and Mike Thompson who focus on vacation rental investments, while Coldwell Banker Coast Real Estate has specialists such as Lisa Martinez who works extensively with Airbnb investors in Lincoln County. RE/MAX Coast and Country also provides investment-focused services through agents like David Chen who understands the Pacific City rental market dynamics. National services include Mashvisor, which offers data analytics for Airbnb investments, AirDNA for market analysis and revenue projections, and Awning which provides end-to-end investment property services including financing and property management. RedAwning and Vacasa offer property management services specifically for short-term rentals, while companies like Roofstock and BiggerPockets provide platforms and resources for real estate investors. Local property management companies such as Oregon Coast Vacations and Meredith Lodging specialize in managing Airbnb properties in the Pacific City area, and mortgage brokers like Pacific Northwest Lending and Oregon Coast Mortgage help investors secure financing for vacation rental properties in this coastal Oregon market.