Is Pendleton, Oregon Good for Airbnb Investment?

To start an Airbnb in Pendleton, Oregon, begin by researching local regulations through the City of Pendleton Planning Department, as the city requires short-term rental operators to obtain a Conditional Use Permit and business license, with properties needing to comply with zoning requirements that typically allow STRs in residential zones with restrictions on the number of guests and parking requirements. Contact Umatilla County for any additional county-level permits and ensure compliance with Oregon state tax requirements by registering with the Department of Revenue for transient lodging taxes. Find a suitable property by working with local real estate agents familiar with Pendleton's market, focusing on areas near the Pendleton Round-Up grounds, downtown historic district, or near the Pendleton Woolen Mills, with average property prices ranging from $150,000-$400,000 depending on size and location. Furnish the property with Western/rustic décor reflecting Pendleton's cowboy heritage, including quality linens, kitchen essentials, WiFi, and amenities like coffee makers and local guidebooks, budgeting approximately $15,000-$25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting unique features and proximity to local attractions like the Pendleton Underground Tours and annual Round-Up events, setting competitive rates between $80-$200 per night based on seasonality. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like Vacasa or AvantStay if you're not local, while maintaining responsive communication with guests and keeping the property stocked with essentials and local recommendations.

To identify profitable short-term rental properties in Pendleton, Oregon, focus on locations within walking distance of downtown's historic district, near the Pendleton Round-Up grounds, or close to outdoor recreation areas like the Umatilla River. Target 2-4 bedroom properties built after 1950 with updated kitchens, reliable WiFi capability, parking spaces, and outdoor areas that can accommodate families and groups visiting for rodeo events, business travel to local agriculture companies like Pendleton Grain Growers, or outdoor enthusiasts. Analyze pricing by researching comparable Airbnb and VRBO listings in the $80-150 nightly range, considering seasonal fluctuations with peak rates during Round-Up week in September and summer months. Study competition by monitoring occupancy rates of existing STRs through AirDNA or similar platforms, noting that Pendleton's limited hotel inventory creates opportunities for well-positioned rentals. Utilize tools like Mashvisor for market analysis, STR Helper for performance tracking, and local resources including the Pendleton Chamber of Commerce for event calendars, Umatilla County planning department for zoning regulations, and networking with local property managers who understand the seasonal tourism patterns driven by the Round-Up, wool mill tours, and proximity to Blue Mountain recreational areas.

To obtain an Airbnb/STR permit in Pendleton, Oregon, you must first contact the Pendleton Planning Department at City Hall located at 500 SW Dorion Avenue to determine if short-term rentals are permitted in your zoning district, as the city requires a Conditional Use Permit for most STR operations. Submit an application including a completed CUP application form, site plan showing parking and property layout, proof of property ownership or authorization letter, business license application, and a $350-500 application fee. Required documents typically include a floor plan, neighborhood notification list, parking plan showing adequate off-street parking, waste management plan, and contact information for a local property manager if you're an absentee owner. The city requires STRs to maintain residential character, provide adequate parking (typically 2 spaces minimum), limit occupancy based on bedrooms plus two additional guests, and comply with noise ordinances with quiet hours from 10 PM to 7 AM. After submitting your complete application, the planning department conducts a review process taking approximately 60-90 days, which may include a public hearing before the Planning Commission. Once approved, you must also obtain a business license from the city clerk's office for an additional $50-75 annually and register with the Oregon Department of Revenue for transient lodging tax collection, with Umatilla County also requiring registration for their 1% transient room tax.

Short-term rentals (STRs) are legal in Pendleton, Oregon, but operate under specific regulations established by the city. Pendleton requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use zones, while residential zones have more limited permissions. The city implemented these regulations around 2019-2020 to balance tourism benefits with neighborhood preservation concerns. Current restrictions include occupancy limits based on property size, parking requirements, noise ordinances, and mandatory contact information for a responsible party available 24/7. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators must collect and remit transient lodging taxes. Recent changes have focused on strengthening enforcement mechanisms and clarifying permit requirements, with the city conducting periodic reviews of STR impacts on housing availability and neighborhood character. Prohibited areas include certain residential districts where STRs are not permitted as primary uses, though accessory dwelling units may have different allowances under specific conditions.

The best areas for Airbnb investment in Pendleton, Oregon include the Historic Downtown District, which attracts visitors year-round due to its proximity to the Pendleton Woolen Mills (established 1909), restaurants, and cultural attractions, plus it serves business travelers visiting local companies. The area near the Pendleton Round-Up Grounds is highly lucrative, especially during the famous September rodeo event that draws over 50,000 visitors annually, creating peak demand for short-term rentals. The Southgate neighborhood offers good investment potential due to its residential charm and proximity to both downtown amenities and the Pendleton Country Club, appealing to leisure travelers and business visitors to companies like Lamb Weston. The North Hill area provides opportunities for properties with views and quiet settings that attract families and couples seeking a peaceful retreat while remaining close to downtown attractions. Properties near the Umatilla River and Riverside areas appeal to outdoor enthusiasts visiting for fishing, hiking, and recreational activities, while the vicinity around Blue Mountain Community College attracts visiting families, prospective students, and academic travelers throughout the year.

In Pendleton, Oregon, Airbnb hosts are subject to both state and local lodging taxes. The Oregon state transient lodging tax is 1.8% of gross rental receipts, which applies to all short-term rentals under 30 days. Umatilla County imposes an additional transient room tax of 1% on lodging accommodations. The City of Pendleton levies a local transient lodging tax of 9% on short-term rental income. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which began operating in Oregon around 2017-2018. Hosts must register with the Oregon Department of Revenue and obtain a transient lodging license, then remit taxes monthly by the 25th of the following month using Form OTC (Oregon Tax Commission). The city requires separate registration and monthly remittance to the Pendleton Finance Department. Exemptions generally include rentals to permanent residents (30+ days), certain government employees on official business, and some nonprofit organization stays. Hosts who don't use Airbnb's collection service must collect taxes directly from guests and maintain detailed records of all transactions, guest information, and tax collected for audit purposes.

The total cost to start an Airbnb in Pendleton, Oregon is approximately $285,000-$315,000. Property purchase costs around $220,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property 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 total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and potential HOA approvals cost $500-$1,500. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable run $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and marketing total approximately $6,000-$8,000 assuming 60% occupancy rates and $120 average nightly rates typical for the Pendleton market.

Airbnb properties in Pendleton, Oregon typically generate annual revenues of $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Properties near the Pendleton Round-Up grounds command premium rates during the September rodeo event, with some hosts reporting 300-400% rate increases and full bookings, contributing significantly to annual profitability. A typical 3-bedroom home in Pendleton's historic district generates approximately $28,000 in annual revenue with $16,000 in expenses, yielding a 43% profit margin or roughly $12,000 net income. Success factors include proximity to downtown attractions, the Eastern Oregon Trade and Event Center, and Blue Mountain Community College, with properties offering Western-themed décor and rodeo memorabilia performing particularly well. Seasonal occupancy rates peak at 75-85% during summer months and rodeo season but drop to 35-45% in winter, making year-round profitability challenging without strategic pricing and marketing to business travelers and regional visitors.

Airbnb investments in Pendleton, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to outdoor recreation areas, the Pendleton Round-Up rodeo events, and business travelers visiting local industries like the Pendleton Woolen Mills. Properties near downtown or the rodeo grounds command premium rates of $80-120 per night during peak seasons, with average occupancy rates of 55-65% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, though investors should account for seasonal fluctuations with stronger performance during summer months and rodeo season (September) when rates can increase 40-60% above baseline. The market benefits from limited hotel inventory and growing tourism, but faces challenges from smaller population base and economic dependence on agriculture and manufacturing sectors, making location selection and property management crucial factors for achieving the higher end of expected returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Pendleton, Oregon. Local real estate agents like Coldwell Banker Whitney & Associates and RE/MAX Integrity in Pendleton have experience with investment properties and can help identify suitable Airbnb opportunities in the area. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and investment analysis, and Awning for turnkey Airbnb investment properties. RedAwning offers property management and investment services for short-term rentals, while BiggerPockets connects investors with local professionals and resources. Local property management companies like High Desert Property Management can assist with ongoing operations once properties are acquired. Additional national platforms include Roofstock for rental property investments, though they focus more on traditional rentals, and specialized Airbnb investment consultants who work remotely to help investors analyze the Pendleton market's potential for short-term rental profitability.