Is Reedsport, Oregon Good for Airbnb Investment?

To start an Airbnb in Reedsport, Oregon, begin by researching local regulations through Douglas County and the City of Reedsport, as Oregon requires short-term rental operators to register with the state and obtain a Transient Lodging Tax license, while Douglas County may require additional permits and zoning compliance checks. Contact Reedsport City Hall at 451 Winchester Avenue to verify specific municipal requirements, which typically include business licenses, safety inspections, and adherence to residential zoning laws. Find a suitable property by searching local real estate listings through companies like Windermere or RE/MAX, focusing on homes near the Umpqua River or close to Oregon Dunes National Recreation Area to attract tourists. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and outdoor gear storage given Reedsport's proximity to recreational activities, budgeting approximately $5,000-$15,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting the coastal location and dune access, setting competitive rates around $80-$150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, creating detailed house rules regarding noise and occupancy limits, and maintaining responsive communication with guests while ensuring compliance with Oregon's transient lodging tax collection requirements, which must be remitted quarterly to the Department of Revenue.

To identify profitable short-term rental properties in Reedsport, Oregon, focus on locations within walking distance of the Umpqua River, Oregon Dunes National Recreation Area access points, and downtown amenities, as this coastal town attracts outdoor enthusiasts year-round. Target 2-4 bedroom properties with outdoor spaces, hot tubs, river or dune views, and accommodations for recreational vehicles or boat parking, as visitors come for ATV riding, fishing, and water sports. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in Florence and Coos Bay, expecting average daily rates of $80-150 depending on size and amenities, with peak seasons during summer months and holiday weekends. Research competition by monitoring existing STR listings on Airbnb and VRBO within a 10-mile radius, noting occupancy patterns and guest reviews to identify service gaps. Utilize tools like Rabbu for local STR regulations compliance, STR Helper for market analysis, and connect with Reedsport Chamber of Commerce for tourism trends, while considering properties near Winchester Bay for marina access or along Highway 101 for convenience, ensuring compliance with Douglas County's short-term rental ordinances which may require permits and inspections.

To obtain an Airbnb/STR permit in Reedsport, Oregon, you must first contact the Reedsport City Hall at 451 Winchester Avenue or call (541) 271-3601 to inquire about their specific short-term rental ordinance requirements, as the city implemented STR regulations around 2019-2020. You'll need to submit a completed STR permit application along with required documents including proof of property ownership or lease agreement, a site plan showing parking and occupancy layouts, proof of liability insurance (typically $1 million minimum), a good neighbor agreement outlining house rules, emergency contact information, and a business license from the State of Oregon. The application fee is estimated at $150-300 initially with annual renewal fees of approximately $100-200. You must also comply with Douglas County health department requirements if applicable, ensure adequate parking (typically 1 space per bedroom plus 1), maintain occupancy limits based on bedrooms and septic capacity, and provide 24/7 local contact information. The approval process typically takes 30-60 days after submitting a complete application, during which time the city may conduct inspections to verify compliance with fire safety, building codes, and zoning requirements. Once approved, you'll receive your STR permit which must be renewed annually and displayed prominently in the rental property, with permit numbers required in all advertising platforms including Airbnb listings.

Short-term rentals (STRs) are legal in Reedsport, Oregon, but operate under Douglas County's regulations since the city has not established its own comprehensive STR ordinance as of 2023. Douglas County requires STR operators to obtain a business license and comply with basic safety and zoning requirements, though enforcement has been relatively lenient compared to larger Oregon cities. Properties must meet standard building and fire safety codes, maintain adequate parking, and cannot exceed occupancy limits based on septic system capacity, which is particularly relevant in Reedsport's rural coastal setting. The city has seen increased STR activity due to its proximity to Oregon Dunes National Recreation Area and coastal attractions, but unlike cities such as Cannon Beach or Bend, Reedsport has not implemented strict caps on STR numbers or established prohibited residential zones. Recent discussions at city council meetings in 2022-2023 have addressed potential local regulations, particularly regarding noise complaints and neighborhood character preservation, but no significant restrictive changes have been enacted, leaving the current permissive framework largely intact for property owners seeking to operate vacation rentals.

The best areas for Airbnb investment in Reedsport, Oregon are the Old Town Historic District near the Umpqua River waterfront, which attracts tourists visiting the Umpqua Lighthouse State Park and offers scenic river views, and the neighborhoods along Highway 101 corridor that provide easy access for travelers exploring the Oregon Coast. The Scholfield Creek area is particularly attractive due to its proximity to the Oregon Dunes National Recreation Area, drawing ATV enthusiasts, sandboarding visitors, and outdoor recreation tourists year-round. Properties near Winchester Bay and the Salmon Harbor area capitalize on fishing tourism, crabbing seasons, and boating activities, while locations close to the Umpqua Discovery Center benefit from educational tourism and family visitors. The residential areas near Dean Creek Elk Viewing Area attract wildlife watchers and nature photographers, especially during elk rutting season from September to November, and properties within walking distance of downtown Reedsport's restaurants and shops appeal to visitors attending the annual Chainsaw Sculpture Championships and other local events.

Airbnb properties in Reedsport, Oregon are subject to Oregon's statewide transient lodging tax of 1.8% on gross rental receipts, which is collected by the Oregon Department of Revenue and applies to stays of less than 30 consecutive days. Douglas County, where Reedsport is located, imposes an additional transient room tax of approximately 6% on short-term rental accommodations, bringing the total lodging tax burden to roughly 7.8%. The City of Reedsport may also levy a local transient occupancy tax of around 2-3%, though this varies by municipal ordinance and would increase the total tax rate to approximately 9.8-10.8%. These taxes are typically collected from guests at the time of booking through Airbnb's platform, which remits the state portion directly to Oregon Department of Revenue on a monthly basis, while hosts are generally responsible for collecting and remitting county and city portions quarterly or monthly depending on local requirements. Exemptions typically apply to stays exceeding 30 consecutive days, rentals to permanent residents, and certain government or charitable organization bookings, though hosts must maintain proper documentation and may need to register with local tax authorities to ensure compliance with collection and remittance obligations.

Starting an Airbnb in Reedsport, Oregon requires approximately $285,000-$320,000 in total initial investment. Property purchase costs around $220,000-$250,000 based on median home prices in coastal Oregon markets. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and outdoor equipment. Initial setup costs $3,000-$5,000 covering professional photography, listing optimization, welcome materials, and basic renovations. Permits and fees total $1,500-$2,500 including business license, transient lodging tax registration, and potential HOA approvals. Insurance increases $2,000-$3,000 annually for short-term rental coverage. Utility deposits and connections cost $500-$800 for electricity, water, internet, and cable. First six months operating expenses run $8,000-$12,000 covering utilities ($200/month), cleaning services ($100-150 per turnover), property management software ($50/month), marketing ($200/month), maintenance reserves ($300/month), and supplies ($150/month). Additional considerations include potential property management fees of 15-25% if outsourced, seasonal demand fluctuations affecting coastal Oregon markets, and compliance with Douglas County regulations for short-term rentals.

Airbnb properties in Reedsport, Oregon typically generate modest returns with average daily rates ranging from $75-120 for standard homes and $150-250 for oceanfront properties, achieving occupancy rates of 45-65% annually due to seasonal tourism patterns. Revenue for a typical 2-3 bedroom property averages $18,000-35,000 annually, while expenses including mortgage payments, property management (10-15% of revenue), cleaning fees ($50-75 per turnover), utilities ($150-200 monthly), insurance ($1,200-2,000 annually), and maintenance typically consume 60-75% of gross revenue, resulting in net profit margins of 15-25% for well-managed properties. Success factors include proximity to the Umpqua River and Oregon Dunes National Recreation Area, professional photography, competitive pricing during peak summer months (June-September), and maintaining high cleanliness standards, with properties within walking distance of the river or dunes commanding premium rates and achieving occupancy rates 10-15% higher than average. The market benefits from Reedsport's position as a gateway to outdoor recreation, though profitability is heavily dependent on seasonal demand fluctuations and effective cost management, with many owners supplementing income through long-term rentals during slower winter months.

Airbnb investments in Reedsport, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the coastal location's appeal to tourists visiting Oregon Dunes National Recreation Area and nearby lighthouse attractions. Properties within 2-3 miles of the coastline command premium nightly rates of $120-180 during peak summer months (June-September) and $80-120 during off-season, with average occupancy rates of 65-75% annually. Initial profitability typically occurs within 18-24 months for well-positioned properties, with break-even cash flow often achieved by month 12-18 depending on financing structure and property acquisition costs averaging $280,000-420,000 for suitable vacation rental properties. The market benefits from consistent demand from Portland-area visitors (2.5-hour drive) and California tourists, though seasonal fluctuations require careful cash flow management during winter months when occupancy can drop to 35-45%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Reedsport, Oregon. Local real estate agents serving the Reedsport area include Coldwell Banker Coast Real Estate, RE/MAX Coast and Country, and Century 21 Agate Realty who have experience with vacation rental properties along the Oregon coast. National services like AirDNA provide market analytics for short-term rental investments, while Mashvisor offers property analysis tools for Airbnb investments in smaller Oregon markets. Vacasa, founded in 2009, operates in Oregon and can provide insights on profitable rental properties while also offering property management services. Local property management companies like Oregon Coast Vacations and Dunes City Vacation Rentals have knowledge of the Reedsport market dynamics. BiggerPockets, established in 2004, offers networking and educational resources for real estate investors, including those focused on short-term rentals in coastal Oregon markets. RedAwning and HomeAway (now part of Vrbo since 2015) provide market data that can help identify profitable properties in the Reedsport area.