Is Rockaway Beach, Oregon Good for Airbnb Investment?

To start an Airbnb in Rockaway Beach, Oregon, begin by researching local regulations through Tillamook County and the City of Rockaway Beach, as Oregon requires short-term rental operators to obtain a Transient Lodging License from the Oregon Department of Revenue and pay transient lodging taxes of 1.8% state tax plus local taxes which can range 6-12% in coastal areas. Contact Rockaway Beach City Hall to understand specific zoning requirements, as many coastal Oregon cities have implemented short-term rental caps and require conditional use permits in residential zones, with application fees typically ranging $200-500. Find a suitable property by working with local real estate agents familiar with STR-friendly properties, focusing on areas zoned for commercial or mixed-use, or residential properties that allow short-term rentals, with typical purchase prices in Rockaway Beach ranging $300,000-800,000 for vacation-suitable homes. Obtain necessary permits including a business license from Rockaway Beach ($50-100 annually), fire safety inspection, and potentially a land use permit if required by zoning. Furnish the property with coastal-appropriate, durable furniture and amenities like high-speed internet, full kitchen supplies, linens, and beach equipment, budgeting $15,000-30,000 for a complete furnishing package. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting ocean views and beach access, setting competitive rates based on local market research showing average nightly rates of $150-400 depending on size and location. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, creating detailed house rules regarding noise and occupancy limits to comply with local ordinances, and either self-managing or hiring local property management companies that typically charge 20-30% of gross revenue for full-service management including cleaning, maintenance, and guest communication.

To identify profitable short-term rental properties in Rockaway Beach, Oregon, focus on oceanfront or ocean-view locations within walking distance of the beach, particularly along Highway 101 and streets like Pacific Avenue, as these command premium rates year-round. Target properties with 2-4 bedrooms, full kitchens, outdoor spaces like decks or patios, pet-friendly features, and parking, as families and groups visiting this coastal destination prefer these amenities. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that peak summer rates can reach $200-400/night while off-season rates drop to $80-150/night, with annual occupancy rates typically ranging 60-75% for well-positioned properties. Research competition by studying existing STR listings on Airbnb and VRBO within a 1-mile radius, identifying gaps in amenities or pricing strategies, and monitor properties managed by local companies like Meredith Lodging or Vacasa to understand professional management approaches. Utilize tools like AirDNA for market data, STR Helper for financial projections, Zillow and Redfin for property values, and consult with local real estate agents familiar with Tillamook County's STR regulations, while also checking the city's municipal code for any licensing requirements or occupancy restrictions that could impact profitability.

To obtain an Airbnb/STR permit in Rockaway Beach, Oregon, you must first contact the Rockaway Beach City Hall at 276 US-101 or call (503) 374-1752 to obtain a Transient Lodging License application, as the city requires all short-term rentals to be licensed as transient lodging facilities. You'll need to submit a completed application form, proof of property ownership or lease agreement, a site plan showing parking spaces and emergency exits, proof of liability insurance (typically $1 million minimum), a business license from the state of Oregon, and pay the application fee of approximately $200-300 plus an annual renewal fee of around $150-250. The property must meet specific requirements including adequate parking (typically 1 space per bedroom), proper signage displaying the license number, compliance with fire safety codes, and adherence to occupancy limits based on bedroom count and square footage. Submit all documents to the city planning department, and the review process typically takes 30-45 days, during which the city may conduct an inspection to ensure compliance with zoning regulations, building codes, and safety requirements. Once approved, you must also register with the Oregon Department of Revenue for transient lodging tax collection and remit the required local and state taxes, which in Rockaway Beach includes a city transient lodging tax of approximately 9-12% plus the state tax of 1.8%.

Short-term rentals (STRs) are legal in Rockaway Beach, Oregon, but operate under specific regulations established by the city. The city requires STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards and operators are required to provide contact information for a local representative available 24/7 to address any issues. Rockaway Beach has implemented these regulations to balance the economic benefits of vacation rentals with neighborhood livability concerns. The city prohibits STRs in certain residential zones and limits the total number of guests based on bedroom count and available parking. Recent changes in the early 2020s strengthened enforcement mechanisms and clarified permit requirements, with the city conducting regular inspections to ensure compliance. Violations can result in fines and permit revocation, and the city maintains a registry of approved STR properties that must be renewed annually.

The most promising Airbnb investment areas in Rockaway Beach, Oregon include the beachfront neighborhoods along Highway 101 between NW 6th Avenue and NW 11th Avenue, where properties offer direct ocean access and attract premium rates from tourists seeking luxury beach experiences year-round. The Twin Rocks area on the northern end provides excellent investment potential due to its iconic rock formations and proximity to popular surfing spots, drawing adventure tourists and photographers especially during summer months and storm-watching season. The Nedonna Beach neighborhood offers strong rental potential with its quieter residential feel that appeals to families and couples seeking peaceful retreats, while still being within walking distance of downtown amenities. Properties near the Rockaway Beach Golf Course attract golf enthusiasts and provide steady bookings during the golf season from spring through fall. The downtown core around Highway 101 and NW Pacific Street presents opportunities for investors targeting budget-conscious travelers and groups, benefiting from proximity to restaurants, shops, and the main beach access points, with consistent demand driven by the annual Pirate Festival in August, kite festivals, and year-round storm watchers who visit during Oregon's dramatic winter months.

Airbnb properties in Rockaway Beach, Oregon are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8%, Tillamook County's transient lodging tax of 7%, and Rockaway Beach's local transient lodging tax of 9%, totaling approximately 17.8% in combined lodging taxes. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits the state and some local taxes directly to the appropriate authorities on behalf of hosts. However, hosts may still be responsible for registering with Tillamook County and the City of Rockaway Beach to ensure compliance with local tax collection and remittance requirements, with payments generally due monthly or quarterly depending on the jurisdiction. The taxes apply to stays of less than 30 consecutive days, with longer-term stays typically exempt from transient lodging taxes, and some jurisdictions may offer exemptions for certain types of travelers such as government employees or those displaced by emergencies, though specific exemption criteria vary by locality.

To start an Airbnb in Rockaway Beach, Oregon, expect total costs of approximately $650,000-750,000. Property purchase represents the largest expense at $500,000-600,000 for a median 2-3 bedroom home near the beach, based on 2023-2024 coastal Oregon real estate prices. Furnishing costs range $15,000-25,000 for quality furniture, appliances, linens, and beach-themed decor suitable for vacation rentals. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-3,000. Permits and fees total $1,500-2,500, covering business licenses, transient lodging tax registration, and potential HOA approvals. Insurance runs $3,000-4,000 annually for short-term rental coverage with higher liability limits. Utilities including electricity, water, sewer, garbage, internet, and cable average $300-400 monthly or $1,800-2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, property management software, and marketing total $8,000-12,000. Additional considerations include potential property management fees (20-30% of revenue), emergency repairs fund ($5,000), and working capital for slower winter months when coastal bookings typically decline.

Airbnb properties in Rockaway Beach, Oregon typically generate annual revenues between $25,000-$45,000 for well-positioned oceanfront properties, with average daily rates ranging from $120-$200 during peak summer months and $80-$120 in off-season periods. Operating expenses generally consume 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($50-$75 per turnover), utilities ($200-$300 monthly), insurance premiums ($1,500-$2,500 annually), and maintenance costs averaging $3,000-$5,000 yearly for coastal properties due to salt air exposure. Net profit margins typically range from 15-25% for professionally managed properties, with successful operators like those managing multiple units through companies such as Vacasa and RedAwning achieving higher margins through economies of scale. Key success factors include proximity to the beach (properties within 2 blocks command 30-40% premium rates), professional photography and staging, dynamic pricing strategies, and maintaining 4.8+ star ratings through consistent guest experiences. Properties purchased between 2018-2020 for $300,000-$450,000 have generally seen positive cash flow within 12-18 months, though recent buyers facing higher acquisition costs and interest rates are experiencing longer payback periods of 24-36 months, with seasonal occupancy rates averaging 65-75% annually and peak summer months reaching 85-95% occupancy.

Airbnb investments in Rockaway Beach, Oregon typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's strong summer tourism season and proximity to Portland's metro area. Properties within walking distance of the beach command premium rates of $150-250 per night during peak season (June-September) and $80-120 during off-season, with average occupancy rates of 65-75% annually. Initial investment costs average $400,000-600,000 for suitable vacation rental properties, with investors typically reaching profitability within 18-24 months after accounting for furnishing, marketing, and operational expenses. The market benefits from consistent demand from Portland residents seeking weekend getaways and summer vacationers, with properties generating gross rental yields of 15-22% annually, though investors should factor in property management costs of 20-25% and seasonal revenue fluctuations that concentrate 60-70% of annual income in the May through September period.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Rockaway Beach, Oregon. Local real estate agents who focus on investment properties in the area include Prudential Real Estate Professionals with agents like those at the Cannon Beach office, and Century 21 Agate Realty which serves the Tillamook County coastal region. Vacasa, founded in 2009, operates extensively in Oregon coastal markets and provides both property management and acquisition consulting for Airbnb investments. AirDNA offers market analysis and revenue projections specifically for short-term rentals in Rockaway Beach, while Mashvisor provides investment property analysis tools for the Oregon coast. Local services include Oregon Coast Real Estate specialists and Rockaway Beach Realty agents who understand the seasonal rental market dynamics. National companies like Roofstock and BiggerPockets also provide resources and connections for investors seeking vacation rental properties, and RedAwning offers both property management and investment guidance for coastal Oregon markets including Rockaway Beach.