Is Sherwood, Oregon Good for Airbnb Investment?

To start an Airbnb in Sherwood, Oregon, begin by researching local regulations as Sherwood requires short-term rental operators to obtain a business license from the city and comply with zoning requirements that typically allow STRs in residential zones with restrictions on the number of guests and parking. Contact Sherwood City Hall at 503-625-5522 to obtain the necessary Transient Lodging Tax permit and ensure compliance with Washington County health and safety codes. Find a suitable property by searching residential areas like Woodhaven, Stella Meadows, or downtown Sherwood, considering proximity to Tualatin River National Wildlife Refuge and local wineries that attract tourists. Purchase essential furnishings including quality bedding, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup. Create your Airbnb listing with professional photos highlighting Sherwood's small-town charm and proximity to Portland (20 miles), setting competitive rates around $80-150 per night based on local market analysis. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, and ensuring compliance with Oregon's 1.8% transient lodging tax collection requirements while building positive reviews to increase bookings in this growing Portland suburb market.

To identify profitable short-term rental properties in Sherwood, Oregon, focus on locations within walking distance of downtown's Main Street corridor, near Sherwood Regional Park, or close to major employers like Nike headquarters in nearby Beaverton. Target 3-4 bedroom single-family homes built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to families visiting the Portland metro area and business travelers. Conduct pricing analysis by researching comparable Airbnb listings in Sherwood, Tigard, and Tualatin, aiming for nightly rates between $120-180 based on property size and amenities, while calculating potential annual revenue against mortgage and operating costs. Research competition using AirDNA, STR Helper, and Mashvisor to analyze occupancy rates, seasonal demand patterns, and market saturation in Washington County suburbs. Utilize Zillow, Redfin, and local MLS data for property acquisition, while checking Sherwood's municipal code for STR regulations and permit requirements, and consider proximity to Highway 99W for easy access to Portland International Airport and downtown Portland, which drives much of the area's rental demand from 2020 onwards as remote work increased suburban STR popularity.

To obtain an Airbnb/STR permit in Sherwood, Oregon, you must first contact the Sherwood Planning Department at City Hall located at 22560 SW Pine Street to determine if short-term rentals are permitted in your specific zoning district, as Sherwood has restrictive regulations on STRs. If allowed, you'll need to submit a Conditional Use Permit application which requires a completed application form, site plan showing the property layout, proof of property ownership or authorization letter, neighborhood notification list with addresses within 250 feet of your property, and a detailed operational plan describing parking, occupancy limits, and management procedures. The application fee is approximately $1,500-$2,000 for the Conditional Use Permit process. You must also obtain a business license from the City Clerk's office for around $50-$100 annually and register with Washington County for transient lodging tax collection. The timeline typically takes 8-12 weeks including a public hearing before the Planning Commission, during which neighbors can provide input. Sherwood requires STR operators to provide on-site parking for all guests, maintain occupancy limits based on bedrooms and septic capacity, have a local contact person available 24/7 within 30 minutes of the property, and comply with noise ordinances with quiet hours from 10 PM to 7 AM, making it one of the more challenging jurisdictions in Oregon for short-term rental operations.

Short-term rentals (STRs) are legal in Sherwood, Oregon, but operate under specific regulations established by the city. Sherwood requires STR operators to obtain a business license and comply with zoning requirements, with rentals generally permitted in residential zones but subject to certain restrictions including occupancy limits, parking requirements, and noise ordinances. The city prohibits STRs in some multi-family residential areas and requires operators to maintain liability insurance and provide emergency contact information to neighbors. Recent changes around 2020-2022 included stricter enforcement mechanisms and updated permit requirements, with the city implementing a complaint-driven enforcement system and requiring annual renewals of STR permits. Property owners must also comply with Oregon state tax requirements and register with the Oregon Department of Revenue, while ensuring compliance with HOA restrictions where applicable and maintaining properties according to city safety and habitability standards.

The best areas for Airbnb investment in Sherwood, Oregon include the historic downtown district near the Sherwood Cultural Arts Center, which attracts visitors for community events and festivals throughout the year, and neighborhoods near Sherwood Country Club where business travelers and golf enthusiasts stay when visiting Nike headquarters and other major corporations in nearby Beaverton. The residential areas around Sherwood High School and Langer Farms offer family-friendly accommodations for parents visiting students or attending school events, while properties near Sherwood Regional Park and the Tualatin River National Wildlife Refuge appeal to outdoor enthusiasts and nature tourists. The Brookman Road corridor provides convenient access to both Portland metro area attractions and wine country destinations, making it ideal for visitors exploring the broader region, and the newer developments near Sherwood Station shopping area offer modern amenities that attract both leisure and business travelers seeking comfortable accommodations with easy access to dining and retail options.

Airbnb properties in Sherwood, Oregon are subject to multiple lodging taxes including Oregon's state transient lodging tax of 1.8% and Washington County's transient lodging tax of 2.5%, totaling approximately 4.3% in combined occupancy taxes. The City of Sherwood does not currently impose its own separate lodging tax as of 2023. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests through their platform and remitted to the appropriate tax authorities on behalf of hosts, though individual hosts remain ultimately responsible for compliance. Hosts must register with the Oregon Department of Revenue and Washington County for tax collection purposes, and exemptions are generally limited to stays exceeding 30 days which are considered long-term rentals rather than transient lodging. Property owners should also be aware that rental income is subject to standard Oregon income tax, and properties may need to comply with local business licensing requirements in Sherwood depending on the frequency and nature of the rental activity.

Starting an Airbnb in Sherwood, Oregon requires approximately $650,000-$750,000 in total initial investment. Property purchase represents the largest expense at $550,000-$650,000 based on median home prices in Sherwood as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchen essentials, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total approximately $2,000-$3,000. Permits and fees in Washington County include business license ($50-$100), short-term rental permit ($200-$400), and potential HOA approval processes. Insurance costs run $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, sewer, garbage, internet, and cable services cost approximately $500-$800 initially. First six months of operating costs including utilities ($300-$500 monthly), cleaning services ($75-$150 per turnover), maintenance reserves ($200-$400 monthly), platform fees (3% of bookings), and marketing expenses total approximately $8,000-$12,000, assuming moderate occupancy rates during the initial launch period.

Airbnb properties in Sherwood, Oregon typically generate annual revenues between $18,000-$35,000 for entire homes, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within walking distance of Sherwood's downtown area or near Tualatin River National Wildlife Refuge command premium rates, with some hosts reporting 70-80% occupancy rates during peak summer months. A typical 3-bedroom home purchased for $450,000 in 2022 generates approximately $28,000 annually in Airbnb revenue against $16,000 in operating expenses, yielding a 43% profit margin before mortgage considerations. Success factors include professional photography, rapid guest communication, proximity to Portland (20 miles), and targeting business travelers visiting nearby Nike headquarters in Beaverton. However, Sherwood's residential zoning restrictions and HOA limitations in many neighborhoods can impact operational feasibility, with some hosts reporting seasonal fluctuations where winter occupancy drops to 45-55%, significantly affecting annual profitability calculations.

Airbnb investments in Sherwood, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in Sherwood's desirable neighborhoods near Tualatin River National Wildlife Refuge and close to Portland metro access points command average daily rates of $120-180, with occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, considering Sherwood's median home prices around $550,000-650,000 and strong demand from Portland area visitors and business travelers. The market benefits from Sherwood's proximity to Nike headquarters in Beaverton and Intel facilities, driving consistent mid-week bookings, while weekend demand comes from wine country tourists and outdoor recreation visitors, resulting in gross rental yields of 10-14% before expenses.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Sherwood, Oregon. Local real estate agents like Keller Williams Realty Portland Central, Windermere Real Estate, and RE/MAX Equity Group have agents experienced in investment properties and vacation rentals in the Sherwood area. National services include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for investor networking and deal sourcing. Regional companies like Portland-based Vacasa offer property management insights, while local agents such as those at John L. Scott Real Estate and Premiere Property Group LLC understand the Washington County market dynamics. Additional services include RedAwning for rental potential analysis, AllTheRooms Analytics for competitive research, and local property management companies like AvantStay and RedAwning that can provide market insights for the Sherwood and greater Portland metropolitan area investment opportunities.