Is The Dalles, Oregon Good for Airbnb Investment?

To start an Airbnb in The Dalles, Oregon, begin by researching local zoning laws and regulations through the City of The Dalles Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to owner-occupied properties or specific zones. Obtain necessary permits including a business license from the City of The Dalles (approximately $50-100), a short-term rental permit (around $200-300 annually), and register for Oregon state lodging taxes with the Department of Revenue. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near the Columbia River Gorge attractions, downtown historic district, or neighborhoods with easy highway access, with typical purchase prices ranging from $200,000-400,000 for suitable homes. Furnish the property with durable, comfortable furniture emphasizing the area's outdoor recreation theme, including quality bedding, kitchen essentials, WiFi, and outdoor gear storage, budgeting $15,000-25,000 for complete furnishing. Create listings on Airbnb, VRBO, and Booking.com highlighting proximity to Columbia River Gorge hiking, windsurfing, and Mount Hood, using professional photography and competitive pricing of $80-150 per night depending on size and amenities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and ensuring compliance with Oregon's 1.8% state lodging tax plus Wasco County's additional transient room tax of 7%, while building relationships with local cleaning services and maintenance contractors for efficient operations.

To identify profitable short-term rental properties in The Dalles, Oregon, focus on locations within walking distance of the Columbia River waterfront, near the historic downtown area, or with scenic gorge views, as these attract tourists visiting the Columbia River Gorge National Scenic Area and wind sports enthusiasts. Target properties with 2-4 bedrooms, outdoor spaces like decks or patios, updated kitchens, reliable Wi-Fi, and parking, as visitors often come for outdoor recreation and prefer self-contained accommodations. Analyze pricing using AirDNA or Mashvisor to benchmark against similar properties, aiming for nightly rates between $80-150 depending on size and amenities, with higher rates during peak wind sports season (April-September) and special events like cherry blossom festivals. Research competition by examining existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates, guest reviews, and pricing strategies, while identifying gaps in amenities or property types. Utilize tools like Rabbu, AllTheRooms, or local MLS data combined with STR performance analytics, and consult with local real estate agents familiar with The Dalles tourism patterns, zoning regulations, and seasonal demand fluctuations driven by Columbia River recreation, Mount Hood proximity, and the area's growing reputation as a wind sports destination.

To obtain an Airbnb/STR permit in The Dalles, Oregon, you must first contact the City of The Dalles Planning Department at City Hall located at 313 Court Street to determine specific zoning requirements for your property, as short-term rentals may be restricted in certain residential zones. Submit a Conditional Use Permit application if required, along with a completed STR registration form, proof of property ownership or authorization letter from owner, site plan showing parking and access, proof of adequate parking spaces (typically 1-2 spaces per unit), certificate of insurance with minimum $1 million liability coverage naming the city as additional insured, emergency contact information for 24/7 availability, and floor plan indicating maximum occupancy limits. Pay the application fee of approximately $200-400 for the permit plus any conditional use permit fees around $500-800. The review process typically takes 4-6 weeks and may require a public hearing if a conditional use permit is needed. Once approved, you must display the permit number in all advertising, maintain guest registry records, ensure compliance with fire safety codes including smoke and carbon monoxide detectors, limit occupancy to posted maximums, provide adequate waste disposal, and renew the permit annually with the city while maintaining all insurance and safety requirements.

Short-term rentals (STRs) are legal in The Dalles, Oregon, but operate under specific regulations established by the city. The Dalles requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in residential zones with certain limitations on density and operation standards. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide emergency contact information and maintain guest registries. The city prohibits STRs in some residential areas where neighborhood compatibility concerns exist, and there are restrictions on the number of guests and parking requirements. Recent changes around 2020-2022 included updated permit processes and enhanced enforcement mechanisms, with the city requiring annual renewals and implementing complaint response procedures. Operators must also collect and remit transient lodging taxes, and violations can result in permit revocation, reflecting The Dalles' approach to balance tourism revenue with neighborhood preservation in this Columbia River Gorge community.

The best areas for Airbnb investment in The Dalles, Oregon include the Historic Downtown District along 2nd and 3rd Streets, which attracts tourists visiting the Columbia River Gorge and offers walkability to restaurants, shops, and the Columbia Gorge Discovery Center. The Riverfront area near the Columbia River provides scenic water views and appeals to outdoor enthusiasts engaging in windsurfing, kiteboarding, and fishing activities that The Dalles is famous for. The West End residential neighborhoods offer quieter accommodations for families and longer-term business travelers working at Google's data center facility, which opened in 2006 and employs hundreds of workers who often need temporary housing. Areas near the Historic Columbia River Highway (US-30) are attractive for their proximity to major tourist routes and easy access to popular attractions like Celilo Falls overlook and Fort Dalles Museum, while also serving visitors attending events at the Civic Auditorium or exploring the area's rich Native American history and Lewis & Clark Trail sites.

In The Dalles, Oregon, Airbnb hosts are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8%, Wasco County's transient room tax of 7%, and The Dalles city transient lodging tax of 9%, totaling approximately 17.8% in combined taxes on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with each jurisdiction. The Oregon Department of Revenue requires hosts to register for a transient lodging tax license, while Wasco County and The Dalles require separate registrations and may have additional business license requirements. Remittance is generally done monthly or quarterly depending on the jurisdiction, with Airbnb handling most of the collection and payment process automatically for registered properties. Exemptions may apply for stays exceeding 30 consecutive days, government employees on official business, and certain other limited circumstances as defined by each taxing authority, though hosts should confirm current exemption criteria as regulations can change.

To start an Airbnb in The Dalles, Oregon, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at $250,000-$280,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, or local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance specifically for short-term rentals costs approximately $1,200-$2,000 annually through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, sewer, internet, and cable total around $500-$800 initially. First six months of operating costs including utilities ($150-200/month), cleaning services ($75-100 per turnover), supplies and maintenance ($100-150/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-$5,000, assuming moderate occupancy rates of 50-60% during the initial period.

Airbnb properties in The Dalles, Oregon typically generate annual revenues of $15,000-$35,000 for entire homes, with average daily rates ranging from $80-$150 depending on property size and amenities, achieving occupancy rates of 45-65% annually due to the city's position along the Columbia River Gorge attracting outdoor enthusiasts and wind sports visitors. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-300 monthly), property management (10-20% of revenue), insurance ($1,200-2,000 annually), and maintenance costs, resulting in net profit margins of 15-35% for well-managed properties. Success factors include proximity to Columbia River activities, professional photography showcasing gorge views, competitive pricing during peak wind surfing seasons (April-September), and maintaining high cleanliness standards, with properties near downtown or with river access commanding premium rates. A typical 3-bedroom home purchased for $350,000 in The Dalles can generate approximately $25,000 in annual Airbnb revenue with $15,000 in expenses, yielding a 2.9% cash-on-cash return before mortgage considerations, making profitability heavily dependent on property acquisition costs and financing terms rather than operational performance alone.

Airbnb investments in The Dalles, 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 Columbia River Gorge recreational activities and wind energy industry workers seeking temporary housing. Properties in downtown areas near the historic district and riverfront command higher nightly rates of $80-120, while suburban homes average $60-90 per night with occupancy rates of 55-70% annually. Initial investment recovery typically occurs within 7-10 years, with monthly gross rental yields of 1.2-1.8% of property value, though seasonal fluctuations peak during summer months (June-September) when outdoor recreation drives demand. The market benefits from limited hotel inventory and growing tourism to nearby attractions like Mount Hood and Multnomah Falls, with successful operators achieving 15-20% higher returns through strategic pricing and property management, making break-even possible within 3-5 years for well-positioned properties with proper financing structures.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in The Dalles, Oregon. Local real estate agents in The Dalles who work with Airbnb investors include Windermere Real Estate and Century 21 properties, with agents like those at Columbia River Realty having experience in investment properties since around 2018. National services include Mashvisor (founded 2014), which provides Airbnb analytics for The Dalles market, AirDNA for rental data analysis, and Roofstock that occasionally features Oregon STR properties. RedAwning and Awning.com offer property management and acquisition services for short-term rentals in Oregon markets. Local property management companies like Gorge Vacation Rentals and Columbia River Gorge property managers assist with STR operations, while investment-focused brokerages such as eXp Realty and Keller Williams have agents specializing in Airbnb properties throughout Oregon including The Dalles area since approximately 2019-2020.