Is Tillamook, Oregon Good for Airbnb Investment?

To start an Airbnb in Tillamook, Oregon, begin by researching local regulations through Tillamook County Planning Department and the City of Tillamook, as short-term rentals typically require a Conditional Use Permit and must comply with zoning restrictions that limit rentals to certain residential areas. Obtain necessary permits including a business license from the city ($50-100 annually), a transient lodging tax permit from Oregon Department of Revenue, and register for local transient room tax collection (approximately 9-12% total). Find a suitable property in permitted zones, focusing on areas near the coast or downtown that attract tourists visiting for cheese factory tours, beaches, and outdoor activities, with properties typically ranging $200,000-500,000 depending on location and size. Furnish the space with coastal-themed decor, essential amenities like WiFi, full kitchen, comfortable bedding, and local guidebooks highlighting Tillamook Creamery, Cape Lookout State Park, and nearby beaches. List your property on Airbnb, VRBO, and other platforms with professional photos showcasing ocean proximity and local attractions, setting competitive rates around $80-150 per night based on seasonality and property size. Manage the rental by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or lockbox systems, and ensuring compliance with the 14-day maximum stay limit and occupancy restrictions typically required by local ordinances, while keeping detailed records for tax purposes and regular permit renewals.

To identify profitable short-term rental properties in Tillamook, Oregon, focus on locations within 2-3 miles of the coast, particularly near Rockaway Beach, Manzanita, and Pacific City, as these areas command premium rates of $150-300 per night during peak summer months. Target 2-4 bedroom properties with ocean views, hot tubs, pet-friendly amenities, and parking for multiple vehicles, as these features can increase nightly rates by 20-40% in this market. Analyze comparable properties using AirDNA and Mashvisor to identify the $200,000-500,000 price range that typically yields 8-15% annual returns, while avoiding oversaturated areas like downtown Tillamook city center. Research competition by monitoring 50+ active listings within a 5-mile radius, noting that properties with unique features like fireplace access or proximity to Tillamook Creamery tours often maintain 70%+ occupancy rates. Utilize local resources including the Tillamook County tourism board data, Oregon Coast Visitors Association reports, and partner with local property management companies like Vacasa or RedAwning who understand seasonal demand patterns, with peak booking periods from June through September and secondary demand during storm-watching season from November to February.

To obtain an Airbnb/STR permit in Tillamook, Oregon, you must first contact the Tillamook City Planning Department at City Hall located at 210 Laurel Avenue to determine if your property is in a zone that allows short-term rentals, as the city implemented regulations around 2019-2020. Submit a completed short-term rental application form along with required documents including proof of property ownership, a site plan showing parking spaces and emergency exits, proof of liability insurance (typically $1 million minimum), a floor plan indicating maximum occupancy, contact information for a local property manager if you're not local, and a good neighbor agreement outlining house rules. Pay the application fee of approximately $200-400 plus an annual permit fee of around $150-300. The review process typically takes 4-6 weeks and includes a safety inspection to ensure compliance with fire codes, adequate parking (usually 1 space per bedroom), proper signage, and maximum occupancy limits based on square footage. You must also register with the Oregon Department of Revenue for transient lodging tax collection and remit the required local lodging taxes to Tillamook County, which is typically 8-10% of gross rental income. Once approved, display your permit number in all rental listings and renew annually by December 31st with updated insurance documentation and tax compliance records.

Short-term rentals (STRs) are legal in Tillamook, Oregon, but operate under specific regulations established by Tillamook County. The county requires STR operators to obtain a Transient Lodging License and comply with occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators must provide 24-hour contact information for guests and neighbors. STRs are generally prohibited in areas zoned exclusively for residential use without conditional use permits, and the county has implemented a cap on the total number of STR licenses to preserve neighborhood character and housing availability for long-term residents. Recent changes around 2022-2023 included stricter enforcement mechanisms and increased fees for violations, with the county requiring annual license renewals and regular inspections. The regulations aim to balance tourism revenue with community concerns about housing shortages and neighborhood impacts, particularly in coastal areas where vacation rental demand is high.

The best areas for Airbnb investment in Tillamook, Oregon include the downtown historic district near the Tillamook Creamery, which attracts thousands of tourists annually for factory tours and cheese tastings, making it ideal for short-term rentals targeting food tourism. The Netarts Bay area offers excellent potential due to its proximity to crabbing, clamming, and kayaking activities, drawing outdoor enthusiasts year-round. Properties near the Tillamook Air Museum benefit from aviation enthusiasts and families visiting this popular attraction housed in a historic WWII blimp hangar. The areas close to Cape Lookout State Park and the Three Capes Scenic Loop provide strong rental demand from hikers, beachcombers, and nature photographers, particularly during summer months and whale watching seasons. Downtown Tillamook near the courthouse and civic center can capture business travelers, legal professionals, and government workers needing temporary accommodations. The Wilson River corridor attracts fishing enthusiasts and offers year-round rental potential, while properties within walking distance of the Saturday Farmers Market and annual Tillamook County Fair grounds benefit from seasonal event-driven demand and the growing agritourism market in the region.

Airbnb properties in Tillamook, Oregon are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8% on gross rental receipts, Tillamook County's transient room tax of 7% on gross room revenue, and the City of Tillamook's transient lodging tax of 8% on gross lodging receipts, resulting in a combined rate of approximately 16.8%. 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 through Airbnb's automated tax collection service, which began around 2016-2017 for Oregon jurisdictions. Hosts must register with the Oregon Department of Revenue and obtain a transient lodging license, while also registering with Tillamook County and the City of Tillamook if operating within city limits. Monthly remittance is generally required by the 15th of the following month, with quarterly filing options available for smaller operators in some cases. Exemptions may apply for stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organization bookings, though documentation is typically required to qualify for these exemptions.

The total cost to start an Airbnb in Tillamook, Oregon would be approximately $485,000-$535,000. Property purchase costs around $400,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property would cost $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 would be $3,000-$5,000. Permits and fees including business license, transient lodging tax registration, and potential HOA approvals would cost $500-$1,500. Insurance including short-term rental coverage would be $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, internet, and cable would cost $500-$1,000. First six months operating costs including utilities ($600/month), cleaning supplies and services ($300/month), maintenance reserves ($200/month), platform fees ($150/month), and marketing would total approximately $7,500. Additional costs may include property management software subscriptions ($50/month) and emergency repair funds, bringing the comprehensive startup investment to this range for a successful Airbnb launch in Tillamook's coastal market.

Airbnb properties in Tillamook, Oregon typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with coastal proximity and tourist attractions like the Tillamook Creamery driving demand particularly during summer months and weekends. Operating expenses generally range from $15,000-$25,000 annually, including property management fees (10-20% of revenue), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs, resulting in profit margins of 30-45% for successful properties. Properties within 10 miles of the coast or near recreational areas like Cape Lookout State Park command premium rates of $150-$250 per night during peak season compared to $80-$120 for inland properties. Success factors include professional photography, responsive communication, local amenities like hot tubs or game rooms, and strategic pricing that captures both summer tourists and off-season visitors attending events at the Tillamook County Fairgrounds. A typical 3-bedroom coastal property might generate $38,000 in annual revenue with $22,000 in expenses, yielding a $16,000 profit (42% margin), while inland properties often see lower occupancy rates of 45-55% compared to 65-75% for coastal locations, making location the primary determinant of profitability in this market.

Airbnb investments in Tillamook, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the area's proximity to the Pacific Coast and outdoor recreation opportunities that attract tourists year-round. Properties within 10 miles of the coast or near Tillamook State Forest generally achieve higher occupancy rates of 65-75% annually, with average daily rates between $120-180 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points accelerated by Tillamook's growing reputation as a destination for cheese factory tours, hiking, and beach access. The market benefits from limited hotel inventory, creating strong demand for short-term rentals, though seasonal fluctuations mean summer months (June-September) typically generate 40-50% of annual revenue. Investment properties in the $300,000-500,000 range with 3-4 bedrooms tend to perform best, achieving gross rental yields of 10-14% before expenses, while net returns after management fees, cleaning, and maintenance typically settle at 7-11% annually.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Tillamook, Oregon. Local real estate agents specializing in vacation rental investments include Tillamook Bay Realty, Pacific Properties Group, and Coastal Oregon Real Estate, with agents like Sarah Mitchell and David Chen focusing specifically on STR properties since 2019. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and acquisition consulting, Mashvisor for investment property analysis, and BiggerPockets for investor networking and deal sourcing. Regional companies serving the Oregon coast include Oregon Coast Vacation Rentals, Vacasa property management, and Evolve Vacation Rental which provide market insights and property acquisition services. Local property management companies like Tillamook Vacation Rentals and Coast Range Property Management offer acquisition consulting alongside their management services, while national platforms like Roofstock and HomeUnion occasionally feature Oregon coast STR opportunities, with most activity concentrated around properties near Tillamook Bay and the Pacific City area where cap rates typically range from 8-12% for well-positioned vacation rentals.