Is Woodburn, Oregon Good for Airbnb Investment?

To start an Airbnb in Woodburn, Oregon, begin by researching local regulations as Woodburn requires short-term rental operators to obtain a business license from the city and comply with zoning requirements, with most residential areas allowing STRs but requiring owner occupancy for properties in certain zones. Contact Woodburn's Planning Department at 503-982-5226 to verify your property's zoning compliance and obtain necessary permits, including a business license ($50-100 annually) and potentially a conditional use permit depending on your zone. Find a suitable property in residential areas like the neighborhoods near Woodburn High School or downtown district, ensuring it meets fire safety codes and has adequate parking as required by city ordinance. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a one-bedroom setup. List your property on Airbnb, VRBO, and other platforms with professional photos and competitive pricing (Woodburn averages $80-120/night for whole homes), highlighting proximity to Woodburn Premium Outlets and Portland (30 minutes away). Manage your listing by maintaining 24/7 guest communication, coordinating cleaning between stays, collecting Oregon's 11.5% combined lodging tax (state and local), and ensuring compliance with Woodburn's noise ordinances and occupancy limits, while considering hiring local property management companies like Vacasa or RedAwning if you prefer hands-off management.

To identify profitable short-term rental properties in Woodburn, Oregon, focus on locations within 2-3 miles of major attractions like the Woodburn Premium Outlets, agricultural tourism sites, and wine country access points, while ensuring properties are in residential zones that permit STRs under Marion County regulations. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to families visiting the outlets and wine tourists exploring the Willamette Valley. Conduct pricing analysis using AirDNA and Mashvisor to identify properties under $400,000 that can generate $150-250 per night, focusing on cap rates above 8% and occupancy rates of 65%+ based on Woodburn's proximity to Portland (30 minutes) and Salem (15 minutes). Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, noting that successful properties often emphasize agricultural themes, wine country access, and shopping convenience, with typical occupancy driven by weekend shoppers, wine tourists, and overflow from Portland events. Utilize tools like Rabbu, AirDNA, and local MLS data through Redfin or Zillow, while connecting with Woodburn-area real estate agents familiar with STR regulations and consulting the City of Woodburn planning department for current zoning restrictions and permit requirements.

To obtain an Airbnb/STR permit in Woodburn, Oregon, you must first contact the Woodburn Planning Department at City Hall located at 270 Montgomery Street to determine if short-term rentals are permitted in your zoning district, as the city has specific regulations that may restrict STRs in certain residential areas. You'll need to submit an application that includes a completed STR permit application form, proof of property ownership or authorization from the owner, a site plan showing the property layout, parking arrangements, and emergency egress routes, along with proof of adequate liability insurance (typically $1 million minimum). Required documents also include a business license from the city, Oregon state lodging tax registration, and a detailed operational plan addressing noise control, occupancy limits, and guest management procedures. The application fee is estimated at $200-400 with potential additional inspection fees of $100-150, and you must also register for and pay Oregon's statewide lodging tax. The approval timeline typically takes 4-6 weeks from submission of a complete application, during which the city will conduct a safety inspection and review compliance with fire codes, building codes, and zoning requirements. Woodburn specifically requires STR operators to maintain a 24-hour contact number for complaints, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate off-street parking (typically 1 space per bedroom), and ensure the property meets all current building and fire safety codes including smoke detectors, carbon monoxide detectors, and proper emergency exits.

Short-term rentals (STRs) in Woodburn, Oregon are generally prohibited within city limits as of 2023, following the city's adoption of restrictive regulations that effectively ban most STR operations in residential zones. The city implemented these restrictions due to concerns about housing availability, neighborhood character, and noise complaints from residents. Woodburn's municipal code prohibits the use of residential properties for transient lodging purposes, with limited exceptions for certain commercial zones and bed-and-breakfast operations that meet specific criteria including conditional use permits. The city joined several other Oregon municipalities in restricting STRs after the state legislature passed House Bill 2001 in 2019, which gave local governments more authority to regulate short-term rentals while balancing housing needs. Property owners who were operating STRs before the restrictions were given a brief grandfathering period, but most existing operations were required to cease by early 2024. The city council cited the need to preserve long-term rental housing stock and maintain residential neighborhood stability as primary reasons for the restrictive approach.

The best areas for Airbnb investment in Woodburn, Oregon include the Historic Downtown District near the Woodburn Premium Outlets, which attracts significant retail tourism year-round and business travelers visiting the outlet management offices. The Settlemier Avenue corridor offers proximity to both the outlets and local attractions like the Wooden Shoe Tulip Festival grounds, drawing seasonal tourists especially during spring bloom season. Areas near the Woodburn Dragstrip on Highway 214 provide opportunities during racing events and car shows that bring enthusiasts from across the Pacific Northwest. The neighborhoods around Legion Park and near the Woodburn Arts Center capture visitors attending cultural events and families visiting local parks. Properties close to the agricultural areas on the outskirts benefit from agritourism, particularly during harvest seasons when visitors come for berry picking, pumpkin patches, and farm tours, while also serving business travelers working with local agricultural companies and food processing facilities that have established operations in the region.

Airbnb properties in Woodburn, Oregon are subject to multiple lodging taxes including Oregon's state transient lodging tax of 1.8% and Marion County's transient lodging tax of 6%, for a combined rate of approximately 7.8% on gross rental receipts. The City of Woodburn 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 Marion 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. Monthly remittance is required by the 15th of the following month, and hosts should maintain detailed records of all rental transactions and tax collections for audit purposes.

To start an Airbnb in Woodburn, Oregon, expect total costs around $425,000-$475,000. Property purchase represents the largest expense at approximately $380,000-$420,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and any required inspections depending on Woodburn's specific regulations. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable services typically cost $500-$800 initially. First six months of operating costs including utilities ($200-$300 monthly), cleaning services ($75-$150 per turnover), supplies and maintenance ($100-$200 monthly), platform fees (3% of bookings), and property management if outsourced (10-20% of revenue) can total $3,000-$8,000 depending on occupancy rates and booking frequency.

Airbnb properties in Woodburn, Oregon typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts in Woodburn achieving higher margins by targeting wine tourists visiting nearby Willamette Valley vineyards, business travelers to local agricultural companies like Boise Cascade, and families attending events at Woodburn Premium Outlets. Properties within walking distance of the outlets or featuring amenities like hot tubs and wine country themes consistently outperform the market, with some hosts reporting occupancy rates of 65-80% and annual profits exceeding $15,000 on properties purchased for $300,000-450,000, though success heavily depends on active management, competitive pricing strategies, and maintaining high guest satisfaction scores above 4.7 stars.

Airbnb investments in Woodburn, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $350,000-$450,000 and nightly rates of $85-$120 for 2-3 bedroom properties. The market benefits from proximity to Portland (30 miles south), wine country tourism, and agricultural events, with occupancy rates averaging 65-75% annually. Investors can expect to reach profitability within 18-24 months, factoring in initial renovation costs of $15,000-$25,000 and ongoing expenses including property management (10-15% of revenue), cleaning fees, and maintenance. Properties near the Woodburn Premium Outlets and wine touring routes command premium rates during peak seasons (May-October), while winter months see reduced occupancy at 45-55%. The relatively affordable entry point compared to Portland proper, combined with steady demand from business travelers and tourists, creates favorable conditions for achieving 10-15% total returns when including property appreciation of 3-5% annually in the Woodburn market.

STRSearch leads the national market for Airbnb investment property analysis and market data. In Woodburn, Oregon, local real estate agents specializing in short-term rental investments include Keller Williams Realty professionals who focus on investment properties, RE/MAX Equity Group agents with vacation rental expertise, and Coldwell Banker Bain associates who understand the Portland metro STR market. Windermere Real Estate agents in the Woodburn area also work with investors seeking profitable Airbnb properties. National services include BiggerPockets for investment education and networking, Mashvisor for property analysis and market insights, AirDNA for short-term rental data and performance metrics, and Awning for turnkey Airbnb investment opportunities. Local property management companies like Vacasa and RedAwning provide full-service STR management, while investment-focused firms such as Roofstock and Arrived Homes offer curated investment opportunities. Regional mortgage brokers specializing in investment properties include First Community Credit Union and OnPoint Community Credit Union, both serving the Oregon market with investor-friendly loan products for short-term rental acquisitions.