🌊 Where to buy an Oregon Coast AirBnB Vacation Rental For Sale in 2025

[AJ Wong]

2024 was a banner year for our investor clients with eight prime Oregon Coast vacation rentals sold. Four properties were existing STR's that had a permit 'transfer' and the other half were eligible properties that successfully launched with astounding success. As with all regions, the Oregon Coasts' counties and cities are tightening their rules (and quantities of allowable vacation rentals) and there are a few adjustments to last year's regulatory landscape. As the market evolves we've intensified our commitment to helping investors focus only on listings that are eligible for vacation rental usages and either; have exceptional existing production or high potential for rental performance. Below are a few areas and things to look for if you're exploring investing in an AirBnB on the Oregon Coast.

Most notably, the heart of the Oregon Coast in Lincoln City STR permits will be more difficult to come by. LC already had a tight inventory due to an instituted CAP. Although many properties with a specific zoning code are technically eligible, they would be subject to an extensive waitlist that could last years. The biggest change was in the Road's End neighborhood. Up until November, actively licensed VRD (Vacation Rental Dwellings) could transfer one time to the new owner. With expiration, there is a maximum CAP for the area so new license applications would be subject to a wait list. All hope is not lost for a Lincoln City STR that can be licensed immediately though. There are neighborhoods such as Olivia Beach that allow STR usages outright as well as pockets with specific Commercial Tourist Zoning that are not subject to a waitlist.

The other major change to a top STR destination was in Rockaway Beach Oregon. Prior to last year, effectively any SFR was eligible for a short term rental license. In 2024, the city instituted a CAP and for a period, now only active STR permits can transfer to a new owner. These properties are generally in high demand, but on a positive there will be drastically less new inventory of competing rental properties.

In the immediate region there are pockets of permittable properties. We sold a wonderful two unit STR in Depoe Bay in 2024, which generally is a no-go zone but has neighborhoods with specific commercial zoning that allows for vacation rental usages as well as a brand new development of luxury homes that allows STR usages similar to Olivia Beach in nearby Lincoln City. 

One asterisk to all of the above areas are townhomes and condos. There are many communities within each of these areas that run or allow nightly rental programs. 

Continuing on the north coast, another idyllic vacation rental location is Pacific City Oregon. In general, active STR permits can transfer to a new owner (one time) and new applications would be subject to a currently short waitlist.

Nearby, Seaside Oregon is another majestic, highly requested and feasible vacation destination for STR investment. Permit eligibility is based on region (usually the west side of town) and density (quantity of surrounding STR's in the area) as well as percentage of landscaping and minimum parking requirements. It is highly specific, my recommendation is to contact the city directly with qualifying questions or have us do it for you :)

In general Astoria is also a No-Go with the exception of commercially zoned properties. As a result, mid term rentals can do exceptional here and there are quality multi family units in the $250k/door range. 

Moving south...here are some quick areas of note: 

Florence - Centrally located and easily accessible from Eugene. New rules for permitting are in motion, but at present most properties are eligible for a near immediate launch as an STR.

Coos Bay - The main delay with application in this area is whether the property is on public utilities or has a septic system and private or public water source. In-town properties are significantly easier to permit but also have some density restrictions. County or non-public utility properties are possible to license but can take 90-180 days. 

Bandon - The home of Bandon Dunes Golf Course, when you can find a property eligible for a VRD license it can come with a price tag. In-town, most properties don't meet the density/saturation requirement. Curry County has it's own process, similar to Coos County that is mainly focused around waste systems and water sources. Each require county inspections that extend the permit process. On a positive, the rental demand and production in this are is some of the highest in the country. 

Brookings - The first city north of the border has specific zoning that is eligible for STR usages. The permit process is efficient and can be completed in 4-6 weeks.

Between Brookings and Astoria there are many county properties that cam retain their vacation rental usages or qualify for a new license. My absolute best advice with ANY STR prospecting is to contact the municipality in charge of regulating that area of region. In smaller towns, this is usually a specific individual within the Planning Department.

A few things to consider when shopping for an STR on the Oregon Coast:

- Geographic Restrictions: These are small, remote towns. The Oregon Coast is rugged and roughly 400 miles long. If you're prospecting the entire coast, just keep in mind travel times for tours and be mindful of the weather. We service the entire coast and consistently plan efficient physical and remote tours encompassing several cities or regions. 

- Property Management: No STR can be successful without quality cleaners and management. It is entirely possible to self-manage with a strong cleaning team. We usually are responsible for connecting investors with teams on the ground or established local PM companies. For full time management rates can range from 20-30% of gross revenue depending on the level of services provided. Self managers can reduce their PM costs significantly.

- Furnishings and Design: Active vacation rentals are usually sold furnished, vacant homes are not. Budgeting for furniture and coordinating the time to execute or hire a designer is something we try and factor into our Pro Forma or analysis. Even successful and furnished properties often need a refresh and at least some additional reinvestment due to wear and tear. 

- Production: Typically STR production on the Oregon Coast is +/- 10% of valuation. A $500k property should produce gross annual income of +/- $50K but can generate as much as $65-70k with the right location and amenities like a hot tub. In general, the higher valuation properties with views or close proximity to water have higher rates of returns. For example we helped a client acquire a $1.5M oceanfront home that is pushing $180-200K per year and a $875k home (with no water feature) generating $125k gross revenue annually.

- Expectations: At any given time along the entire Oregon Coast there are roughly 125+/- worthwhile STR eligible properties listed for sale. That's a very small inventory when especially considering buyer needs like, budget, location, bedrooms and aesthetics. Usually, when a new client approaches me with a wish list, there are often only a handful of properties actively on the market that are genuine prospects, and these are usually the hottest listings in any market. Our job is to rapidly identify, qualify and analyze all listings, tour the propsect as soon as possible and write workable and winnable offers. Our strategy is successful but requires investors to commit to a fairly intense prospecting and decision making pattern. Due to these challenges, a successful client acquisition has taken as long as 1.5yrs(!!) but on average takes 60-90 days to get to closing from the point of introduction.

Oregon is a diverse real estate market with a lot to offer but not a lot of established property inventory for sale. The biggest challenge is a lack of quality homes and a rapidly increasing demand for vacation, second and primary homes. The good news is that there are still investable vacation rentals but historically the barrier to entry is growing each year.