More than 75% of Oregon’s cities have at least one short-term rental, though they only represent more than 5% of a city’s housing in a small handful of cities, mostly in Central Oregon on the North Coast. The definition of “Short-Term Rental” or STR will vary from city to city, but most have a standard that considers something a STR if the unit rental is for a period of fewer than 30 consecutive days. The city definitions of STRs tend to be somewhat more restrictive versions of “vacation occupancy” as defined in ORS 90.100(54). Since a STR is a variation of vacation occupancy, under ORS 90.110(6), it is excluded from the normal strictures of ORS 90, the Residential Landlord Tenant Act. If the STR occupant stayed for too long though, ORS 90 would potentially apply and you’d have the whole rigmarole of eviction and termination notice to remove the stubborn overstaying-short-term-renter. Short-term rentals can generate significant annual revenue [data from University of Oregon’s Assessing and Responding to Short-Term Rentals in Oregon, by Sadie Dinatale (2017) stated short-term rentals in Cannon Beach generating an average of $35,077/year (the high end rental was making over $200,000/year); and places like Beaverton saw more modest sums averaging $4,739/year. It is not inherently printing money though; some 70% of short-term rental hosts were generating less than $10,000/year]. While numbers are hard to pin down exactly, but the number of short-term rentals in Oregon have increased by at least 20% since 2021. With the proliferation of short-term rentals has also come increased pressure on local services and local officials to deal with the influx of holiday visitors. Many regions have taken to the ballot box to address their qualms with short-term rental, sometimes with temporary moratoria, other times with regional limitations and weaponized permitting practices. While the landscape is constantly shifting, this is a noncomprehensive list of Oregon’s short-term rental laws by region to show some of the variations on STR regulation that localities have taken [have your client consult the local codes if they are even thinking about short-term rental usage, mileage varies by location]:
- Lincoln County
- The era or strict moratoriums is over and a person can technically get a license to open a short term rental, but the county has taken a somewhat restrictive approach to further licensing. Board of Commissioners adopted Ordinance #523 in 2022, establishing 7 regions with a limited number of short term rental licenses per region. The county honored preexisting licenses and allowed them to continue, but has refused to allow further licenses when a region is over the allotment. The county currently has 452 issued licenses but only allows 164 licenses. This is a roundabout way of saying, if your client wants to open a short-term rental in Lincoln County, they will need to be on a waitlist. Even if they were first in line on Region 4 waitlist, they would need to wait until 92 current license holders let their licenses lapse before their application will be considered.
- Clackamas County
- Short-term rentals are permitted, but the owner must register the usage with the county [registration is free]. The STR will need to follow all normal building and fire codes, several notice requirements, and must pay transient lodging taxes. Additional parking regulations apply. The county reserves the right to revoke a STR registration as a potential remedy.
- Tillamook County
- 2023’s Ordinance #84-2 was adopted, establishing myriad STR regulations and allowing the county to cap the number of STR licenses for various subareas of the county. January 2025 saw Order 25-002, establishing caps on each subregion. Currently, 11 of the 21 regions are at or beyond the license cap and subject to waitlists for hopeful applicants. STRs have several minimum requirements and notice mandates beyond that of a normal residence, including complaint procedures, county inspections, and specific prohibitions on usage [no events without a special permit, no barking dogs, no noise, etc.].
- Bend
- In residential and mixed use riverfront zones, the whole-house short-term rental property needs 500 feet of separation from other short-term rental properties if they are rented for more than 30 days per year or for more than 4 rental periods. For properties in other zones or with more infrequent rentals, the 500 foot rule doesn’t apply. The STR requires a short-term rental land use permit, notice must be given to all neighbors within 250 feet, a sign with emergency contact must be posted, and the operator needs a short-term rental operating license. Even in the most limited case, the total of applications will cost over $1,200, and can take upwards of 2 months to process. Permits from before April 15, 2015 will run with the land, but all permits from after April 15, 2015 are specific to the applicant and void when the property is sold.
- The Dalles
- In 2024 with Ord. 24-1407B, the Dalles placed a limitation on licenses for STRs, to ensure that the “total number of STR licenses issued annually” was limited to 1% of the City’s total housing unit inventory. STR licenses in the Dalles are issued annually through a lottery system, with the operator applying separately for each property they wish to use as a STR. The 2024 ordinance also limited STR proximity so that no rentals would be within 300 feet of another licensed STR.
- Eugene
- STRs are registered annually with the City, and all STRs must pay a transient lodging tax [4.5% of price for any overnight stay].
- Hillsboro
- Maximum of 2 dwellings per person may be used as STRs, no events are permitted on the property.
- Hood River
- Owner must use the dwelling as a primary residence if the property is in Residential zones, making it more of a hosted home share. Only 1 license per owner. Properties that were licensed before 2018 are held to more forgiving standards. STR only permitted in residential and commercial zones. No events of any kind permitted. Many ways to have one’s license revoked.
- Newport
- Annual license, no more than 2 persons per bedroom + 2 per property, higher safety standards, STR must have significant portions of the lot as landscaping, added notice requirements, no special events. If it’s not a home share, the vacation rentals are only allowed in the specific “Vacation Rental Overlay Zone.” No more than 180 vacation rentals in the overlay zone.
- Portland
- Two types of STRs exist, “Type A” properties where a maximum of 5 guests and 2 bedrooms may be rented; and “Type B” properties where 3-5 bedrooms may be rented, but a conditional use review is required to determine the number of permissible guests, to a maximum of 10. STR permits further require that a resident live on the property at least 270 days/year [95 days/year where the resident does not need to be there with the guests] and in multi-dwelling structures there may be a maximum of 1 unit or 25% of the total units [whichever is greater] used as a STR. For example, a duplex may only rent out 1 unit as a STR, but a cottage cluster with 5 units could rent out 2 cottages as STRs. The “resident” requirement allows the owner or a long-term renter to host the STR. STR usage further limits the property owner from using the buildings as a home business if the business has employees or customers who come to the site [as they would interrupt the quiet enjoyment of the STR renters]. Otherwise, the permit itself requires registration as a business with Portland once every two years for Type A properties and for Type B properties, the permit becomes a part of the land and transfers with the property [though failure to operate as a STR for 3 years will lead to loss of conditional use status]. Residents must keep a record of the transaction data including various information about guests.
- Salem
- Licenses last for a 1 year period, the type of rental and zone underlying the property determine whether a license is required or if the owner requires both license and conditional use permit [similar to Portland, properties where the applicant is not on the property for 95+ days will require a conditional use permit in many situations. Property in RM-I, RM-II, RM-III, CO, CR, CG, CB, FMU, SWMU, IC, IP, or IG zones will only require a license though]. A local representative must be able to respond to issues as they arise, the rental must conform to Salem Housing Codes, a guest registry is required, and liability insurance is mandated to keep a license. Accessory Short-Term Rentals [where the property is used as a residence of the host when the host is present] have a separate license that is generally more restrictive and limits certain usages like events or banquets. License renewal requires yearly application, proof of insurance, proof of the last year’s guest registry, and updates to various other information if changes occurred in the past year.
- Sisters
- The Development Code of Sisters relating to short-term rentals was updated by Ord. 540 in September 2024. The present version of the city code requires applications for each individual dwelling unit that will be used as a STR, permits STRs only in a handful of districts [DC, HC, R, MFR, SRR, UAR, NSBP], prohibits RVs and trailers in conjunction with STRs, and creates a distance requirement where a STR property cannot be sited within 500 feet of another STR property. Permits do not run with the land and do not transfer unless a person dies [spouse/family benefit trust inherits the permit], a person transfers their property into their own LLC/trust/corporation/partnership, etc. The dwelling must be used as a STR within 180 days of application approval and must be used as a short-term rental at least once every 365 days, or the approval/permit is considered void.