Portland, Oregon Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Portland, Oregon?

Portland's short-term rental market operates under a comprehensive regulatory framework designed to balance tourism opportunities with neighborhood preservation. The city's Accessory Short-Term Rental (ASTR) program establishes clear guidelines for legal operation while maintaining residential character.

Starting a Short-Term Rental Business in Portland, Oregon

Launching a short-term rental business in Portland requires navigating specific regulations and obtaining proper permits. The city categorizes short-term rentals into two types:

• Type A Permits allow hosts to rent 1-2 bedrooms to a maximum of 5 overnight guests. This is the more common and straightforward option for most hosts.
• Type B Permits cover rentals of 3-5 bedrooms with up to 10 guests. These require a more rigorous application process, including a Conditional Use Review with neighborhood notification and public hearings.

The cornerstone of Portland's regulations is the 270-day residency requirement. Hosts must occupy the dwelling as their primary residence for at least 270 days per year (roughly 9 months). This prevents properties from becoming full-time vacation rentals and preserves neighborhood character.

Other key requirements include:

1. Business registration with the City of Portland
2. Safety inspections to ensure bedrooms were legally created as sleeping rooms
3. Neighbor notification of intent to operate a short-term rental
4. Installation of smoke and carbon monoxide detectors
5. Maintaining guest records that can be provided upon city request

The city limits short-term rentals in multi-dwelling structures to one unit or 25% of total units, whichever is greater. Rentals must be for less than 30 days, and hosts can operate without being present for a maximum of 95 days per year.

Portland recently implemented changes to its regulations, effective October 1, 2024. These include:

1. Removal of notarized signature requirements for Type A permits
2. Stricter advertising restrictions prohibiting listings that suggest higher capacity than permitted
3. A two-year exclusion period for dwelling units following permit revocation
4. Elimination of new Type B conditional uses in commercial/mixed-use zones

Enforcement has intensified, with the city pressuring platforms like Airbnb to remove non-compliant listings. In March 2024, officials asked Airbnb to remove over 100 listings lacking valid permit numbers. Portland has also streamlined the application process with an online portal to address backlogs and improve enforcement capabilities.

For prospective hosts, understanding these regulations is essential before entering Portland's short-term rental market. The city's balanced approach aims to allow short-term rental opportunities while preserving residential neighborhoods and housing availability.

Short-Term Rental Licensing Requirement in Portland, Oregon

Portland's short-term rental market operates under a structured licensing framework that requires hosts to obtain proper permits before listing their properties. The city categorizes these permits into two main types based on the scale of the rental operation.

Type A Permits are required for hosts renting 1-2 bedrooms to a maximum of 5 overnight guests. This is the more common permit type for most Portland hosts. The application process is streamlined and can be completed through the city's online portal.

Type B Permits are necessary for hosts renting 3-5 bedrooms to a maximum of 10 guests. These permits involve a more rigorous application process, including a Conditional Use Review with neighborhood notification and public hearings.

To qualify for either permit type, hosts must meet these essential requirements:

1. Maintain primary residency at the property for at least 270 days per year (approximately 9 months)
2. Provide proof of residency via an Oregon Driver's License or Oregon Identification Card showing the rental address
3. Register as a business with the City of Portland
4. Pass a safety inspection to ensure bedrooms were legally created as sleeping rooms
5. Notify neighbors of intent to operate a short-term rental
6. Install smoke and carbon monoxide detectors
7. Maintain guest records that can be provided upon city request
8. Include the permit number in all rental listings and advertisements

For multi-dwelling structures, triplexes, fourplexes, or cottage clusters, short-term rentals are limited to one unit or 25% of the total number of units, whichever is greater.

Applications should be submitted to the Portland Bureau of Development Services. The fee for a Type A permit starts at approximately $100, though this varies based on location and number of units. Type B permits are significantly more expensive, with processing fees around $4,800 plus an additional $7,749 paid to the City of Portland, bringing the total cost to approximately $17,500.

Processing times vary by permit type. Type A permits typically take several weeks to process, while Type B permits can take up to six months due to the more complex Land Use Review process.

Operating without a proper permit can result in substantial penalties. The city imposes fines starting at $100 per day for unregistered units, with recent enforcement actions showing citations totaling $240,000 since October 2024. Portland has issued 55 citations for STR violations during this period and has increased pressure on platforms like Airbnb to remove non-compliant listings.

Additionally, properties found operating without permits may face a two-year exclusion period during which they cannot obtain a new permit. The city has recently streamlined its enforcement process through an online portal and is actively working with platforms to share data on listings, making it increasingly difficult to operate illegally.

For hosts considering entering Portland's short-term rental market, understanding and complying with these licensing requirements is essential to avoid costly penalties and ensure a legitimate operation.

Required Documents for Portland, Oregon Short-Term Rentals

Gathering the proper documentation is a crucial step in legally operating a short-term rental in Portland. The city requires several specific documents to ensure compliance with local regulations:

1. ASTR Permit Application Form - The foundation of your short-term rental business. This form must be completed and submitted to the Bureau of Development Services, with different forms for Type A (1-2 bedrooms) and Type B (3-5 bedrooms) permits.
2. Proof of Residency - An Oregon Driver's License or Oregon Identification Card showing the rental address as your residence. This document verifies you meet the 270-day residency requirement. The ID cannot include a separate mailing address unless it's a P.O. Box.
3. Floor Plan - A detailed layout of your property identifying which bedrooms will be used for short-term rental purposes and which is the resident's bedroom. This helps city officials verify compliance with bedroom limits and safety requirements.
4. Neighborhood Notification Documentation - Copies of notification letters sent to neighboring properties and neighborhood associations informing them of your intent to operate a short-term rental. You must also include a list of all addresses that received the notification.
5. Business Registration - Proof that you've registered your short-term rental as a business with the City of Portland Revenue Division. This is a separate process from the ASTR permit.
6. Transient Lodging Tax Registration - Documentation showing you've registered to collect and remit the required lodging taxes (11.5% for Multnomah County and 6% for the City of Portland).
7. Site Plan or Parking Diagram - A diagram showing the number, location, and dimensions of designated parking spaces for your guests. This helps ensure your rental won't create parking issues in the neighborhood.
8. Proof of Insurance - While not explicitly stated in all city documents, many sources recommend providing proof of appropriate liability insurance coverage specifically for your short-term rental operation.
9. Safety Inspection Documentation - After applying, your property will need to pass a safety inspection. The inspection report becomes part of your required documentation.

For multi-dwelling structures, additional documentation may be needed to verify compliance with the limit of one unit or 25% of total units (whichever is greater) being used as short-term rentals.

All these documents must be submitted through Portland's online permitting system along with the applicable fees. Type A permits have a base fee of approximately $100, while Type B permits are significantly more expensive due to the conditional use review process.

Ensuring all documentation is complete and accurate before submission will help avoid delays in the approval process and prevent potential penalties for operating without proper permits.

Portland, Oregon Short-Term Rental Taxes

Operating a short-term rental in Portland subjects hosts to a multi-layered tax structure that includes city, county, and state obligations. Understanding these tax requirements is essential for legal compliance and proper financial planning.

City of Portland Transient Lodging Tax (6%) - This tax applies to all short-term rentals within Portland city limits. The revenue is allocated with 5% going to the City's general fund and 1% directed to Travel Portland for tourism promotion.

Multnomah County Transient Lodging Tax (11.5%) - This county-level tax consists of several components:

1. 5% base rate
2. 1% surcharge
3. 3% surcharge for Visitor Facilities and Excise Tax Fund
4. 2.5% additional surcharge for Visitor Facilities and Excise Tax Fund

Oregon State Transient Lodging Tax (1.5%) - This statewide tax applies to all short-term rental stays throughout Oregon and is remitted to the Oregon Department of Revenue.

Tourism Improvement District Fee (3%) - An additional fee applied to the listing price for stays under 30 nights to fund tourism infrastructure improvements.

The combined tax rate for Portland short-term rentals totals approximately 17.5% when accounting for both city and county taxes, with additional state taxes bringing the total to 19%. These taxes apply to the rental amount and most mandatory fees charged to guests, including cleaning fees, pet charges, extra bed fees, and similar non-optional services.

Certain stays qualify for tax exemptions, including:

1. Rentals of 30 consecutive days or longer
2. Rentals paid on a monthly basis
3. Accommodations charging less than $2 per day
4. Rentals to federal government employees on official business

Tax Collection and Remittance

Many booking platforms like Airbnb collect and remit these taxes on behalf of hosts. However, hosts must still register with the City of Portland Revenue Division and obtain a Certificate of Authority, which should be displayed in the rental unit. If guests book directly or through platforms that don't collect taxes, hosts are responsible for collecting and remitting all applicable taxes themselves.

Potential Tax Deductions and Write-offs

Short-term rental hosts can offset some of their tax burden through various deductions:

1. Property depreciation (for both the dwelling and furnishings)
2. Mortgage interest related to the rental property
3. Property taxes
4. Utilities proportionate to rental use
5. Cleaning and maintenance expenses
6. Insurance premiums
7. Booking platform service fees
8. Marketing and advertising costs
9. Professional services (accounting, legal, property management)
10. Supplies for guests
11. Home office expenses (if applicable)

It's important to note that if you use the property personally for more than 14 days or 10% of the total rental days (whichever is greater), expenses must be proportionally allocated between personal and business use. This can significantly impact available deductions.

Tax professionals advise against personal use of your short-term rental property, especially in the early years of operation. Personal use triggers Section 280A tax provisions that can limit deductions. Similarly, renting to family members at discounted rates counts as personal use and may reduce available tax benefits.

Maintaining detailed records of all income and expenses is crucial for maximizing deductions while ensuring compliance with tax regulations.

Oregon Wide Short-Term Rental Rules

While much of Portland's short-term rental regulation happens at the city level, several state-wide rules and taxes impact hosts throughout Oregon, including those in Portland.

State Transient Lodging Tax (1.5-1.8%) - All short-term rental operators in Oregon must collect and remit the state's Transient Lodging Tax on stays less than 30 consecutive days. This tax applies to the total rent charged, regardless of the property's location within the state. The current rate is between 1.5-1.8%, depending on the most recent adjustments.

No Statewide Licensing System - Unlike some states, Oregon does not maintain a centralized licensing or registration system for short-term rentals. Instead, the state delegates regulatory authority to local jurisdictions, allowing cities like Portland to establish their own permitting requirements and operational standards.

Definition of Short-Term Rental - Across Oregon, short-term rentals are consistently defined as accommodations rented for less than 30 consecutive days. This definition applies to any dwelling type-house, apartment, condo, or individual room-rented on a transient basis, typically through platforms like Airbnb or VRBO.

Health and Safety Standards - While specific requirements vary by locality, all short-term rentals in Oregon must comply with basic health and safety regulations established at the state level. These include building codes, fire safety standards, and sanitation requirements.

Land Use Policies - Recent changes to Oregon's land use policies, particularly along the coast, show a statewide trend toward more regulated short-term rental markets. In 2025, several counties implemented stricter zoning regulations and permit caps to address housing shortages and community concerns.

Business Registration - All short-term rental operators in Oregon must register as businesses with the Oregon Secretary of State if they operate as an LLC or corporation. Sole proprietors may not need formal state registration but still must comply with local business registration requirements.

Tax Reporting - Oregon requires all short-term rental income to be reported on state tax returns. This applies regardless of whether the platforms collect and remit lodging taxes on the host's behalf.

Discrimination Laws - Oregon's state anti-discrimination laws apply to short-term rentals, prohibiting hosts from refusing accommodations based on protected characteristics such as race, color, religion, sex, sexual orientation, national origin, marital status, or disability.

For Portland hosts, these state-level requirements operate alongside the city's more detailed regulatory framework. While local rules often receive more attention due to their specificity, compliance with state regulations remains equally important for legal operation. Portland hosts must navigate both layers of regulation to ensure their short-term rental business remains in good standing with both city and state authorities.

Does Portland, Oregon Strictly Enforce STR Rules?

Portland has significantly ramped up enforcement of short-term rental regulations in recent years, shifting from a previously lenient approach to a much more aggressive stance. Since October 2024, the city has issued 55 citations for STR violations, totaling $240,000 in fines, demonstrating a clear commitment to cracking down on illegal operators.

The city has implemented several measures to strengthen enforcement, including:

1. Online Permit Portal - Portland launched a streamlined application system to address the backlog of permits that previously hindered enforcement efforts. This technological solution allows for better tracking of legal rentals.
2. Platform Pressure - Officials have taken direct action against listing platforms, specifically requesting Airbnb remove over 100 non-compliant listings in March 2024. The city threatened potential fines of $1,000 per violation per day for platforms that fail to remove illegal listings.
3. Data Sharing Initiatives - Portland is actively negotiating with platforms like Airbnb to share listing data, which would significantly enhance the city's ability to identify illegal operators. As Deputy City Administrator Donnie Oliveira stated, "Either Airbnb works with us to actively enforce the codes on the books, or we'll change our code to make it happen".
4. Stricter Advertising Restrictions - New rules effective October 1, 2024, prohibit advertisements suggesting higher capacity than permitted, with violations subject to fines and potential permit revocation.
5. Two-Year Exclusion Period - Properties that have permits revoked now face a two-year exclusion period during which they cannot obtain a new permit, creating significant consequences for rule-breakers.

Portland is not particularly Airbnb-friendly compared to other cities. The 270-day residency requirement is more restrictive than many municipalities, effectively preventing investment properties from being used exclusively as short-term rentals. The requirement to maintain guest records that can be provided upon city request also adds a layer of scrutiny not present in more permissive markets.

The consensus among local real estate investors is that Portland has become one of the more challenging markets for short-term rental operations. While some hosts continue to operate illegally, the combination of community opposition, strengthened enforcement, and substantial penalties makes Portland a difficult environment for those unwilling to fully comply with regulations.

How to Start a Short-Term Rental Business in Portland, Oregon

Starting a short-term rental business in Portland requires careful planning and adherence to the city's comprehensive regulatory framework. Follow these steps to establish a legal and successful operation:

Research Local Regulations

Begin by thoroughly researching Portland's short-term rental regulations, focusing on the Accessory Short-Term Rental (ASTR) program. Understand the distinction between Type A permits (1-2 bedrooms, up to 5 guests) and Type B permits (3-5 bedrooms, up to 10 guests). Familiarize yourself with the 270-day residency requirement, which mandates that you occupy the property as your primary residence for at least 9 months per year.

Tip: Contact the Portland Bureau of Development Services directly with specific questions about your property to avoid misunderstandings about requirements.

Verify Property Eligibility

Ensure your property is in a zone that permits short-term rentals. For multi-dwelling structures, remember that Portland limits short-term rentals to one unit or 25% of total units, whichever is greater. Check if your property meets safety standards and can accommodate the required number of parking spaces.

Tip: Review your lease, HOA rules, or condo board regulations, as these may have additional restrictions on short-term rentals even if the city permits them.

Choose Your Permit Type

Select the appropriate permit based on how many bedrooms you plan to rent. Type A permits are more common and have a streamlined application process, while Type B permits involve a more rigorous Conditional Use Review with neighborhood notification and public hearings.

Tip: Start with fewer bedrooms under a Type A permit to test the market before investing in the more expensive Type B permit process.

Prepare Required Documentation

Gather all necessary documents, including:

• Oregon Driver's License or ID showing the rental address
• Detailed floor plan identifying rental bedrooms
• Site plan showing parking spaces
• Neighborhood notification documentation

Tip: Create digital copies of all documents for easy submission through Portland's online permitting system.

Register Your Business

Register as a business with the City of Portland Revenue Division within 60 days of starting operations. Choose your business structure (sole proprietorship, LLC, etc.) and register with the Oregon Secretary of State if forming an LLC or corporation.

Tip: Consider consulting with a tax professional to determine the most advantageous business structure for your specific situation.

Apply for ASTR Permit

Submit your ASTR permit application through Portland's online portal along with all required documentation and fees. Type A permits cost approximately $100, while Type B permits are significantly more expensive due to the conditional use review process.

Tip: Double-check your application for completeness before submission to avoid delays in processing.

Complete Safety Inspection

Schedule and pass the required safety inspection to ensure bedrooms were legally created as sleeping rooms and meet all safety standards. Ensure smoke and carbon monoxide detectors are properly installed.

Tip: Conduct a pre-inspection walkthrough using the city's checklist to identify and address potential issues before the official inspection.

Register for Tax Collection

Register with the appropriate authorities to collect and remit lodging taxes, including the 6% City of Portland tax, 11.5% Multnomah County tax, and 1.5% Oregon State tax. Set up systems to track and report these taxes accurately.

Tip: Consider using platforms like Airbnb that collect and remit taxes on your behalf, but remember you're still responsible for proper registration.

Prepare Your Property

Make your property guest-ready by ensuring it's clean, well-maintained, and appropriately furnished. Create house rules that comply with Portland's regulations and neighborhood considerations.

Tip: Invest in quality furnishings and amenities that highlight Portland's unique character to attract more bookings and justify higher rates.

Create Compliant Listings

Develop attractive listings on platforms like Airbnb and VRBO, being careful to include your permit number in all advertisements. Ensure your listings accurately reflect the permitted number of bedrooms and guests.

Tip: Use professional photography to showcase your property and highlight nearby attractions that make Portland a desirable destination.

Following these steps will help you establish a legal and successful short-term rental business in Portland while avoiding potential penalties for non-compliance with the city's regulations.

Who to Contact in Portland, Oregon about Short-Term Rental Regulations and Zoning?

Navigating Portland's short-term rental regulations often requires direct communication with city officials and departments. Here are the key contacts and resources for hosts seeking information or assistance.

Portland Permitting & Development

The Portland Permitting & Development is your primary contact for questions about permit applications, inspections, and zoning requirements. They can provide guidance on whether your property is eligible for a short-term rental permit and help you understand the application process.

• Phone: 503-823-7300
• Email: Send an email through their contact form
• Address: 1900 SW 4th Ave, Portland, OR 97201
• Hours: Monday through Friday, 8:00 AM - 5:00 PM

City of Portland Revenue Division

Contact the Revenue Division for questions about business registration, tax collection, and remittance requirements. They can provide information about the transient lodging taxes you'll need to collect and how to properly register your business.

• Phone: 503-865-2857
• Email: TLTax@portlandoregon.gov

Host2Host

Host2Host is a Portland-based trade association founded by and for short-term rental hosts. This nonprofit organization provides advocacy, community support, and education for over 2,000 community members. They offer valuable resources and networking opportunities for hosts navigating Portland's regulatory landscape.

Portland Maps Short-Term Rental Registry

The City of Portland maintains a searchable registry of permitted short-term rentals on Portland Maps. This resource allows you to verify if a property has a valid permit and can help you understand how to properly register your own property.

When contacting these resources, be prepared with specific questions about your property and situation. Officials can provide more helpful guidance when you've already familiarized yourself with the basic requirements and can ask targeted questions about your particular circumstances.

For reporting suspected violations of short-term rental regulations, the City of Portland has a dedicated reporting system. Reports can be submitted through the Bureau of Development Services website or by contacting their enforcement division directly.