Oregon Short-Term Rental Rules: A Comprehensive Guide

Quick Answer: Oregon's Short-Term Rental Landscape

Oregon delegates most short-term rental regulation to local governments. There is no statewide STR permit, no statewide cap on units, and no single agency issues an "Oregon short-term rental license." The state oversees the Transient Lodging Tax (TLT), which applies to rentals of 30 consecutive days or fewer statewide (ORS 305.620).

This means:

• State role: Collect and remit state TLT.
• Local role: Zoning approval, operating permits, safety inspections, occupancy limits, parking, noise, and local TLT in addition to the state rate.
• Platform role: Airbnb and Vrbo have tax collection agreements with Oregon and many local governments. However, these agreements do not cover permit obligations. Operators must still obtain permits independently.

Oregon's housing market context includes a median listing price around $546,850 (FRED, March 2026) and a statewide housing price index of 846.32 (FHFA, Q4 2025). Local governments feel pressure to limit STRs that remove units from the long-term housing supply. This leads to stricter regulations, especially in coastal markets and Bend.

State-Level Regulations and Definitions for Oregon STRs

What Oregon Law Calls a "Short-Term

Federal Tax Considerations

Short-term rental businesses in Oregon must navigate various federal tax implications, primarily under the Internal Revenue Code (IRC). The classification of rental income can significantly affect tax obligations, particularly regarding passive income versus active business income.

• Schedule E is used for reporting passive rental income under IRC § 469, applicable when renting out property without providing substantial services.
• If substantial services are provided (e.g., meals, daily cleaning), income may be reported on Schedule C as a business under IRC § 162.
• The 14-day rule under IRC § 280A(g) allows property owners to rent their home for fewer than 15 days per year without reporting the income, making it tax-free.
• Depreciation for residential rental property is typically calculated over 27.5 years under IRC § 168, while properties providing substantial services may qualify for a 39-year depreciation schedule.
• While there is no federal occupancy tax, state and local lodging taxes are applicable, often collected through online travel agency (OTA) platforms.

This is not tax advice — consult a CPA familiar with Short-term rentals for your specific situation.

Frequently Asked Questions

Why doesn't Oregon have a statewide short-term rental license?

Oregon delegates the regulation of short-term rentals to local governments, allowing each city or county to set its own rules and requirements.

What law applies to short-term rentals in Oregon?

The primary law governing short-term rentals in Oregon is the Transient Lodging Tax (TLT), which applies to rentals of 30 consecutive days or fewer.

Are there any active legislative proposals regarding short-term rentals in Oregon?

As of now, there are no specific statewide legislative proposals aimed at regulating short-term rentals, but local governments continue to adjust their regulations.

What do residents do given the absence of a statewide short-term rental law?

Residents must comply with local regulations regarding permits, zoning, and safety inspections, as these vary significantly across the state.

How does Oregon's approach to short-term rentals compare to neighboring states?

Unlike some neighboring states that have statewide regulations, Oregon allows local governments to dictate short-term rental rules, leading to a patchwork of regulations across the state.