All Forum Posts by: AJ Wong

For all the talk about the STR apocalypse there are factors at play beyond headlines and travel trends that should keep Oregon Coast vacation rentals in demand and investable for the foreseeable future.

Unlike many areas (like Spain or Palm Springs ) the Oregon Coast has done a relatively reasonable and practical job of regulating STR/VRD (short term rental / vacation rental dwelling) properties in most cities and jurisdictions. Even with all the hype - many cities remain at relative low saturation/density rates in comparison to other popular tourist areas.

In cities where STR/VRD rentals saw explosive growth due to lack or non-existence of regulations - such as Rockaway Beach, Yachats and Lincoln City - the cities and counties implemented rules that both capped and in some areas restricts the transfer of a permit with a property.

For example one very popular vacation area Yachats has many successful oceanfront rentals that are currently licensed, but upon sale do not transfer and can NOT be qualify for STR usages for the new owner in an investable timeframe.

Many of these homes/properties are some of the top performing STR's in the area and provide a property profile (such as oceanfront) that is very difficult to reproduce as either an investor or guest looking to visit.

Another area where STR permits do not transfer and there are a dozen or so luxury or oceanfront homes that will no longer operate as vacation rentals upon sale is Lincoln City. When the property can no longer operate as it's previous and often 'highest and best use' typically the buyer pool is smaller but the rental pool is also shrinking - especially for 4-5-6 bedroom oceanfront or beach accessible homes on the central to Northern Oregon Coast. This will drive more usage back into designated STR areas such as Olivia Beach and over-time reinvigorate demand and rates for available accommodations. I suspect it will also drive guests seeking a particular experience or sufficiently sized accommodations to travel and consider more remote locations. Specialized luxury STR PM companies like Wander.com have several Oregon based properties that are booked solid and among the highest performing income generators regardless of the location.

In a sense - peak STR rentals on the Oregon Coast might already be behind us. It's helpful to remind ourselves that the STR investor profile and intention is not always the same - and not always to maximize ROI or return on investment. A solid portion of my previous clients are to utilize some tax breaks, put capital to work and try and offset or payoff a second or family vacation home. There are endless reasons why the Oregon Coast is an attractive investment destination and looking forward for AirBNB investors is a higher barrier to entry for competition.

Hello,

Hoping to help a friend that needs a new tax professional or reference and P&L for 4 year business in Florida? 

Thanks! 

I put together an updated 2025 Oregon Coast Vacation Rental STR (AirBNB) Permit & License Rules & Regulation Overview that I share clients and colleagues with zoning questions about: where, when and how they can operate nightly vacation rentals from Brookings to Astoria - hopefully it helps investors avoid unrealistic permit or licensing expectations. Please note: this is just an overview - there are always exceptions to the rules and specific prospects STR usages should ALWAYS be directly confirmed with the planning department or jurisdiction responsible for permit/license issuance. ✅

Operating a nightly short-term vacation rental (STR) on the Oregon Coast requires a permit or license. Below is a city-by-city breakdown of where owning and operating a single family AirBNBs is still feasible:

🚙South to North:

• Brookings: Permitted with specific zoning code only - usually on the very west side of town.
• Gold Beach: Generally restrictive - permitted in commercially zoned areas or outside city limits with a Curry County permit.
• Bandon: Allowed within designated STR zones near Beach Loop, provided the area isn't oversaturated with active vacation rentals (typically less than 30% active STRs nearby) licenses DO NOT transfer at sale and therefore many active STRs cannot continue to operate not subject to a wait. There are rare 'grandfathered' exceptions for VRD (Vacation Rental Dwellings) that have operated before the current permit rules were enacted. STR permits are also attainable outside city limits with Coos County - though the process may take months due to waste and water system inspections.
• Coos Bay & North Bend: Subject to Coos County regulations, including a Land Use Compatibility Statement (LUCS) and healthy department inspections. Restrictions apply based on proximity to existing STRs.
• Florence: Currently no STR regulations or HOA restrictions as of Q1 2025. Proposed regulations may be forthcoming.
• Yachats: Generally a no-go zone as there is an extensive STR waitlist. County properties may qualify.*
• Waldport: Permitted within city limits. Bayshore area north of the bridge is no longer permissible. Properties located within Lincoln County can qualify on a case by case basis but generally limited eligibility.
• Newport: Generally not permitted except in specific tourist, commercially zoned areas - typically in the historic Nye Beach area. Condos and condohotels can qualify*
• Depoe Bay: Mostly restricted, with exceptions in specific commercial tourist zones - there is also a new construction luxury community that permits vacation rental usages outright.
• Lincoln City: Highly restrictive with the exception of commercial and coastal tourist zones and - Olivia Beach which permits nightly vacation rental usages outright. The Road's End exception expired in 2024. R1.5+ zoning is technically eligible but subject to a county waitlist with an estimated wait time exceeding 24 months.
• Lincoln County: Certain subareas are subject to a waitlist; eligibility is very property-specific and goes through the Sheriff's Office.
• Tillamook County: Recent amendments have purged waitlists in many subareas. Notable areas are at capacity but have shorter waitlists projected for 2025. Actively licensed properties permits can transfer.
• Nehalem, Cape Meares, and UGB zone of Rockaway Beach: Subject to waitlists or have available slots as of January 15, 2024.
• Manzanita: R2 and R3 zones are waitlisted. No waitlist for R4, Commercial, and LC zones as of April 2025.
• Cannon Beach: Limited to one occupancy every 14 days. Unlimited licenses have been suspended - very occasional 'grandfathered' or commercially zoned properties do exist*
• Arch Cape: Restricted to one occupancy every 7 days.
• Rockaway Beach: New STR cap implemented. Active STR licenses can transfer; new licenses are subject to a waitlist.
• Pacific City: Permitted based on zoning and saturation of neighboring STRs. Active licenses can transfer.
• Seaside: Permitted west of US101 ('Redline'), subject to saturation and landscaping requirements. Some condos are excluded.
• Astoria: Generally restricted with the exception of commercially zoned properties.

🏄🏽‍♂️ Stay Coastal.

Note: Regulations are subject to change. Always consult local city or county planning departments for the most current information.

Hi Stanley - I've helped about two dozen STR investors the past several years - any chance we can connect? I'd like to share in our investor newsletter and provide additional analysis for prospects. Thanks!

It's no secret that President Trump wants to extend (and make permanent) his first-term tax cuts - part of that proposal includes reinstating 100% accelerated depreciation aka - The Short-Term Rental (STR) tax loophole. This strategy allows real estate investors to significantly reduce rental income tax by offsetting earned income with real estate losses. If renewed, it could (once again) unlock major tax advantages for W-2 earners investing in STRs.

There are several articles that do an exceptional job of explaining who, what, where, why and how tax payers qualify for the STR Tax Loophole - one I often share with client and in our STR newsletter was written by Joe Chiappias with Taxclimate.com.

📝 The Short Term Rental Tax Loop Hole: A Game Changer for W-2 Wage Earners

"What’s the Big Deal?

Normally, the IRS wants you to depreciate your rental property over 27.5 years (39 for commercial properties). That’s like watching paint dry, but slower. Cost segregation says, “Let’s speed this up, shall we?”

Here’s how it works:

Accelerate, Accelerate, Accelerate: Many of these components can be depreciated much faster – think 5, 7, or 15 years instead of 27.5. It’s like going from a tricycle to a sports car in terms of depreciation speed.

Front-Load Your Savings: By accelerating depreciation, you’re potentially creating larger tax deductions in the early years of ownership. That means more money in your pocket now, when you likely need it most."

The implications for the Oregon and California Coastal STR markets are clear- the buyer pool for luxury rentals in the $500K–$1.5M+ range is poised to grow. These deductions become more powerful as property values increase and can, in some cases, offset the entire net investment, including the down payment, for high-income earners.

What do you think - will the STR loophole be extended?

For sure returning! Been writing about it regularly for our STR investors. 📝

Speak to the planning department - may have a specific STR contact and see if they can send you a summary of the discussion in email. Cheers.

Hi Richard. If you message me with the particulars I can provide a genuine rate and PreQual ASAP. We can offer hyper competitive DSCR & Commercial programs nationwide. Cheers.

BNBCalc is a solid service and like AirDNA is somewhat accurate on rental performance projections. More often than not all the 'STR Sites' over-estimate production potential - a good measure of this is to take an active STR with performance records and compare to the projection. Another helpful reference is to search comparable rentals on AirBNB/Rabbu without the calendar dates and review their occupancy and rates. One downside is that STR sites don't actually qualify whether a home can operate with/without a permit/license or the regulations - it is best to contact the local planning department directly for the properties you're interested in. Good luck!

 Feel free to connect Sri. I can give you some insight. Cheers.