Klamath Falls, Oregon Short Term Rental Regulations Guide for Airbnb hosts

Overview: STR Status in Klamath Falls

YES, short-term rentals ARE ALLOWED in Klamath Falls, OR. The city explicitly permits short-term rentals within city limits, defined as dwelling units or portions thereof rented for less than 30 consecutive days. However, operation requires obtaining both a Short-Term Rental Permit and maintaining an active City Business License. The city has established comprehensive regulations to balance diverse visitor accommodation needs while protecting residential neighborhood character and addressing community housing availability concerns.

What do Airbnb hosts actually earn in Klamath Falls?

Klamath Falls hosts earn a median $26,722/year with $190 ADR and 63% occupancy.

Top performers pull in $36,490+ per year.

See the full Klamath Falls market breakdown

How to Start a Short-Term Rental Business in Klamath Falls

Step-by-Step Process

Verify Zoning Compliance
- Confirm your property is in an appropriate zoning district
- Review density limitations (max 10% STRs within 250 feet of each other)
- Ensure no more than 2 dwelling units per property contain STRs (except DB, GC, MU zones)
Secure Required Documentation
- Complete STR Permit Application Packet (Revised September 2023)
- Obtain City Business License
- Submit all required plans and documentation
Pay Initial Fees
- STR Permit Fee: $100
- Business License Fee: $100
- Total first-year cost: $200
Pass Inspections
- City inspection required before commencement
- Site visit coordinated during normal business hours
- Inspection confirms bedroom count and parking availability
Maintain Annual Compliance
- Renew Business License annually ($50 renewal fee)
- Maintain active STR Permit
- Post Good Neighbor Guidelines

Required Documents, Permits, Licenses, and Guidelines

Essential Documentation

STR Permit Application Packet must include:

Completed application forms with all requested information
Property owner and local operator contact information
Property details (address, zone, legal description)
Building type identification (SF home, ADU, duplex, etc.)
Number of STR units and bedrooms

Required Plans:

Floor Plan: Simple, legible plan identifying bedrooms for STR use (not required for whole-home single-family rentals)
Site/Landscape Plan: Showing parking spaces, landscaping, and property layout
Parking Documentation: Photos of garage interior if used for parking requirements

Required Forms:

Signed STR Acknowledgement and Consent Form
Completed Business License Application
Good Neighbor Guidelines acknowledgment

Permit Requirements

STR Permit:

Ministerial review process
Valid for specific owner/operator (does not run with land)
Must initiate use within 12 months or permit becomes void
Becomes void if STR ceases for 12+ consecutive months

Business License:

Annual renewal required (expires December 31)
Cannot be issued for periods greater than one year
Immediate revocation for violations with potential for reinstatement

Specific Regulations for Short-Term Rentals

City of Klamath Falls Requirements (CDO Chapter 12, Article 18.5, Sections 12.700-12.745)

Density Limitations:

Maximum 10% of properties within 250 feet may contain STRs
No more than two dwelling units per property may contain STRs
Properties with more than 4 dwelling units prohibited (except DB, GC, MU zones)

Occupancy Standards:

Maximum occupancy dictated by Oregon Building Code, Oregon Fire Code, or federal regulations
Only approved, habitable bedrooms may be used for STRs
No STRs in units sharing walls unless both units are STRs or owner occupies adjacent unit
Cannot rent if any room is occupied by long-term tenant

Parking Requirements:

Minimum 2 parking spaces required (1 can be on immediately abutting street)
Additional space required per STR bedroom above 3 bedrooms
Spaces must be minimum 19 feet deep × 9 feet wide
Must be paved with asphalt, concrete, or approved alternative
Garage may be used with interior photo proof of availability
On-street parking counts toward requirements if immediately fronting property

Landscaping Standards:

Minimum 50% vegetative cover required in front setbacks and street-visible areas
Xeriscaping or decorative zeroscaping acceptable alternatives
Gravel prohibited as landscaping material (except footpaths)
All landscaping must meet CDO Section 14.425 standards
Dead/destroyed landscape elements must be promptly replaced

Behavioral Requirements:

Good Neighbor Guidelines must be posted conspicuously in each STR
Guidelines address noise, lights, fire safety, vehicle traffic (max 10 trips per day), property maintenance, garbage disposal, parking, and pet management

Prohibited Uses:

Recreational vehicles, travel trailers, tents, or temporary shelters cannot be used in conjunction with or as STRs

Operational Requirements

Transfer Restrictions:

Permits and licenses are specific to owner/operator
Use terminates with property sale/transfer
New owner/operator must reapply

Inspection Protocol:

Pre-commencement inspection for compliance verification
Prescribed schedule inspections during operation
Conducted during normal business hours with reasonable notice

Abandonment Rules:

Use becomes void if STR ceases for 12+ months
Failure to maintain active business license constitutes abandonment

Compliance Timeline

Extended compliance deadline: September 30, 2024
All existing STRs must comply by this date
New applications processed year-round

Contact Information

Primary Authority

City of Klamath Falls Development Services Department

Address: 226 S. 5th Street, Klamath Falls, Oregon 97601
Phone: (541) 883-4950
Email: devservices@klamathfalls.city
Website: www.KlamathFalls.city

Additional Contacts

Media Inquiries:

Phone: (541) 883-5316
Email: ckfpublicinforequest@klamathfalls.city

Planning Division Assistance:

Available for application guidance
In-person consultations at Development Services office
Phone and email support during business hours

Source Pages

City STR Application Packet: klamathfalls.city/DocumentCenter/View/2648/Short-Term-Rental-Application-Packet
STR Permit Reminder Press Release: www.klamathfalls.city/DocumentCenter/View/2978/6-27-2024---Press-Release---Short-Term-Rental-Permit-Reminder

Important Notes for Investors:

The STR permit and business license are non-transferable and expire upon property sale
Annual renewal of business license ($50) required in addition to initial $200 investment
Strict enforcement with immediate license revocation for violations
Good Neighbor Guidelines compliance is mandatory and enforceable
Property must demonstrate continuous operation to maintain permit validity

This regulatory framework represents a balanced approach allowing STR investment while preserving neighborhood character and housing availability in Klamath Falls.

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Ask the AI Advisor about Klamath Falls

Klamath Falls is a small but historically rich city in southern Oregon, serving as the county seat of Klamath County. The city has a population of approximately 21,000 residents, though the surrounding Klamath Basin draws visitors and second-home owners from across the broader rural region. Often called "Oregon's City of Sunshine" for its relatively clear skies compared to the rainier parts of the state, Klamath Falls sits in a high-desert basin near the California border. The area is best known as a gateway to some of the Pacific Northwest's most striking natural landscapes, most famously Crater Lake National Park. It lies roughly 80 miles east of Medford, the nearest mid-sized city, and about 250 miles south of Portland.

Crater Lake National Park sits about 45 miles north of Klamath Falls, or roughly an hour's drive, and is the deepest lake in the United States, formed in the caldera of an ancient volcano. Visitors come for the dramatic Rim Drive, panoramic viewpoints like Watchman Overlook and Cloudcap, and the deep blue water that draws photographers year-round. In winter, much of the rim road closes, but the park remains a destination for cross-country skiing, snowshoeing, and ranger-led snowshoe walks.

Upper Klamath Lake lies just minutes from downtown Klamath Falls and is the largest freshwater lake in Oregon by surface area. It anchors a network of wetlands that make up the Klamath Basin, a major stopover on the Pacific Flyway. During the winter months, large numbers of bald eagles gather at the surrounding wildlife refuges, drawing birders and photographers from across the country. In warmer months the marshes and open water are popular for fishing, paddling, and general wildlife viewing.

The Favell Museum, located in Klamath Falls, showcases a notable collection of Native American artifacts and Western art, including works by contemporary Indigenous artists and a miniature village of historic Western buildings. It offers a small but well-regarded stop that complements the region's natural attractions with a look at local heritage and craftsmanship, and it tends to pair naturally with a downtown stroll or a meal at one of the surrounding restaurants.

A short drive north of town, near the small community of Chiloquin, Train Mountain Railroad Museum is one of the largest model train layouts in the world, drawing hobbyists and families during the summer operating season. The surrounding forests and proximity to the national park make this corner of the basin appealing for visitors who want to combine multiple interests in a single trip, from scenic drives and birding to small-town museums and family-friendly attractions.

Klamath Falls works well as a base for short-term rentals because it sits at the intersection of high-desert scenery, pine-forested rim country, and one of the country's most iconic national parks. Guests who stay in the area can enjoy a quieter, more affordable alternative to lodging inside the park itself, while still reaching Crater Lake, the Klamath Basin refuges, and the surrounding forests within a short drive. The mix of small-city conveniences, abundant outdoor recreation, and proximity to the California border gives the city a steady seasonal rhythm of travelers, from summer road-trippers and anglers to winter eagle-watchers and backcountry skiers.