Overview

Yes, short-term rentals are explicitly allowed in Portland, Oregon. The city has established a well-defined regulatory framework for Accessory Short-Term Rentals (ASTRs) that permits property owners and tenants to rent out bedrooms for stays of less than 30 days. Portland legalized vacation rentals in private homes in 2014, creating what are officially called "Accessory Short-Term Rental Permits" or "ASTRs." These are residential properties where part of the dwelling is used for short-term lodging while maintaining the property as a primary residence.

Portland operates on a "home-sharing" model rather than allowing entire-home rentals without resident occupancy. The city has two primary permit categories: Type A permits for 1-2 bedrooms (maximum 5 guests) and Type B conditional use permits for 3-5 bedrooms (maximum 10 guests). The city has also recently implemented an online application system and increased enforcement efforts to ensure compliance.

How to Start a Short-Term Rental Business in Portland

Step 1: Determine Your Permit Type

• Type A ASTR Permit: Rent 1-2 bedrooms to maximum 5 overnight guests
• Type B Conditional Use: Rent 3-5 bedrooms to maximum 10 overnight guests (requires conditional use review)
• Commercial Use Permit: For properties not meeting Type A or B criteria

Step 2: Ensure Eligibility Requirements

Before applying, verify you meet these fundamental requirements:

• The residential dwelling must be primarily used for long-term occupancy
• Only part of the dwelling can be used for short-term rental purposes
• You must rent bedrooms to overnight guests for less than 30 days
• A resident must live in the dwelling unit for at least 270 days during each calendar year

Step 3: Choose Property Types

Eligible buildings include:

• Accessory Dwelling Units (ADUs) legally created
• Attached duplexes, attached houses, condominiums
• Units in cottage clusters, detached accessory structures
• Duplexes, floating homes (individual or in moorage)
• Houses, manufactured homes, mobile homes, residential trailers

Step 4: Submit Application

Use the city's online Civic Portal system:

1. Create a free account at the Civic Portal website
2. Complete application through the online system
3. Ensure accurate matching of permit numbers across all platforms

Step 5: Business Registration and Tax Compliance

• Register as a business with Portland's Revenue Division
• Collect and remit transient lodging taxes
• Understand tax exemptions if grossing less than $50,000 annually

Step 6: Complete Safety Inspections

Ensure bedroom compliance with:

• Legally created sleeping rooms
• Minimum fire/life-safety requirements
• Interconnected smoke and carbon monoxide detectors

Required Documents, Permits, Licenses, and Guidelines

Permits Required

1. Accessory Short-Term Rental Permit (Type A or Type B)

   • Valid for two years
   • Renewals require confirmation of continued compliance
   • Application fees are non-refundable

2. Business License

   • Required for all businesses operating in Portland
   • No payment due with registration if grossing under $50,000
   • Annual filing required even if exempt

3. Conditional Use Review (Type B only)

   • Required for 3-5 bedroom operations
   • Maximum guests determined during review process
   • Manual application process currently required

Documentation Required

• Oregon Driver's License or Oregon Identification Card showing site address
• Neighborhood notification copies with recipient address lists
• Floor plans showing which bedroom is the resident's
• Written permission from property owner (for tenant applicants)

Safety and Compliance Requirements

• Interconnected smoke detectors in bedrooms and adjacent areas
• Carbon monoxide alarms in each bedroom or within 15 feet of doors
• Bedroom standards meeting Section 33.207.040.B.4 requirements
• Inspection scheduling with Portland Permitting & Development

Tax and Business Compliance

• Transient lodging tax collection and remittance
• Business license registration and annual filings
• Record-keeping of guest transactional data
• Permit number display in all advertisements and property postings

Specific Regulations for Short-Term Rentals

Residency Requirements

• Primary Requirement: Resident must occupy dwelling for minimum 270 days annually (approximately 9 months)
• Away Time: Maximum 95 days per year when resident can be away while continuing STR operations
• Verification: Oregon Driver's License or ID required; staff verify through DMV records
• Alternative Living: On sites with ADUs, residents may live in either primary dwelling or ADU

Guest and Capacity Limits

• Type A: Maximum 5 guests, 2 bedrooms
• Type B: Maximum 10 guests, 5 bedrooms (determined through conditional use review)
• Commercial Rentals: Six or more bedrooms require additional commercial building and zoning code compliance

Multi-Dwelling Structure Limitations

• Only one unit per structure may have an ASTR permit, OR
• Maximum 25% of total units may have permits (whichever is greater)
• Applies to multi-dwelling structures, triplexes, fourplexes, cottage clusters

Operational Restrictions

• Home Businesses: Type B home occupations with non-resident employees or customers prohibited
• Commercial Events: No commercial meetings, luncheons, parties, or weddings for compensation
• Services: Normal maintenance and repair services allowed, but no hired staff on-site for guest services
• Employee Prohibition: No non-resident employees allowed on-site associated with the short-term rental

Safety and Inspection Requirements

• Pre-Operation Inspection: Required before permit issuance
• Focus Areas: Legal bedroom creation, fire/life-safety compliance, detector installation
• Violation Corrections: 30-day correction period for safety violations
• Re-inspection: Required after hazard corrections before operations can begin

Advertising and Marketing Requirements

• Permit Display: Permit number required in all advertising
• Accurate Representation: Advertisements cannot state capacity exceeding approved limits
• Listing Compliance: Platforms must verify permit numbers before listing
• Public Registry: All permits listed on Portland Maps Short-Term Rental Registry

Enforcement and Penalties

• Unpermitted Operations: Subject to enforcement action and civil penalties
• Violation Citations: Issued under Chapter 33.207 of Portland City Code
• Monthly Fees: Accrue for uncorrected violations after 30-day notice
• Platform Compliance: Marketplaces face $1,000 per violation per day for non-compliant listings

Contact Information

Primary Contact: Portland Permitting & Development

Accessory Short-Term Rentals Department

• Phone: (503) 823-2633
• Email: PPDaccessoryshorttermrental@portlandoregon.gov
• In-Person Services: Development Services Center, 1900 SW 4th Ave.
  • Available Tuesdays 8 a.m. - 4 p.m. and Thursdays 8 a.m. - 12 p.m.
  • Pre-scheduled appointments required

Revenue Division (Business Licenses and Taxes)

Transient Lodging Tax Program

• Phone: (503) 865-2857
• Email: TLTax@portlandoregon.gov
• Business License Information: Available through Portland.gov Revenue Division

General City Services

• Main Number: 311 or (503) 823-4000
• TTY: 711 (Oregon Relay Service)
• Email: 311@portlandoregon.gov

Neighborhood Information

Office of Community and Civic Life

• Phone: (503) 823-4519
• Online: Portland.gov/civic/myneighborhood
• Purpose: Neighborhood association contact information for notification requirements

Platform-Specific Support

• Airbnb Issues: Contact Portland Revenue Division's Transient Lodging Tax team
• General Registry Questions: Bureau of Development Services at (503) 823-2633

Links to Source Pages

Primary Government Sources

• Portland ASTR Main Page: www.portland.gov/bds/astr-permits/before-you-apply
• Type A Permits (1-2 Bedrooms): www.portland.gov/ppd/astr-permits/1-2-bedrooms-type-permits
• Portland Zoning Code Section 33.207: www.portland.gov/code/33/200s/207
• Civic Portal Application System: aca-prod.accela.com/PCR/Default.aspx
• Short-Term Rental Registry: www.portlandmaps.com/reports/index.cfm?action=short-term-rental

Business Registration and Tax Information

• Business Tax Registration: www.portland.gov/revenue/business-tax
• Transient Lodging Tax Information: www.portland.gov/revenue/transient-lodgings-tax

Support and Resources

• Airbnb Portland Host Guide: www.airbnb.com/help/article/875
• Avalara Oregon STR Guide: www.avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/oregon.html
• Portland Maps Neighborhood Finder: www.portlandmaps.com/

Policy and Enforcement Documents

• ASTR Enforcement Policy (ENB-13.01): www.portland.gov/policies/environment-built/permitting-development-administrative-policies-procedures/enb-1301
• ASTR Compliance Policy (ENB-13.02): www.portland.gov/policies/environment-built/permitting-development-administrative-policies-procedures/enb-1302
• New Online Application System: www.portland.gov/bds/news/2024/4/4/new-online-application-system-now-available-accessory-short-term-rental-astr

This comprehensive regulatory framework positions Portland as having one of the more structured approaches to short-term rental management in Oregon, balancing property owner rights with neighborhood protection and affordable housing preservation. The city's recent implementation of online systems and increased enforcement demonstrates ongoing commitment to effective regulation and compliance monitoring.