Enforcement Reality
Portland requires an Accessory Short-Term Rental (ASTR) permit and enforces a primary residence requirement. The city caps the number of bedrooms that can be rented (maximum 5) and requires 30-day notice to neighbors. Fines for violations reach $1,000 per day. The Bureau of Development Services uses platform data-sharing agreements to audit listings against the permit database.
Verify everything. The rules change. The fines don't go down.
Platforms comply. They have no choice.
Recent Changes
| Date | Change |
|---|---|
| 2024 | TID (Tourism Improvement District) 3% surcharge implemented |
| 2025 | Enforcement enhancements for unpermitted STR operations |
Penalties for Non-Compliance
- $1,217 first correctable citation
- $3,648 second
- $6,079 third
- $10,000-$25,000 for repeat/recurring violations
- Source: Portland BDS Enforcement Fee Schedule (2022)
Overview
Portland requires all STR hosts to live on the property : this is an owner-occupied model. Type A permits (1-2 bedrooms, ≤5 guests) are affordable at $65-$105. Type B permits for larger properties (3-5 bedrooms) require a conditional use land use review costing $9,005 : functionally prohibitive for most small operators. The combined lodging tax reaches ~16% when including the Tourism Improvement District surcharge. Portland is viable for owner-occupants with modest space, but the Type B cost barrier makes larger STR operations impractical.
Regulation Digest
Portland requires the host to live on-site. Non-owner-occupied STRs are prohibited or face major barriers. The license costs $360/2 years (Type A) or $9,005+ (Type B). A combined occupancy tax of 11.5% Transient Lodging Tax (6% city + 5.5% county) + 3% TID + 1.5% state applies to all bookings under 30 nights. No night limit applies: but zoning and density restrictions may still apply.
Key Numbers
Portland, OR charges $360/2 years (Type A) or $9,005+ (Type B) for an STR license. The total occupancy tax rate is 11.5% Transient Lodging Tax (6% city + 5.5% county) + 3% TID + 1.5% state. Market data shows an average daily rate of $150–$220 with annual revenue around $28,000–$42,000.
License Types
| License Type | Fee | Notes |
|---|---|---|
| Type A (1-2 bedrooms, ≤5 guests) | $360/2 years | Primary residence ≥270 days/year. Per Ordinance 1080-2023. Non-refundable. |
| Type B (3-5 bedrooms, ≤10 guests) | $9,005 (land use review) | Requires conditional use review. Much more expensive. |
License Application: Step by Step
- Confirm property is primary residence
- Choose permit type: Type A (≤2 bedrooms) or Type B (3-5 bedrooms)
- Apply for Accessory STR Permit through Bureau of Development Services
- Type B: complete conditional use land use review ($9,005)
- Register for Transient Lodging Tax + TID
- Display permit number on all listings
- Renew as required
Taxes
6% City of Portland + 5.5% Multnomah County Transient Lodging Tax + 3% Tourism Improvement District + 1.5% Oregon state = ~16% total.
Key Operating Rules
- Host must live on property as primary residence
- Type A: 1-2 bedrooms, max 5 guests
- Type B: 3-5 bedrooms, max 10 guests, requires land use review
- No annual night limit
- TID assessment applies (3%)
- Noise and nuisance ordinances enforced
Is Portland STR-Friendly?
Portland is for owner-occupants only. Type A permits are cheap and workable for homeowners renting spare space. Type B's $9,005 land use review makes large-property STR impractical for almost everyone. The ~16% total lodging tax is among the highest nationally. For Portland homeowners: a reasonable side income. For investors: no path.
Bottom line: Portland is for owner-occupants only.
📈 Portland STR Investor Scorecard
Independent assessment: not government data. Scored on five dimensions that matter to hosts and investors.
| Dimension | Score (1–10) | Notes |
|---|---|---|
| Regulatory Burden | 7/10 | Owner-occupied only. Type B's $9K land-use review is a hard gate. |
| Fee Burden | 6/10 | Type A is cheap. Type B is insanely expensive. ~16% tax is very high. |
| Enforcement Risk | 5/10 | Moderate. City has improved tracking but not as aggressive as Miami Beach. |
| Market Potential | 5/10 | Solid tourism base but ADR lower than Seattle/California cities. |
| Investor Viability | 1/10 | Zero investor viability. Owner-occupied only. |
Year 1 Real Cost Estimate
| Item | Estimated Cost |
|---|---|
| Type A STR Permit | $360 |
| Liability Insurance | ~$800–$1,200 |
| Lodging Tax + TID (~16%) | Platform-collected |
| Total Year 1 Compliance (Type A) | ~$1,160–$1,560 |
Who Should (and Shouldn't) Invest
| Profile | Verdict |
|---|---|
| Owner-occupant with spare bedroom | ✅ Type A is viable and affordable. Rent a room while you live there. |
| Large-property owner (3-5 bedrooms) | ⚠️ Type B costs $9,005 just for review. Economics only work for high-ADR properties. |
| Out-of-state investor | 🛑 Illegal. Owner-occupied requirement is absolute. |
📊 By the Numbers
Data compiled from government reports, AirDNA, AirROI, and StaySTRA market data.
- ~3,000+ permitted STRs
- $360/2yr Type A fee (Ordinance 1080-2023)
- $9,005 Type B land use review
- $1,217-$25,000 citation fines
- 270-day primary residence requirement
- Source: portland.gov PPD ASTR page + enforcement fee schedule
Sources: AirROI, StaySTRA, AirDNA market data (May 2026).
Frequently Asked Questions
What license types are available for Portland short-term rentals?
Portland offers Type A / Type B. $360/2 years. Primary residence ≥270 days/year. Per Ordinance 1080-2023. Non-refundable.
How much does a Portland STR license cost?
$360/2 years (Type A) or $9,005+ (Type B)
What taxes apply to short-term rentals in Portland?
6% City of Portland + 5.5% Multnomah County Transient Lodging Tax + 3% Tourism Improvement District + 1.5% Oregon state = ~16% total.
Is Portland STR-friendly for investors?
Portland is for owner-occupants only. Type A permits are cheap and workable for homeowners renting spare space. Type B's $9,005 land use review makes large-property STR impractical for almost everyone
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