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Generally Investor friendly
STRs are broadly permitted across multiple zones in Deschutes County (including Terrebonne) with simple tax registrations and no strict citywide caps; the main constraints are zoning-based prohibitions (EFU/forest) and basic building/safety compliance.
Local STR Agent
STR specialist · Terrebonne, OR
Terrebonne is a small unincorporated community in Deschutes County in central Oregon, set in the high-desert country along the Deschutes River with a population of roughly 1,200. The community has a quiet, rural character, surrounded by juniper-covered hills, irrigated ranch land, and dramatic canyon country, and it is best known as the gateway to Smith Rock State Park, one of the most celebrated rock-climbing destinations in the United States. Terrebonne sits about five miles north of Redmond and roughly twenty miles north of Bend, both of which provide the closest commercial airports, restaurants, and shopping, while Portland lies about 150 miles to the northwest, a drive of close to three hours by car.
A short drive east of town, Smith Rock State Park draws climbers, hikers, photographers, and trail runners from across the Pacific Northwest and beyond. The park's towering tuff and basalt cliffs rise above the Crooked River, with the Misery Ridge trail offering panoramic views of the canyon and, on a clear day, the snow-capped Cascade peaks in the distance. Most of the park's main trailheads and the visitor facilities are within about ten minutes of Terrebonne, making the community a natural overnight stop for visitors who want to be on the rock or on the trail at sunrise.
Just downstream from Smith Rock, Peter Skene Ogden State Scenic Viewpoint offers a quieter complement, with a series of viewpoints and a pedestrian bridge spanning the Crooked River Gorge. The pull-off is only a few miles from Terrebonne and is a popular stop for highway travelers, fishermen, and anyone wanting a short, scenic walk without the crowds of the main park. Together, the two state sites effectively make Terrebonne a base for canyon-country sightseeing as much as for climbing.
A little further afield, the city of Bend, about a twenty-five-minute drive south, broadens the appeal considerably with the Old Mill District along the Deschutes, a walkable downtown of breweries, restaurants, and shops, and easy access to the Cascade Lakes Highway and Mount Bachelor. Redmond, even closer at roughly ten minutes away, adds a historic downtown, the Redmond Caves, and the region's main commercial airport.
Terrebonne's appeal as a short-term-rental base comes from the unusual combination it offers: a genuinely rural, small-scale setting paired with immediate access to one of Oregon's signature outdoor destinations, plus Bend and Redmond within easy reach. Guests can spend the day climbing at Smith Rock or hiking the Crooked River canyons and return to a quieter, less developed community at night, a balance that is increasingly hard to find in the more heavily trafficked parts of central Oregon.