Executive summary:

• Yes — short‑term rentals are allowed in Cannon Beach, Oregon, but only under two license types issued by the City, each with tight caps and compliance conditions.
• A limited‑use STR license allows up to 30 days per calendar year; a limited number of “unlimited” licenses exist but have been fully allocated, so only transfers from existing license holders are possible at present.
• Clatsop County’s unincorporated areas do not allow new STRs under its current rules; options are essentially limited to the City of Cannon Beach.
• State of Oregon imposes a 1.5% transient lodging tax (collected via the Oregon DOR), and the City of Cannon Beach imposes a local lodging tax; hosts must handle taxes diligently.
• Compliance expectations include occupancy limits, safety equipment, posting requirements, local contact, and advertising restrictions.

Important caveat: Because you did not supply the City of Cannon Beach’s official STR webpage in your materials, several figures (e.g., local lodging tax rates, fees, and some procedure specifics) require verification with the City prior to application. This guide flags where to confirm.

How to Start a Short-Term Rental Business in Cannon Beach (Step‑by‑Step)

1. Pre‑acquisition diligence (before you buy)

• Confirm City limits and eligibility. In Cannon Beach, STRs are highly constrained; do not assume a unit is viable. If it’s outside City limits (in unincorporated Clatsop County), new STRs are not allowed under current rules.
• Verify if the listing includes an active City STR license (limited‑use or unlimited) or a license‑in‑transfer, and get the license number. If none exists, determine if you can obtain or transfer one.
• For the City, assume max occupancy is 10 guests (verify with the City) and ensure the structure is compliant (e.g., legal bedrooms, exits, and on‑site parking).
• Review HOA/CC&R rules and insurance options; short‑term rentals often conflict with HOA short‑stay restrictions.

2. Engage City Planning early

• Contact the City’s Planning Division before purchase or as soon as you are under contract. Ask:
  • Is the address in City limits?
  • Are “unlimited” STR licenses currently available, or only transfers?
  • What are the current application fees and timelines?
  • What documentation is required (site plan, floor plan, parking plan, safety checklist)?
• Expect a zoning/land‑use compatibility determination for STR use.

3. Prepare a complete application package

• Site plan (parking, entrances/exits, emergency egress).
• Floor plan labeled by room and showing max sleeping spaces.
• Proof of property ownership and manager/agent authorization (if applicable).
• Statement of intended STR license type (limited‑use or unlimited).
• Safety checklist showing compliant smoke/CO detectors, fire extinguisher, posted evacuation routes, and occupancy limit signage.
• For limited‑use: written acknowledgement that annual rental days will not exceed 30.
• For unlimited: proof of existing “unlimited” STR license if applying to transfer.
• Application fees and any zoning/land‑use review fees.

4. Secure insurance and local point of contact

• Obtain general liability and property insurance appropriate for STR use.
• Designate a local manager or contact person who can respond 24/7 to issues and be available for City or neighbor communications.

5. Post and advertise correctly

• Display the STR license number on all ads and platforms.
• Post occupancy limit, quiet hours, and the City’s “Good Neighbor Guidelines” inside the unit.
• Do not exceed posted occupancy or number of rental days permitted by your license type.

6. Tax setup

• Register with the Oregon Department of Revenue for the 1.5% state lodging tax and file quarterly returns.
• Register with the City for local lodging tax and file/remit as required (confirm exact local rate and filing cadence with the City).
• If you use platforms that collect state/local lodging taxes (e.g., Airbnb), verify on your returns that amounts already collected are properly credited; maintain records.

7. Renewal and recordkeeping

• Keep an annual log of rental nights, guest count, and booking records.
• Renew annually (and track any required inspections).
• Maintain compliance and respond promptly to neighbor complaints.

Required Documents, Permits, Licenses, and Guidelines

Documents and permits

• City of Cannon Beach STR License:
  • Limited‑Use STR License (max 30 days per calendar year)
  • Unlimited STR License (available in limited quantity; currently fully allocated; transfers only)
• Zoning/land‑use confirmation (City of Cannon Beach Planning)
• Oregon Department of Revenue (DOR) transient lodging tax account (for 1.5% state lodging tax)
• City lodging tax registration (Cannon Beach)

Required items and posting requirements (verify specifics with the City)

• Occupancy limit posted in the unit (assume max 10 guests; confirm with the City)
• Fire extinguisher readily accessible
• Working smoke alarms in all sleeping areas; carbon monoxide alarms if the home has gas appliances or an attached garage (Oregon statewide requirement)
• Posted emergency evacuation plan/routes
• Local contact information posted
• “Good Neighbor Guidelines” posted
• No exterior signs identifying the STR in residential zones (verify with the City)
• Good standing with city taxes and renewal filings

Operational expectations (to be confirmed)

• Quiet hours, waste and parking rules, and other “Good Neighbor” conduct expectations
• Advertising must include the STR license number; do not list capacity higher than permitted
• Limited‑use hosts must cap total STR days at 30 per calendar year
• Unlimited hosts must not exceed maximum occupancy and must remain compliant with safety and nuisance standards

Specific Regulations: City, County, and State

City of Cannon Beach

• STRs allowed only under two City license types:
  • Limited‑Use STR License: up to 30 days per calendar year.
  • Unlimited STR License: finite number of licenses; currently fully allocated; only transfers from existing license holders are feasible.
• Occupancy: assume maximum of 10 guests (confirm with the City).
• Posting and safety: occupancy limits, good neighbor guidelines, evacuation plans, safety equipment, and a local contact must be posted in the unit.
• Advertising: license number must appear on all ads; no exterior signage in residential zones.
• Local lodging tax: City imposes a lodging tax; confirm rate and filing cadence with the City Finance/Tax Division.
• Licensing and renewal: annual license renewal; ongoing compliance with City code and conditions.

Clatsop County (unincorporated areas)

• The County’s rules, as of your materials, restrict new STRs. Transfers may be limited or unavailable. In general, unincorporated Clatsop County is not a viable pathway for new STR investors at this time.
• If the subject property is not within Cannon Beach city limits, treat STR viability as unavailable absent a transfer of an existing County STR license (unlikely).

State of Oregon (apply statewide)

• Transient Lodging Tax: 1.5% of gross rental revenue on stays under 30 days. Register and file returns with the Oregon Department of Revenue.
• Health and Safety: Smoke alarms are required in all rental dwellings; carbon monoxide alarms are required where gas appliances or an attached garage are present (ORS 479.270).
• Business registration: If operating under an LLC, DBA, or other entity, register with the Oregon Secretary of State. Separate business licensing requirements vary by city; confirm whether Cannon Beach requires a local business license.
• No statewide STR ban or permit: STR regulation is largely local; cities/counties set the rules for where/how STRs can operate.

Taxes and Filing

State lodging tax

• 1.5% transient lodging tax on gross rent for stays under 30 days.
• Register with Oregon DOR and file quarterly returns (monthly if high volume).
• If using Airbnb, verify whether Airbnb is collecting the state tax for your booking; always file your return and keep records.

City of Cannon Beach lodging tax

• The City imposes a lodging tax (your materials did not provide the rate). Confirm the current rate and whether filings are monthly or quarterly with the City Finance/Tax Division.
• If Airbnb collects local lodging taxes for Cannon Beach listings, you must still file and reconcile on your returns; maintain documentation.

Contact Information (Local Authority in Charge of STRs)

City of Cannon Beach

• Planning/Community Development (for zoning and license eligibility):
  • Phone: 503.436.8040
  • Email: planning@ci.cannon-beach.or.us
  • Website: www.ci.cannon-beach.or.us/planning (verify for STR page)
• Finance/Tax Division (for lodging tax registration):
  • Phone: 503.436.8042
  • Email: fin@ci.cannon-beach.or.us

Clatsop County (for unincorporated STR rules; new STRs not allowed)

• Clatsop County Community Development (planning and code):
  • Phone: 503.325.8611
  • Website: www.co.clatsop.or.us/commdev/page/short-term-rental

Oregon Department of Revenue (state lodging tax)

• Website: www.oregon.gov/dor/programs/businesses/pages/lodging.aspx

Links to Source Pages

Oregon STR rules and guidance (statewide)

• Oregon Department of Revenue — Transient Lodging Tax program: www.oregon.gov/dor/programs/businesses/pages/lodging.aspx
• Airbnb occupancy tax collection guidance (Oregon): www.airbnb.com/help/article/2324
• Oregon Revised Statutes — Smoke alarms in rental units (ORS 479.270): oregon.public.law/statutes/ors_479.270

Clatsop County STR regulations (county/unincorporated)

• Clatsop County Community Development — Short-Term Rental page: www.co.clatsop.or.us/commdev/page/short-term-rental

City of Cannon Beach official STR information (to be verified)

• City of Cannon Beach Planning Department main page: www.ci.cannon-beach.or.us/planning

Secondary discussion (for context only)

• BiggerPockets forum discussion on Oregon Coast STR realities (verify any City‑specific assertions with the City): www.biggerpockets.com/forums/530/topics/1125795-how-and-where-not-to-buy-a-vacation-rental-on-the-oregon-coast-rules-and-permits

Notes for investors

• Given caps and limited “unlimited” licenses in Cannon Beach, viable acquisitions typically involve purchasing a property with a valid, transferable license or acquiring a license via transfer from a current holder.
• Due to the City’s tight regulatory framework, always obtain written confirmation from the City Planning Division on license availability and requirements before committing capital.