Overview: Are Short-Term Rentals Allowed in Downtown Portland, OR?

Yes, short-term rentals are explicitly allowed in downtown Portland, Oregon, but under specific regulatory framework known as "Accessory Short-Term Rentals" (ASTR). The city operates a structured permitting system that allows residents to rent bedrooms to overnight guests while maintaining the primary residential character of neighborhoods. Portland distinguishes between different types of permits based on bedroom count and guest capacity, with the downtown area subject to the same citywide regulations.

Short-term rentals are permitted only when the residential dwelling is primarily used for long-term occupancy, with the resident living on-site for at least 270 days annually. Properties with six or more bedrooms are not considered accessory short-term rentals and fall under different commercial regulations.

How to Start a Short-Term Rental Business in Downtown Portland

Step-by-Step Process

Step 1: Determine Permit Type

• Type A Permit: Rent 1-2 bedrooms to maximum 5 overnight guests
• Type B Conditional Use: Rent 3-5 bedrooms to overnight guests (requires conditional use review)
• Commercial Short-Term Rental: Applies when zoning allows commercial transient lodging

Step 2: Verify Eligibility Requirements

• Confirm you can meet the 270-day annual residency requirement
• Ensure bedrooms were legally created as sleeping rooms
• Verify building compliance with fire/life-safety requirements
• Install interconnected smoke and carbon monoxide detectors

Step 3: Submit Application

• Apply online through Portland's Civic Portal
• Complete neighborhood notification process
• Pay non-refundable application fees
• Provide required documentation

Step 4: Obtain Business License

• Register as business with City of Portland Revenue Division
• Complete annual filings (exempt if grossing under $50,000)
• Set up systems for transient lodging tax collection

Step 5: Complete Safety Inspection

• Schedule bedroom safety inspection
• Address any imminent safety hazards identified
• Obtain final approval and permit issuance

Required Documents, Permits, Licenses, and Guidelines

Required Permits and Approvals

Accessory Short-Term Rental Type A Permit:

• Valid for two years
• Maximum 2 bedrooms and 5 guests
• Requires neighborhood notice
• Annual renewal required

Accessory Short-Term Rental Type B Conditional Use:

• Maximum 5 bedrooms and 10 guests
• Subject to conditional use land review process
• Permit limits determined during review
• Requires public notification

Business Registration:

• City of Portland business license required
• Annual filing requirements
• Tax exemption available for gross receipts under $50,000

Required Documentation

Application Materials:

• Oregon driver's license or state ID number
• Copy of neighborhood notification letters
• List of notified addresses
• Floor plans showing bedroom locations
• Utility records or lease (if needed for residency verification)

Safety and Compliance:

• Smoke detector installation and interconnection verification
• Carbon monoxide alarm installation verification
• Proof of addressing any safety hazards identified in inspection

Ongoing Record Keeping:

• Guest names and home addresses
• Dates of stay
• Number of guests per stay
• Transactional data for city inspection upon request

Specific Regulations for Downtown Portland

City of Portland Regulations

Residency Requirements:

• Primary resident must occupy dwelling unit for 270 days annually
• Maximum 95 days away while continuing STR operations
• Residency verified through Oregon DMV records

Operational Limits:

• No non-resident employees allowed on-site
• Maximum 2 bedrooms for Type A permits
• Maximum 5 bedrooms for Type B permits
• No commercial meetings or events for compensation

Multi-Unit Building Restrictions:

• Maximum one STR unit per building or 25% of total units (whichever is greater)
• Applies to duplexes, triplexes, fourplexes, and cottage clusters

Advertising Requirements:

• Permit number must be displayed in all advertisements
• No advertising beyond approved bedroom or guest capacity
• Permit number must be posted in dwelling unit

Safety Standards:

• Interconnected smoke detectors required in each bedroom
• Carbon monoxide alarms within 15 feet of bedroom doors
• Immediate correction of any safety hazards

Multnomah County Regulations

Transient Lodging Tax:

• County imposes additional transient lodging taxes
• Collected on stays less than 30 days
• Remitted monthly to county tax authority

State of Oregon Regulations

State Transient Lodging Tax:

• Oregon imposes state lodging taxes
• Applies to all transient accommodations
• Collected and remitted through state system

Business License Requirements:

• State business registration may be required
• Income tax obligations apply to rental income
• No separate state STR licensing beyond business registration

Contact Information for Local Authority

Primary Contact - Accessory Short-Term Rentals

• Email: PPDAccessoryShortTermRental@portlandoregon.gov
• Phone: 503-823-2633
• Hours: Monday-Friday, 8:00 AM - 5:00 PM

Portland Permitting & Development - General Inquiries

• Phone: 503-823-7300
• Hours: Monday-Friday, 8:00 AM - 5:00 PM
• Website: www.portland.gov/ppd/contact

Mailing Address: Development Services: Property Compliance Division
1900 SW 4th Avenue, Suite 5000
Portland, OR 97201

Transient Lodging Tax Team

• Email: TLTax@portlandoregon.gov
• Phone: 503-865-2857

Office of Community and Civic Life (Neighborhood Information)

• Phone: 503-823-4519
• Website: www.portland.gov/civic/myneighborhood

Development Services Center (In-Person Services)

• Location: 1900 SW 4th Ave, Portland, OR 97201
• Hours: Tuesdays 8:00 AM - 4:00 PM, Thursdays 8:00 AM - 12:00 PM
• Appointment Required: Most services require pre-scheduled appointments

Links to Source Pages

Primary Portland STR Information:

• www.portland.gov/ppd/astr-permits
• www.portland.gov/bds/astr-permits/before-you-apply

Type A Permit Information:

• www.portland.gov/ppd/astr-permits/1-2-bedrooms-type-permits

Portland Zoning Code:

• www.portland.gov/code/33/200s/207

Short-Term Rental Registry:

• www.portlandmaps.com/reports/index.cfm?action=short-term-rental

Business License Information:

• www.portland.gov/revenue/business-tax

Transient Lodging Tax:

• www.portland.gov/revenue/transient-lodgings-tax

Civic Portal (Permit Applications):

• aca-prod.accela.com/PCR/Default.aspx

Code Enforcement:

• www.portland.gov/ppd/code-enforcement/report-code-violation

Airbnb Portland Host Guide:

• www.airbnb.com/help/article/875

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This comprehensive guide provides investors with all necessary information to legally operate short-term rentals in downtown Portland while maintaining full compliance with city, county, and state regulations. Regular consultation with local authorities and continued monitoring of regulatory updates is recommended for ongoing compliance.