Overview

Short-term rentals ARE ALLOWED in Salem, Oregon under a well-defined regulatory framework. The city offers two primary license types: standard short-term rental licenses and accessory short-term rental licenses. Both require annual licensing, with strict compliance standards, safety certifications, and specific operational requirements. The city has implemented comprehensive regulations to balance economic opportunities with community safety and neighborhood preservation.

How to Start a Short-Term Rental Business in Salem

Step 1: Determine Your License Type

Your eligibility depends on several factors:

• Whether you live in the property
• Type of dwelling unit (single-family, condominium, two-family, etc.)
• Number of guest rooms
• Zoning of your property
• Planned rental frequency (for non-hosted rentals)

Step 2: Understand Property Eligibility Requirements

Short-term rentals are allowed only in:

• Single family dwelling units
• Condominium dwelling units

Accessory short-term rentals are allowed in:

• Single family dwelling units
• Two-family dwelling units
• Condominium dwelling units
• Guest houses

Both types are prohibited in:

• Three-family, four-family, or multiple family dwelling units
• Properties with accessory dwelling units (ADUs)

Step 3: Review Zoning and Permit Requirements

Based on whether you live in the home and your property zoning:

If you live in the property:

• 3 or fewer guest rooms (hosted) or entire home (non-hosted, max. 95 days/year): Allowed in RA, RS, NH, FMU (LI Area), & PM zones with Accessory Short-Term Rental License
• 4 or more guest rooms (hosted) or entire home (more than 95 days/year): Requires Conditional Use Permit + Short-Term Rental License in most zones
• In RM-I, RM-II, & RM-III, CO, CR, CG, CB, FMU (MI, AU, & VC Areas), SWMU, IC, IP, & IG: Short-Term Rental License required

If you do not live in the property:

• Any configuration: Requires Conditional Use Permit + Short-Term Rental License in RA, RS, & NH zones
• In other commercial/industrial zones: Short-Term Rental License only

Step 4: Application and Approval Process

1. Submit application to planning@cityofsalem.net
2. Upload required documents and pay fees online
3. Application review by city staff
4. License approval and issuance if requirements are met

Required Documents, Permits, Licenses, and Guidelines

For Short-Term Rental License

Required documents:

• Completed short-term rental license application form
• Completed transient occupancy tax (TOT) operator registration form
• Copy of approved conditional use permit (if applicable)
• Site plan
• Floor plan of dwelling unit
• Completed safety certification
• Proof of insurance
• License fee payment

For Accessory Short-Term Rental License

Required documents:

• Completed accessory short-term rental license application form
• Completed transient occupancy tax (TOT) operator registration form
• Floor plan of dwelling unit/guest house
• Completed safety certification
• Written authorization from property owner (if applicant is tenant)
• Valid driver's license or state ID + proof of residency (utility bill, voter registration, tax documents, lease agreement, etc.)
• Proof of insurance
• License fee payment

Key Operational Requirements

Local Representative:

• Must be the operator OR a licensed property management company
• Must have physical office in Salem/Keizer UGB open to the public
• Required to respond timely to property issues

Guest Registry:

• Must maintain detailed records of all bookings
• Include dates, total rental days, number of guests
• Available for inspection upon request

Insurance:

• Liability insurance required for property use as short-term rental
• Coverage amounts may vary; verify current requirements

Safety Certification:

• Must complete safety certification attesting compliance with Housing Code
• Physical inspection required after license issuance
• Inspections required every five years

Transient Occupancy Tax:

• Payment of TOT is mandatory
• Registration with city required

Advertisement Requirements:

• City-issued license number must be included in all advertisements
• Required on all online listings and marketing materials

Specific Regulations for Short-Term Rentals

Accessory Short-Term Rental Standards

Residency Requirement:

• Must live in dwelling unit minimum 270 days per calendar year

Host vs. Non-Hosted Rules:

Hosted Rental (you present):

• Maximum 3 guest rooms
• Maximum 2 guests per room
• No limit on number of booking nights
• Multiple bookings by different groups allowed

Non-Hosted Rental (you away):

• Rent entire home/guest house only
• Maximum 95 days per calendar year
• Maximum 2 guests per room, max 10 guests total
• Multiple bookings not allowed simultaneously

Prohibited Uses:

• Cannot be used with accessory dwelling units (ADUs)
• Cannot be used for events, gatherings, parties, weddings, meetings
• Only lodging activities permitted

Short-Term Rental Standards

Definition:

• Short-term commercial lodging where single family dwelling unit or guest rooms are rented to overnight guests
• Daily or weekly basis for periods less than 30 consecutive days
• Condominium dwelling units qualify as single family for this purpose

Operational Standards:

• Must comply with Housing Code safety requirements (SRC Chapter 59)
• No off-street parking requirements
• Guest count limits must conform to building code restrictions
• License number required on all advertisements

Tax Requirements

Transient Occupancy Tax:

• Mandatory payment to City of Salem
• Registration as TOT operator required
• Applies to all short-term rental activities

Contact Information

Primary Contact

Permit Application Center

• Address: 555 Liberty St. SE, Room 320, Salem, OR 97301
• Hours: Monday-Friday, 8:00 a.m. - 5:00 p.m.

Planning Desk

• Phone: 503-588-6213
• Email: planning@cityofsalem.net

General City Information

Mailing Address:

• City of Salem, Oregon, USA
• P.O. Box 14300
• Salem OR 97309-3986

General Information:

• Email: info@cityofsalem.net
• Phone: 503-588-7272

Online Resources:

• City Website: cityofsalem.net
• Business Licenses: Business Resources - Licenses
• License Search: Find accessory short-term rental licenses and short-term rental licenses available online

License Renewal Process

Annual Renewal

• Licenses automatically renew each calendar year
• Invoices mailed in November for next calendar year
• All renewal documents must be emailed to planning@cityofsalem.net

Renewal Requirements

Short-Term Rental License Renewal:

• Completed renewal application form
• Copy of guest registry from prior year
• Proof of insurance
• Updated documents if changes made since prior approval (TOT registration, site plan, floor plan, safety certification)
• Renewal fee payment

Accessory Short-Term Rental License Renewal:

• Completed renewal application form
• Copy of guest registry from prior year
• Proof of insurance
• Updated documents if changes made since prior approval (TOT registration, safety certification)

Source Links

• City of Salem Short-Term Rental License Information
• Salem Revised Code Chapter 30 - Licenses
• Salem Zoning Maps
• Transient Occupancy Tax Payment
• License Search Portals

Important Notes:

• License fees and requirements may change; verify current information before application
• Zoning restrictions vary by neighborhood; confirm your property's specific zoning
• State-level Oregon regulations may apply in addition to city requirements
• Appeal processes available for license denials per SRC Chapter 20J

This guide provides comprehensive information for operating a compliant short-term rental in Salem, Oregon. Always verify current requirements with the city before making business decisions.