The Bend housing market is a popular location for real estate investing in Central Oregon. Investors are attracted to both the traditional and Airbnb real estate investment opportunities in the city. If you’re looking for a short-term rental market to enter this year, Bend may be on your radar.
So, should you invest in Airbnb Bend, Oregon? This blog will reveal the reasons why you should! And we’ll also use Mashvisor’s Airbnb data to point you in the direction of the best neighborhoods in Bend to buy an Airbnb property.
Why You Should Be Investing in Airbnb Bend
#1. Airbnb is Legal in the Bend Housing Market
Airbnb Bend is indeed legal. But before you invest in Airbnb Bend, you should learn more about the legal status of short-term rentals in the city as well as which laws may apply to your rental property:
A Brief History of the City’s Airbnb Laws
Bend is one of the first cities in the Oregon housing market to legalize Airbnb. After complaints from residents in 2014, the City Council began preparing an ordinance to regulate short-term rentals. In April 2015, the ordinance was passed. Since then, slight changes have been made to Bend Airbnb laws. Nonetheless, Airbnb in Bend remains legal.
However, there has been a recent small scare for Bend Airbnb hosts. In early 2019, the Oregon State Legislature proposed Senate Bill 621. The bill’s purpose was to impose state regulations for vacation rentals. As a result, already existing regulations from local governments would be undermined.
Many cities in the Oregon housing market, including Bend, actively opposed the bill. The bill has since been on hold in the Senate Committee. Aside from this potential problem, the city has no Airbnb legal issues. At the time of this writing, there is no expected development for this bill. Still, we recommend that Bend Airbnb hosts keep an eye on the situation.
Current STR Regulations in the Bend Real Estate Market
Overall, Bend’s Airbnb regulations are not restrictive. You can review them in their entirety here. However, in this blog, we’ll focus on the most important aspects of these Airbnb regulations.
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Definition
What exactly are short-term rentals (STRs) according to Airbnb Bend laws? STRs, or vacation rentals, are defined as rentals of 29 or fewer days per tenant. STRs include whole-house rentals, also known as non-owner occupied rentals. They also include owner-occupied rentals of up to 2 individual rooms.
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Permit and License
For Airbnb hosts, a Land Use Permit is required for an Airbnb rental property. However, properties located within Mt. Bachelor Village, The Courtyards at Broken Top, or Deschutes Landing are exempt from this requirement. The Land Use Permit is divided into three types. Each one depends on how the Airbnb investment property is rented out.
- Type-I Owner-Occupied Room Rental of up to 2 bedrooms
- Type-I Infrequent Use of the whole house for no more than 30 days in no more than 4 rental periods annually
- Type-II Whole-house rental activity
Bend vacation rentals also require an STR Initial Operating License. The license comes with an application and a $275 fee. The license must also be renewed annually. Renewals require an application and a $200 fee.
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Taxes
Airbnb Bend hosts must also pay two taxes, each a transient lodging tax. These include:
- 8% Deschutes County Transient Lodging Tax
- 8% Oregon Transient Lodging Tax
#2. Airbnb Bend Short-Term Rentals Are Profitable
The Bend Oregon real estate market is lucrative for Airbnb. This is clear from Mashvisor’s Airbnb data on the Bend housing market:
- Monthly Airbnb Rental Income: $2,515
- Airbnb Cap Rate / Cash on Cash Return: 1.0%
- Airbnb Occupancy Rate in Bend: 53%
Mashvisor’s Rental Property Finder also shows that Bend STRs for sale make for profitable investments. Check out Bend real estate listings here with high Airbnb rental income, return on investment (ROI), and Airbnb occupancy rate.
#3. Investment Properties in the Bend Housing Market Will Undergo High Appreciation
The Bend housing market has a track record of high real estate appreciation. According to NeighborhoodScout, Bend properties appreciated by 83.56% in the last ten years. This placed the market in the top 10% nationally for real estate appreciation. According to Zillow, Bend house prices will increase by 3.6% this year. So investing in Bend short-term rentals will mean profit in the short and long run.
#4. Bend’s Tourism Industry Is Going Strong
The Airbnb Bend market is supported by strong tourism. Bend is blessed with an incredible nature scene. As a result, it has become a gateway for skiing, fishing, hiking, camping, golf, and many more outdoor activities. Cabin rentals, in particular, have been successful.
While its state parks and national forests are its highlights, Bend offers much more. The city’s art scene is also on the up-and-up. For instance, Bend’s visual and fine art galleries and the BendFilm Festival draw in many tourists annually. With a strong and growing tourism foundation, Airbnb Bend will continue to improve and attract real estate investors.
The Best Neighborhoods to Invest in Airbnb Bend
So, where should you invest in the city? Mashvisor has narrowed down Bend’s best locations to four neighborhoods. These include Larkspur, River West, Southern Crossing, and Southwest Bend.
Larkspur
- Median Property Price: $481,344
- Price per Square Foot: $252
- Price-to-Rent Ratio: 25
- Monthly Airbnb Rental Income: $3,003
- Airbnb Cap Rate / Cash on Cash Return: 3.0%
- Airbnb Occupancy Rate: 53%
River West
- Median Property Price: $580,843
- Price per Square Foot: $328
- Price-to-Rent Ratio: 24
- Monthly Airbnb Rental Income: $3,562
- Airbnb Cap Rate / Cash on Cash Return: 2.6%
- Airbnb Occupancy Rate: 57%
Southern Crossing
- Median Property Price: $773,738
- Price per Square Foot: $327
- Price-to-Rent Ratio: 39
- Monthly Airbnb Rental Income: $3,757
- Airbnb Cap Rate / Cash on Cash Return: 2.4%
- Airbnb Occupancy Rate: 51%
Southwest Bend
- Median Property Price: $604,717
- Price per Square Foot: $262
- Price-to-Rent Ratio: 40
- Monthly Airbnb Rental Income: $3,241
- Airbnb Cap Rate / Cash on Cash Return: 2.3%
- Airbnb Occupancy Rate: 57.3%
All in all, Bend is one of the best markets for Airbnb on the West Coast. With its clear Airbnb regulations, profitability, appreciation, and the demand from tourists, Airbnb Bend is a must-invest for out-of-state and Oregon Airbnb hosts.
Want to start investing in Airbnb Bend? CLICK HERE to start your 7-day FREE trial with Mashvisor’s Airbnb profit calculator!