Can You Still Own an Airbnb in Bend? Short-Term Rental Rules Explained

Updated October 23, 2026

Quick answer: Yes. Short-term rentals are still legal in Bend, Oregon, but permission belongs to the owner and the property's approval history, not to the house itself. Most whole-home rentals in residential zones need a Type II land use permit, must sit at least 500 feet from other approved whole-home rentals, and need an annual operating license. Most permits approved after April 15, 2015 end when the home sells, so a buyer usually has to apply again." per City of Bend

For buyers considering a vacation home or investment property, the question that matters is: Can this specific property legally operate the way I intend after closing? This guide walks through how to answer it.

What Counts as a Short-Term Rental?

Bend defines a short-term rental (STR) as a house, apartment, or room rented for fewer than 30 consecutive days per guest. The rules apply to the rental use, regardless of whether it's booked through Airbnb, VRBO, a property manager, or directly. 

Start by confirming the property's jurisdiction. This article covers City of Bend regulations only. A Bend mailing address doesn't mean a property is inside city limits; homes in unincorporated Deschutes County follow county rules.

The Four Main Paths to a Legal STR

Two details buyers often miss:

• Owner-occupied room rentals can't be in an ADU. The rented rooms must be inside the dwelling the owner occupies, with internal access. A detached or attached ADU without internal access doesn't qualify. 
• Exemptions are property-specific. Being near an exempt development, or in the same general area, doesn't extend its rental rights to your property. Confirm exact boundaries with the City's maps. 

How Does Bend's 500-Foot Rule Work?

In residential zones and in the Mixed-Use Riverfront zone outside the Old Mill District, a new Type II rental needs at least 500 feet of separation from other properties holding a valid Type II application or permit, or an active pre-2015 vacation home rental approval. The City measures radially from the subject property's boundary, and any property wholly or partially inside that radius counts. If one approved whole-home STR falls within 500 feet, a new Type II permit can't be approved. 

Why do some sources still say 250 feet? Bend doubled the buffer from 250 to 500 feet in 2022. A separate 250-foot radius still applies to the neighbor-notification requirement, which causes some confusion. 

Multi-unit properties have an extra limit. For Type II applications submitted after November 4, 2021, a property with more than one dwelling (a house plus ADU, duplex, triplex, cottage cluster, etc.) can have only one unit permitted as an STR. When a property with multiple existing STRs is sold, any future STR request is limited to one unit. That can change the math on a "house plus ADU" investment. 

How to screen a property:

1. Check the City's STR Eligibility Map (Type II only).
2. Review the City's Approved Short Term Rentals dataset to see permitted rentals nearby.
3. Confirm the specific address with the planning dept.

The map is a guide, not an approval. Pending applications and recent changes may not appear on it. 

Does an Existing Airbnb Permit Transfer to a Buyer?

In an ordinary sale, no. Any STR permit applied for after April 15, 2015 is specific to the owner. It does not run with the land, and it terminates automatically when the property is sold or transferred. 

What can carry over:

• Pre-April 15, 2015 vacation home rental approvals run with the land, as long as the home was rented at least once every 12 months, the license was maintained, and the rental space hasn't been expanded. 
• Documented legal nonconforming uses (confirmed by a City letter) may continue after a sale. 
• Certain non-sale transfers don't void a permit, such as survivorship between spouses or domestic partners, certain family trusts, and transfers into an entity where the original owner keeps at least a 25% interest. 

A useful tool for buyers: Bend's code allows an STR application to be submitted by the current owner with the buyer named as applicant. Upon written request, the approval can be granted to both the owner and the buyer. This can let a buyer pursue approval before closing rather than after. 

The operating license never transfers. A new owner of a property with surviving land use approval (pre-2015, nonconforming, or exempt development) has 60 days from closing to apply for their own license. That 60-day window doesn't replace any required land use approval. 

Before relying on rental income, request the actual approval documents and written City confirmation of what happens at closing. A booking history, active Airbnb listing, or "turnkey STR" description isn't evidence of the buyer's rights. Sellers should verify the same details before advertising a property as having a transferable permit.

How Can a Permit Be Lost?

Even a valid permit can be voided. Watch these deadlines:

• Use it within 12 months. A new permit is void if the home isn't rented at least one night within the first 12 months after approval. 
• Rent at least once every 12 months after that. Stopping for more than 12 months counts as abandonment. Limited hardship and long-term-lease exemptions exist. 
• Apply for your license within 60 days of receiving the land use permit, or the permit is voided. 
• Renew on time. Renewals can be filed up to 30 days after expiration with a $60 late fee. After that, the license expires and the land use permit is voided. 

If a permit is voided, reapplying means meeting current rules, including the 500-foot buffer.

What Does It Cost to Get Started?

The City's published fees as of this update (10/2026):

Example: A new Type II whole-home rental runs roughly $4,559 in City fees for year one ($3,993.92 land use + $360 license + $204.80 supplement), then about $465 per year to renew. Homes in permit-exempt developments still pay the whole-house supplement. An active City business registration is also required. 

Note: Parts of the City's own FAQ still show older figures (for example, a $350 license). Rely on the current fee schedule on the main STR page and confirm before applying.

Processing times: land use decisions typically come within 30 days after an application is deemed complete; operating licenses take about 3–4 weeks. 

Budget separately for furnishings, insurance, cleaning, maintenance, utilities, management, and reserves.

Occupancy and Parking

• Maximum occupancy: two guests per bedroom plus two more (a two-bedroom home allows six). Owners can set a lower limit. 
• Parking: not required. If provided, each space must be at least 20 × 9 feet, fully on the property, and new spaces must be paved. Tandem parking is allowed. 
• No RVs, travel trailers, or tents may be used as part of the rental. 

What Must Owners Do Each Year?

Ongoing obligations include:

• Annual license renewal with proof of use. Room tax filings serve as proof for most rentals; infrequent-use rentals upload receipts or booking records instead. 
• A 24/7 emergency contact, shared with neighbors within 250 feet by letter or posted sign (no larger than two square feet). Notice must be updated whenever the contact changes.
• Fire-safety self-inspection checklist, a posted parking diagram, and the City's Good Neighbor Guidelines posted inside the home or in listings.
• Responding to neighborhood concerns. Repeated failures can lead to warnings and potential license revocation. 

Long-term rental exemption: If the home is leased long-term (12 months or more, under Oregon landlord-tenant law), you can skip the STR proof-of-use requirement for up to three renewals while keeping your permit. 

For out-of-area owners, ask prospective managers who handles after-hours calls, neighbor complaints, maintenance, and compliance records, and whether they'll be listed as your authorized agent with the City.

What Taxes Apply?

That puts the combined City and state rate at about 11.9% today and 13.15% starting in 2027. Confirm with your tax professional whether any other lodging taxes apply to your property.

Platforms don't cover everything. Airbnb and VRBO often remit City room tax, but they don't tell the City which property the money came from. Owners must still file City room tax reports, and reports are required even in months with no rentals. 

• Reports and payments are due between the 1st and 15th of the month after rental activity.
• Owners whose average monthly tax is $100 or less can request quarterly filing.
• Room tax questions: [email protected] or 541-385-6682. [6]

Rules Still Changing

Bend continues to adjust its STR code. In early 2026, the Planning Commission recommended that the five remaining Neighborhood Commercial (CN) zoned properties follow residential STR rules, including the 500-foot buffer and one-STR-per-property limit, and forwarded the change to City Council. [9] If you're evaluating a property where an exception or zoning detail drives the investment case, confirm the current code status before you rely on it.

What Should Buyers Check Before Making an Offer?

1. Confirm jurisdiction and zoning. Is the property inside Bend city limits, and which zone applies?
2. Screen the 500-foot buffer. Use the eligibility map and approved-rentals dataset, then get written Planning confirmation.
3. Review permit records. Is the approval pre-2015, post-2015, nonconforming, or exempt? Is the license current?
4. Confirm the path after closing. Ask whether a joint owner/buyer application makes sense before closing.
5. Count the units. On properties with an ADU or multiple dwellings, only one may qualify as a Type II STR.
6. Read HOA documents and CC&Rs. HOA rental restrictions apply separately from City eligibility.
7. Evaluate the business assumptions. Review documented revenue, room tax filings, expenses, and management proposals, and model the 2027 state tax increase.
8. Consider resale. A future buyer will likely need their own new approval too, which affects your exit strategy.

A property that works as a full-time rental may be a poor fit for someone who wants frequent personal stays, and legal eligibility alone doesn't establish rental demand or profitability.

Frequently Asked Questions

Can I buy a house in Bend and turn it into an Airbnb? Possibly. You'll need a land use permit (unless the property is in an exempt development), an operating license, and a business registration. In most residential zones, the home must also pass the 500-foot separation test.

Does an Airbnb permit transfer when a Bend home sells? Not for permits applied for after April 15, 2015. Those end at sale. Pre-2015 vacation home rental approvals and documented nonconforming uses can continue, but the new owner must get a new operating license within 60 days.

Can I rent both my house and my ADU short-term? In Type II zones, only one unit per property can be permitted as an STR for applications after November 4, 2021. Each permitted unit needs its own permit.

Can I rent my Bend home for a few weeks a year without the 500-foot rule? Yes, through a Type I infrequent-use permit: fewer than 30 rental days per year and no more than four rental periods. It still requires a permit and license but is exempt from City room tax.

What is the total lodging tax on a Bend STR? The City room tax is 10.4% and the Oregon state lodging tax is 1.5%, rising to 2.75% in 2027.

Buying or Selling a Vacation Rental in Bend?

Angie Cox helps buyers and sellers evaluate vacation homes, second homes, and STR properties throughout Central Oregon. Her approach includes investigating rental eligibility, permit history, HOA restrictions, property condition, management resources, and the practical details of owning from out of town.

For help evaluating a specific property, finding an eligible property or preparing an existing vacation rental for sale, Call Angie Cox (541) 213-9950 or Book a quick call with Angie here.

This article is general information, not legal or tax advice. Rules, fees, and property eligibility can change. Confirm current requirements and the specific approval history with City of Bend Planning (ext. 3) and Licensing (541-388-5580 ext. 8) before relying on short-term rental use in a purchase or sale.