Lincoln City, Oregon

Lincoln City requires every short-term rental to hold a Vacation Rental Dwelling (VRD) license with annual inspection. Initial licenses cost approximately $900; annual renewals cost approximately $600. The city imposes a 12% local transient room tax on stays of 30 nights or less; Oregon also levies a 1.5% state lodging tax. Airbnb and VRBO typically collect the state tax automatically, but operators must remit the city’s 12% tax directly.

The most significant constraint for new investors is supply caps in residential zones. The R1-5 zone is capped at 194 licenses and the R1-RE zone at 91 licenses. Both are currently full, so no new licenses can be issued in those zones until attrition drops counts below the caps. Commercial zones (C-1 through C-4) generally have no license cap.

There is no owner-occupancy or primary-residence requirement. Out-of-town owners may operate, but must designate a local representative living within 10 miles of the urban growth boundary, or use a local property manager.

Operational requirements include occupancy limits of 3 per bedroom plus one, with a maximum of 16 guests; quiet hours 9 PM to 7 AM; parking compliance; and required smoke and carbon monoxide alarms. Enforcement is active and rated strict: the city monitors online listings, conducts annual inspections, and can fine or revoke licenses for violations.

Note: properties in unincorporated Lincoln County (outside the city) fall under a separate, more restrictive county program that maintained a moratorium on new licenses through at least early 2025.