Oregon Coast 2026 STR Investor guide including: Tillamook County, Seaside, Rockaway Beach, Bandon, Brookings, Pacific City, Florence & Yachats

Even with 25+ STR Sales on the majestic and lucrative Oregon Coast the past two years, the region remains one of the most under-the-radar short-term rental markets in the Western U.S. In 2025, demand for STRs was driven not just by tourism, but by the ongoing opportunity for high-income earners to leverage the Short-Term Rental (STR) tax loophole to offset W-2 or active income through material participation and bonus depreciation.

If you're planning to buy a vacation rental on the Oregon Coast in 2026, these eight markets offer a combination of:

• STR-friendly regulations

• Proven year-round occupancy

• High ADR (average daily rate)

• Appreciation potential

• Loophole-friendly active management opportunities

Let’s break down the best towns, the unique investor profiles they fit, and what to buy if you intend to qualify for the STR Loophole in 2026.

Why These Oregon Coast STR Markets Stand Out

Limited STR supply keeps returns strong

Many coastal cities have capped or restricted STR permits, protecting revenue stability for existing vacation rentals.

Tourism remains strong year-round

Whale watching, weekend escapes, fishing and golf and remote work demand keep bookings high even in winter.

STR Loophole compatible

These towns offer the ideal mix of short stay durations, owner involvement opportunities, and stable local regulations.

Tillamook County (Manzanita, Oceanside & Nehalem)

Best for: Investors seeking a balanced mix of luxury demand, stable regulations, and long-term appreciation.

Tillamook County has become one of the strongest STR regions in Oregon thanks to its mix of walkable beach towns, premium ocean-view homes, and consistent tourism traffic.

Manzanita

A boutique luxury market with some of the highest ADRs on the northern coast. Generally STR permits and licenses do not transfer but there are several zoning codes that are not subject to a waitlist and can operate outright. The beaches are astonishing and there are high-end amenities nearby. 

• Low supply = strong pricing power

• High-budget travelers

• Excellent for STR-loophole buyers who want premium nightly rates

Best buys:

• Ocean-view luxury homes

• Newly remodeled 3–5 bedroom properties

• Homes within walking distance to Ave + beach

Oceanside

A dramatic cliffside village with some of the best views on the coast. Very strong buyer demand and limited inventory with a waitlist anticipated for the foreseeable future, but STR permits and licenses can transfer outright. There are a handful of prime STRs offered each year. 

• Strong offseason demand from storm watchers

• Great for couples’ retreats

• High appreciation potential

Best buys: Ocean-view homes with decks or hot tubs.

Nehalem

A calmer, riverfront alternative close to Manzanita. STR permits can also be difficult to come by but can often transfer outright. 

• Lower price point

• Scenic, nature-driven stays

• Strong ROI for unique or design-forward homes

Best buys: Cabins, nature retreats, river-view homes.

Seaside

Best for: High occupancy, family-friendly volume, strong walkability. Very high demand investment area due to the close proximity to Portland and PDX. High barrier to entry, specific zoning area west of the river and must meet saturation requirements. STR licenses and permits do not transfer but actively licensed STRs are NOT subject to a local 90 day wait period. 

Seaside is one of the busiest and most visited towns on the coast. Despite high tourist volume, STR inventory is limited—driving stable revenue.

Why Seaside Works:

• Extremely high foot traffic

• Promenade, downtown, and beachfront attractions

• Strong occupancy in all seasons

Investor Strategy:
Look for properties near the Promenade, oceanfront condos, or 4+ bedroom homes that host multigenerational groups.

Rockaway Beach

Best for: Cash-flow investors and entry-level price points. As of publishing STR permits can transfer one time to the new owner. As a result, compensation can be high. There is also discussion for permits to no longer be transferable. If this happens a major region will no longer be investable on a STR Loophole timeline. On a positive a dozen or two STRs generally transfer ownership in this area each year. 

Rockaway Beach is one of the most underrated STR markets on the coast. With lower home prices than Manzanita or Seaside—but strong ADRs—it delivers excellent ROI.

Benefits:

• Affordable entry point

• Consistent demand

• Excellent for hands-on management (STR Loophole friendly)

Best buys:

• 3–4 bedroom homes

• New construction

• Homes with direct beach access

Pacific City

Best for: Investors chasing luxury ADRs + lifestyle demand (surf, breweries, dunes).

Pacific City has become a surfer and adventure-travel hotspot anchored by Cape Kiwanda and Pelican Brewing. Generally - licensed STRs can transfer or are subject to a waitlist. Vry strong investment demand and elevated buyer competition. 

Why It’s a 2026 Winner:

• High-end travelers

• Strong summer demand + solid weekend occupancy year-round

• Attractive for buyers seeking appreciation + tax benefits

Best buys:

• Walk-to-beach homes

• Properties near Cape Kiwanda

• Modern or unique builds

Bandon

Best for: Golf-focused STRs and high-end adult travel.

Bandon is home to Bandon Dunes, one of the most famous golf resorts in the world. Travelers pay premium nightly rates, and homes near the course command some of the highest returns on the southern coast. 

Why Bandon is a Hidden Giant:

• Extremely high ADR for golf groups

• Strong midweek occupancy

• Low STR saturation

Best buys:

• 3–6 bedroom homes catering to golf groups

• Luxury interiors and amenities

• Homes within 10–15 minutes of Bandon Dunes

Brookings

Best for: Warm weather, nature tourism, and snowbird demand. Not a highly saturated STR market, there are specific zoning codes that can qualify outright. Permitting is historically efficient at less than 30 days. 

Brookings sits on the “Banana Belt,” offering the mildest climate on the Oregon Coast.

Strengths:

• Year-round demand

• Fishing, hiking, and nature-driven tourism

• Lower competition compared to northern markets

Best buys:

• Ocean-view homes

• Upper-mid-level beach houses

• Homes with outdoor living spaces

Florence (Lane County)

Best for: Affordable price point + strong coastal tourism.

Florence is a gateway to the Oregon Dunes National Recreation Area and is one of the most accessible cities for STR buyers looking to stay under $600K–$700K. The proximity to a growing Eugene is a major highlight for out of state investors and as of publishing has one of the lowest barriers to entry for STR licenses and permits - there aren’t any…but they are coming. 2026 could be the end of the low regulation environment as rules and regs are being formalized. 

Why Florence Works:

• Strong summer and shoulder seasons

• Popular for off-roaders and families

• Lower prices = stronger cash flow

Best buys:

• 2–4 bedroom homes

• Dunes-adjacent properties

• Houses with parking for ATVs or trailers

Yachats (Lane County)

Best for: Luxury, nature retreats, and unique architecture.

Yachats draws travelers who want dramatic coastlines, boutique experiences, and wellness-focused escapes. Just north of Florence, Yachats is generally subject to a waitlist that could be uninvestable for trying to operate in 2026..however the souther part of town is Lane County and has a clear path to permit. 

Strengths:

• High ADR

• Strong winter demand (storm watching)

• Ideal for unique, high-design homes

Best buys:

• Oceanfront properties

• A-frames, modern glass homes, and unique designs

• Wellness-focused amenities

Where the STR Loophole is Easiest to Use in 2026

The cities that best support STR-loophole strategies (material participation + short average stay) are:

Top 2026 Loophole Markets

The hard reality is that every Oregon city and county has STR opportunities if you’re aware of how to navigate the rules and of the listing as close to it coming to market as possible. 

We track 99% of HOT STRs on our weekly newsletter at www.oregonstrs.com subscribe for FREE deals to your inbox. 

Some areas we’re keeping an eye on in 2026: 

1. Rockaway Beach – Affordable + high involvement = easy participation. There is some discussion of STR licenses no longer being able to transfer to new owners. Contact us for more insight on this potential regulation change for short term rental licenses and permits in Rockaway Beach Oregon. 

2. Tillamook County (Manzanita & Oceanside) – High ADR + stable regs. Broken into subareas. Many are at capacity or subject to a waitlist but licensed/permitted properties can transfer to new owners. 

3. Seaside – Heavy booking volume. Subject to specific zoning area and saturation requirements. Permits do NOT transfer outright but active rentals are NOT subject to a 90 day wait period. 

4. Pacific City – High-end ADR supports strong tax benefit use. Active STRs can transfer to new owners outright. Very strong demand. Buyers need to be decisive. 

5. Florence – Budget-friendly + owner-operated setups. As of publishing date there are little to no STR permit/license rules in Florence but that could change..very soon! Properties located outside of city limits would still be eligible per Lane county STR rules. 

Luxury markets (Bandon, Yachats) qualify too—but are very area specific! In Yachats there is generally a STR waitlist and Bandon is highly restrictive in area and saturation..HOWEVER properties located within the counties of Lane or Coos Counties are eligible for short-term rental permits and licenses - subject to verification! In 2025 we sold two of the top luxury STRs resales in Bandon. 

Best Property Types for 2026 STR Investors

Highest-performing STRs:

• 3–5 bedroom single-family homes

• Ocean-view or walk-to-beach homes

• Properties with hot tubs

• Luxury and Updated Properties 

• Homes with fire pits, game rooms, or unique design

• Dog-friendly rentals

Property Types to Avoid:

• Homes far from beach access

• Heavy deferred-maintenance homes

• Towns with pending STR caps or anti-STR sentiment

2026 Investor Recommendations (By Buyer Type)

High-income W-2 seeking STR Loophole:

Rockaway Beach, Manzanita, Seaside, Pacific City

Best ROI under $650K–$750K:

Rockaway Beach, Florence, Brookings

Luxury + Appreciation Focus:

Manzanita, Pacific City, Yachats, Bandon

Best for High Occupancy/Volume:

All of the above 

2026 Is a Prime Year for Oregon Coast STR Investors

From boutique luxury markets like Manzanita and Yachats to high-cash-flow towns like Rockaway Beach and Florence, the Oregon Coast continues to offer one of the most compelling blends of:

• Strong cash flow

• Limited STR supply

• Year-round tourism

• STR Loophole tax advantages

• Long-term appreciation

With regulations tightening across much of the West Coast, Oregon’s established STR towns remain a rare opportunity for investors looking for stable, high-performing, tax-efficient real estate.

Search ALL Oregon STRs listed for sale at our curated www.sesemisheet.com 

Anthony AJ Wong

Sesemi | STR Brokers powered by Fathom Realty

541-800-0455