Cannon Beach, OR Airbnb & Short-Term Rental Regulations 2026
Everything you need to know about operating a legal short-term rental in Cannon Beach, Oregon. Licensing, taxes, zoning, and 2026 compliance requirements.
Cannon Beach STR Regulation Overview
Cannon Beach is one of Oregon's most coveted coastal markets and also one of its most restrictive for short-term rentals. The city caps its "unlimited" STR permits at 92, and only about 35 are active today. These unlimited permits include lifetime and five-year categories; when a five-year permit expires, it is reallocated through a lottery rather than being freely transferable. New applicants today are generally funneled into a 14-day-per-year permit that authorizes a single tenancy, not a year-round rental business. Permits attach to a specific owner and property. Through early 2026, the Planning Commission and City Council advanced a formal STR cap ordinance and were weighing changes to the 14-day rule and the lottery system, signaling tighter limits ahead. For investors, the appeal is a high-demand, supply-constrained beach town with strong nightly rates, but the regulatory ceiling means obtaining one of the limited unlimited permits, not opening a brand-new one, is usually the only path to a full-time STR. Always confirm current rules with the Cannon Beach Community Development Department before relying on any specific figure.
Cannon Beach STR Quick Facts
| STR Legal? | Yes |
| License Required | Yes |
| License Cost | ~$200 initial business license application (per the city's 2025-26 Master Fee Schedule), plus annual renewal and other fees that change yearly |
| Lodging Tax | 9.5% combined (2026) |
| Occupancy / Density Caps | Yes. Cannon Beach caps its "unlimited" STR permits at 92, and only roughly 35 are currently active; new entrants are generally restricted to 14-day-per-year permits. The unlimited permits include lifetime and five-year categories, with five-year permits allocated by lottery when one expires. A draft ordinance discussed in early 2026 would impose a tighter citywide STR cap (final number and effective date not yet set). Separately, Clatsop County adopted an 8% vacation-rental cap in January 2026 affecting unincorporated areas. Per-unit occupancy is limited by bedroom count. |
| Primary Residence Required | No |
Unlimited permits are capped at 92 and largely allocated
Cannon Beach caps its "unlimited" STR permits at 92, and only roughly 35 are active today. The category includes lifetime and five-year unlimited permits. Because the pool is capped, most newcomers cannot obtain one outright and must rely on an existing allocation or the lottery.
Five-year permits are reallocated by lottery
When a five-year unlimited permit expires, the city has used a lottery to award it from a pool of applicants. In early 2026 the city was considering phasing out this lottery through attrition, so this pathway may narrow or close.
New entrants limited to 14-day permits
For most newcomers, the only available option is a 14-day permit, which authorizes one individual tenancy within 14 consecutive calendar days per year. It is not a year-round commercial STR license and cannot substitute for an unlimited permit. The city was also reviewing possible changes to the 14-day rule in 2026.
Permits are tied to owner and property
STR permits are tied to a specific owner and a specific property under Municipal Code Chapter 17.84. Buyers should not assume an existing permit automatically conveys with a sale; verify with the city's Community Development Department before purchasing.
Citywide cap ordinance in progress (2026)
In early 2026, the Planning Commission held work sessions and the City Council reviewed a draft Short-Term Rental Cap ordinance that would tighten the total number of STRs citywide. The exact final cap and effective date were still being finalized. Separately, Clatsop County adopted an 8% vacation-rental cap in January 2026 affecting unincorporated areas.
Annual renewal and operating standards
STR permits require annual renewal. Operators are expected to display the license number in advertisements, post occupancy limits, evacuation routes and a local contact, and maintain smoke and CO detectors. Occupancy is capped by bedroom count.
Lodging taxes apply to every booking
In 2026, hosts collect Cannon Beach's 8% city transient room tax plus Oregon's 1.5% state transient lodging tax on stays under 30 days (about 9.5% combined). The city portion is remitted to the city finance department and the state portion to the Oregon Department of Revenue. Note the state rate rises to 2.75% on January 1, 2027 under HB 4134.
Cannon Beach STR Market Performance
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Frequently Asked Questions
Not as a year-round STR in most cases. The city caps its "unlimited" STR permits at 92, and only about 35 are active, so the pool is largely allocated. New applicants are generally limited to a 14-day-per-year permit allowing a single tenancy. To run a full-time STR you typically need one of the existing unlimited permits (sometimes awarded by lottery when one expires), and a citywide cap ordinance was advancing in 2026. Confirm current options with the city's Community Development Department.
Do not assume it does. Under Municipal Code Chapter 17.84, STR permits are tied to a specific owner and property. Before buying, confirm directly with the Cannon Beach Community Development Department whether any STR rights actually convey, rather than relying on a listing's claims.
In 2026, hosts collect Cannon Beach's 8% city transient room tax plus Oregon's 1.5% state transient lodging tax on stays under 30 days, roughly 9.5% combined. The city portion is remitted to the Cannon Beach finance department and the state portion to the Oregon Department of Revenue. Note that Oregon's state lodging tax rises to 2.75% on January 1, 2027. Booking platforms may collect some taxes, but the host remains responsible.
The city sets fees through its annual Master Fee Schedule. The initial short-term rental business license application is listed around $200 in the 2025-26 schedule, with annual renewal required and other fees (such as a change-of-local-representative fee) applying. Because amounts change yearly, confirm the current figures with the Community Development Department before applying.
Cannon Beach does not hinge its core unlimited-permit program on owner occupancy the way some cities do; permits are tied to the property and owner rather than to primary residency. The bigger constraint is supply: unlimited permits are capped at 92 (only about 35 active), and a tighter cap ordinance was pending in 2026, so availability, not a residency test, is what limits most investors.
Informational only — verify current rules with local authorities before investing. Sources: www.ci.cannon-beach.or.us · www.ci.cannon-beach.or.us · www.ci.cannon-beach.or.us · ecode360.com · www.tillamookheadlightherald.com
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