Lincoln City, OR Airbnb & Short-Term Rental Regulations 2026
Everything you need to know about operating a legal short-term rental in Lincoln City, Oregon. Licensing, taxes, zoning, and 2026 compliance requirements.
Lincoln City STR Regulation Overview
Lincoln City sits on Oregon's central coast and is one of the most regulated short-term rental markets in the state. STRs are legal but tightly controlled: the city requires an annual vacation rental dwelling license and has placed hard numerical caps on how many licenses exist in its two main residential zones, R1-5 (194) and R1-RE (91). Both caps are full, and the city only issues a new license when an existing one is surrendered or revoked, leaving a waitlist that has stretched on for years. Many denser inland neighborhoods bar STRs entirely. Operators must designate a local representative who lives within 10 miles of the urban growth boundary and is reachable at all hours, and occupancy is formula-capped. For investors, that scarcity is double-edged: it suppresses new supply and protects existing operators, but makes lawful market entry difficult. Anyone buying here should verify that a property already holds an active, transferable license before closing.
Lincoln City STR Quick Facts
| STR Legal? | Yes |
| License Required | Yes |
| License Cost | Annual vacation rental dwelling license required; confirm the current fee directly with the city (county addresses pay roughly $900 new / $600-$650 renewal under a separate program) |
| Lodging Tax | 13.5% combined |
| Occupancy / Density Caps | License caps by zone: R1-5 capped at 194 and R1-RE capped at 91; both are full, so new licenses are issued only as existing ones lapse, via a waitlist. Occupancy is limited to three times the number of bedrooms plus one, not to exceed 16 occupants. |
| Primary Residence Required | No |
Annual license required
Every STR must hold an annual, revocable vacation rental dwelling license under Lincoln City Municipal Code Chapter 5.14 before it can advertise or accept bookings. The license must be renewed each year, includes a property inspection, and can be revoked for repeated violations such as noise, parking, or occupancy breaches.
Zone caps are full
The city caps STR licenses by zone: 194 in R1-5 and 91 in R1-RE. The city's own pages confirm both caps have been reached, so no new licenses are issued until the count falls below the cap. Prospective operators join a waitlist that has reportedly run several years.
Local representative mandate
Each STR must designate a local representative whose permanent residence is within or no more than 10 miles of the Lincoln City urban growth boundary, or a property-management business with a staffed local office. The owner may serve as their own representative if they meet this distance rule. The representative's phone must be answered at all times, including nights and weekends.
Occupancy formula
Overnight occupancy is limited to three times the number of bedrooms plus one additional occupant, not to exceed a total of 16 occupants. Maximum occupancy must be posted inside the unit, and off-street parking requirements apply.
Transient room tax
Lincoln City levies a 12% transient room tax on the listing price including cleaning fees for stays of 30 nights or fewer, on top of Oregon's 1.5% state transient lodging tax. Hosts are responsible for collecting and remitting these unless a platform does so.
City vs. county jurisdiction
Properties inside Lincoln City limits follow the city's capped license program; properties in unincorporated Lincoln County follow a separate county license with higher fees (roughly $900 new, $600-$650 renewal) and its own region-based caps, which as of late 2025 were full county-wide with a Sheriff's Office waitlist. Confirm which jurisdiction governs a given address.
Lincoln City STR Market Performance
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Frequently Asked Questions
Yes, STRs are legal in Lincoln City, but they require an annual vacation rental dwelling license. Licenses in the two main residential zones, R1-5 and R1-RE, are capped at 194 and 91 respectively, and both caps are full. New licenses are only issued when an existing one is surrendered, so most newcomers must join a waitlist.
Generally not right away. The R1-5 and R1-RE residential zone caps (194 and 91) have been reached, so the city issues a new license only when a current one lapses or is revoked. Prospective operators join a waitlist that has run for years. The most reliable path is buying a property that already holds an active, transferable license.
Guests pay Lincoln City's 12% transient room tax on the listing price including cleaning fees for stays of 30 nights or fewer, plus Oregon's 1.5% state transient lodging tax, for roughly 13.5% combined. Hosts must register and remit these taxes, though booking platforms like Airbnb may collect some of them automatically.
Overnight occupancy is limited to three times the number of bedrooms plus one additional person, not to exceed 16 occupants total. So a three-bedroom home could host up to ten guests. Maximum occupancy must be posted inside the unit, and off-street parking minimums also apply to each licensed rental.
Yes. Every licensed STR must name a local representative who either permanently resides within or no more than 10 miles of the Lincoln City urban growth boundary, or works for a property-management business with a staffed local office. That representative's phone number must be answered at all times, including nights and weekends, to handle complaints.
Informational only — verify current rules with local authorities before investing. Sources: www.lincolncityor.gov · www.lincolncity.org · www.lincolncity.org · www.codepublishing.com · www.codepublishing.com
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