Vacation Rental Investment in Cannon Beach: The Real Rules
Cannon Beach's short-term rental system is one of the most tightly regulated on this site -- capped permit categories, a permit that dies at closing, and a formal cap ordinance under active discussion as of early 2026. Anyone buying here specifically for rental income needs to understand this system before making an offer, not after.
Three Permit Categories -- And They Are Not Equal
The City of Cannon Beach permits short-term rentals under three distinct categories: lifetime unlimited permits, five-year unlimited permits, and 14-day permits. The five-year unlimited category is capped citywide at 92 total permits, and as of this research, only roughly 35 of those 92 were currently active -- meaning the cap itself isn't the binding constraint at the moment, but the category has historically been allocated in part through a lottery system for vacation homeowners rather than being freely available on demand. For new applicants generally, the realistic current option is the 14-day permit, which limits a property owner to hosting one renter within a single 14-day period -- a fundamentally different, far more limited rental-income model than an unlimited permit allows.
The Permit Is Void at Sale -- Plan the Purchase Around This, Not Around It
Every Cannon Beach short-term rental permit type is issued to a specific owner of a specific dwelling, and the permit becomes void when the property is sold or transferred. This is the single most important fact for an investment buyer to internalize: a seller's listing showing strong historical rental income under an existing five-year unlimited permit describes the seller's rental business, not an asset that transfers to you. As the new owner, you would need to apply for your own permit, and depending on current city policy at the time of your purchase, you may only be eligible for the more restrictive 14-day category rather than the unlimited permit the seller held. Model your investment return around what permit category you can realistically obtain as a new owner, not around the seller's historical income under a permit you will not inherit.
A Formal Cap Ordinance Is Under Active Discussion
As of February 2026, Cannon Beach's Planning Commission was reviewing a draft formal short-term rental cap ordinance, with substantive proposed changes including possible adjustments to the 14-day rule and a plan to phase out, through attrition, the lottery system that has given some vacation homeowners a chance at a five-year unlimited permit. This is a live, unsettled policy conversation as of this research pass, not a finalized rule -- an investment buyer should treat the current permit rules described on this page as a snapshot subject to real, near-term change, and should confirm the most current status directly with the City of Cannon Beach Planning Department before finalizing any rental-income projection.
Lodging Tax: 11% Combined, Layered on Top of Any Permit
Regardless of permit category, any short-term rental income at Cannon Beach is subject to a combined 11% transient lodging tax -- 9.5% local (effective January 1, 2024, following a July 2023 rate increase) plus 1.5% state. This applies on top of the rental amount and needs to be built into any net-income projection alongside the permit category's actual booking-availability limits.
No Confirmed Nightly Rate Data -- Model Conservatively
This research did not find independently confirmed, current average nightly rental rates for Cannon Beach broken out by property type or location -- oceanfront and near-oceanfront property with Haystack Rock views likely commands a premium over downtown-adjacent or inland property, consistent with general vacation-rental market patterns, but this page does not state a specific dollar figure, since no reliable current source for a Cannon Beach-specific average nightly rate was confirmed. A serious investment buyer should pull actual, current performance data from a property manager or rental platform for comparable Cannon Beach listings, rather than relying on a general estimate, given the town's small inventory and the real possibility that permit-category limits (particularly the 14-day cap for new applicants) materially cap total achievable annual bookings regardless of nightly rate.
Property Management: A Real, Necessary Cost for an Absentee Owner
For an owner not living in Cannon Beach full-time, professional property management is a realistic necessity given the operational demands of short-term rental turnover, guest communication, and compliance with the city's permit rules -- this research did not find a Cannon Beach-specific management fee percentage, and does not invent one; vacation rental management fees commonly run in a broad 20-35% of gross rental revenue range nationally, but get an actual quote from a Cannon Beach-based property manager rather than assuming a national average applies here.
How This Interacts With the Town's Broader Housing Picture
Cannon Beach's short-term rental restrictions exist in a real, documented context: like many small, high-demand coastal towns, the balance between vacation rental inventory and year-round housing availability for local workers is a live civic issue, reflected in the city's active 2026 cap-ordinance review. An investment buyer should understand that the current regulatory environment reflects genuine local policy tension, not an arbitrary bureaucratic hurdle -- and that further tightening, not loosening, is the more likely direction of travel based on the cap-ordinance discussion this research found underway.
What This Page Doesn't Cover
This page covers Cannon Beach's real, confirmed short-term rental permit structure, its non-transferability at sale, and the active 2026 cap-ordinance discussion. It does not state current average nightly rental rates, a specific property management fee for Cannon Beach, or the final outcome of the Planning Commission's cap ordinance review. Confirm current permit category availability, any updated cap ordinance provisions, and actual comparable rental performance data directly with the City of Cannon Beach Planning Department and a Cannon Beach-based property manager before making an investment purchase decision. Nothing on this page is investment, tax, or legal advice.
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Get a Free Agent Referral →Independent research. No ads. No sponsored listings. Data sourced from: the City of Cannon Beach's own Short Term Rentals page and Municipal Code Chapter 17.84 (ci.cannon-beach.or.us, ecode360.com) for permit categories, the 92-permit five-year unlimited cap with roughly 35 currently active, the 14-day permit rule, and the void-at-sale provision; Tillamook Headlight-Herald/Cannon Beach Gazette reporting on the Planning Commission's February 2026 review of a formal cap ordinance; the City of Cannon Beach's own Transient Room Tax page for the 9.5% local rate effective January 1, 2024, and Oregon's Department of Revenue for the 1.5% state transient lodging tax. Facts not independently confirmed and not invented here include: current average nightly rental rates for Cannon Beach by property type or location; a Cannon Beach-specific property management fee percentage; and the final adopted terms, if any, of the short-term rental cap ordinance. Confirm all current permit status, ordinance terms, and rental performance data directly with the City of Cannon Beach Planning Department and a Cannon Beach-based property manager before making an investment decision. Nothing on this page is investment, tax, or legal advice.