In-depth analysis

Should you buy an STR in Bend in 2026?

Only with a transferable permit in hand. Bend has one of the strongest dual-season demand profiles in the U.S. Mountain West: summer river, mountain biking, breweries, hiking; winter Mount Bachelor skiing; year-round craft-beer tourism and outdoor culture. ADR sits at $185 with 64% occupancy (one of the highest in this guide) and a market score of 50/100. The score is so low because of one constraint: Bend’s permit cap and 250-foot density rule have effectively closed new STR permits in residential zones.

Regulation: where the city stands

The City of Bend’s Type II STR ordinance (the relevant category for most investors) requires:

Type II permit for non-owner-occupied SFR in residential zones.
250-foot separation rule — no two Type II STRs within 250 feet of each other.
Cap on total permits per zone — most zones are at or near cap.
Type I permits (owner-occupied) — available with primary-residence requirement.
Deschutes County (outside city limits) — different rules; verify.
Sunriver / Sisters / Redmond — separate jurisdictions with separate (often more permissive) STR rules.

In practice: Bend Type II permits trade with the property at a meaningful premium. A residential SFR without an existing permit cannot legally be operated as a non-owner-occupied STR. The permit is part of what you’re buying.

The market by the numbers

Metric	Bend	Comparison
Avg ADR	$185	Strong mid-tier
Occupancy	64%	Top-of-guide blended
RevPAR	$118	Solid
Market score	50/100	Permit cap drags otherwise strong market

Source: AirDNA-comparable industry averages. Demand is genuinely four-season — summer mountain biking and rafting, winter skiing, fall fly-fishing — which sustains occupancy through shoulder months better than most ski markets.

Submarkets that matter

Old Town / Downtown Bend — walkable; brewery district; highest ADR; tightest permit constraint.
Westside (Galveston, NW Crossing, Awbrey Butte) — popular residential; Type II permits scarce.
Eastside / Pilot Butte — lower-cost basis; mid-tier ADR; Type II permits scarce.
Sunriver (separate, in Deschutes County) — resort community; different rules; HOA-managed.
Tetherow / Cascade Lakes area — destination-resort STR; HOA-permission-dependent.

The 3 mistakes buyers make here

Buying a Bend residential SFR without a transferable Type II permit. It cannot legally operate as non-owner-occupied STR. Confirm the permit’s status and transferability with the City of Bend Community Development Department before offer.
Underwriting Sunriver as Bend. Sunriver is a separate, HOA-resort community with different STR rules and a different demand profile. The pro formas don’t translate.
Missing the wildfire-insurance reality. Central Oregon wildfire seasons (2020-2024) have hardened insurance markets and triggered carrier withdrawals. Get a bound STR insurance quote before inspection.

What to do next

Verify Type II permit status with the City of Bend STR program before offer.
For Sunriver: confirm STR allowance with Sunriver Owners Association.
Run Market Score and Comp Analyzer within the same submarket.
Get a bound wildfire + STR insurance quote inside the inspection window.
Use DSCR Loan Calculator and Year 1 Cash Needs.
Read Reading an STR Ordinance Before You Buy.

Not investment advice. Verify all regulatory, tax, and insurance information with local authorities and licensed professionals before committing capital.

Last reviewed 2026-05-07 · Estimated — community-sourced · Population 99,178