Rockaway Beach Short-Term Rental Rules: City Limits vs. the County UGB
Updated: 9 hours ago
The short answer: Inside Rockaway Beach city limits, short-term rental (STR) licenses are capped at 420, the city is still over that cap, and new licenses only come from a waitlist. Just outside city limits, in the urban growth boundary (UGB) and nearby communities like Twin Rocks and Barview, Tillamook County issues licenses under a completely different set of rules.
That split is the single most important thing to know before you buy a vacation rental in Rockaway Beach. Two homes a few blocks apart, with the same "Rockaway Beach" mailing address, can have very different rental futures. Here's how it works, as a local agent who walks buyers through it every week.
Inside Rockaway Beach city limits: the 420 cap and the waitlist
The cap
On March 13, 2024, the Rockaway Beach City Council voted 5-0 to cap STR licenses at 420. At the time, 517 licenses were in use, so the city started out about 97 licenses over the cap (Headlight Herald). Nobody lost a license. Instead, the city is shrinking the count by attrition: when a license lapses or isn't renewed, it isn't reissued until the total drops below 420.
As of October 2026, about 468 STRs were licensed in the city, still roughly 48 over the cap. The council reviews the cap every fall.
The overage and "use it or lose it"
The city found that many licenses had little or no rental history, which kept the count high and the waitlist stuck. In early 2026 the council adopted Ordinance 2026-03: a license must show at least 30 rented days in the prior 12 months to renew, proven with a guest registry (City monthly update, March 2026). Expect this to speed up attrition once it is enforced at renewal.
How the waitlist works
Submit the city's waiting list request form and a $95 administrative fee.
Your place is set by the time stamp on your completed form, first come, first served.
When a license opens up under the cap, the city contacts the next owner in line, who has 10 business days to submit a complete application.
A new license costs $500, and renewal is $500 a year (licensing year July 1 to June 30).
Buying a home that already has a city license
This is the good news for buyers. A city license is issued to the owner but can transfer with the sale of the property. The new owner must notify the city within 30 days of closing and pay the $500 transfer fee (City STR FAQ). Miss that window and you risk losing a license that is very hard to get back.
Outside city limits: the urban growth boundary follows Tillamook County rules
The urban growth boundary is the line where Rockaway Beach is planned to grow someday. Land inside the UGB but outside city limits is still unincorporated, so the city's STR ordinance doesn't apply there. Tillamook County Community Development licenses STRs in the Rockaway Beach UGB, along with nearby Twin Rocks, Watseco and Barview (Fairly).
The county runs its program under Ordinance 84, updated in July 2023 (Headlight Herald). Key differences from the city:
Caps by community, not one citywide number. The county set its caps by board order, starting from about a 1% increase over existing licenses in each unincorporated community, with a separate waitlist for each area (Headlight Herald, Jan 2025).
One license per owner for new STRs.
Use it or lose it: at least 30 rented nights a year to renew.
Occupancy limits of roughly 2 people per bedroom plus 2, with a hard maximum.
Off-street parking of one space per bedroom.
Inspections for fire and life safety, plus septic compliance where it applies.
For some properties, one transfer of the license was grandfathered in. Otherwise licenses do not transfer to new owner.
Fees are also different. The county's 2023 schedule was $400 for a new application and $300 for renewal, compared with $500 for each in the city.
City limits vs. county UGB at a glance
Inside Rockaway Beach city limits | Rockaway UGB and nearby unincorporated areas | |
Who licenses | City of Rockaway Beach | Tillamook County Community Development |
Rules | Rockaway Beach Code ch. 113 | County Ordinance 84 + board orders |
Cap | 420 citywide (over cap, shrinking by attrition) | Separate cap per community |
Waitlist | One city list, $95 to join, first come first served | Separate list per community |
Transfer on sale | Yes; notify city within 30 days of closing | Limited; confirm with county |
Minimum use to renew | 30 rented days in prior 12 months | 30 rented nights per year |
New license / renewal fee | $500 / $500 | $400 / $300 |
What this means for buyers and sellers
In Rockaway Beach, an active STR license is part of a property's value. A home that can't be licensed may sit on the waitlist for years, so price and plan accordingly.
If you're buying:
Confirm the jurisdiction first. Check the county assessor map or call the city; a "Rockaway Beach" address doesn't mean city limits.
Ask for the current license, the last renewal, and the guest registry showing at least 30 rented days.
Check that the license is transferable, and calendar the 30-day notice to the city after closing.
Review occupancy, parking and septic limits, since they set your real revenue.
If there's no license, join the waitlist early. Your place is set by the date you apply.
If you're selling:
Keep the license renewed and the guest registry clean. A lapsed license is lost value.
Have rental history ready for buyers to review.
Market the license clearly, and be accurate about whether the property is in city limits or the county UGB.
Rockaway Beach short-term rental FAQ
Is there a cap on short-term rentals in Rockaway Beach, Oregon? Yes. Inside city limits the cap is 420 licenses, set in March 2024. The city is still over the cap and is reducing licenses by attrition.
How long is the Rockaway Beach STR waitlist? The city doesn't publish a wait time. With about 67 licenses over the cap as of early 2026, no new licenses are issued until the count drops below 420. Currently as of Oct 2026 there are another 57 people on the waitlist for once the active licenses drop below 420.
Does a Rockaway Beach STR license transfer when I buy the house? Inside city limits, yes. The new owner must notify the city within 30 days of closing and pay the transfer fee.
Are homes in Twin Rocks, Barview or the Rockaway UGB under city rules? No. Those areas are unincorporated, so Tillamook County licenses them under its own caps and waitlists.
How do I know if a property is in city limits or the UGB? Check the Tillamook County assessor's map, call Rockaway Beach City Hall at 503-374-1752, or ask a local agent to confirm before you write an offer.
Can I lose my license if I don't rent the home? Yes, in both jurisdictions. The city and county each require at least 30 rented days or nights a year to renew.
About the author
Catherine M. Lewis is a real estate agent serving the North Oregon Coast, including Rockaway Beach, Twin Rocks, Barview and the rest of Tillamook County. She helps buyers and sellers sort out STR licensing, city vs. county jurisdiction and rental potential before they commit. Reach her at orcoastrealty.com
STR rules change often. This post reflects rules as of October 2026; confirm current requirements with the city or county before you buy.
