Short-Term Rentals in Salem, OR

Salem maintains 123 local ordinances across all categories, and 7 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Salem falls on the strict-to-permissive spectrum compared to other cities.

Taxes & Fees

Salem taxes short-term rentals the same as hotels: SRC 37.020 defines 'transient lodging' to expressly include both 'short-term rental' and 'accessory short-term rental,' so every STR host owes the city's nine percent transient occupancy tax on rent collected for stays of 30 days or less. STR license applicants must also submit a completed transient occupancy tax registration form before the City will issue their license.

Key details: Tax rate: 9% of rent charged (SRC 37.030). Applies to: Short-term and accessory short-term rentals alike. Remittance deadline: Monthly, by last day of following month. Late penalty: 10% then 25% after 30 days, plus 1%/mo interest. Exemption: Stays of 30+ consecutive days.

Failing to remit the nine percent tax by the monthly deadline triggers a ten percent delinquency penalty on the amount due, and a second 25 percent penalty if the remittance is still unpaid 30 days later, plus one percent monthly interest on the unpaid balance (SRC 37.090). The Finance Officer can issue a deficiency determination reaching back three years, and the City Attorney may sue in court to collect delinquent STR occupancy tax, penalties, and interest (SRC 37.100, 37.120).

Insurance Requirements

Salem requires every licensed short-term rental and accessory short-term rental operator to carry liability insurance covering the rental use for the entire time the license is valid. The requirement sits alongside guest-registry, local-representative, and Housing Code compliance duties under SRC chapter 30's short-term rental licensing sections.

Key details: Insurance duty: SRC 30.1005(f) accessory STR; 30.1105(e) STR. Coverage window: Entire term the license is valid. License term: Expires December 31 each year. Accessory STR inspection: At least once per 5 years (SRC 30.1010). STR inspection: Checks guest rooms, parking, Housing Code (SRC 30.1110).

Letting the required liability insurance lapse, or advertising a short-term rental without the license number required by SRC 30.1005(g) or 30.1105(f), is a licensing violation the Director can act on by suspending or revoking the license under SRC 30.060, in addition to any Housing Code enforcement for property conditions.

Occupancy Limits

Salem caps overnight guests in an accessory short-term rental at two per guest room. Hosted rentals, where the resident family stays on site, are capped at two guests per room with up to three rooms; non-hosted whole-unit rentals allow the same per-room ratio but never more than ten guests total, under SRC 700.006(e).

Key details: Hosted guest cap: 2 guests per guest room, max 3 rooms. Non-hosted guest cap: 2 per room, 10 guests total maximum. Children exemption: Under 12 do not count toward guest limit. Max stay: 29 consecutive days per guest. Enforcement: Civil penalty up to $2,000 per violation per day.

Renting to more guests than SRC 700.006(e) allows is a violation of the accessory short-term rental's special-use standards and license standards under SRC 30.1005. Operating outside a license's terms is an infraction under SRC 30.080, and knowingly continuing after the license is suspended or revoked is a misdemeanor under SRC 30.085; the Director may also pursue a civil penalty of up to $2,000 per violation, with each day counted separately, under SRC 30.070.

Short-Term Rental Permits

Operating an accessory short-term rental in Salem requires a City license under SRC 30.1000 before any booking, on top of the special-use standards in SRC 700.006. The license is issued for a calendar year, expires every December 31, and cannot be transferred to a new operator or a different property.

Key details: License required: City license under SRC 30.1000 before operating. Term: Expires every December 31, not transferable. Renewal deadline: File at least 30 days before expiration. Inspection cycle: At least once every 5 calendar years. Unlicensed operation penalty: Infraction under SRC 30.075.

Operating without first getting the license is an infraction under SRC 30.075. Violating the license's terms, such as skipping the guest registry or advertising without the license number, is an infraction under SRC 30.080, and knowingly continuing to rent after the license is suspended or revoked is a misdemeanor under SRC 30.085. The Director may also levy a civil penalty of up to $2,000 per violation, with each day of noncompliance counted as a separate violation, under SRC 30.070.

Compared to other cities, Salem takes a harder line on short-term rental permits. The enforcement and penalty structure reflects that.

Night Caps

A Salem accessory short-term rental with no resident host on site cannot be booked more than 95 days in a calendar year. SRC 700.006(g)(2) also limits a non-hosted rental to one booking at a time; hosted rentals, where the family stays home, face no annual day limit at all.

Key details: Non-hosted annual cap: 95 days per calendar year. Hosted annual cap: None, unlimited days allowed. Non-hosted bookings: One booking at a time only. Max stay per guest: 29 consecutive days. Tracking mechanism: Annual guest registry under SRC 30.1005(d).

Booking a non-hosted accessory short-term rental past the 95-day annual cap, or accepting more than one non-hosted booking at a time, violates SRC 700.006(g)(2) and the license standards in SRC 30.1005. The Director can suspend or revoke the license for the violation, operating without a valid license is an infraction under SRC 30.075, and the City may impose a civil penalty of up to $2,000 per violation, with each day counted separately, under SRC 30.070.

Host Presence Rule

Salem's accessory short-term rental ordinance treats hosted and non-hosted stays differently rather than banning either. When the resident family stays on site as host, up to three guest rooms may be rented; when the family is away, the whole unit may be rented but only for a capped number of days each year, under SRC 700.006.

Key details: Resident family requirement: Must reside in unit at least 270 days/year. Hosted room cap: Up to 3 guest rooms while family is present. Non-hosted booking cap: Whole unit, capped at 95 days/year. Hosted booking limit: No annual day cap, multiple bookings allowed. Non-hosted booking rule: One booking at a time only.

Booking a non-hosted stretch as though it were hosted, to dodge the 95-day cap or the ten-guest ceiling, breaches SRC 700.006 and the license standards in SRC 30.1005. Violations are enforced as infractions under SRC 30.075 and SRC 30.080, with a civil penalty of up to $2,000 per violation, each day counted separately, under SRC 30.070, and knowing operation after suspension or revocation is a misdemeanor under SRC 30.085.

Primary-Residence-Only Rule

Salem only allows an accessory short-term rental where the resident family, whether owner or tenant, actually lives in the home at least 270 days each calendar year. A property used purely as an investment rental, with no one living there most of the year, does not qualify under SRC 700.006(a).

Key details: Residency minimum: 270 days per calendar year in the unit. Eligible operator: Owner or tenant with 5 or fewer co-tenants. Disqualified structures: ADUs, RVs, tents, motor vehicles. Same-lot restriction: Cannot combine STR with an ADU on one lot.

A rental that fails the 270-day residency test, or is run from a non-qualifying structure such as an ADU, RV, or tent, does not qualify as an accessory short-term rental, and operating it as one is grounds for license denial or revocation under SRC 30.1000, plus a civil penalty of up to $2,000 per violation under SRC 30.070; operating without a valid license is a separate infraction under SRC 30.075.

The Bottom Line

Salem's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Salem is broadly strict or permissive.

These rules come from Salem's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.