Dunes City Voters Could Kill New STR Permits and Force On-Site Hosts

Every short-term rental operator in Dunes City, Oregon is watching the November ballot. If Measure 20-386 passes, the city would stop issuing permits for new vacation rentals entirely, and the 26 existing rentals would face a sweeping new requirement: an on-site host must live on the property, in the main house or an accessory dwelling unit, for the entire duration of every guest stay. For most whole-home rental operators, that is not a tweak. It is a shutdown.

What the Measure Would Actually Do

Measure 20-386 has two main teeth. First, it would bar the city from issuing any new short-term rental permits. Second, it would require every existing rental to have a host physically present on-site whenever guests are there. The measure also reshuffles how complaints are handled: instead of going to the city first, complaints would be directed to the owner, on-site host, or emergency contact, who would then have 60 minutes to correct a violation. That is double the current 30-minute window to respond to a complaint, but the responsibility shifts squarely onto the operator rather than the city.

If passed, the new rules would take effect within 30 days of the election. Existing rental owners would have up to a year to comply. Critically, the ordinance could not be amended, revised, or repealed without going back to voters in another election.

A Town That Runs on Tourism, but Barely on Rentals

Dunes City is a town of 1,400 people located about 6 miles south of Florence. It is almost entirely residential, with only a handful of RV parks, motels, and one restaurant and bar. The city already caps total short-term rentals at 35, a rule introduced as part of a broader regulatory overhaul in 2024. Right now, 26 rentals are operating under permits.

The short-term rental program is not trivial to the city's finances. City Administrator James Divis said the program brings in about $88,000 per year between application fees, permit fees, and a 5% monthly fee on each rental's gross revenue. That revenue, and the staff time required to manage the program, sits at the center of the debate.

One Problem Property, a Town Divided

The measure was proposed by resident Linda John, who lives across the street from a rental whose permit was recently revoked after multiple rule violations. She described months of gathering evidence, counting guests, and recording noise levels to file substantiated complaints. "I just feel like a lot of them don't care about the neighbors," John said. "They don't know the neighbors. They don't. They just want the money."

But opponents argue the problem is far narrower than the measure implies. Mike Worsham, a vacation rental owner who has launched an opposition campaign, said there have been five substantiated violations in 2026, and four of those five involved the single property across the street from John. City Administrator Divis echoed that assessment, saying just one of the city's rentals has been "problematic with ongoing, sustained complaints."

Worsham, who operates a vacation rental on Woahink Lake and hopes to retire there, was blunt about what the on-site host requirement would mean in practice. "I'm very certain that if this measure does pass, these short-term rentals will not be able to operate," he said. "You cannot operate a whole home rental with somebody living inside it and being present at all times, including overnight, when a guest is there. It doesn't work."

He also noted that five of the city's roughly two dozen vacation-rental owners have already listed their homes for sale since the measure was introduced.

The Legal Fog If It Passes

Even supporters of the measure acknowledge it would not snap cleanly into place. The city's current permit cap is set at 35, but only 26 permits are active. Divis flagged a core ambiguity: "It says no new permit, but [the city has] already been authorized for 35. So does that mean that 35 is the number, or does it mean that 25 is the number? These are things that City Council and perhaps the courts will have to work up."

In other words, if the measure passes, operators could face a period of genuine legal uncertainty while the City Council drafts an implementing ordinance and potentially litigates the details. Mayor Ed McGuire summed up the atmosphere in town: "It's become very polarizing. It's kind of become a one-issue campaign season."

What Hosts Should Do Right Now

• Confirm your current permit is active and in good standing before the vote.
• Review your complaint-response procedures. Under existing rules, you or your emergency contact must respond within 30 minutes. That standard is in effect today regardless of the ballot outcome.
• If you live outside Dunes City, verify that your emergency contact lives within a 30-minute drive of the property, as current city code requires.
• Watch the November results closely. If Measure 20-386 passes, a 30-day implementation clock starts immediately, and you will have up to one year to come into full compliance with whatever ordinance the City Council adopts.
• If you are considering purchasing a new short-term rental in Dunes City, understand that a permit freeze could take effect before any new permit is issued.

For the complete Dunes City compliance guide including tax calculator, checklist, and daily monitoring, see Dunes City, OR STR Regulations.