Lincoln County Freezes New STR Licenses as Dunes City Votes on Tighter Rules

Lincoln County has slammed the door on new short-term rental licenses, and the coastal town of Dunes City may be about to bolt it shut permanently. County commissioners voted to extend the existing moratorium on issuing new STR licenses, meaning anyone who does not already hold a Short Term Rental License cannot legally get one right now. At the same time, Dunes City voters will decide in November whether to ban new rentals entirely and impose sweeping new rules on hosts who are already operating.

The Freeze Is Already in Effect

Lincoln County requires every owner who operates a short-term rental in unincorporated areas of the county to hold a license through the Sheriff's Office. The license fee is $650, and a local contact is required as a condition of operating. But the moratorium means that requirement is currently moot for anyone not already in the system: new licenses simply are not being issued. Commissioners voted to extend that freeze, with no announced end date in the source reporting. If you have been sitting on the fence about launching an STR in Lincoln County, the county has made that decision for you, at least for now.

Dunes City: A Ballot Measure That Could Change Everything

South of Florence, the small coastal community of Dunes City is taking the pressure on short-term rentals directly to voters. Measure 20-386 is on the November 3 ballot, and its consequences for hosts are significant.

If approved, the measure would ban any new short-term rentals in Dunes City. Existing operators would not be grandfathered in without conditions: once their annual permit comes up for renewal, they would be required to comply with a new set of rules. Those rules include:

• Hosts must be on-site at the property.
• Complaints must be addressed within one hour.
• Properties must abide by homeowners association rules.

The ordinance covers any unit rented for less than 30 days, including those listed on Airbnb or Vrbo. If a rental fails to follow the new rules, a complainant can file officially with Dunes City, which could lead to fines and revocation of a permit. If the measure passes, it takes effect 30 days later, and it cannot be changed or repealed without another vote of the people.

The Debate Behind the Ballot

The measure has vocal supporters and organized opposition. Co-author Linda John told KLCC that neighbors have been left to deal with problems that should be the owner's responsibility. "We just don't feel like the neighbors should have to be the police for these properties," John said. "It should be the owners that are responsible for policing their own property."

John described a pattern of rowdy late-night parties, littering, strained septic systems, and confrontational guests. One Dunes City resident, she said, chose to move rather than keep dealing with a nearby vacation rental. "We just want our residential neighborhoods to be for neighbors," John said. "We're tired of the parties, we're tired of the traffic, we're tired of the disrespect. We just want a nice, quiet, peaceful neighborhood."

Opponents argue the measure goes far beyond fixing problem properties. Mike Worsham of the Dunes City Property Rights Coalition PAC said the proposal would upend the entire market. "These are not just small adjustments to the existing program," Worsham said. "They fundamentally change how vacation rentals can even operate within Dunes City and include owners who are already following and have complied with the existing rules." Worsham argued that existing rules simply need to be enforced, and that requiring a permanent, resident on-site host would mean someone physically living inside the home alongside paying guests.

What Hosts Should Do Right Now

Whether you operate in unincorporated Lincoln County or inside Dunes City, the regulatory environment is tightening and the timeline is real. Here is what the current situation demands:

• If you hold an existing Lincoln County Short Term Rental License, keep it current. The moratorium does not affect existing licensees, but a lapse could leave you unable to renew.
• If you operate in Dunes City, watch the November 3 ballot closely. A yes vote on Measure 20-386 means new compliance requirements kick in at your next permit renewal, including the on-site host rule.
• Make sure your local contact requirement is satisfied. Lincoln County requires a local contact as a condition of licensure, and that is not optional.
• If you have been planning to launch a new STR anywhere in Lincoln County, the moratorium means you cannot obtain a license at this time. Do not list a property without one.

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