Portland is trying a new solution for affordable housing: paying homeowners to rent extra rooms

Portland, Oregon, is experimenting with a new strategy to expand housing supply: paying homeowners to rent out their extra bedrooms.

The city was recently launched a 12-month pilot home-sharing program offering financial incentives to homeowners who rent out unused rooms through approved home sharing providers such as PathSplit. Officials hope the program will unlock underutilized housing while providing more affordable options for renters.

Under the program, homeowners can receive $1,000 for renting out their first guest room and $500 for each additional room, with payments made after the room has been successfully rented for at least 30 days.

The initiative is funded with approximately $500,000, approved by city leaders and administered by the Portland Housing Bureau, and is intended to test whether home sharing can help address the city’s persistent housing shortage.

Convert spare bedrooms into housing supply

City officials say many spare bedrooms in Portland remain unused, representing a potential source of relatively rapid housing supply.

Instead of waiting for new construction, the pilot aims to activate existing stock by connecting homeowners with tenants looking for cheaper housing.

Participants must rent the rooms through approved home-sharing service providers such as PadSplit, a co-living platform that connects tenants to furnished rooms in shared homes.

The company has grown rapidly in recent years and now operates tens of thousands of rooms in dozens of U.S. cities, often targeting workers looking for affordable housing near job centers.

Under Portland’s program, rooms can rent for no more than $200 per week, including utilities, which works out to about $800 per month. To qualify, homeowners must live in the property, rent to someone who is not a family member, and commit to making the room available during the pilot program.

A new approach to affordability

The program reflects a growing interest among cities in expanding housing supply without long development timelines.

Home-sharing programs are emerging as a possible solution. By converting existing space into rental housing, policymakers hope to create new units faster and at a lower cost than through traditional construction.

Portland officials say the model could help renters such as service workers, students and others looking for cheaper or flexible housing options.

While supporters see the initiative as a creative way to expand housing options, its long-term impact remains uncertain.

Programs that rely on homeowners voluntarily renting rooms can be difficult to scale, and participation rates will likely determine whether the approach meaningfully increases housing supply.

The program is not specifically designed to address homelessness, and the monthly rent level of roughly $800 may still be out of reach for many households experiencing housing market instability.

Still, city officials say the pilot will provide valuable data on whether home sharing could play a larger role in Portland’s housing strategy.

If successful, it could become a model for other cities exploring ways to unlock underutilized housing space.

Email Nick Pipitone