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The City of Portland is about to formally recognize something that is already happening in the city and around the country.

City commissioners are expected to embrace the company Airbnb by setting up rules for using the program and taxing it.

You pronounce it "air b and b." The company helps homeowners rent out a room or their entire house on a nightly basis.

"Welcome to my home, my Airbnb home!" said Linda Fitzgerald with a smile.

She lives in North Portland and since November has rented out a spare room to strangers from all over the world.

"I've had guests from every continent," she said.

For $65, she'll rent you a room with a private bathroom and feed you breakfast.

Linda's one of around 1,000 people in Portland who are Airbnb hosts.

"My husband died in September and I needed to make some money, so I found Airbnb and punched the host button and thought, 'Hmm, this is interesting,'" Fitzgerald said.

Now, she's booked nearly 7 nights a week, months in advance.

"My first guests were two women from Shanghai. They were so cute!" she said.

The City of Portland took notice and worked with the company to form rules and taxes for the service. Homeowners must live in the house where they are renting rooms at least 9 months of the year and must register with the city.

Those living in condos or apartments must get home owner association approval or a manager's OK.

But there is no avoiding the fact that the idea is thriving, says a spokesman for Mayor Charlie Hales.

"It is actually happening, no way we can pretend it's not happening," said Dana Haynes. "So our city policies need to be reflective of the 21st century."

He expects the city commission to formally approve Airbnb next week.

"Yeah, it seems likely. The fact of the matter is Airbnb has been here and services like Airbnb are here in reality. There's more than 1,000 units registered at the beginning of this year," Haynes said.

The city will get a 5 percent tax off the price of each stay. The total estimated tax for next year is $384,000.

That s just fine with Linda back in North Portland. She thinks business will be strong for a long time.

"There's not been one bad experience!" she said.

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