Hillsboro, Oregon Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Hillsboro, OR?

Yes, short-term rentals are explicitly allowed in Hillsboro, OR. However, the city has been actively reforming its regulations to improve compliance and reduce barriers to entry for legitimate operators. As of early 2024, Hillsboro has updated its short-term rental framework to create a more streamlined and accessible permitting process while maintaining important protections for residential neighborhoods.

The city defines short-term rentals as homes, or portions of homes, rented for fewer than 31 consecutive days, typically advertised on platforms like Airbnb, Vrbo, and Vacasa. The reforms aim to address the previously low compliance rate of approximately 97% non-permitted listings (170 total listings with only 5 permitted as of April 2023).

What do Airbnb hosts actually earn in Hillsboro?

Hillsboro hosts earn a median $34,120/year with $165 ADR and 72% occupancy.

Top performers pull in $50,095+ per year.

See the full Hillsboro market breakdown

How to Start a Short-Term Rental Business in Hillsboro

Step 1: Understand the Two Types of STR Operations

Hillsboro now categorizes short-term rentals into two distinct types with different requirements:

Type 1: Partial Home Rentals

Renting out a portion of your home (bedroom, basement, or accessory dwelling unit)
Requires the owner to live on the same property during guest stays
Must be your primary residence
Expedited Type I application process

Type 2: Full Home Rentals

Renting out an entire dwelling unit
No requirement for owner to reside on the property
Standard Type II application process

Step 2: Navigate the Streamlined Application Process

The city has significantly reduced bureaucratic barriers compared to the previous system that required a Conditional Use permit, public hearings, and neighborhood meetings.

For Type 1 (Partial Home) Rentals:

Type I application process
Approval typically issued within days
Property owner must live on-site during guest stays
Approximately $50 application fee

For Type 2 (Full Home) Rentals:

Type II application process
Decisions based on clear, objective criteria
200-foot radius public notice requirement
Processing time of approximately two to three weeks
Approximately $500 application fee

Step 3: Ensure Compliance with Ownership Limits

Hillsboro has implemented guardrails on STR ownership to prevent market concentration:

Maximum of two short-term rental properties per individual or entity
Only one rental permitted per property at any given time
For full-dwelling STRs, the same owner cannot operate multiple full-dwelling STRs within city limits

Required Documents, Permits, Licenses, and Guidelines

Permits and Licenses

Short-Term Rental Operating Permit (new dedicated permit category separate from Bed & Breakfast regulations)
Application through Community Development Department
Renewal requirements to be determined (check with city for current standards)

Documentation Requirements

Proof of property ownership or legal right to operate
Site plans and floor plans showing rental areas
Parking management plan (if applicable)
Proof of insurance coverage
Safety compliance documentation
Emergency contact information for guests and neighbors

Safety and Compliance Standards

Adherence to fire safety codes
Compliance with building regulations
Adequate parking provisions
Noise control measures
Waste management procedures
Compliance with all local, state, and federal regulations

Operational Guidelines

No commercial activities (weddings, conferences, parties)
Compliance with all zoning restrictions
Maintenance of property standards
Guest behavior management protocols

Specific Regulations for Short-Term Rentals

City of Hillsboro Regulations

Permitted Uses:

Short-term rental of one or more bedrooms in a dwelling unit for 30 days or less
Both owner-occupied and non-owner-occupied arrangements permitted (with different requirements)

Prohibited Activities:

Commercial events (weddings, conferences, parties)
Multiple simultaneous rentals on a single property
Non-compliance with residential zoning standards
Use that creates public nuisance or safety hazards

Operational Requirements:

Owner-occupied requirement for partial home rentals
Maximum two STR properties per owner/operator
Clear display of contact information
Compliance with parking standards
Noise control and neighborhood impact minimization

Washington County (Hillsboro is located within Washington County)

No additional county-level STR regulations identified beyond city requirements
County compliance with Oregon state lodging tax requirements

State of Oregon Requirements

Oregon Transient Lodging Tax:

1.5% state tax on reservations less than 30 nights
Applies to all non-optional fees (cleaning, pet charges, etc.)
Supports Oregon Tourism Commission
Airbnb typically handles collection and remittance for most Oregon counties

Additional State Considerations:

Compliance with Oregon building and safety codes
Adherence to fair housing regulations
Compliance with state tax reporting requirements
Adherence to Oregon Consumer Protection Act

Local Tax Considerations:

Municipal transient lodging taxes may apply
Verify current local tax rates and requirements
Registration for tax collection may be required

Contact Information for Local Authority

Primary Contact:

Department: City of Hillsboro Community Development Department
Phone: 503-681-6100 (main city line)
Email: Specific STR contact form available at: www.hillsboro-oregon.gov/our-city/departments/community-development/contact-us/email-short-term-rentals
Address: City of Hillsboro Civic Center 150 E. Main Street Hillsboro, Oregon 97123

Office Hours:

Monday through Friday
8:00 AM to 5:00 PM

Online Resources:

City website: www.hillsboro-oregon.gov/our-city/departments/community-development/projects/short-term-rentals
Online permitting: Through city's permit center portal
Document downloads: Available through Community Development Department pages

Links to Source Pages

Primary Sources:

News Coverage: 6. Forest Grove News-Times: Hillsboro Eases Regulations (February 2024)

Additional Resources: 7. Hostaway Oregon STR Guide (May 2024) - Includes brief Hillsboro reference

This guide is current as of early 2024. Regulations are subject to change. Investors should verify current requirements with the City of Hillsboro Community Development Department before proceeding with any STR operation.

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Ask the AI Advisor about Hillsboro

Hillsboro is a city of roughly 110,000 residents in northwestern Oregon, serving as the county seat of Washington County and the western anchor of the Portland metropolitan area. Sitting about 20 miles west of downtown Portland along U.S. Highway 26, the city has grown into one of Oregon's most populous municipalities, with a character that blends tech-industry energy, agricultural roots, and easy access to wine country. Long known for its fertile farmlands, Hillsboro is part of the Tualatin Valley and has helped anchor the high-tech corridor often called the Silicon Forest, where major semiconductor companies have built large campuses. The city also functions as a gateway to the Willamette Valley's northern reaches, including dozens of tasting rooms, the forested slopes of the Coast Range, and the rolling vineyards of Washington County's farm-to-table landscape.

A short drive from the city center, the Rice Northwest Museum of Rocks and Minerals offers an unexpected draw for visitors, with one of the finest collections of geological specimens in the Pacific Northwest, including meteorites, fossils, and gemstones. Roughly a 15-minute drive from downtown, it is housed in a historic home and provides a family-friendly stop that pairs well with a wine country afternoon. Nearby, the Tualatin Hills Nature Park and surrounding wetlands offer a network of forested trails and boardwalks threaded through more than 200 acres of restored habitat, ideal for easy hikes and birdwatching just minutes from the city center.

For those looking to spend time outdoors on a larger scale, the Tillamook State Forest spreads across the Coast Range west of Hillsboro, offering hiking, picnicking, and the popular Tillamook Forest Center, which tells the story of the area's logging history and the famous 1933 and 1939 Tillamook Burn fires. The drive west on Highway 6 takes a little over an hour and rewards travelers with shaded old-growth groves and views of the Coast Range. Closer to home, Jackson Bottom Wetlands Preserve, on the southern edge of town, features paved and gravel trails winding through restored marshes where herons, hawks, and beavers are commonly seen.

Just minutes north of Hillsboro, Pumpkin Ridge Golf Club is one of the most celebrated public-access courses in the region, having hosted major championships and offering two distinct 18-hole layouts. To the east, a 30-minute drive lands visitors in Portland, where Forest Park's more than 5,000 acres of urban forest, the Japanese Garden, and the Pearl District's restaurants and galleries are all within easy reach.

Hillsboro makes a compelling base for short-term rentals because it pairs a quieter, more residential feel with quick access to the Tualatin Valley's wineries, the Coast Range's forests, and Portland's cultural scene. Visitors who land here can spend a morning hiking wetlands trails, an afternoon sampling nearby wines, and an evening in the city, all without needing to switch lodging.