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).

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:

1. City of Hillsboro STR Proposed Updates (November 2023)

2. Proposed Code Amendment Text

3. Accompanying Staff Report

4. General STR Information Page

5. STR Contact Form

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.