Hillsboro's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Hillsboro, Oregon, there are 6 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Insurance Requirements

Hillsboro Community Development Code Section 12.40.230, adopted by Ordinance 6467, does not publish a fixed liability-insurance minimum for short-term rentals. Operators must hold a city business license and remit Hillsboro's 3% transient lodging tax plus Washington County's 9% TLT.

Key details: Code: CDC 12.40.230. Enabling Ordinance: 6467. Code Liability Minimum: Not specified in CDC 12.40.230. Business License: Required. Lodging Tax: 3% city + 9% county.

Operating without the required CDC 12.40.230 STR permit or business license is enforced reactively by Hillsboro Code Compliance under HMC 4.04. Citations may carry fines of hundreds of dollars per day along with revocation of the STR permit.

The rules around insurance requirements in Hillsboro lean permissive, but that does not mean anything goes.

Occupancy Limits

Hillsboro regulates short-term rentals under Community Development Code Section 12.40.230, enacted by Ordinance 6467. The CDC creates two STR types: a Partial-Dwelling STR with the owner on site (Type I permit) and a Full-Dwelling STR (Type II Development Review with 200-foot mailed notice).

Key details: Code: CDC 12.40.230. Enabling Ordinance: 6467. Permit Types: Type I partial / Type II full. Per-Owner Cap: 1 partial + 2 full. Partial Permit Fee: $60.

Operating an unpermitted STR, exceeding the parking-plan occupancy, or losing primary-residence status for a Partial-Dwelling STR violates CDC 12.40.230 and HMC 4.04. Code Compliance may cite hundreds of dollars per day and revoke the permit.

Taxes & Fees

Hillsboro requires STR operators to collect and remit the transient lodging tax on stays under 30 days. Washington County may levy additional taxes.

Key details: Tax: Transient lodging tax. Applies To: Stays under 30 days. County: Washington County tax may also apply. Registration: Finance Department.

Failure to collect or remit taxes results in back taxes, penalties, and interest.

This is one of the stricter rules in Hillsboro's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Noise Rules

STR guests in Hillsboro must comply with the noise ordinance (Subchapter 6.24). The 9 PM–6 AM quiet period applies. Hosts must inform guests about noise standards.

Key details: Quiet Hours: 9 PM – 6 AM. Code: Subchapter 6.24. Host Duty: Inform guests of rules. Repeat Issues: May affect permit status.

Noise violations result in citations. Repeated complaints may lead to STR permit revocation.

Parking Rules

STR guests in Hillsboro must comply with city parking regulations. Hosts should provide parking information to guests.

Key details: Street Parking: City regulations apply. Host Duty: Provide parking info. Off-Street: Encouraged. Enforcement: Citations and towing.

Illegally parked vehicles are subject to citations and towing.

Permit Requirements

Hillsboro requires a permit for operating short-term rentals where the entire dwelling is rented. STR operators must register with the city and comply with safety standards.

Key details: Permit: Required for whole-dwelling rentals. Registration: Required with city. Lodging Tax: Must collect and remit. Safety: Smoke/CO detectors, fire extinguishers.

Operating without a permit results in code enforcement action. Failure to remit taxes incurs penalties.

This is not one of those rules that cities tend to ignore. Hillsboro actively enforces its permit requirements requirements.

The Bottom Line

Hillsboro is tougher than many cities when it comes to short-term rentals. Out of the 6 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Hillsboro, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Hillsboro's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.