Hillsboro, OR Short-Term Rentals: Primary-Residence-Only Rule (2026)
Key Facts
- Governing provision
- CDC § 12.40.230(C)(1)
- Applies to
- Partial-dwelling STRs only
- Proof required
- Tax forms/official residence records
- Companion rule
- Host-presence rule, § 12.40.230(C)(2)
- Permit portability
- Invalid if owner moves, § 12.80.126(I)
Summary
A partial-dwelling short-term rental in Hillsboro must be run out of the owner's primary residence. Community Development Code § 12.40.230(C)(1) requires the dwelling used for a partial-dwelling STR to be 'the primary residence of the property owner,' defined by the owner's permanent residence of record as shown on official documents such as tax forms; the rule does not apply to full-dwelling STRs.
C.Standards for Partial-dwelling STRs.1.The dwelling used for a partial-dwelling STR must be the primary residence of the property owner. Primary residence is defined as the owner's permanent residence of record as substantiated by official documents such as tax forms.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 1 | Community Development Code: Supplement 1).
Full Breakdown
Section 12.40.230(C)(1) provides: 'The dwelling used for a partial-dwelling STR must be the primary residence of the property owner. Primary residence is defined as the owner's permanent residence of record as substantiated by official documents such as tax forms.' This standard applies only to partial-dwelling STRs, defined in Section 12.01.500 as rentals where the host remains on site; full-dwelling STRs under Subsection D are not tied to a primary-residence requirement, though Subsection D.1 instead limits any owner to holding interest in no more than 2 full-dwelling STRs citywide.
The primary-residence test is verified during the Type I land-use review under Section 12.80.126, where the applicant must submit proof of property ownership under Subsection C of that section, and the Review Authority must find the proposal complies with the special-use standards in Section 12.40.230 before approving the permit. Because the standard turns on documentary proof, an owner who lists a different address on tax forms or other official records as a permanent residence does not qualify to operate a partial-dwelling STR at the subject property.
The requirement pairs with the host-presence rule in Subsection C.2, which separately requires the owner to reside on the same property as the rental; together the two subsections ensure a partial-dwelling STR functions as an owner-occupied home that happens to rent out space, not an investment property rented while vacant. A permit issued on a since-vacated primary residence becomes invalid under Subsection 12.80.126(I) if the applicant moves, and the subsequent owner must obtain a new permit rather than inherit the prior approval.
Violations & Fines
Operating a partial-dwelling STR at a property that is not the owner's primary residence violates Section 12.40.230(C)(1) and is grounds for the City Council to revoke the associated business license for cause under Section 12.80.126(J) and Municipal Code Subchapter 5.04. Because the STR permit is site-specific to the original applicant under Subsection 12.80.126(I), the approval also lapses automatically if that owner moves, regardless of any violation.
Frequently Asked Questions
Can I run a partial-dwelling STR at a house I don't live in?
Does the primary-residence rule apply to full-dwelling rentals too?
What happens to my STR permit if I sell my primary residence?
Sources & Official References
Other rules in Hillsboro
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