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Hillsboro, OR Short-Term Rentals: Primary-Residence-Only Rule (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 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.

View official code

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

230(C)(1) provides: 'The dwelling used for a partial-dwelling STR must be the primary residence of the property owner. 1 instead limits any owner to holding interest in no more than 2 full-dwelling STRs citywide. 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. 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. 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?
No. Community Development Code § 12.40.230(C)(1) requires the dwelling used for a partial-dwelling short-term rental to be the owner's primary residence, defined by official documents such as tax forms. A second home or investment property does not qualify for the partial-dwelling STR permit path.
Does the primary-residence rule apply to full-dwelling rentals too?
No. Subsection 12.40.230(C)(1) applies only to partial-dwelling STRs, where the host remains on site. Full-dwelling STRs, covered by Subsection D, are not required to be the owner's primary residence, but Subsection D.1 caps any owner at 2 full-dwelling STRs within Hillsboro city limits.
What happens to my STR permit if I sell my primary residence?
It lapses. Section 12.80.126(I) makes a partial-dwelling STR permit site-specific to the original applicant; if that owner moves, the permit becomes invalid and whoever owns the property next must apply for a new permit and again satisfy the primary-residence requirement.

Sources & Official References

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