Is Hillsboro, Oregon Good for Airbnb Investment?

To start an Airbnb in Hillsboro, Oregon, begin by researching local regulations as Hillsboro requires short-term rental operators to obtain a business license through the city's Community Development Department and comply with zoning restrictions that typically limit rentals to residential zones with potential occupancy limits of 2-10 guests depending on property size. Contact Washington County for any additional permit requirements and ensure compliance with Oregon state tax obligations including transient lodging taxes of approximately 1.8% plus local taxes. Find a suitable property in residential zones like Orenco Station, Tanasbourne, or downtown Hillsboro areas, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and emergency exits. Furnish the space with quality essentials including comfortable bedding, kitchen supplies, WiFi, and local amenities information, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create listings on Airbnb, VRBO, and other platforms with professional photos highlighting proximity to Nike headquarters, Intel campuses, and MAX light rail access to Portland, setting competitive rates around $80-150 per night based on 2023-2024 market analysis. Manage the property by establishing cleaning protocols between guests, maintaining 24/7 communication availability, coordinating key exchanges or lockbox systems, and ensuring ongoing compliance with Hillsboro's annual business license renewal requirements while maintaining detailed records for tax purposes and potential city inspections.

To identify profitable short-term rental properties in Hillsboro, Oregon, focus on locations within 2-3 miles of Nike's headquarters and Intel campuses, near MAX light rail stations (especially Blue Line), and close to downtown Portland (15-20 minute commute). Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, dedicated workspace areas, parking, and outdoor spaces that appeal to business travelers and tech workers. Analyze pricing using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $150-250/night for quality properties) exceeds long-term rental income by 40-60%, considering Hillsboro's average home prices of $600,000-800,000. Research competition within a 1-mile radius using Airbnb and VRBO searches, identifying gaps in amenities or pricing, while noting that corporate housing demand remains strong year-round due to Nike, Intel, and other tech companies. Utilize tools like Rabbu, AirDNA, and STR Helper for market analysis, monitor Washington County's STR regulations, and leverage local resources such as the Hillsboro Chamber of Commerce and Washington County tourism data to understand seasonal demand patterns and corporate travel trends that drive consistent occupancy rates of 70-85% for well-positioned properties.

To obtain an Airbnb/STR permit in Hillsboro, Oregon, you must first apply through the City of Hillsboro's Planning Department by submitting a Conditional Use Permit application, as short-term rentals require special approval in most residential zones. Required documents include a completed CUP application form, site plan showing parking arrangements, floor plan of the rental unit, proof of property ownership or authorization letter from owner, business license application, and a neighborhood notification list with addresses within 300 feet of the property. The application fee is approximately $1,500-$2,000 for the Conditional Use Permit plus additional fees for business license registration of around $100-$200. The timeline typically takes 8-12 weeks from submission to approval, including a mandatory public hearing before the Planning Commission. Specific Hillsboro requirements include providing adequate off-street parking (minimum 2 spaces), maintaining the property's residential character, limiting occupancy to no more than 2 guests per bedroom plus 2 additional guests, ensuring 24/7 local contact availability within 30 minutes response time, and compliance with all building and fire safety codes. You must also obtain a business license from the City of Hillsboro and register with Washington County for transient lodging tax collection, which requires monthly remittance of applicable taxes.

Short-term rentals (STRs) are legal in Hillsboro, Oregon, but operate under specific regulations established by the city. Hillsboro requires STR operators to obtain a business license and comply with zoning restrictions that generally allow STRs in residential zones with certain limitations on the number of guests and parking requirements. The city prohibits STRs in some multi-family housing developments and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards. Recent changes around 2019-2020 included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental versus traditional lodging. Properties must be owner-occupied or have specific permits for non-owner-occupied rentals, and there are noise ordinances and neighborhood compatibility requirements that operators must follow. The city has been balancing the economic benefits of STRs with neighborhood preservation concerns, leading to ongoing refinements in the regulatory framework.

The best Airbnb investment areas in Hillsboro, Oregon include the Orenco Station district, which attracts tech workers and business travelers due to its proximity to Nike headquarters and numerous Silicon Forest companies like Intel and Nike, making it ideal for corporate housing with consistent year-round demand. The Tanasbourne area offers excellent accessibility to both Portland International Airport and downtown Portland via MAX light rail, appealing to tourists exploring the Pacific Northwest and business travelers needing convenient transportation. The Rock Creek neighborhood near PCC Rock Creek Campus and the Sunset Transit Center provides steady demand from visiting academics, conference attendees, and families of students, while also serving as a gateway for tourists heading to wine country in Washington County. The South Hillsboro area, particularly near the Hillsboro Stadium and the emerging mixed-use developments, attracts sports fans during soccer season and benefits from ongoing urban development projects that are increasing property values. Downtown Hillsboro's historic district offers charm for leisure travelers interested in local culture and provides easy access to the MAX system for Portland exploration, while the Bethany area appeals to families visiting the region due to its residential character and proximity to recreational areas like Forest Park.

In Hillsboro, Oregon, Airbnb hosts are subject to multiple lodging taxes including the Oregon state transient lodging tax of 1.8%, Washington County's transient lodging tax of 5%, and Hillsboro's city transient lodging tax of 8%, totaling approximately 14.8% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected directly by Airbnb from guests at the time of booking through their automated tax collection system, which began around 2018-2019. Airbnb remits the state and county portions directly to the Oregon Department of Revenue and Washington County respectively, while the city portion is remitted to the City of Hillsboro on a monthly basis. Hosts may still need to register with local tax authorities and file periodic returns even when Airbnb collects taxes automatically. Exemptions generally include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though specific exemption criteria should be verified with each taxing jurisdiction as requirements can vary between state, county, and city levels.

To start an Airbnb in Hillsboro, Oregon, the total initial costs would be approximately $650,000-$750,000. Property purchase represents the largest expense at around $550,000-$600,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range from $15,000-$25,000 for a complete setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run about $1,500-$3,000. Permits and fees vary but generally cost $500-$1,500 depending on local regulations and business license requirements. Insurance premiums for short-term rental coverage average $2,000-$4,000 annually, so approximately $1,000-$2,000 for the first six months. Utility setup and deposits typically cost $500-$1,000 initially. First six months of operating costs including utilities ($200-$400/month), cleaning services ($100-$200 per turnover), maintenance reserves ($200-$500/month), platform fees (3% of bookings), and miscellaneous supplies total approximately $8,000-$15,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Hillsboro, Oregon typically generate annual revenues between $25,000-$45,000 for entire homes and $15,000-$28,000 for private rooms, with average daily rates ranging from $85-$140 depending on property size and location proximity to Nike headquarters and Intel facilities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-$50 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,400 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties within 3 miles of major tech employers like Nike's Beaverton campus achieve occupancy rates of 65-75% with profit margins of 25-35%, while those further out see 45-60% occupancy and 15-25% margins. Success factors include modern amenities, fast WiFi for business travelers, proximity to MAX Light Rail stations, and professional photography, with properties near Washington County's tech corridor commanding premium rates during peak seasons from May through September. A typical 3-bedroom home purchased for $550,000 in Hillsboro's Orenco Station area can generate $38,000 annually in gross revenue with net profits of approximately $12,000-$15,000 after all expenses, representing a 2.2-2.7% cash-on-cash return before mortgage considerations.

Airbnb investments in Hillsboro, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in tech-corridor neighborhoods near Nike headquarters and Intel facilities command premium nightly rates of $120-180, while suburban areas average $80-120 per night. Initial profitability usually occurs within 12-18 months for well-positioned properties, with break-even occupancy rates around 55-65%. The proximity to Portland International Airport and major employers like Nike, Intel, and various tech companies drives consistent demand, particularly for 2-3 bedroom homes and condos priced between $400,000-600,000. Market analysis shows properties within 2 miles of Washington County's business districts achieve the highest returns, with some investors reporting 14-16% ROI in premium locations during peak seasons from May through September.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Hillsboro, Oregon. Local real estate agents who focus on investment properties in the Hillsboro area include Windermere Realty Trust, Keller Williams Sunset Corridor, and RE/MAX Equity Group, with agents like those at Portland Metro Investment Properties and Northwest Investment Real Estate Services offering specialized Airbnb investment guidance. National services that operate in the Hillsboro market include Mashvisor for property analysis, AirDNA for market data and revenue projections, Rabbu for turnkey Airbnb investments, and RedAwning for vacation rental market insights. Local property management companies such as AvantStay, RedAwning Portland, and Vacasa also provide services to help investors identify and manage profitable short-term rental properties in Hillsboro's growing tech corridor market, particularly near Nike headquarters and the Silicon Forest area where demand for corporate housing remains strong.