Short-Term Rentals in Hood River County, Oregon

Unincorporated county: EFU and Forest-zone rules under Article 53

Outside the City of Hood River and Cascade Locks, short-term rentals in unincorporated Hood River County are governed by Article 53 of the county's Zoning Ordinance, which covers home occupations, short-term rentals, and marijuana/psilocybin uses together. On land zoned Exclusive Farm Use (EFU) or Forest that is not receiving a farm or forest tax deferral, a short-term rental is allowed only with a conditional use permit, and several specific restrictions apply: the rental must operate within the property's primary dwelling only -- accessory buildings, agricultural outbuildings, and accessory dwelling units cannot be converted or used as a short-term rental -- the rental is capped at 180 operating days per calendar year (except in a commercial zone, where the cap doesn't apply), and weddings or other commercial events may not be held in conjunction with the rental.

For a buyer evaluating EFU or Forest-zoned land in Hood River County specifically for short-term-rental income, these limits matter for basic financial planning: a 180-day annual cap means roughly half the year the property cannot legally be rented short-term, and the primary-dwelling-only rule forecloses a common model elsewhere in rural Oregon of renting out a separate cabin, barn conversion, or ADU. Confirm the property's current farm or forest tax-deferral status too -- land actively receiving that deferral may face additional restrictions or disqualification concerns tied to non-farm rental income.

The City of Hood River's separate, court-tested Ordinance 2026

Property inside the City of Hood River's urban growth boundary and city limits answers to a completely separate regulatory scheme, run by the city's own Planning Department rather than the county. The city's short-term-rental program requires an annual license for both 'Hosted Homeshares' and 'Vacation Home Rentals,' issued before any advertising or operation can begin. Under the city's Ordinance 2026, STR license holders in residential zones must either reside on the property as their primary residence or designate a lessee who does -- a residency-based model aimed at limiting whole-house, investor-owned vacation rentals in residential neighborhoods. Overnight occupancy is capped at two people per bedroom plus two additional people (so a two-bedroom unit tops out at six overnight guests). This ordinance was challenged in federal court in a case brought by a group of property owners (Panabaker et al. v. City of Hood River); the court upheld the ordinance, affirming the city's residency-based restrictions.

The city has continued to refine its STR licensing process, including updates to the permitting workflow as recently as the 2025-2026 winter season. Because this is an actively administered and previously litigated program, anyone buying property inside Hood River city limits specifically for short-term-rental use should confirm the property's zone, current licensing requirements, and whether the residency condition is workable for their intended ownership structure directly with the city's Planning Department before closing.

Confirming which set of rules applies before buying

1. Determine first whether a specific parcel sits inside the City of Hood River or Cascade Locks city limits, or in unincorporated Hood River County -- this alone determines which of the two regimes above applies.
2. For unincorporated EFU/Forest land, confirm the property's farm/forest tax-deferral status and whether a conditional use permit for short-term rental use has already been obtained or would need to be applied for.
3. For city property, confirm current Ordinance 2026 licensing requirements and, if you don't intend to live on-site yourself, whether a compliant designated-lessee arrangement is realistic for your situation.
4. In both jurisdictions, budget around the respective operating limits -- the county's 180-day annual cap, or the city's occupancy and residency conditions -- rather than assuming unrestricted year-round rental income.