We all know that most of us didn't get into real estate because we love reading zoning codes. But here we are, coffee in hand, staring at Hillsborough's 2025 Unified Development Ordinance (UDO) rewrite like it's the next big Netflix show. And to be honest? It's a little bit like that for landlords, investors, and tenants.
This isn't just a lot of legalese. The new UDO is changing how land can be used, developed, and managed in Hillsborough, NC. This means that local property owners will have new chances (and some surprises).
What’s Changing in the 2025 UDO?
In short, Hillsborough’s UDO is getting a 21st-century makeover. The town is simplifying its outdated patchwork of zoning codes into a unified, flexible system designed to support sustainable growth, housing affordability, and community balance.
Here’s what stands out:
- New Mixed-Use Zoning: Expect more flexibility for combining residential and commercial spaces, a win for landlords near downtown and transit areas.
- Density Adjustments: Certain districts will allow higher-density housing, opening doors for duplexes, ADUs (accessory dwelling units), and small multi-family projects.
- Environmental Focus: New standards promote green infrastructure, stormwater management, and tree preservation, good for the planet, but potentially costlier for developers.
- Streamlined Permitting: The town aims to make development approvals faster and more predictable (a rare sentence that brings joy to landlords everywhere).
Why It Matters to Landlords and Investors
If you currently own or plan to invest in Hillsborough rental property, these changes could impact everything from your property value to your long-term return strategy.
- More Flexibility = More Opportunity. You may be able to add units, convert space, or expand your rental portfolio under the updated zoning categories.
- Higher Standards = Higher Costs. Environmental and design requirements could increase construction or renovation expenses, but they may also make properties more desirable.
- Predictable Processes = Less Headache. The new review procedures aim to reduce delays, a huge plus for anyone navigating tenant turnover or project timelines.
In other words, the new UDO could either be your best friend or that one relative who “means well” but causes a few logistical headaches.
Common Questions About the Hillsborough UDO
Q1: When does the new UDO take effect?
The overhaul is expected to roll out in 2025, following a series of public hearings and adoption phases. Landlords should keep an eye on official updates through the Town of Hillsborough’s Planning Department.
Q2: Will existing properties be “grandfathered” in?
Yes, properties that comply with current regulations generally won’t be penalized. However, major renovations or changes in use could trigger compliance with the new UDO.
Q3: How does this affect rental property investors?
The changes may open up new development or conversion opportunities, particularly in areas transitioning to mixed-use or higher-density zoning.
Q4: What about tenants?
More housing options could mean increased availability and diversity in rental prices, though construction costs may influence market rents.
Q5: Should I make changes now or wait?
It depends on your goals. Some investors are acting early to secure permits before stricter requirements kick in, while others are waiting to capitalize on expanded zoning options.
Your Next Move: Stay Ahead with Local Expertise
Navigating zoning updates doesn’t have to feel like decoding ancient hieroglyphs. At Gates Management and Realty, we help property owners and investors make sense of policy shifts, identify new opportunities, and stay compliant without losing sleep or profit.
If you’re wondering how the 2025 UDO could affect your rental property strategy in Hillsborough, we’d love to chat. Visit thegatetohome.com to explore our property management services or contact us today.