You mentioned commuting distance. Any job prospects? Oregon has no sales tax but has an income tax. Washington has no income tax but has a sales tax.
Which airport are you flying to?
For Washington look at Longview. For Oregon check the towns between Sandy and Government Camp on US 26.
For closer to Seattle, check on Federal Way which has a big UPS distribution center.

Just driving around is your best bet. Northeast of Seattle - my cousin really enjoys living in Woodinville - but it's not the least expensive of places.
http://www.gonorthwest.com/Washington/puget/Woodinville/woodinville.htm

well Bend is not a short commute to Portland but it is a happening small city which attracts young people- so much to do if you are the outdoor active type- I would check it out.

The Gorge is beautiful but don't think you would enjoy commuting into the city - you could check out Hood River- fun little town-

recommendations for smallish towns and regions within about a half hour commute from both Portland and Seattle.

Since Portland is 180 miles from Seattle, there is no town within about a half hour commute from both of them.

Also, since both cities have sprawling metropolitan areas, it would take more than a half hour to drive to Carnation, Duvall, and other towns near Seattle that used to be a lot more rural than they are today.

West Seattle, Beacon Hill, and Ballard are three neighborhoods in Seattle that attract newcomers looking for a quieter life style.

HTTY

Tumfuller brings up the most important question, and that is job prospects. I don't know if you are familiar with the employment trends in OR or WA, but I would highly recommend not making any moving plans until a job is firmly lined up.

That said, HTTY is spot on about the 30 minute request for Seattle and that area. Woodinville is nice (DH lives there during the week) but traffic can be bad and it has grown so much that the small town feel is mostly on the outskirts of it, towards Duvall like HTTY mentioned.

It isn't quite as bad here around Portland, as you can do Sherwood/Wilsonville to downtown Portland in 30 minutes.

You might like the north end of the Kitsap Peninsula...Poulsbo or perhaps Kingston. Both are within about an hour (mostly on ferries) from downtown Seattle. Bainbridge is closer, of course, but also more expensive.

Edmonds, on the Seattle side of the sound, is nice too.

Thanks everyone for your replies so far. I appreciate it.
I know Portland and Seattle are 3 1/2 hours apart, so I guess I meant a half hour commute from EITHER Portland OR Seattle.
I work in healthcare so my tendency is toward working in a large city where there tend to be large hospitals. But a good hospital in a smaller town would be great too. Both Oregon and Washington have shortages in my discipline, so I'm hoping the job search will yield promising options in either state.

Hey, in Oregon you don't have to pump your gas. I got really mad at the poor guy that tried to fill up my car.

Seek employment at St. Charles Medical Center in Bend.
There is also a branch of St. Charles in Redmond.
Also within 30 minutes of Bend are Sisters, LaPine and Sunriver.
The population of Bend is now 81K.

Peacehealth is one of the large health care providers in Oregon and Washington and Alaska.

They operate hospitals and physician practices. They are currently centralizing some of the departments to Vancouver Wa- like HR and some financial services, billing etc.
Vancouver, as stated previously is a good place to live as there is no state income tax and Oregon has no sales tax- you don't say what type of healthcare position you are looking for but check out their career center from time to time- might be a job and a location that fits for you.

Seattle is so large and spreading these days (and traffic is horrendous) you can't really get to any place truly "rural" in only 30 mins.

For B&B's in Seattle there are many nice ones in my neighborhood, Capitol Hill (just 2 miles from downtown)...

www.sbmansion.com
www.gaslight-inn.com
www.baconmansion.com

to name a few

If I was to relocate I would seriously consider Bend though I hate to add to the urban sprawl by recommending it. I was just talking to someone today about how much I enjoy going to Bend. It's beautiful to look at, the air is clear, hight desert and piney. The town is pretty with lovely parks and nice events.
It's a lovely drive from Portland, too. Great scenery that changes dramatically during the trip. Love it!

Bend is very nice - but it's definitely not an urban area. Heck - my ole high school classmate used to be the Mayor.

Hey, in Oregon you don't have to pump your gas. I got really mad at the poor guy that tried to fill up my car.

It is now illegal to top off gas tanks in Oregon, but that doesn't stop them. I stand in watch and when they try I say, "Please don't top it off." The difference is they used to act insulted at this request but now they don't: http://www.oregonlive.com/environment/index.ssf/2009/07/topping_off_gas_tanks_now_bann.html

HTTY

Have a look at - for lack of a better term - "second tier" cities - big enough to have a spectrum of healthcare facilities and services, small enough to give something of a "small town" feel and/or be close to proper rural areas.

In Oregon, Eugene and Corvallis in the Willamette Valley come to mind. Both college towns but also with diverse populations and plenty of things to do (cultural activities etc.) And both are very close to some marvelous rural areas - mountains, coast, rivers...

Or maybe Hood River in the Columbia Gorge, or someplace like Troutdale - close by freeway to Portland, but turn the other way and you're in the woods, in the Gorge, rivers etc.

In Washington, have a look at Bellingham and Olympia. Again, both with colleges, and in the case of Bellingham, immediate access to the Border and Vancouver for the weekends; or go east and you're in the high Cascades in no time - skiing, hiking, etc.

Olympia is the state capital, so a much more well-developed arts and recreation infrastructure than in other towns its size. South Puget Sound is right there - islands, inlets, lots to explore, or you can be at the coast or in Olympic NP in short order. Much less expensive than Seattle, too.

I'd agree that a 30-min. commute radius in either Seattle or Portland will land you still in the cities or in the burbs, and not the distant ones either.

I agree with the above posters - 30 minute commute to Seattle and Portland and a small town feel would be difficult. I like the idea of Olympia. Salem OR also would be a possibility.

If you are only looking in Seattle, perhaps N. Bend or Carnation would work for you.

In Seattle, W. Seattle is amazing - hardly rural but areas of it have a smaller town feel....

If you really want lovely - Seaside OR has a hospital...living on the Oregon coast would be dreamy.

Sunbum has it right. Peacehealth would be a good choice and Longview would meet your need for being on I-5 and still close to Oregon and the coast. http://www.peacehealth.org/careers/longview/Pages/Default.aspx

I like Gardyloo's and Orca's suggestions for smaller towns but close enough to go into the city for events, Christmas shopping, weekend excursions etc. You didn't say where you were coming from but rural northwest can take some getting used to, be prepared for damp and green/gray. But, the trees and water are beautiful. I had friends living in Seaside, and family in Olympia and Bellingham - all good choices but more than 30 minutes from major metropolitan areas. Closer to city living will take you into the city as the sprawl is more than a reasonable commute. You might consider Tacoma as an option. I think you can still get rural (Vashon Island perhaps) but within commuting distance.

My Q - what kind of area are you coming from and are you more used to an Urban or smalltown atmosphere?

To each their own but sometimes the "charm" of a smallish town gives way to not having enough options/things to do.

I think you'd have a better chance in Portland than Seattle. I know my friend working as a nurse living there now pays significant less rent on a nicer apartment than he did in Seattle.

I agree with Gardyloo's suggestions of places like Corvallis or Eugene. Both are lovely imo.

I know we're not on your list,but health care is the major industry of the Rogue Valley owing to the large influx of retirees in the last 10-20 years.
Our two major organizations are Asante and Providence Health Systems,
spread between 4 hospitals.

Rogue Valley would be great!

I definitely appreciate all of your suggestions, and you've inspired me to add Bend, Seaside, Bellingham, Olympia, and Corvallis to our road trip planning considerations. We won't have time to hit them all, but this gives us a great place to start.
To answer your questions -- we currently live in Chicago and are tired of the pollution, the temperature extremes, the crime, the corruption, and it taking an hour to get anywhere in the city due to congestion and constant construction nightmares. We're also both outdoorsy people who don't like heat or sun -- a cool foggy morning hike or kayak trip sounds right up our alley. And we both really love rain and overcast weather, so that aspect of the PNW shouldn't be too much of an issue. We also love cultural things like theater, live music, and art, so being driving distance from a sizeable city without being in the thick of it is our plan.
Thanks to everyone for their awesome suggestions! I can't wait to explore!

I left Chicagoland 66 years ago for much the same reasons. You will love the Pacific Northwest no matter where you settle down.

Last weekend at the Tower Theater in Bend, there was a production of 1776 with an all female cast. I do have a friend who has been on the staff of the Tower for many years.
There are few cities (81K) that you can go skiing in the morning and play golf in the afternoon.
The worst pollution Bend has had in the past 3 months is the Pine pollen.
https://www.facebook.com/pages/1776-In-Concert-A-Benefit-For-The-Tower-Theatre-Foundation/181149751947387
St. Charles Medical Center I am told is a great place to work.

Hate to disagree with you Tomsd, but Bend is considered an urban area. OK, it is not like San Diego, Portland or Seattle, but it is urban. I am presently at our vacation home in Sunriver, about 15 miles south of Bend. Many homes in the area would be considered rural. Bend has grown tremendously in the 10 years we have been coming here. It has all the stores (Macy's, Kohls, Target, Home Depot, etc.), a wonderful downtown section, community events, health care and other amenities that constitute an urban area. The area has wonderful opportunities for outdoor activities (hiking, fishing, tubing down the river, kayaking on rivers and lakes, skiing, golfing, etc). It is on the Eastern side of the Cascades in the high desert, so it does not get as much rain or clouds as towns/ cities on the Western side. It can be warm during the summer, but cools off (40's & 50's) at night. It does get some snow during the October through May. Only downside is that the airport in Redmond would not be considered a major airport.

I came to Seattle in 1980 to check it out... I'm still here

Thanks again, everyone. Our trip was fantastic. It was rushed, by necessity, because it was a scouting trip, but we both had so much fun, and it really clarified where we think we want to land.

We flew into Seattle late Saturday night, spent Sunday in Seattle as well as on Vashon and Bainbridge Islands. Monday we drove down to Olympia, WA and spent the whole day wandering around town, finding unexpected bookstores and watching sea lions hunt salmon in the sound.

Tuesday we drove south, passed briefly through Vancouver WA, then met a friend for dinner and a long neighborhood walk in Portland. Wednesday we walked around Portland most of the day, went to Powells, and explored neighborhoods.

Thursday we drove east from Portland to Hood River, OR, had lunch, then turned north and drove along the Eastern Cascades (stopping in Snoqualmie Pass) to Bellingham, where we spent our last night before flying out of Seattle Friday afternoon. Like I said, it was a whirlwind.

It's looking like Olympia WA was our mutual favorite place. A small city with a vibrant Capitol and two universities, close enough to Seattle, Portland, and the Olympic Peninsula to allow us lots of weekend trips, with outdoor trails, eco-friendly initiatives, and lots of friendly people. And 3 independent bookstores within a few blocks! We had a blast there and could both imagine living there within a couple hours of our arrival. Ultimately our move will depend on where I get a good job offer, but we have solid ideas now to work from.

Thanks again everyone for the advice and the guidance! I wish we'd had more time. Once we live out there I'm hoping to explore the Oregon Coast more as well as Bend and the other places people suggested!

From what I know - Olympia is as you described and one of my hs classmates likes living there.

BTW - while I still consider Bend as not really "urban" (Barbann - my best - no way is Corvallis even in the discussion as urban.

Bend has a lot to offer but a lot of people want to live there also so not sure how many openings there would be in your chosen field.

Cool trip, sounds like fun. Thanks for checking back with us!