Councillor Brian Wilcox, cabinet member for highways and transportation, said: "I am delighted this car park is now open and will provide much-needed spaces in this area of the city where there is significant demand for parking, especially because it is close to shops in Commercial Road and the County Hospital.
"We were able to reach an agreement with the landowner to manage the car park and, in return, we will receive a proportion of the income from it," he added.
Planning permission for the car park was granted on condition the facility is managed by Herefordshire Council in accordance with its overall transport policy.
It will be a pay and display car park and the usual disabled vehicle and local elderly concessionary exemptions will apply.