Yes. Salem allows one accessory dwelling unit with a detached single-family house as a special use under SRC 700.007 in every residential zone and most commercial, industrial and mixed-use zones, with no land use application when the standards are met. The unit is capped at 900 sq ft or 75% of the main house, whichever is less, detached units at 25 ft tall, and no parking or owner-occupancy is required. You need a residential building permit plus electrical, mechanical and plumbing permits; the FY2027 fee schedule works out to roughly $1,600-$2,100 in City fees for a 600-900 sq ft unit, and the FY2026/27 SDC worksheet exempts ADUs from system development charges, which run about $33,900 on a new single-family home. The City also gives away a ready-build detached plan set under 600 sq ft. Short-term rental of an ADU is prohibited (SRC 700.006 and 700.007).
Zoning & Size Requirements [1][2][3][4][5][6]
Yes — Salem allows ADUs. A detached ADU can typically be up to 900 sq ft under current Oregon and Salem zoning rules.
See what this means for your lot — ask Salem ADU builders for a quote →
| Allowed Zones | Permitted with a detached single-family dwelling, subject to the SRC 700.007 use standards and approved administratively with no hearing, in RA, RS, RD, RM1, RM2, RM3, CO, CR, CG, CB, IC, IP, IG, NH, MU-I, MU-II, MU-III, MU-R and ESMU (City ADU page; RD from the Ord. 13-21 zone table). Not allowed as accessory to middle housing - duplex, triplex, quadplex or cottage cluster (SRC 700.007; City Middle Housing page) |
| Max Size (Detached) | 900 sq ft or 75% of the main building's gross floor area, whichever is less (SRC 700.007; City ADU and Middle Housing pages, read Sept 2026). The City's free ready-build plan is under 600 sq ft |
| Max Size (Attached) | 900 sq ft or 75% of the main building's gross floor area, whichever is less; an attached ADU may not have a direct interior connection to the main house and must have its own kitchen and bathroom (SRC 700.007; City ADU page) |
| Max Size (JADU) | N/A - Oregon and Salem have no junior ADU category; a room rental inside the house is 'taking of boarders', not an ADU |
| Max Height | 25 ft for a detached ADU (SRC 700.007; City ADU page). Attached ADUs fall under the main house's zone height limit - confirm with Planning (503-588-6213) |
| Max Units | 1 ADU per lot, attached or detached, with a detached single-family house only (SRC 700.007; City Middle Housing page). A lot with a duplex, triplex, quadplex or cottage cluster cannot add an ADU; HB 2138 (2025) will let middle housing be built on lots that already have an ADU once operative Jan 1, 2027 |
Setback Requirements [1][2][3][4][5][6]
Salem applies the underlying zone's rear setback to a detached ADU (no ADU-specific figure), and no additional parking is required. Owner-occupancy is not required — you can rent it out without living on the property.
| Rear Setback | Not published on the City's ADU page; SRC 700.007 and the zone's accessory-building standards govern (Municode text could not be read in Sept 2026 - bot wall). Confirm with the Planners Desk, 503-588-6213, before drawing the site plan |
| Side Setback | Not published on the City's ADU page; SRC 700.007 and the zone's accessory-building standards govern. Confirm with the Planners Desk (503-588-6213); easements shown on the Development Services utility map also limit placement |
| Front Setback | Not published on the City's ADU page; the RS zone front setback for the main house applies unless SRC 700.007 says otherwise. Confirm with the Planners Desk (503-588-6213); a Class 1 Adjustment ($1,051, FY2027) is the route if a standard cannot be met |
| Parking Required | None required for an ADU (City ADU page; SRC 700.007). State law bars ADU parking mandates - ORS 197A.425(1)(b), formerly ORS 197.312(5) |
| Owner Occupancy | Not required. The City's HB 2001 FAQ states Salem's code already complied with the state ban on owner-occupancy requirements (ORS 197A.425, formerly 197.312(5)); the ADU may be rented long-term (30 days or more) |
| Min Lot Size | No separate ADU minimum is published; the ADU must be accessory to a lawful detached single-family house (RS/RA house lots are at least 4,000 sq ft under the City's HB 2001 FAQ) and must fit the 75%-of-main-house cap. Confirm lot coverage with Planning |
Permit Process & Fees [7][8][9][10][11][12]
An ADU permit in Salem goes through a standard permit review. Review time: not published by the City for ADUs; the ready-build plan set is described as expediting building review. Confirm current turnaround with the Permit Application Center (503-588-6256) before scheduling a build. Permit fees: Valuation-based (FY2027 Fee Schedule Section 3): $645 for the first $100,000 plus $3.95 per $1,000, plan review 65% of that, a 12% state surcharge, plus trade permits - roughly $1,600-$2,100 for a 600-900 sq ft ADU valued at $175.92/sq ft. SDCs: $0.
| Approval Process | Special use - no land use application when SRC 700.007 standards are met. Apply through the City's online PAC Portal for a residential building permit plus electrical, mechanical and plumbing permits, with a residential water-meter sizing worksheet; request a utility map/easement check from Development Services (503-584-4646) first. Free ready-build plans use the same permit process. |
| Review Timeline | Not published by the City for ADUs; the ready-build plan set is described as expediting building review. Confirm current turnaround with the Permit Application Center (503-588-6256) before scheduling a build. |
| Permit Fees | Valuation-based (FY2027 Fee Schedule Section 3): $645 for the first $100,000 plus $3.95 per $1,000, plan review 65% of that, a 12% state surcharge, plus trade permits - roughly $1,600-$2,100 for a 600-900 sq ft ADU valued at $175.92/sq ft. SDCs: $0. |
| Impact Fees | $0 - 'Accessory Dwelling Units are exempt from System Development Charges' (FY2026/27 SDC worksheet, effective July 1, 2026). A new single-family house pays about $33,900: Parks $5,610, Transportation $5,031.52, Storm $816, Water $12,340 and Sewer $10,083 at a 3/4-inch meter. The waiver started July 1, 2019 as a five-year measure and has been continued |
| Plan Check | Building plan review is 65% of the building permit fee (FY2027 Fee Schedule); same-day or expedited review is $150/hour with a 2-hour minimum. No published turnaround for residential plan review |
| Pre-Approved Plans | Yes - one free City ready-build detached ADU plan set (under 600 sq ft) with a choice of slab or raised foundation and gable or shed roof, downloadable in English and Spanish; the City says it expedites building review. A gable roof needs a stamped truss package at submittal |
Get Free ADU Quotes in Salem
Tell us about your project and we'll pass it to ADU builders serving Salem. Free, no obligation — you choose who to work with. We don't have builders in every area yet; if nobody covers yours, we'll email you to say so.
Takes about a minute.
Up to 5 independent local ADU builders — never more, and we tell them nothing you don't submit here.
Compare quotes, verify license & insurance, hire (or don't). No spam either way.
🔒 Your info is secure. We share it only with contractors quoting your project. No spam, no obligation.
Just browsing? Search ADU builders near you by ZIP code.
Construction Costs [13]
Building an ADU in Salem typically costs $170,000-$330,000 ($175-$275 per sq ft); a garage conversion runs $90,000-$160,000.
See what this means for your lot — ask Salem ADU builders for a quote →
| Average Build Cost | $170,000-$330,000 |
| Cost per Sq Ft | $175-$275 |
| Garage Conversion | $90,000-$160,000 |
| Prefab ADU (Installed) | $120,000-$230,000 |
Finance Your ADU Project
Most ADU projects are funded through HELOCs, construction loans, or cash-out refinancing. Compare rates from top lenders.
Some links on this page are affiliate links. We may earn a commission at no extra cost to you. Learn more
Rental Income Potential [14][15]
A 2-bedroom ADU in Salem rents for around $1,400-$1,800/mo, an estimated About 4-8% gross rental yield before expenses at Sept 2026 median rents of $1,100 (1 BR) to $1,399 (2 BR) per month on a $170,000-$330,000 build; long-term tenancy only.
| Avg Rent (1 Bedroom) | $1,100-$1,400/mo |
| Avg Rent (2 Bedroom) | $1,400-$1,800/mo |
| Short-Term Rental | No. SRC 700.006(b)(1) and (c)(1) (Ord. |
| Est. Annual ROI | About 4-8% gross rental yield before expenses at Sept 2026 median rents of $1,100 (1 BR) to $1,399 (2 BR) per month on a $170,000-$330,000 build; long-term tenancy only |
Explore Prefab ADU Options
Prefab ADUs can save 20-40% vs. traditional construction and cut build time in half.
Some links on this page are affiliate links. We may earn a commission at no extra cost to you. Learn more
Recent Law Changes
What's Changed Recently
- Verified Sept 20, 2026 against the City's ADU page, Middle Housing page, HB 2001 FAQ, the FY2027 Fee Schedule (Section 3) and the FY2026/27 SDC worksheet; the Municode text of SRC 700.007 was behind a bot wall, so setback figures remain unconfirmed and are marked as such
- July 1, 2026: the FY2026/27 SDC worksheet again states 'Accessory Dwelling Units are exempt from System Development Charges'; a new single-family home pays about $33,900 in Parks, Transportation, Storm, Water and Sewer SDCs, an ADU pays $0. The waiver began July 1, 2019 as a five-year measure (originally set to end June 30, 2024) and has been continued
- February 2026: the City adopted the ICC February 2026 Building Valuation Data for permit valuation ($175.92 per sq ft for wood-frame one- and two-family construction, Type VB); the FY2027 building permit tiers are unchanged from FY2026
- HB 2138 (2025 session, operative Jan 1, 2027): voids CC&Rs that restrict ADUs, lets middle housing be built on lots that already have an ADU, bars traffic studies and exactions for small infill, and directs LCDC to adopt statewide ADU design-standard rules by Jan 1, 2028 - expect Salem code amendments
- ORS 197.312(5) has been renumbered ORS 197A.425: cities may not require owner-occupancy or off-street parking for an ADU; Salem's code already complied
- March 16, 2022 (Ord. 13-21, adopted Jan 24, 2022): Salem's HB 2001 middle-housing code took effect. ADUs stayed at one per lot, 900 sq ft or 75% of the main house, and only with a detached single-family house; new SRC 700.006 bars accessory short-term rentals in an ADU or on any lot with an ADU
Tips for Building an ADU in Salem
- Cost basis: build ranges are from a Salem-specific 2026 industry cost guide (detached $170,000-$330,000, garage conversion $90,000-$160,000, prefab $120,000-$230,000, $175-$275 per sq ft); rents are Zumper Salem medians dated Sept 19, 2026 ($1,100 1 BR, $1,399 2 BR), with the top of each range allowing for a new detached unit
- Worked permit example (FY2027): a 600 sq ft ADU valued at $175.92/sq ft is $105,552, so the building permit is $668.70, plan review $434.66, state surcharge $80.24 - about $1,184 before electrical, plumbing (about $17.50 per fixture) and mechanical permits; a 900 sq ft unit is about $1,554 before trade permits. The Building Official makes the final valuation call
- Start with a utility map and easement check from Development Services (503-584-4646) and the residential water-meter sizing worksheet; the second house must have adequate water pressure and an upsized meter changes your water/sewer charges
- The free ready-build plans are the fastest route: download them, pick slab or raised foundation and gable or shed roof, draw your site plan on sheet 01, and submit with the residential permit application. Choosing the gable roof means ordering a stamped truss package before you apply
- Plan on long-term tenants only: an accessory short-term rental is not allowed in an ADU or on a lot that has one (SRC 700.006), and ADU tenancies must be 30 days or longer
- If your property is in an HOA whose covenants bar ADUs, HB 2138 makes those restrictions unenforceable from Jan 1, 2027
- Cost basis (2026-09-20 re-verification): short term allowed: No. SRC 700.006(b)(1) and (c)(1) (Ord. 13-21, effective March 16, 2022) bar an accessory short-term rental in an ADU and on any lot that has an ADU, and SRC 700.007 requires tenancies of at least 30 days; the City says ADUs are meant for permanent housing whether or not rent is charged. A citywide short-term rental license does not change this
ADU Builders in Salem
Looking for an ADU builder in Salem? ADU projects need a contractor experienced with local zoning, the permit process, and utility connections — not every general contractor has built one. We match Salem homeowners with experienced local ADU contractors who provide free, no-obligation quotes. Getting at least three bids typically saves 20-40% on the same scope.
Sources & References
All data on this page is sourced from official government records and verified market data. View our full methodology.
- Create an Accessory Dwelling Unit on Your Property - City of Salem Planning Planning Department — Accessed 2026-09-20
- Middle Housing (ADU characteristics; March 2022 code changes) - City of Salem Planning Department — Accessed 2026-09-20
- Middle Housing: HB 2001 Frequently Asked Questions - City of Salem Planning Department — Accessed 2026-09-20
- Ordinance 13-21, Exhibit A - 2021 Unified Development Code Update (SRC 700.006 accessory short-term rentals; zone use tables), Council staff report Jan 24, 2022 ordinance — Accessed 2026-09-20
- Salem Revised Code 700.007 Accessory Dwelling Units - Municode (bot-walled Sept 2026; cited via the City ADU page) Municipal Code — Accessed 2026-09-20
- ORS 197A.425 (formerly ORS 197.312(5)) - accessory dwelling units State Law — Accessed 2026-09-20
- City of Salem Fee Schedule FY 2027, Section 3 Building and Safety (building permit tiers, plan review 65%, state surcharge 12%, trade permits) fee_schedule — Accessed 2026-09-20
- System Development Charges worksheet FY 2026/27, effective July 1, 2026 (ADUs exempt) - City of Salem fee_schedule — Accessed 2026-09-20
- Construction Valuation Table - ICC Building Valuation Data, February 2026 - City of Salem fee_schedule — Accessed 2026-09-20
- Building Permit and Land Use Fees - City of Salem Planning Department — Accessed 2026-09-20
- Development Fees / System Development Charges (ADU exemption) - City of Salem Planning Department — Accessed 2026-09-20
- Ready-Build Plans for Accessory Dwelling Units - City of Salem Planning Department — Accessed 2026-09-20
- How Much Does an ADU Cost in Salem in 2026? - ADU Wizard (industry cost guide) industry — Accessed 2026-09-20
- Zumper - Salem, OR rent research (median rents, data dated Sept 19, 2026) Market Data — Accessed 2026-09-20
- HUD Fair Market Rents (FY2026 summary for the Salem, OR MSA could not be retrieved in Sept 2026) Government Data — Accessed 2026-09-20
- Oregon 2025 Legislative Session Overview (HB 2138) - DLCD Government Data — Accessed 2026-09-19
Frequently Asked Questions
Can I build an ADU in Salem?
How much does an ADU cost in Salem?
How much can I rent an ADU for in Salem?
Do I need parking for an ADU in Salem?
How long does it take to get an ADU permit in Salem?
Ready to Build in Salem?
Get free, no-obligation quotes from top-rated ADU contractors in Salem.
Get Free Quotes →Build ADUs in Salem?
Homeowners read this page while planning, then ask us to connect them with a local builder. We pass those requests to builders who cover Salem — a flat fee only on the leads you accept, no subscription, and you contract directly with the homeowner.
See who's waiting in Oregon →