Portland vs Salem: ADU Rules Compared

Side-by-side comparison of ADU zoning rules, costs, and rental potential. Updated 2026.

9/10Portland Score
vs 
7/10Salem Score

Zoning & Size Limits

RequirementPortland, ORSalem, OR
Allowed ZonesAll residential zonesResidential single-family zones
Max Size (Detached)800 sq ft or 75% of primary (whichever is less)1,050 sq ft
Max Size (Attached)1,000 sq ft850 sq ft
Max Height20 ft (outside setbacks); 15 ft (within setbacks)35 feet
Parking RequiredOptional1 space (optional)
Owner OccupancyNot requiredNot required

Setback Requirements

SetbackPortland, ORSalem, OR
Rear Setback5 feet12 feet
Side Setback0 feet with easement3 feet
Front Setback0 feet (alley lot)15 feet

Permits & Timeline

DetailPortland, ORSalem, OR
Permit Timeline30-45 days45-65 days
Permit Fees$1,500-$2,500$1,800-$3,000
Impact FeesMinimalMinimal ($200-$400)
Pre-Approved PlansExtensive pre-approved library availableAvailable for detached ADUs

Construction Costs

CostPortland, ORSalem, OR
Avg Build Cost$150,000-$300,000$130,000-$260,000
Cost Per Sq Ft$125-$250$125-$250
Garage Conversion$70,000-$160,000$60,000-$150,000
Prefab ADU$100,000-$240,000$90,000-$210,000

Rental Income Potential

RentalPortland, ORSalem, OR
1BR Avg Rent$1,400-$1,900/mo$1,100-$1,550/mo
2BR Avg Rent$1,800-$2,600/mo$1,400-$2,000/mo
Short-Term RentalsYes, with registrationPermitted with license
Est. ROI6-9% annual return7-9% annual return

Which City Is Better for ADUs?

Portland scores 9/10 while Salem scores 7/10 on our ADU-friendliness index. Portland edges ahead overall. Both cities offer viable ADU development opportunities — the best choice depends on your specific property, budget, and goals.

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