Zoning & Size Limits
| Requirement | Portland, OR | Salem, OR |
|---|
| Allowed Zones | All residential zones | Accessory to detached single-family dwellings in residential |
| Max Size (Detached) | 800 sq ft or 75% of primary (whichever is less) | 900 sq ft (or 75% of the main building gross floor area, whichever is less) |
| Max Size (Attached) | 800 sq ft or 75% of primary living area (same cap as detached; no separate 1,000 sq ft limit) | 900 sq ft (or 75% of the main building gross floor area, whichever is less) |
| Max Height | 20 ft (outside setbacks); 15 ft (within setbacks) | Confirm with Salem Planning (SRC 700.007) |
| Parking Required | Optional | Not required (Oregon HB 2001 prohibits ADU-specific parking |
| Owner Occupancy | Not required | Not required |
Setback Requirements
| Setback | Portland, OR | Salem, OR |
|---|
| Rear Setback | 5 feet | Confirm with Salem Planning (SRC 700.007) |
| Side Setback | 0 feet with easement | Confirm with Salem Planning (SRC 700.007) |
| Front Setback | 0 feet (alley lot) | Confirm with Salem Planning (SRC 700.007) |
Permits & Timeline
| Detail | Portland, OR | Salem, OR |
|---|
| Permit Timeline | 30-45 days | 45-65 days |
| Permit Fees | ~$1,900 permit and plan review; plus System Development Charges (SDCs) of about $19,000 - see impact fees | $1,800-$3,000 |
| Impact Fees | SDCs total roughly $18,900 for a detached ADU (Parks ~$7,100 | Minimal ($200-$400) |
| Pre-Approved Plans | Extensive pre-approved library available | Available for detached ADUs |
Construction Costs
| Cost | Portland, OR | Salem, 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
| Rental | Portland, OR | Salem, 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 Rentals | Yes, with registration | Permitted with license |
| Est. ROI | 6-9% annual return | 7-9% 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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