Can You Build an ADU in Portland?
Yes — Portland is governed by Oregon's statewide ADU law, which limits what the city can restrict. A 700 sq ft detached ADU here runs about $176,500–$288,500.
Construction in Portland runs about 6% above the Oregon average, so budget toward the higher end of these ranges.
Detached ADU (700 sq ft)
$176,500–$288,500
Garage conversion (400 sq ft)
$55,000–$100,500
Statewide protection
Yes
What applies in Portland
Oregon's statewide standard (ORS 197.312 (SB 1051, 2017; HB 2001, 2019)) is the starting point, but parcel-level rules, fees and design review are set locally. Confirm those details with Portland before design.
Estimate your Portland ADU cost
Your property
ADU typeEstimated cost in Oregon
$176,500 – $288,500
≈ $252–$412/sq ft turnkey · midpoint $232,500
- $158,000
- Construction
- $41,900
- Design & permits
- $32,600
- Site work
- iSize set locally. This state leaves ADU size limits to your city — typical caps run 600–1,200 sq ft. Check your local code.
- ✓No extra parking likely required. Cities cannot require additional off-street parking for an ADU under Oregon's statewide rules.
- ✓No owner-occupancy requirement. You can rent out both the main home and the ADU — you do not have to live on the property.
- ✓Lot has room. A 700 sq ft ADU uses about 12% of your 6,000 sq ft lot — comfortably within typical coverage limits.
Rule basis: ORS 197.312 (SB 1051, 2017; HB 2001, 2019)
If you rent it out
$1,150–$1,875
est. rent/mo
7.9%
gross yield
13.7 yrs
payback
~$17,019/yr after a 7% vacancy allowance, before financing & maintenance.
Financed over 20 yrs at 7.5%, the build is about $1,873/mo — vs ~$1,525/mo in estimated rent.
Estimates are for planning only and are based on regional construction-cost indices and published statewide ADU statutes. Local ordinances, lot conditions and contractor pricing vary — always confirm with your city planning department and a licensed contractor.
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Other Oregon cities
Estimates are for planning only and are based on regional construction-cost indices and published statewide ADU statutes. Local ordinances, lot conditions and contractor pricing vary — always confirm with your city planning department and a licensed contractor.