Frequently Asked Questions

Everything you need to know about building an ADU in Portland
What exactly is an ADU and how can it add value to my property?

An Accessory Dwelling Unit (ADU) is a secondary housing unit on your property—either detached, attached, or converted from existing space like a garage. ADUs provide incredible ROI through rental income potential ($1,500-$3,000+ monthly), multigenerational living flexibility, and typically boost property values by 20-30%. They're perfect for aging-in-place solutions, guest accommodations, or creating passive income streams.

Are ADU's legal in all Portland neighborhoods?

Yes! Thanks to Portland's Residential Infill Project, ADUs are now allowed in all residential zones throughout the city. Each base zone has specific allowances and design standards, but the opportunity exists citywide. We navigate these regulations daily and ensure your ADU meets all local requirements.

How large can my ADU's be?

Detached ADUs can be up to 75% of your primary dwelling's living area or 800 square feet, whichever is less. Height is typically limited to 20 feet, with specific setback requirements from property lines. We'll assess your lot during our free site visit to determine the optimal size and placement for your ADU.

What setbacks and height limits apply to detached ADUs?

Most single-family zones require a minimum 5 ft rear and side setback for a detached ADU. The maximum height is 20 ft measured to the midpoint of the roof (or the height of the main house—whichever is lower). If you match the primary home’s roof pitch, you may go a bit higher, but the city caps overall wall length and window placement to protect neighbors’ privacy.

Do I need to provide extra off-street parking for an ADU?

No. Portland & Vancouver removed the parking requirement for ADUs city-wide. As long as you don’t trigger other land-use reviews (e.g., environmental zones), you can build an ADU without adding a new driveway or parking pad. Street parking impacts are considered negligible for one additional dwelling on a residential lot.

What size ADU can I build?

ADU size limits vary by location and lot size, but typically range from 400 to 1,200 square feet. We'll help determine the maximum allowable size for your property during the consultation.

How much does building an ADU cost in 2025?

Turn-key ADU projects typically range from $180,000-$350,000, depending on size, finishes, and site conditions. This includes design ($15,000-25,000), permits ($8,000-15,000), site work ($20,000-40,000), construction ($120,000-250,000), and finishes. We provide fixed-price proposals so you know exactly what to expect.

Do you offer financing or connect clients with lenders?

Yes! We work with local credit unions and lenders who understand ADU projects and can factor future rental income into debt-to-income calculations. Popular options include HELOCs, cash-out refinancing, and construction loans. We'll connect you with trusted lending partners during your consultation.

Will my property tax increase?

Yes—property taxes will rise, but in Oregon and Washington the bump is usually small next to ADU rental income. Oregon’s “Changed Property Ratio” adds only part of the new value, while Washington taxes the ADU as new construction at the local levy rate. Expect a few hundred to a couple-thousand dollars extra per year, yet rents around $1.4k–$3k+ per month still leave most owners comfortably cash-flow positive.

What hidden costs (like utility upgrades or impact fees) should I budget for?

Common extras include utility line upgrades (larger water or electrical service, $2k–$5k), sewer connection fees ($1k–$3k), and System Development Charges (SDCs). Portland currently waives SDCs for ADUs used as long-term housing, but you’ll pay them if you register as a full-time short-term rental. Soil remediation, tree removal, or steep-slope foundations can also add 5–10 % to your budget. We flag these in your feasibility report so nothing creeps up later.

Can I customize the design?

Yes! While we offer pre-designed models, each can be customized to meet your specific needs and preferences while maintaining compliance with local regulations.

What types of materials do you use?

We use high-quality, durable materials that meet or exceed building codes. Our standard packages include premium finishes, and we offer various upgrade options.

What is the typical permitting timeline?

Standard review takes 8-12 weeks from submittal to Ready-to-Issue. This includes plan review, life-safety evaluation, and coordination with various city departments. We handle all permit coordination, checksheet responses, and city communications to keep your project moving efficiently through the approval process.

How long does construction take once permits are approved?

Detached new-build ADUs typically take 2-4 months to complete. We build in weather contingencies and coordinate all trades to maintain efficient timelines. You'll receive regular progress updates and milestone communications throughout construction.

Do you handle everything in house?

Yes! We're a complete design-build firm handling feasibility studies, architectural design, structural engineering, permit submittal, construction, and final inspections. You'll work with one dedicated team from concept to completion, ensuring seamless communication and accountability.

Which city inspections happen during the build, and who schedules them?

Code requires sequential inspections: (1) Footing/Foundation, (2) Underground Plumbing/Electrical, (3) Framing & Shear Walls, (4) Rough-in MEP, (5) Insulation & Air Barrier, and (6) Final Building + Life-Safety. Premier ADU Builders schedules every inspection, meets the inspector on-site, and sends you a same-day summary so you’re never chasing paperwork.Yes! We're a complete design-build firm handling feasibility studies, architectural design, structural engineering, permit submittal, construction, and final inspections. You'll work with one dedicated team from concept to completion, ensuring seamless communication and accountability.

How often will I get progress updates while my ADU is under construction?

We keep you in the loop with regular progress snapshots—photos, milestone checklists, and a look at what’s coming next—and invite you on site whenever the build reaches key stages. We’re always happy to hop on a call if you’d like more detail. As a full-service design-build firm, we take care of everything from feasibility and plans to permits, construction, and final sign-offs, so you work with one dedicated team from start to finish.

Can I rent my ADU on Airbnb?

Yes, with proper permits! You'll need either a Type A or Type B short-term rental permit from the city. Without a resident host, you're limited to 95 rental nights annually. Many clients successfully operate ADUs as both long-term rentals and occasional short-term accommodations.

How do I start the process?

Getting started is simple: (1) Book a free site visit where we assess your property and discuss your goals, (2) Receive a detailed, fixed-price proposal within one week, and (3) Sign our design-build agreement to begin architectural design. Most clients move from initial consultation to permit submittal within 6-8 weeks.

Do I need to live on the property to build or rent out an ADU?

For long-term rentals (30 + days), owner-occupancy is not required in Portland. If you plan short-term rentals (Airbnb, < 30 days) you must either (a) live on-site at least 9 months a year (Type A permit) or (b) secure a conditional Type B permit—which is rare for detached ADUs.Getting started is simple: (1) Book a free site visit where we assess your property and discuss your goals, (2) Receive a detailed, fixed-price proposal within one week, and (3) Sign our design-build agreement to begin architectural design. Most clients move from initial consultation to permit submittal within 6-8 weeks.

Can the ADU ever be sold separately from my main house in Oregon?

Generally, no. Detached ADUs remain part of the same tax lot and can’t be deeded off like a condo without a formal partition, condo conversion, and HOA creation—an expensive, multi-year process. Most lenders also prohibit separate resale. If you’re banking on selling the ADU by itself, talk to a land-use attorney first; it’s uncommon and often infeasible.Getting started is simple: (1) Book a free site visit where we assess your property and discuss your goals, (2) Receive a detailed, fixed-price proposal within one week, and (3) Sign our design-build agreement to begin architectural design. Most clients move from initial consultation to permit submittal within 6-8 weeks.