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ADU ROI Calculator — Oregon

Oregon has strong statewide ADU protections and a robust Portland market. The state's 2019 HB 2001 allows ADUs on all single-family lots statewide, and Portland has one of the most ADU-friendly permit environments in the country with streamlined approvals and a strong rental market.

Typical Project Cost

$150,000–$280,000

Typical Monthly Rent

$1,300–$2,300/mo

Cap Rate Range

7–11%

Break-Even Range

8–14 years

Oregon has statewide rent control limiting increases to 10% annually, which provides income stability but caps upside. Portland's ADU market is mature — many homeowners have been building ADUs for 15+ years, creating a well-understood approval process.
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ADU Rental Income by City — Oregon

Use these figures as a starting point when entering your expected monthly rent above.

City1BR ADU Rent2BR ADU RentAvg Build Cost
Portland$1,400–$2,200/mo$1,900–$2,800/mo$160K–$270K
Eugene$1,100–$1,600/mo$1,400–$2,000/mo$130K–$210K
Bend$1,400–$2,000/mo$1,800–$2,600/mo$170K–$270K
Salem$1,000–$1,500/mo$1,300–$1,900/mo$120K–$200K

Oregon ADU ROI — Frequently Asked Questions

What is a good ADU ROI in Oregon?

Portland ADUs typically achieve 8–11% cap rates. Eugene and Salem ADUs yield 7–10%. Oregon's rent control limits annual rent increases to 10%, which stabilizes income but limits rapid growth scenarios.

Does Oregon's rent control apply to ADUs?

Yes. Oregon's statewide rent stabilization law (ORS 90.600) applies to most ADU rentals in cities over 15,000 residents. Annual rent increases are capped at 10% or 7% + CPI, whichever is lower. Newly constructed units are exempt for the first 15 years.

How much does it cost to build an ADU in Portland?

Portland ADU costs range from $120,000–$180,000 for garage conversions to $220,000–$320,000 for new detached builds. Portland has a streamlined permit process with pre-approved plan options that can reduce design costs and approval timelines.