Salem allows ADUs in residential zones with reasonable setback requirements and generous size limits. The city has streamlined the approval process, making ADU development more accessible than in many comparable markets.
Zoning & Size Requirements
| Allowed Zones | Residential single-family zones |
| Max Size (Detached) | 1,050 sq ft |
| Max Size (Attached) | 850 sq ft |
| Max Size (JADU) | 700 sq ft |
| Max Height | 35 feet |
| Max Units | 1 ADU per lot |
Setback Requirements
| Rear Setback | 12 feet |
| Side Setback | 3 feet |
| Front Setback | 15 feet |
| Parking Required | 1 space (optional) |
| Owner Occupancy | Not required |
| Min Lot Size | 4,500 sq ft |
Permit Process & Fees
| Approval Process | Land Use Compatibility Statement + building permit |
| Review Timeline | 45-65 days |
| Permit Fees | $1,800-$3,000 |
| Impact Fees | Minimal ($200-$400) |
| Plan Check | 2-3 weeks |
| Pre-Approved Plans | Available for detached ADUs |
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Construction Costs
| Average Build Cost | $130,000-$260,000 |
| Cost per Sq Ft | $125-$250 |
| Garage Conversion | $60,000-$150,000 |
| Prefab ADU (Installed) | $90,000-$210,000 (installed) |
Finance Your ADU Project
Most ADU projects are funded through HELOCs, construction loans, or cash-out refinancing. Compare rates from top lenders in minutes.
Compare ADU Financing Options →Rental Income Potential
| Avg Rent (1 Bedroom) | $1,100-$1,550/mo |
| Avg Rent (2 Bedroom) | $1,400-$2,000/mo |
| Short-Term Rental | Permitted with license |
| Est. Annual ROI | 7-9% annual return |
Explore Prefab ADU Options
Prefab ADUs can save 20-40% vs. traditional construction and cut build time in half. Compare top prefab manufacturers.
Compare Prefab ADUs →Recent Law Changes
What's Changed Recently
- 2024: Streamlined LUCS process for ADU approvals
- 2023: Increased max detached ADU size from 950 to 1,050 sq ft
- 2024: Added pre-approved ADU plan database
- 2023: Reduced setback requirements for corner lots
Tips for Building an ADU in Salem
- Salem's capital city location provides stable rental market
- Lower property costs than Portland/Eugene = better cash flow potential
- Short-term rental licensing available; explore income options
- Pre-approved plans can accelerate timeline significantly
Frequently Asked Questions
Can I build an ADU in Salem?
Yes. ADUs are allowed in Residential single-family zones in Salem. The maximum size for a detached ADU is 1,050 sq ft. No owner-occupancy is required.
How much does an ADU cost in Salem?
ADU construction in Salem typically costs $130,000-$260,000. Garage conversions run $60,000-$150,000, and prefab ADUs cost $90,000-$210,000 (installed).
How much can I rent an ADU for in Salem?
Average ADU rents in Salem are $1,100-$1,550/mo for a 1-bedroom and $1,400-$2,000/mo for a 2-bedroom unit.
Do I need parking for an ADU in Salem?
1 space (optional). Check with Salem planning department for the latest Oregon ADU parking rules, as many states have relaxed requirements in recent years.
How long does it take to get an ADU permit in Salem?
The permit review timeline in Salem is 45-65 days. Fees range from $1,800-$3,000.
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