ADU’s.
Building an ADU in Bend: Your Complete Guide to Adding Value and Housing Options
By Justin Scott, Bend Real Estate Broker
If you're a Bend homeowner looking to add value to your property, create rental income, or provide housing for family members, an Accessory Dwelling Unit (ADU) might be the perfect solution. Having recently restored a 100-year-old home in downtown Bend and worked extensively with contractors throughout Central Oregon, I've seen firsthand how thoughtful additions can transform both property value and quality of life.
What is an ADU?
An Accessory Dwelling Unit is essentially a small, complete living space on your property that includes a kitchen, bathroom, and sleeping area. Think "granny flat," "mother-in-law suite," or "backyard cottage." In Bend, these units are becoming increasingly popular as our community grapples with housing challenges and families seek creative solutions for multigenerational living.
Why ADUs Make Sense in Bend
After spending over 15 years in leadership roles and now working in real estate, I've watched Bend's housing market evolve dramatically. ADUs offer several compelling benefits:
Rental Income: Generate steady cash flow to help with mortgage payments
Property Value: Well-designed ADUs typically increase overall property value
Family Flexibility: House aging parents, adult children, or visiting family
Community Impact: Add much-needed housing to our growing community
Bend's ADU Rules: The Essentials
The City of Bend has made ADUs relatively accessible, including some pre-approved options, but there are important regulations to understand:
Size and Number Limits
Maximum size: 800 square feet for your first ADU
Second ADU: If allowed, limited to 500 square feet
One primary rule: Only one ADU per residential lot (with some exceptions)
CITY OF BEND has some pre-approved ADU options (pictured below) - click here
Key Requirements
Setbacks: Detached ADUs must be at least 6 feet from the main house
No parking minimums: Unlike many cities, Bend doesn't require additional parking
Height limits: Follow your zoning district's standard height rules
No architectural matching required: Your ADU doesn't need to match your main house's style
Special Considerations
Historic District Properties: If your property is in Old Town Bend or Drake Park Historic Districts, you'll need additional approval from the Landmarks Commission. This adds time and design requirements but ensures compatibility with our community's historic character.
The Real Costs: What to Expect
From my experience managing our own major renovation project, I can tell you that costs add up quickly. Here's what Bend homeowners typically face:
Building Permits: Approximately $6,000+
System Development Charges (SDCs): Contact the city for current rates - these can be substantial - click here to see SDC site
Construction: Licensed builders estimate $225,000-$350,000+ for an 800-square-foot ADU
Important note: Units over 800 square feet are classified as duplexes, not ADUs, which means significantly higher fees (potentially $33,000+ in SDCs). Stay under 800 square feet to maintain ADU status.
Your Step-by-Step ADU Process
Based on my experience working with Bend's permitting process, here's your roadmap:
1. Verify Feasibility
Talk with an expert like Andrew Lawrence who has a ton of experience with new builds, ADU’s and additions - Click here for his website. Or simply give Andrew a phone call and tell him Justin recommended the call: (541) 951 - 3242. You can also see some of Andrew’s great work in the social space on Instagram - click here. IG @andrewbuildingbend
Then check zoning at Bend's Community Development Data Explorer
Work with Andrew to assess your lot size, utilities, and access. Andrew will help you consider what is possible and what is not possible.
Consider setbacks and any HOA restrictions. Again, a preliminary meeting with an expert like Andrew will be very helpful and informative. I strongly recommend a meeting with Andrew or another trusted local general contractor. I know a few, feel free to reach out if you’d like to be connected to others. My number is (541) 797 - 9939. Call me! I’d also be excited to hear about your project!
2. Plan and Design
Before hiring an architect, talk to a general contractor, as mentioned above, Andrew or another trusted contractor.
Hire an architect or use Bend's pre-approved plans
If in a historic district, plan for Landmarks Commission review
Keep under 800 square feet for ADU classification
3. Get Cost Estimates
Email building@bendoregon.gov for permit fee estimates
Contact development@bendoregon.gov for SDC calculations
Get construction bids from licensed contractors
4. Submit Applications
Apply through Bend's Online Permit Center
Expect 4-8 week processing time (longer for historic districts)
Include all required documents from the Residential Submittal Checklist
5. Construction and Inspection
Work with licensed contractors (required for electrical work)
Coordinate inspections throughout the build
Obtain Certificate of Occupancy
Key Resources and Contacts
Planning Division: planning@bendoregon.gov | (541) 388-5580 Ext. 3
Building Safety: building@bendoregon.gov | (541) 388-5580 Ext. 1
Development Services: development@bendoregon.gov | (541) 388-5580 Ext. 5
City of Bend ADU Resource Hub: bendoregon.gov/adu-resources-hub
Bend Chamber ADU Guide: bendchamber.org/bend-adu-guide
Final Thoughts: Making the Right Choice
Adding an ADU is a significant investment that requires careful planning, especially in Bend's unique market. From my perspective as both a real estate professional and someone who's tackled a major renovation project, success comes down to three things: thorough planning, working with experienced professionals, and understanding the true costs upfront.
If you're considering an ADU or any real estate investment in Bend, I'd love to help you think through the possibilities. Having worked with contractors, navigated city permitting, and seen the transformation that thoughtful improvements can bring to both properties and neighborhoods, I understand both the challenges and rewards of these projects.
Ready to explore your property's ADU potential? Let's grab coffee and talk about your goals. I'm here to help you navigate both the real estate market and the possibilities for your Bend home.
Justin Scott
Licensed Real Estate Broker | Varsity Real Estate
Oregon License No. 201257899
(541) 797-9939 | Justin@varsityoregon.com
When you're needing a break from your ADU explorations and/or build, let’s jump into my 1987 F250 and head out to Camp Sherman for some fly fishing!
