Deschutes County vs. City of Bend: Understanding the Differences in ADU Rules (2025 Update)

If you own property in Central Oregon, you’ve likely noticed a growing buzz around Accessory Dwelling Units (ADUs). These small, secondary homes — often built as backyard cottages, garage conversions, or standalone rentals — have become one of the most popular ways to expand housing options across the region.

But before you start planning your ADU project, it’s crucial to know that rules differ dramatically depending on whether your property is inside the City of Bend or in unincorporated Deschutes County.

Here’s what every Central Oregon homeowner should understand about the differences, opportunities, and limitations between Bend and Deschutes County ADU regulations in 2025.

ADU Rules Inside the City of Bend

Within Bend’s city limits, ADUs have become increasingly accessible thanks to the city’s effort to expand affordable housing options. Recent updates to Bend’s Development Code and Oregon’s statewide housing legislation have made it easier — and faster — for homeowners to build.

Key Benefits of Building an ADU in Bend:

• Wider eligibility: Most residential lots are now eligible for ADUs.

• Simplified design standards: Height, setback, and architectural requirements are more flexible than ever.

• No owner-occupancy rule: You don’t need to live on-site to build or rent an ADU.

• Streamlined permitting: The approval process is faster, and review fees have been reduced for some projects.

• Rental flexibility: Long-term rentals are fully allowed, and in certain zones, short-term rentals are possible with the right permits.

Building an ADU in Bend means access to city utilities (water, sewer, power), which often translates to fewer delays and lower development costs compared to rural properties.

ADU Rules in Unincorporated Deschutes County

Step just outside the Bend city limits, and the rules change significantly. In rural Deschutes County, ADUs are regulated by state land-use laws designed to protect farmland, forests, and natural resources.

While the county supports expanding rural housing options, the process is far more restrictive due to Oregon’s land-use planning system.

Here’s what you need to know about rural ADUs in 2025:

• Senate Bill 391 (SB 391) allows homeowners on certain rural lots to build one ADU — but only under specific conditions.

• Zoning and parcel size determine eligibility. For example, smaller parcels or lots zoned for exclusive farm or forest use may not qualify.

• Wildfire safety standards must be met, including defensible space and fire-resistant materials.

• Septic capacity must be verified — many rural homes rely on private septic systems that may require upgrades before adding an ADU.

• Proximity to urban growth boundaries matters: properties closer to city limits have more flexibility than those deep in rural zones.

While Deschutes County ADUs are possible, they often require more planning, more approvals, and higher upfront costs than urban ones. However, they also offer privacy, space, and the potential for long-term family housing solutions.

Choosing Where to Build: City vs. County

If you’re deciding between building your ADU inside Bend or in unincorporated Deschutes County, here’s a quick comparison:

Factor	City of Bend	Deschutes County (Unincorporated)
Permitting Process	Streamlined, faster approvals	More complex, multiple agency reviews
Utilities	City sewer, water, power	Often private septic and wells
Design Flexibility	Modern, flexible design standards	Stricter requirements tied to rural land use
Rental Options	Long-term and some short-term (with permit)	Primarily long-term only
Cost	Lower upfront infrastructure costs	Higher costs due to septic and utility setup
Land Size Requirements	Smaller city lots qualify	Larger rural parcels needed

Ultimately, your decision will depend on your property’s location, long-term goals, and budget. If you want a rental or guest unit built quickly and efficiently, the City of Bend is likely your best bet. But if you’re envisioning a family compound or private retreat, a rural ADU in Deschutes County might fit better — as long as it meets zoning requirements.

Why This Matters for Central Oregon Homeowners

Oregon’s housing laws are evolving fast — and Deschutes County and Bend are at the center of that shift. As both urban and rural communities grapple with housing shortages, ADUs have become a vital tool in balancing growth with livability.

Whether you’re inside the city or in the county, understanding your ADU options can help you:

• Build multi-generational housing for family

• Create passive rental income

• Increase your property’s resale value

• Contribute to Central Oregon’s housing resilience

Whether you live in bustling Bend or the open spaces of Deschutes County, the 2025 ADU rule changes are opening doors for homeowners who want to create more space and long-term value. But the path to building one varies — so partnering with a local expert who understands Central Oregon housing laws can save you months of frustration and thousands in unexpected costs.

FAQs

Q: Can I build an ADU on my rural property near Bend?

Possibly — under Oregon Senate Bill 391, one ADU is allowed on qualifying rural lots, but it must meet strict fire and zoning standards. Always confirm eligibility with Deschutes County Planning before starting design work.

Q: What’s the main advantage of building an ADU inside Bend’s city limits?

Inside Bend, you’ll enjoy simplified permits, access to city utilities, and lower construction costs. Projects move faster, and most residential properties are now eligible for an ADU.

Q: Are ADUs in Deschutes County allowed as rentals?

Generally, long-term rentals are allowed, but short-term rentals (under 30 days) may be restricted depending on zoning. Always check with the county’s Planning Division for updates.

Q: Does wildfire risk affect ADU approval in rural areas?

Yes. Rural properties must comply with Oregon’s wildfire hazard mitigation rules, which include vegetation management and using noncombustible exterior materials.

Q: Can I build multiple ADUs on one rural property?

No — SB 391 limits you to one ADU per parcel, and only if it meets the necessary land-use and environmental standards.