An ADU, or Accessory Dwelling Unit, is a secondary living space located on the same property as a primary residence. Often called granny flats, in-law suites, or backyard cottages, ADUs include independent facilities for cooking, sleeping, and sanitation. They provide flexible living options for family members, guests, long-term renters, or personal use, while often increasing a property's value. Oregon law supports homeowners' ability to build ADUs, and Medford's development code provides several options for attached and detached units, garage conversions, and other qualifying projects.

ADU costs in Medford generally start around $25,000 for a compact 300 to 400 square foot home office or studio, run from roughly $100,000 for a 500 to 600 square foot one-bedroom unit, and reach $150,000 and up for a 700 to 900 square foot premium mother-in-law suite. Project timelines scale with size and complexity, from about 2 to 3 weeks for a studio to 4 to 6 weeks for a full suite. Per square foot, the smaller studio is the most economical because it omits a kitchen and bathroom; once you add a kitchenette, a bath, and higher-grade finishes, the costs can rise into the range of roughly $165 to $300 per square foot depending on the complexity of the design and quality of materials. 

A single per-square-foot figure can be misleading: the right number for your project depends on whether it includes a kitchen, a bathroom, and the finish level you choose. For an exact quote tailored to your lot, design, and finishes, contact us.

New ADU construction typically takes from 3 to 6 weeks, though the timeframe can vary with the complexity and size of the project. 

Probably. Oregon law requires most residential zoning districts to allow accessory dwelling units, and Medford permits ADUs on most residential properties. However, the specific requirements depend on factors such as your zoning district, lot configuration, setbacks, existing structures, and any applicable overlays. We can review your property and explain the options available before you begin designing your ADU.

Yes. All ADUs in Medford require permits and inspections to ensure compliance with local building and development codes. Depending on your property's location and characteristics, additional reviews may also apply. As part of our design-build process, we manage the permitting process, coordinate with the City of Medford, and help ensure your project moves through approval as efficiently as possible.

ADUs in Medford are limited to a maximum of 900 square feet. Depending on the type of project, additional limits based on the size of the primary residence may apply. New detached ADUs and attached additions are generally limited to 75% of the primary home's gross floor area, while conversions of existing living space within the home are limited to 50%, with both subject to the 900-square-foot maximum. If your property is located outside the Medford city limits these additional restrictions may not apply.

ADUs are generally intended for residential use, including long-term housing, guest accommodations, or personal use as a home office, studio, or similar space.

If you plan to use your ADU as a short-term rental (such as Airbnb or VRBO), Medford requires a vacation rental license and additional city regulations may apply. 

Be Aware:  f you participate in the City's permit-ready ADU program or receive certain city incentives, you may also be required to agree not to use the ADU as a short-term rental for a 10 Years We recommend reviewing your intended use before finalizing your plans. 

ADUs can be financed in a variety of ways, including savings, home equity loans, home equity lines of credit (HELOCs), construction loans, personal loans, or by refinancing an existing mortgage to access home equity. The right financing option depends on your budget, available equity, and the scope of your project.

Whenever possible, we recommend using Rogue Community Credit Union to support the local economy.

Yes. The City of Medford offers five permit-ready ADU plans ranging from 364 to 896 square feet, including studio, one-bedroom, two-bedroom, and above-garage designs. Using one of these plans can eliminate the city's plan review fee and reduce both design costs and permitting time, however there are some drawbacks.

First, any modifications may require additional plan review fees. But most importantly, participants must agree not to use the ADU as a short-term rental for 10 years.  

We recommend careful consideration before using a permit ready plan, as it not only limits your ability to repurpose the dwelling for the next decade, but also restricts your ability to customize it for immediate use.  We're happy to help you compare both options.