7 Benefits of Building An ADU In Bend

There are many benefits to building an ADU in Bend. From the income generating potential to the additional square footage, here we’ll cover several of the top benefits of building an ADU, plus share a few helpful resources for property owners who are ready to start the process of building an ADU in Bend. 

Before we dive in, let’s clarify what we mean by ADU.

What Is An ADU?

An ADU, or accessory dwelling unit, is a secondary living space built on a property with another larger, or primary, dwelling unit. Granny flat, mother-in-law suite, guest suite, and carriage house are all alternative names used to refer to an ADU. 

To be considered an ADU, the dwelling needs to have its own separate entry, include everything someone would need to live in the space on their own, and be a smaller size than the main unit on the same property. This means an ADU typically has a kitchen or kitchenette, a bathroom, and a sleeping area at a minimum. The sleeping space doesn’t need to be separated by a door. An ADU can be studio apartment style with all living areas - kitchen, living, bedroom, combined in one room. 

Types of ADUs

There are several different types of ADUs, each with its own benefits.

Detached ADU

A detached ADU is a completely separate structure built on the same property as the primary residence. The detached ADU does not share any walls with the primary unit. Building this type of ADU does not require updates to the primary unit; and therefore, includes less interruption to daily life for anyone living in the primary unit while the ADU is being built.

Garage Conversion ADU

A garage conversion ADU entails renovating an existing garage space into the accessory dwelling unit. This option is likely one of the most cost effective options and may be worth considering for those with smaller lot sizes; however, it does mean losing your garage space.

Over Garage ADU

Another garage option to consider is the over the garage ADU. This ADU is built on top of the garage of the primary unit. It can be done with both attached or detached garages. This option is another to consider for those building an ADU in a tight space. It also keeps your home’s footprint the same, which is a benefit for those who’d like to maintain their outdoor living area while adding livable space to their home.

Attached ADU

An attached ADU is built onto the existing dwelling unit so that the units have a shared wall. Often this is an addition to the existing residence; however, an attached ADU can also be achieved by renovating a portion of the existing home keeping the home’s footprint the same. An attached ADU can be beneficial to meet city regulations like setback requirements or when building on a smaller lot.

Basement ADU

A basement ADU is a basement that has been converted to an ADU. Though basements are not common in Central Oregon, for those homeowners that do have a basement, this can be an appealing option as it eliminates the need for certain construction elements such as pouring new foundation. It also keeps the primary residence’s foot print the same similar to the garage conversion ADUs.

Top Benefits of Building an ADU in Bend

No matter what type of ADU you build, there are many benefits of building an ADU in Bend and elsewhere in Central Oregon. Many of these benefits apply no matter where you are considering building an ADU; however, always be sure to check local laws and requirements to ensure any ADU you build is compliant and you will reap all the benefits of building an ADU.

Benefit #1: Income Generation

One of the top benefits of building an ADU in Bend is income generation potential. This potential applies whether you use your ADU as a short term rental or a long term rental property.

Short Term Rental

According to AirROI, the average short term rental (STR) in Bend generated $38,495 in 2025. While actual income varies based on occupancy rates, property size, and amenities, you can use this number to gauge how much income you may make using your ADU as a short term rental.

If you are considering two ADUs on your property (which is allowed in Bend) your potential for short term rental revenue is even higher. 

For property owners looking to take advantage of this benefit of building an ADU in Bend, you’ll need to acquire the necessary short term rental permits and fees. You can view all the requirements on the city of Bend’s website. 

Also note, Bend has restrictions on density of short term rentals, so you’ll want to confirm your property is eligible if short term rentals are the plan for your ADU. You can check eligibility using Bend’s short term rental eligibility map.

Even if your property doesn’t qualify for a short term rental permit, you may still be able to generate some income using your ADU for short term rentals as long as you rent out your ADU no more than four times a year and for less than 30 days total.

Long Term Rental 

Another option for income generation, is to use your ADU as a long term rental unit. This means renting your ADU for 30 or more consecutive days. 

As a long term rental you can expect more consistent income than you would using your ADU as a short term rental. You’ll also be contributing to a solution to Bend’s current housing challenges by offering another housing option.

Other Rental Type

Depending on how your ADU is set up, you may also have the opportunity to rent your ADU for short spans of time or for other purposes. For example, you might consider renting your space to local photographers to use as studio space. There are many ways beyond traditional rentals to generate income, one of the many benefits of building an ADU in Bend.

Benefit #2: Additional Living Space

For Bend property owners looking to maximize their useable living space, an ADU (or two) is an appealing option. 

An ADU adds additional living space to your property that can be used in a number of ways. Depending on your needs an ADU can be used as a studio or craft space, an exercise room, a home office, and much more.

If you choose to build a detached ADU you can add this additional space with minimal disruption to your current living arrangement. When you add on to your home with an over the garage ADU or convert your garage or basement, you’ll be able to add additional square feet to your home without expanding your home’s current footprint. 

However you choose to add an ADU, you’ll end up with more space, one of the greatest benefits of building an ADU in Bend.

Benefit #3: Multigenerational Living Space

Multigenerational living is on the rise, not only in Bend, but across the U.S. One of the many benefits of building an ADU in Bend is the ability to meet the needs of a multigenerational home with a separate living space for adult children or older relatives to enjoy independence and privacy while also taking full advantage of all the perks of multigenerational living.

With current housing affordability issues in Bend, we expect to see multigenerational living spaces continue to grow as adult children choose to live with their parents for longer periods of time. The multigenerational living space that is created with an ADU may make homes with an ADU in Bend even more appealing over time.

Benefit #4: Separate Space To Host Visitors

Many Bend residents have migrated to the area from other locations around the U.S. This means it’s common for residents of Bend to have family and friends visit from out of town. What better benefit of building an ADU in Bend than to host your loved ones comfortably?

When you build an ADU, it’s almost like your friends and family have their own Airbnb while staying at your home. They have privacy and their own space when needed, and likewise for their hosts. It’s a win-win for everyone when you can host guests in an ADU, and a significant benefit of building an ADU in Bend.

Benefit #5: Private Living Space For Caretakers

For many families, a live in caretaker is a necessity either for aging relatives or a caretaker for children, such as an au pair. Just as an ADU provides private and independent space for multigenerational living, it also provides these same benefits for live-in caretakers. 

This separate living space for caretakers is another of the many benefits of building an ADU in Bend.

Benefit #6: Flexibility

As is evident in these benefits, an ADU can be used for a wide variety of purposes, from a home office or home studio to a short term rental and a multigenerational living space to a home gym. The flexibility of an ADU is one of the top benefits of building an ADU in Bend. 

This flexibility means how you use your ADU can change as your needs change. What might start off as a long term rental unit can change into an apartment for your adult children. What was once your home office can easily be converted into a residence for a live in caretaker. 

An ADU can even become your primary residence as the property owner and your primary residence can be rented out to generate even greater income. 

At PGC Building + Design we’ve even helped clients to build an ADU on their property as their initial residence when it was used as their vacation home, then added a primary residence at a  later date when they moved to Bend full time. Take a look at that custom home and ADU project here.

When you build an ADU, there really is no limit to how you choose to use it or when you choose to build it.

Benefit #7: Increased Property Value

Because of all these benefits, particularly the flexibility, income generating potential, and additional living space, ADUs also increase property values. This is another of the top benefits of building an ADU in Bend.

Some sources suggest that an ADU can increase property value by 30-35%, making the investment to build well worth the cost whether reselling your home or building equity.

If the other benefits of building an ADU in Bend weren’t enough, the increase in home value is worth consideration.

If you are considering building an ADU in Bend, our team would love to talk with you about how we can help as an ADU builder in Bend. Contact us today to learn how we can bring your vision to life.

Bend ADU Regulations & Resources

To take advantage of all these benefits of building an ADU in Bend it’s important to understand Bend’s ADU regulations. The city of Bend is very ADU friendly and maintains an ADU Resource Hub with all the information you need to know when building an ADU in Bend. The Hub also contains pre-approved ADU plans to make the process of building an ADU even smoother for property owners. Other local organizations in Bend, like the Bend Chamber, also have ADU resources, such as the Chamber’s ADU Guide. 

Bend ADU Regulations

Currently, Bend allows property owners to build a maximum of two ADUs on residential lots with an existing single family residence, townhome, or manufactured home. The maximum ADU size is 800 square feet for the first ADU and 500 square feet for any second ADU built on the property. Any detached ADU must also be a minimum of six feet away from other structures on the property.

Any ADU built must also meet any zoning requirements of your zoning district. (Find your zoning district with the Bend zoning lookup tool.) All ADUs must also comply with any neighborhood CC&Rs, which vary by neighborhood. Check with your HOA to understand any regulations for your specific neighborhood.

A special note for property owners in Northwest Crossing and Bend Historic Districts. These areas have special standards for ADUs, which can be found via the links in the City’s ADU quick start guide.

Before building an ADU in Bend, we recommend you check the ADU Resource Hub and the Bend building code for the most up-to-date information. 

If you’ve already done your due diligence and you are looking for an ADU builder in Bend, we’d love to talk with you. Contact us for a free consultation.