Portland asks Oregon to cap unit sizes in its draft pre-approved housing rules
State regulators scheduled a vote on Oregon Homes rules for Oct. 22, and Portland argued the draft would allow 8,800-square-foot fourplexes on more than 100,000 city lots.
By Erick Tarray · · 3 min read
Oregon is writing rules for “Oregon Homes,” a program under HB 2258 that offers building plans preapproved for eligible sites across the state [3]. The program’s stated goal is faster and more predictable permitting [3].
The draft drew comments through Oct. 2, and the commission scheduled action on it for its Oct. 22 meeting in Astoria [2][3].
Portland wants size caps the draft does not include
Portland wrote that the rules would allow large units regardless of lot size and could reach more than 100,000 lots in any zone [1]. The city said its own monitoring found smaller middle housing units sold for $250,000 to $300,000 less than new houses [1].
| Housing type | Floor area ratio | Size cap |
|---|---|---|
| House | 0.7 to 1 | 2,200 sq ft |
| Duplex | 0.8 to 1 | 4,400 sq ft |
| Triplex | 0.9 to 1 | 6,600 sq ft |
| Fourplex | 1 to 1 | 8,800 sq ft |
| 7–11 unit apartment | 1.5 to 1 | 1,400 sq ft average per unit |
The city also asked for a front setback of at least 10 feet and building coverage capped at 50% to 60% [1]. It noted that fourplexes it tracked included parking 10% of the time, against 74% for duplexes [1].
The state’s aims are set out in the charge for its parallel Housing Choices rulemaking, which tells the advisory committee to remove barriers to production feasibility and to increase housing production, availability and affordability [5]. Portland’s letter argues that size and siting limits serve the same affordability goal [1].
Two other state laws change approvals and affordability rules
HB 4037, operative July 1, limits notice on certain clear-and-objective housing applications to owners within 100 feet, or 500 feet for 20 or more units, bars required hearings and lets only the applicant appeal [4]. SB 1521 lets cities and counties require affordable units in larger rental projects from 2028 and extends that to ownership housing on Jan. 1, 2029 [4].
Permits are rising in the Portland metro. Builders pulled 7,246 permits from January through September, 13% more than a year earlier, while statewide permits rose 0.7% to 10,688 [6].
How to use this
For middle housing builders in Oregon
- Check the rules LCDC adopts against your plan set before you design. If the final version adds Portland’s caps, a fourplex would top out at 8,800 square feet [1].
- File clear-and-objective applications under HB 4037’s process where it applies, since only the applicant can appeal [4].
- Join the Housing Choices committee meetings, which continue on Dec. 9, 2026, and run through Oct. 13, 2027 [3].
For apartment developers in the Portland metro
- Submit applications for projects of 10 or more units before a suburban city adopts an inclusionary rule, because SB 1521 does not apply to applications filed earlier [4].
- Ask the city for its offset analysis in writing. In the Portland metro, SB 1521 requires cash, tax exemptions or fee waivers to offset lost value [4].
For landowners
This is market commentary, not investment or legal advice.
Sources
- [1]City of Portland, City of Portland comments on proposed Middle Housing Oregon Homes rules (OAR 660-047), Oct 2, 2026.
- [2]Oregon Department of Land Conservation and Development, Land Conservation and Development Commission agenda, October 22–23, 2026, Oct 8, 2026.
- [3]Oregon Department of Land Conservation and Development, Rulemaking: Middle Housing Oregon Homes and Housing Choices, Oct 8, 2026.
- [4]Oregon Housing Accountability and Production Office, HAPO Bulletin: 2026 Legislative Session housing laws, Apr 24, 2026.
- [5]Oregon Department of Land Conservation and Development, Housing Choices Rulemaking Advisory Committee, Meeting 1 cover memo, Sep 30, 2026.
- [6]U.S. Census Bureau, Building Permits Survey, year to date through September 2026 (state and CBSA files), Oct 2026.
