Does Oregon Allow Tiny Homes? A Guide to Oregon's Tiny Home Laws

Oregon is one of the most tiny home-friendly states in the country. Portland has been a pioneer in this space, and the state has made significant legislative moves to support small-scale housing. Here's what you need to know. 
 
The Big Picture 
 
Oregon allows tiny homes — both on foundations and on wheels — in many parts of the state. Oregon requires cities with populations over 2,500 and counties with populations over 15,000 to allow at least one ADU per single-family dwelling within their urban growth boundaries. In cities with populations over 25,000, permanent tiny homes can also be built as cottage clusters — groups of 4+ small homes sharing a common courtyard. As of 2025, three Oregon counties have formally adopted SB 1013 through local ordinances: Clackamas, Deschutes, and Lane. Each has slightly different zoning conditions. 
 
Oregon is also one of the states will pay you — through Portland's development fee waivers and other ADU incentive programs — to build smaller dwelling units. 
 
Portland 
 
Portland is the gold standard for tiny home-friendly cities. Tiny homes and THOWs are considered ADUs and are permitted in all residential zoning codes in Portland. This is a big deal — it means you don't have to hunt for a special zone or apply for a variance. 
 
THOWs in Oregon 
 
Oregon's rules for THOWs are a bit more nuanced. The state generally prohibits living full-time in RVs outside of designated RV parks. But THOWs are not exactly RVs — and cities like Portland, Eugene, and Bend have been more flexible. If your THOW is on a permanent foundation, it must comply with Oregon's Residential Specialty Code (ORSC). If it's on wheels, it may need to be RVIA certified and licensed by the Oregon Department of Transportation. 
 
Off-Grid Living in Oregon 
 
Many tiny home owners in Oregon want to go off-grid — solar, composting toilets, rainwater collection. You can use off-grid power solutions, but you may still need permits for solar installations. Check with the Oregon Department of Environmental Quality (DEQ) for specifics. 
 
Can You Put a Tiny Home in Your Backyard in Oregon? 
 
Yes — in many cases. If you're in a city or county that allows ADUs (which is most of Oregon), you can build or place a tiny home on your property as long as it meets local building codes and zoning requirements. 
 
Can Cocoon Homes Build in Oregon? 
 
Absolutely. We've built in Oregon, and we know the permitting landscape there. If you're looking at an Oregon project, we'd love to help you navigate it. 
 
Talk to us at mycocoonhomes.com 
 
Based on 2024–2025 Oregon zoning and legislative data. Rules vary by city and county — always verify with your local planning department.