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ADU rules in Sherwood
These are the primary sources for accessory dwelling unit regulations in Sherwood: the city's own zoning code, planning department pages, and permit guides. Start here before talking to anyone: the rules below are what your permit reviewer will apply.
Rules at a glance
A detached backyard ADU is a permitted (P) use in all five of Sherwood's residential zones: VLDR, LDR, MDRL, MDRH and HDR. Zoning and Community Development Code 16.52.020.A lets a homeowner create one ADU per single-family detached dwelling by 'Constructing a detached ADU on a site with an existing house' or by building a new house with a detached ADU. The siting rules are real but ministerial: a detached ADU may only sit in the rear yard or above a detached garage, it must meet the underlying zone's setbacks (a 20-foot rear yard in every residential zone), it may be no taller than the primary residence, and its entrance may not be visible from the street the house is addressed from. Detached ADUs are exempt from the Ch. 16.50 accessory-structure standards, so the 15-foot accessory-structure height cap does not apply.
Sherwood Zoning and Community Development Code § 16.52.020.A, .B, .E, .F; Table in § 16.12.020Attached and internal ADUs are allowed on the same terms as detached ones. Section 16.52.020.A lists four permitted creation methods and three of them are attached or internal: converting existing living area, attic, basement or garage; adding floor area; or constructing a new house with an internal ADU. The same 800 square foot cap and the same design and appearance standards apply, though the requirement that the entrance not be visible from the addressing street and the rear-yard-only location rule are written for detached units only. No conditional use permit or hearing is involved.
Sherwood Zoning and Community Development Code § 16.52.020.A.1, .A.2, .A.4Section 16.52.020.D caps the ADU at 800 square feet of gross habitable floor area. It is a flat number: there is no percentage-of-primary-dwelling formula, no per-zone split, and no separate footprint rule. Height is handled in 16.52.020.F, which limits a detached ADU to no higher than the primary residence (the underlying residential zones themselves permit 30 to 40 feet or 2 to 3 stories depending on zone, so the house is normally the binding constraint). Sherwood's development standards table in 16.12.030 sets no minimum lot area for an ADU, so lot size is not a size gate.
Sherwood Zoning and Community Development Code § 16.52.020.D and § 16.52.020.FNo owner-occupancy requirement, at application or ongoing. Sherwood did have one: Ord. 2019-003 wrote 16.52.020.B as 'The property owner ... must occupy either the principal unit or the ADU as their permanent residence for at least six months out of the year, and at no time receive rent for the owner-occupied unit.' Ord. No. 2021-010, § 2, adopted 12-7-2021, rewrote the section and deleted that subsection along with a three-person occupancy cap; the codified chapter now runs A through F with no occupancy clause, and a full-text sweep of Title 16 finds no owner-occupancy language anywhere. State law backs this up: ORS 197A.425(1)(b)(B) says reasonable local siting and design regulations 'does not include owner-occupancy requirements of either the primary or accessory structure.' Sherwood's code and the statute agree, so there is no conflict to work around.
Sherwood Zoning and Community Development Code § 16.52.020 (as amended by Ord. No. 2021-010, § 2, 12-7-2021); ORS 197A.425(1)(b)(B)Section 16.52.020.C is explicit: 'Parking: No off-street parking is required for an Accessory Dwelling Unit,' with a footnote crediting '2017 Senate Bill 1051 and 2019 House Bill 2001.' The off-street parking table at 16.94.020 agrees, listing Accessory Dwelling Unit with a minimum parking standard of None (a single detached house, by contrast, needs 1 space). Nothing turns on transit proximity here, though the same table separately zeroes out parking within a half mile of a frequent transit corridor and inside the Sherwood Town Center climate-friendly area. Sherwood's rule already matches ORS 197A.425(1)(b)(B), which bars requiring additional off-street parking as an ADU condition, so no state preemption analysis is needed.
Sherwood Zoning and Community Development Code § 16.52.020.C; § 16.94.020 Table 1Administrative, no hearing. The use table at 16.12.020 marks Accessory Dwelling Unit as P (Permitted) in VLDR, LDR, MDRL, MDRH and HDR, and 16.72.010.A.2.n places accessory dwelling units in the Type I review process, which is the city's staff-level administrative track. Before the building permit issues, the ADU also clears a Residential Design Checklist Review: 16.89.020.A lists Accessory Dwelling Unit first among the housing types that need one, and 16.72.010.A.1 describes it as a ministerial decision the Community Development Director makes 'without public notice and without a public hearing' against clear and objective standards. Discretion only enters if the applicant chooses it, by pairing the checklist with a Type I Adjustment or Type II Class B Variance, or opting into the Type IV Residential Design Review before the Planning Commission.
Sherwood Zoning and Community Development Code § 16.72.010.A.1 and § 16.72.010.A.2.n; § 16.12.020; § 16.89.020.ARenting the ADU is the point of the chapter: 16.52.010 says the purpose of an ADU is 'to provide homeowners with a means of obtaining rental income, companionship and security.' There is no minimum lease term, no primary-residence test and no cap on the number of occupants (the three-person cap that Ord. 2019-003 carried was deleted in 2021). Sherwood has no short-term-rental licensing chapter and no vacation-rental use category anywhere in Title 16, so an ADU rented by the night is not separately permitted or prohibited by the zoning code. What does apply is Chapter 3.30: a 3 percent local transient lodging tax on occupancy of under 30 consecutive days in any 'dwelling unit, or portions of any of these dwelling units, used for temporary human occupancy,' and 3.30.080 requires the person collecting it to register with the city (within 15 days of starting). On sale, note that an ADU is defined as accessory to a single dwelling on a single lot or parcel, and the code contains no mechanism to convey it separately.
Sherwood Zoning and Community Development Code § 16.52.010; § 16.10 (Dwelling Types, Accessory Dwelling Unit); Sherwood Municipal Code §§ 3.30.020, 3.30.030.A, 3.30.080The fine print: 6 caveats that can change the picture
- One ADU per single-family detached dwelling only. Section 16.52.020.A ties the entitlement to a detached house, so a lot already developed with a duplex, triplex, quadplex, townhome or cottage cluster has no ADU right under Ch. 16.52 even though those middle housing types are themselves permitted in every residential zone.
- A detached ADU may only be located in the rear yard or above a detached garage, and it takes the underlying zone's dimensional standards, which means a 20-foot rear yard setback and a 5-foot interior side yard in all six residential zone columns. On a shallow lot this is the binding constraint, not the 800 square foot cap.
- The entrance to a detached ADU may not be visible from the street the primary residence is addressed from (16.52.020.B), and a detached ADU must match the house on exterior finish material, roof pitch, trim and eaves by picking one option from each row of the 16.52.020.F table (for example, siding that visually matches the house OR wood or composite horizontal lap siding 3 to 8 inches wide).
- Properties inside the Old Town (OT) Overlay District are in a designated historic district (16.162.010). ADUs are allowed there because the overlay permits what the underlying residential zone permits, but Old Town design standards apply and Ch. 16.168 landmark alteration review can pull new construction into a Type 2 or Type 4 process rather than the plain Type I track.
- Drafting error to expect on the counter: 16.89.020.D.1.b tells stand-alone ADU applicants that 'the standards and criteria in 16.52.020.H shall apply.' Subsection H was the Design and Appearance heading under the pre-2021 lettering; Ord. 2021-010 renumbered the chapter and those standards now live at 16.52.020.F. The stale cross-reference is in the adopted text of both Ord. 2021-010 and Ord. 2022-004, not a Municode transcription slip.
- Sherwood publishes no ADU-specific handout, checklist or program page. The city's 'Accessory Structures for Residential Use' handout is a Ch. 16.50 document and 16.50.020.E expressly excludes ADUs from that chapter, so its 15-foot height limit and 3-foot setbacks do not apply to an ADU.
Summarized from Sherwood's ordinance text, read August 2026; every row links the code section it came from. Rules often vary by zone and lot, so treat this as orientation, not a permit determination, and confirm with the planning department before you commit to a design.
ADU regulations
- library.municode.comOfficial sourceReviewed August 2026Code of Ordinances §16.52.020https://library.municode.com/or/sherwood/codes/code_of_ordinances?nodeId=TIT16ZOCODECO_DIVIILAUSDE_CH16.52ACDWUN_16.52.020REALACDWUNBrowse the full code library and look up §16.52.020
- library.municode.comOfficial sourceVerified August 2026Code of Ordinances, Ch. 16.52https://library.municode.com/or/sherwood/codes/code_of_ordinances?nodeId=TIT16ZOCODECO_DIVIILAUSDE_CH16.52ACDWUN
- sherwoodoregon.govOfficial sourceVerified August 2026https://www.sherwoodoregon.gov/development-review/
Short-term rental rules
Planning to rent your ADU on Airbnb or VRBO? Sherwood regulates short-term rentals separately; check these before counting on nightly rental income.
Oregon statewide law also applies
Oregon sets baseline ADU rights at the state level. Where local rules are stricter than state law allows, state law usually wins, so both are worth reading.
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