Medford, OR Accessory Structures: ADU Rental Restrictions (2026)
Key Facts
- Restriction length
- 10 years from exemption approval
- Applies to
- ADUs that took the 50% SSDC exemption
- Short-term rental defined
- Stays under 30 consecutive days
- Enforcement tool
- Recorded restrictive covenant, Jackson County
- Reporting duty
- Annual compliance questionnaire
Summary
An ADU that gets Medford's 50% Street SDC exemption cannot be rented short-term for 10 years afterward. The restriction is recorded against the property and enforced through an annual questionnaire.
An ADU receiving an exemption may not be used as a short-term rental for a period of 10 years following approval of the application for exemption of SSDCs permitted under this section. A restrictive covenant and compliance agreement documenting this restriction, in a form approved by the City, shall be recorded with Jackson County, at applicant's expense, and submitted to the City prior to issuance of certificate of occupancy of the ADU for which the exemption was approved... For purposes of this section, "short-term rental" means rental of a residential dwelling unit, or any portion thereof, to overnight guests for fewer than 30 consecutive days.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 2026-32, passed May 6, 2026).
Full Breakdown
Medford Municipal Code Sec. 817(3)(b) bars an ADU that received the Street System Development Charge exemption from being used as a short-term rental for 10 years following approval of the exemption application. Subsection (3)(d) defines 'short-term rental' for this purpose as renting a residential dwelling unit, or any portion of it, to overnight guests for fewer than 30 consecutive days, so a standard month-to-month or longer lease does not trigger the restriction. The restriction isn't just a code provision; it runs with the land. The owner must record a restrictive covenant and compliance agreement, in a form the City approves, with Jackson County at the applicant's own expense, and submit it to the City before the certificate of occupancy is issued for the exempted ADU.
Subsection (3)(c) backs the ban with an ongoing reporting duty: the owner must complete an annual compliance questionnaire throughout the 10-year period, disclosing the monthly rent charged for the ADU and confirming it is not being used as a short-term rental. This restriction applies only to owners who elected the fee exemption under subsection (3); an ADU built without seeking the exemption is not bound by the 10-year short-term rental prohibition.
Violations & Fines
Failing to submit an accurate annual compliance questionnaire within 60 days of the City's mailing lets the City terminate the recorded compliance agreement and recover the exempted SSDC under Sec. 3.817(3)(c). Because the restriction is memorialized in a restrictive covenant recorded with Jackson County, a confirmed short-term rental during the 10-year period exposes the owner to the same fee clawback under the terms of that recorded agreement.
Frequently Asked Questions
Can I Airbnb an ADU in Medford?
How does Medford enforce the ADU short-term rental ban?
What counts as a short-term rental under Medford's ADU rule?
Sources & Official References
Other rules in Medford
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