Oregon's middle housing law changed Bend's small multifamily market. Duplexes, triplexes, fourplexes and townhomes can now be built in areas once limited to single-family homes, and many of the newest rentals in Bend are exactly that.
In short: LendingStreet finances Bend duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns. Loans start at $150,000, purchases go up to 80% LTV and the minimum credit score is 620. Because Bend prices are high relative to rents, many 2-4 unit files qualify best at 60% to 70% LTV.
Older duplexes are scattered through the Orchard District, Larkspur and the Midtown area near Bend High, along with homes that have accessory dwelling units. East and southeast Bend have side-by-side duplexes and townhome pairs built since the 1990s.
The newest stock is middle housing: triplexes, fourplexes and townhome clusters built on infill lots since the city updated its code. Redmond, a short drive north, has more conventional duplexes at lower prices and is often where investors find better rent-to-price ratios.
Tenants for Bend small multifamily include healthcare workers at St. Charles, staff at OSU-Cascades and Central Oregon Community College, and service and trades workers who are priced out of buying. Demand for well-kept two- and three-bedroom units is steady year-round, unlike the tourism-driven STR market.
Oregon's House Bill 2001 required larger cities, including Bend, to allow duplexes, triplexes, fourplexes, townhouses and cottage clusters in residential areas zoned for single-family homes, subject to local standards. Bend adopted code changes to comply, which opened many lots to two to four units.
Even so, lot size, setbacks, parking and design standards still apply, and new units pay system development charges to the city and park district. If you are buying a newly built triplex or fourplex, confirm it has final inspections and certificates of occupancy for every unit.
Some middle housing is built as townhomes on separate lots rather than as one building on one lot. Separately platted townhomes may be financed individually or together, which affects how the loan is structured. Tell us which you are buying.
The two types behave differently on a DSCR loan, mostly because of taxes and rent rules.
An older duplex usually has a lower assessed value under Measure 50 and therefore a lower tax bill. New construction is added to the rolls at a ratio of market value and can carry a higher bill, but it is generally exempt from Oregon's annual rent increase cap for its first 15 years.
| Feature | Older Bend duplex | New Bend middle housing |
|---|---|---|
| Typical location | Orchard District, Larkspur, Midtown | Infill lots across the city |
| Property tax | Often low under Measure 50 | Set when added to the rolls; can be higher |
| Rent increase cap | Applies to units older than 15 years | Generally exempt for 15 years |
| Maintenance | Older roofs, systems | Lower in the early years |
This example is illustrative and not a quote. An investor buys a newly built triplex for $1,050,000. Each unit rents for $2,100 a month, for $6,300 combined. Taxes are budgeted at $700 a month and insurance at $210.
At 75% LTV the loan would be $787,500, with estimated principal and interest of about $5,506 on a 30-year term, a total payment of about $6,416 and DSCR of about 0.98x. At 65% the loan is $682,500, principal and interest is about $4,772, the payment about $5,682 and DSCR about 1.11x. At 60%, DSCR is about 1.19x. The investor picks 65%, which clears 1.0x with room to spare.
The same triplex in Redmond might sell for less with rents only modestly lower, which is why some investors compare both before buying. In Bend, the case for the property rests partly on long-term appreciation and on the rent-cap exemption for new units.
Oregon limits annual rent increases on most units older than 15 years to a cap that is adjusted each year, and it limits no-cause terminations after the first year of a tenancy. Landlords must give written notice of increases. Underwrite on rents you can actually charge under those rules.
Bend has also adopted local rules on topics such as rental notice and tenant protections from time to time, so check city requirements alongside state law.
Keep records of each lease, notice and increase. A clean rent history makes it easier to show the rent roll to a lender and to defend increases if a tenant questions them.
Small multifamily buildings in Bend need coverage for snow load, frozen pipes and wildfire exposure where the property is near open land. Older duplexes with original electrical or wood roofs can cost more to insure. Get the quote during your due diligence period.
Snow removal and shared driveways are a practical cost on many duplexes and fourplexes. Decide whether tenants or a contractor handle it and budget accordingly.
Utilities matter as well. Many older Bend duplexes share a water meter or heating system, which means the owner pays and recovers the cost through rent. Separate meters on newer middle housing shift those bills to tenants and make the net income easier to predict.
Some Bend infill projects and older buildings have five to eight units, which are still residential for DSCR purposes, though maximum LTV can be lower and varies by program. See our Bend 5-8 unit page. Nine or more units is commercial multifamily.
If you own several duplexes, a blanket portfolio loan can combine five or more properties under one loan.
Send the purchase contract or mortgage statement, leases or a rent roll, the tax statement, an insurance quote and, for new construction, the certificates of occupancy. LendingStreet will run the ratio at several loan amounts and show the leverage that clears 1.0x.
Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below to get a quote.
Yes, once construction is complete with certificates of occupancy. The loan qualifies on combined rent from all units.
Bend prices are high relative to rents. Lower leverage reduces the payment so rent clears the 1.0x minimum.
Oregon's rent increase cap generally does not apply to units for their first 15 years. Confirm current rules.
No. DSCR loans qualify on the property's rent, with LLC borrowers standard.
A legal, permitted ADU's rent can often count. Unpermitted units may not.
Yes. We finance Redmond and other Central Oregon 2-4 unit rentals, which often have stronger rent-to-price ratios.
Yes. Rate-and-term and cash-out refinances are available, with cash-out up to 75% LTV. Long-held Bend duplexes often have the equity, but rent must still clear the minimum at the new payment.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home or units must be rented to others.
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