Can we look for properties eligible for 'Middle Housing Land Divisions' so I can buy a new construction townhome fee-simple (no HOA)?
TLDR
- Yes, fee-simple townhomes without HOAs are possible through Middle Housing Land Divisions.
- Portland rules now streamline fee-simple rowhouses; Clark County opportunities are growing nearby.
- Inventory is tight, so pre-construction and quick action can secure prime units.
- I can target eligible lots, review plans, and negotiate builder-friendly fee-simple terms.
What does a Middle Housing Land Division really mean?
Middle Housing Land Division, often called MHD, is a land-use pathway that allows a builder or owner to split a standard residential lot so each attached home sits on its own fee-simple parcel. Unlike a condo, each homeowner owns the dirt under their unit and usually avoids a traditional homeowners association. Portland’s Residential Infill Project Phase II broadened where attached fee-simple rowhouses are allowed in 2025, which is good news if you want the privacy and control of ownership without condo-style rules. You get independent financing, clearer resale, and the freedom to manage your property directly.
This pathway is grounded in Oregon’s middle housing policies encouraging duplexes, triplexes, fourplexes, cottage clusters, and townhomes in more neighborhoods. Portland’s implementation details live in the city’s Residential Infill Project resources. Buyers can already see the impact in neighborhoods where small-scale, smartly designed rowhouses are replacing aging single homes.
Here is how I define it as Lisa Mehlhoff:
- Each attached unit rests on its own fee-simple lot with separate utilities.
- Minimal or no HOA; maintenance handled by party-wall or maintenance agreements.
- Financing aligns with standard single-family lending instead of condo underwriting.
How does the MHD pathway work in Portland and nearby?
In Portland, the city’s Middle Housing rules dovetail with the Residential Infill Project updates that took effect in 2025, enabling more fee-simple rowhouses in zones like R2.5 when dimensional standards are met. The process typically involves a preliminary plat, utility and frontage improvements, a final plat, then building permits. For buyers, that means two ways in: purchase a presale in a permitted MHD project or acquire an eligible lot and hire a builder. I routinely coordinate both options and verify compliance with the city planner before we invest serious time.
Market timing matters. According to recent RMLS Market Pulse data, the Portland metro saw a 1.5 month supply of homes in Q3 2025, with November touching 5.1 months as conditions moved toward balance. Median price across the metro reached about 581,000 in October 2025, and attached new construction is moving briskly. RMLS reports townhome and condo absorption around 0.6 months in Q3 2025, which explains why presales often go quickly. With the right strategy, we can secure your spot in line.
Links for background:
- Portland policy details: Portland Residential Infill Project
- Market metrics
What does fee-simple no HOA actually cover?
Fee-simple means you own the lot and structure. You typically avoid a full HOA and its monthly dues. Expect recorded party-wall and maintenance agreements that address shared roofs or walls, utility easements, and snow or landscape coordination. These are narrow in scope compared to traditional condo CC&Rs, which many of my clients prefer for flexibility and resale clarity.
Which neighborhoods are best for fee-simple townhome opportunities?
I focus on areas where zoning, builder interest, and buyer budgets intersect. If you are searching for SW Portland Oregon homes for sale, or you are considering East Vancouver Washington real estate, we can triangulate the best fit for your timeline and budget.
- Multnomah Village and Hillsdale, SW Portland
- The Cedars corridor, East Vancouver
- Brush Prairie and Battle Ground
For relocating buyers, I blend neighborhood tours with school research using the state’s report cards, and I layer commute analyses based on where you work. If you are a tech professional or a physician with odd hours, we will emphasize connectivity and quiet blocks. If you are VA-eligible, I will align your search near bases or support networks and target fee-simple townhomes that meet VA appraisal standards.
What are the pros and cons of fee-simple MHD townhomes?
Pros:
- Ownership clarity with land plus structure, often without monthly HOA dues.
- Conventional financing and resale that looks more like a single-family home.
- New construction energy efficiency and layout flexibility for home offices.
Cons:
- Party-wall and maintenance agreements still require coordination with neighbors.
- Upfront costs for site work and utilities can affect pricing and timelines.
- Limited supply requires quick decisions in fast-absorbing submarkets.
How do I plan the process, budget, and timeline for success?
If you want a fee-simple, no-HOA townhome, there are two main routes. The first is to buy a presale from a builder who has already completed the MHD plat. Expect a small deposit, design selections, and periodic construction updates. The second is to acquire an eligible lot and hire a builder to complete the land division and construction. I help you evaluate both, including cost, risk, and schedule.
Typical buyer costs for presales:
- Earnest money: 2 to 5 percent of purchase price.
- Inspections: 600 to 1,200 depending on scope and phase visits.
- Closing costs: 2 to 3 percent; ask about lender credits and OHCS programs.
For lot plus build, soft costs can include:
- Survey and platting: 8,000 to 20,000 based on lot complexity.
- Civil engineering and utility upgrades: 12,000 to 35,000.
- Systems development charges and permits: varies by city; budget 12,000 to 30,000 per unit.
- Build timeline: 6 to 8 months after permits for many townhomes.
One of my clients, a tech couple relocating from California, secured a presale near Multnomah Village. We verified the fee-simple plat was in process, locked a price before framing, and negotiated upgraded sound attenuation between units. They closed 9 months later with no HOA dues and a dedicated home office. Another client, a military family focused on East Vancouver Washington real estate, reserved a Cedars corridor fee-simple townhome using a VA loan. We coordinated with the builder to satisfy VA appraisal requirements and documented party-wall maintenance terms to satisfy underwriting.
When market dynamics shift, speed matters. The metro posted a 1.5 month supply in Q3 2025 and briefly moved toward balance by November. Even as months of inventory fluctuate, townhomes remain a fast-moving segment. I monitor RMLS daily to spot releases, price adjustments, and builder incentives. Buyers using OHCS first-time programs or physician and jumbo programs can be especially competitive when pre-approved early.
Useful resources:
- Policy framework: Portland Residential Infill Project
- Loan programs: Oregon Housing and Community Services loan programs
- Clark County review and permitting: Clark County Community Development
FAQs
1) Is fee-simple really different from a condo if the homes are attached? Yes. In fee-simple, each unit sits on its own lot with separate utilities and tax account. You typically avoid a full HOA and its dues. Expect a recorded party-wall and maintenance agreement that sets responsibilities for shared elements. Financing often mirrors single-family guidelines, which can widen your lender options and simplify appraisal and insurance compared to a condo.
2) How competitive are these homes, and how fast do I need to act? Attached new construction has been one of the hottest product types. RMLS data shows townhome and condo absorption near 0.6 months in Q3 2025. That means presales can move quickly. I start with a strategy session, notification lists for upcoming releases, and a realistic ceiling price, then structure clean offers with clear contingency timelines to secure your preferred plan and lot location.
3) What price points should I expect in SW Portland versus East Vancouver? In October 2025, the metro median was about 581,000. SW Portland hovered around the mid 500s while East Vancouver often landed in the high 400s. Builders set final pricing based on site work and finishes. If you are comparing SW Portland Oregon homes for sale and Cedars East Vancouver WA real estate, I will show you similarly sized plans so you can weigh location, commute, and schools against final all-in numbers.
4) Can first-time buyers use down payment assistance or VA loans on fee-simple townhomes? Often yes. Because these properties are fee-simple, many programs treat them like single-family residences. We will confirm with your lender, but I have successfully paired OHCS first-time products and VA loans with fee-simple townhomes. Documenting party-wall agreements and the absence of a condo association is critical for underwriting. Early lender review avoids last-minute surprises before appraisal.
5) What should doctors or tech professionals prioritize when choosing a lot or plan? Focus on sound attenuation and office placement for video calls, fiber or high-speed internet verification, and proximity to hospitals or coworking hubs. I also look for layouts with a main-level flex room that can serve as a clinic space or quiet office. For physicians on call, quieter streets west of I-405 or close-in SW often provide easier late-night access while keeping noise to a minimum.
6) Are there upcoming areas where more of these projects might appear? Keep an eye on Portland’s evolving infill areas and the Metro Council’s Urban Growth Boundary review. Proposed UGB expansions could unlock more lots in the coming years. In the meantime, builders are active in SW Portland, the Cedars corridor, and parts of Brush Prairie and Battle Ground. I track plat filings and preapplication conferences so we can target projects before public marketing ramps up.
Conclusion
The bottom line Buying a fee-simple, no-HOA townhome through Middle Housing Land Divisions is absolutely achievable with the right plan. Portland’s updated rules allow more attached homes on fee-simple lots, and nearby Clark County corridors offer compelling price points. With inventory tight yet trending toward balance, presales and early reservations are your edge. I will vet eligibility, confirm plat status, align financing, and negotiate finishes that fit your lifestyle. Whether you are a first-time buyer, a relocating professional, or a VA-eligible family, I will tailor a strategy that delivers clarity, control, and long-term value.
Lisa Mehlhof Homes | License #220603251 Call or text 503-490-4888 https://lisamehlhoffhomes-
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