On September 23, Coldwell Banker Commercial published a piece arguing that finished lots may be undervalued, because zoning approvals, infrastructure, permitting and utility capacity separate a raw parcel from one you can actually build on (read the CBC post).1 I see the same thing in Salem. Two lots can look alike in a listing and have very different paths to a building permit.
Here is what I check before a client writes an offer on land in or around Salem.
1. City or county: who zones it?
Being inside Salem's urban growth boundary does not mean a lot is inside city limits. Some land inside the boundary is still unincorporated and zoned by Marion County. Start with the City of Salem zoning map. If it shows no city zone for the lot, the county code applies.2
2. Urban Transition zoning
A common county zone inside the boundary is UT (Urban Transition). The code says it is meant to "retain and protect for future urban use" land that lacks urban facilities such as sewer, water, drainage and streets.3 The list of allowed uses is short, and any use not listed is prohibited.3
3. Sewer and water within reach
The City of Salem publishes maps of its public water and sewer mains.4 Measure the distance from the lot to each main, then ask how a connection would work for that specific lot. A main down the street is a starting point, not a commitment.
4. Floodplain
Pull the FEMA flood map for the lot.5 The flood zone affects where you can build, what the lender asks for, and what insurance costs.
5. Setbacks on small lots
Setbacks shrink a small lot fast. In the county UT zone, the required front yard is 20 feet, side yards are at least 5 feet, and the rear yard is 14 feet for buildings up to 15 feet tall and 30 feet for taller portions of non-dwelling buildings.3
6. The conditional-use path
If your use isn't allowed outright, a conditional-use permit may be an option. In Marion County, the application fee is $1,450,6 the applicant carries the burden of proof,7 and in a UT zone the criteria can turn on the comprehensive plan designation or the city's concurrence.3 Inside a growth boundary, state law gives the county 120 days from a complete application to reach a final decision.8
A recent example
I recently took a sign call on a 0.24-acre, county-zoned UT-5 lot inside Salem's growth boundary. The caller wanted to build a shop. The city zoning map showed no city zone for the lot. FEMA mapped it in Zone X, an area of minimal flood hazard. A city water main runs within 150 feet, but the nearest sewer mains are farther out, within about 400 feet.2,4,5 The UT zone lists no stand-alone shop use, and county rules treat accessory buildings as secondary to a permitted or conditional use.3,9 As the code reads today, a shop is not a simple yes. That doesn't mean the lot is a bad buy. It means the buyer needs to know which path they're paying for.
Location sets the price of a lot. The checklist tells you how long it will take to build on it.
Looking at land in Salem?
Browse current land listings, or send me a lot you're considering and I'll walk through this checklist with you before you make an offer.
Sources
- Coldwell Banker Commercial, "Finished Lots May Be Commercial Real Estate's Most Undervalued Asset," Sep 23, 2026. cbcworldwide.com
- City of Salem zoning designation map layer. City of Salem GIS; Marion County zoning layer. Marion County GIS
- Marion County Code Ch. 16.13, UT (Urban Transition) Zone, incl. 16.13.000, .020, .030, .040, .120–.140. codepublishing.com
- City of Salem public water main and public sewer main layers. Water · Sewer
- FEMA National Flood Hazard Layer. FEMA Flood Map Service Center
- Marion County Planning fee schedule. co.marion.or.us
- Marion County Code 16.36.120. codepublishing.com
- ORS 215.427(1). oregon.public.law
- Marion County Code 16.28.010. codepublishing.com
This article is general information, not legal, engineering or land-use advice. Zoning and utility conditions change; confirm with Marion County Planning (503-588-5038) or City of Salem Planning before you buy.