How Much Does a New Furnace Cost in Portland, Oregon? [2025 Data]

The average new furnace cost in Portland, Oregon, is $4,711, with most homeowners spending between $3,141 and $6,281. Your project total will depend on a handful of factors, including the type of furnace you choose, the condition of your ductwork, and your contractor’s rates. Here’s how those things impact your furnace installation costs in Portland.

New Furnace Cost Factors in Portland

When budgeting for a new furnace in Portland, some of the primary factors to consider are the type and size of your furnace, as well as the costs of ductwork repair and furnace removal.

Furnace Type

Whether you opt for an energy-efficient electric furnace or a more traditional natural gas unit, the type of furnace you buy can make a big difference in your overall costs. Here’s how much you can expect to pay for the furnace itself, depending on which kind you choose:

Size of Furnace

A furnace’s size doesn’t refer to its physical dimensions. In this context, size measures the furnace’s heat capacity, which is expressed in British Thermal Units (BTUs). Home furnaces typically range from 40,000 to 120,000 BTUs, but the right size for your house will depend on its square footage, insulation quality, and other factors.

Your furnace’s size directly influences its price. Larger units (in other words, those with higher BTU ratings) provide more heat per hour and cost more than smaller furnaces. As an example, here’s how size affects the cost of a natural gas furnace (the most common type in Portland):

Efficiency Rating

Your furnace’s efficiency rating (officially known as its Annual Fuel Utilization Efficiency or AFUE rating) can also impact your costs. AFUE ratings reveal the percentage of fuel a furnace converts into heat—and higher numbers equal better efficiency. 

If you install a high-efficiency furnace (with an AFUE rating of 90% or higher) over a mid-efficiency unit (with an AFUE rating between 80% and 89%), you’ll spend less on fuel. However, higher-efficiency models can be two or three times as expensive as lower-efficiency units.

Ductwork Repair or Replacement

In addition to the furnace itself, you also need a ductwork system to distribute warm air from your furnace into your home. If you’re swapping out an old furnace, you should already have air ducts—but if they’re in bad condition, you’ll need to replace them.

In Portland, replacing ductwork costs between $322 and $1,240, depending on the duct materials, locations, and other factors.

Furnace Removal

Many HVAC pros in Portland, Oregon, will include the cost of removing and disposing of your old furnace in their quote. You’ll likely pay a few hundred dollars for this service.

Rebates

If you install a new natural gas furnace in Portland, you could get a rebate from NW Natural. Rebate amounts vary from $200 to $1,600, depending on your household income and the type of property.

HVAC Pro Costs in Portland

HVAC pros in Portland often charge $75 to $150 per hour for a project such as this. However, the cost of furnace installation in Portland also includes a permit fee.

Permits

In Portland, you must have a mechanical permit to install or replace your home’s furnace. For this type of permit, the minimum fee is $153. Also, since furnaces are hard-wired to your home’s electrical system, you’ll also need an electrical permit, which can add several hundred dollars to your project costs.

Licensing and Certification

While the City of Portland allows homeowners to do their own mechanical work, this is rarely a good idea. Not only can installing your own HVAC system void your warranty, but it can also increase the risk of electrical hazards, carbon monoxide leaks, and other furnace problems down the line.

Instead, your best bet is to hire a qualified HVAC technician for the job. But before you do, make sure they have a valid license from the Oregon Construction Contractors Board (CCB). Ideally, they should also be certified by North American Technician Excellence, a non-profit organization that assesses HVAC professionals’ knowledge and skills.

Does Installing a New Furnace Increase Home Value in Portland? 

With an average cost of $4,711, a furnace is definitely an investment, but it comes with a number of benefits. For starters, a new heating system will help keep you safe and warm through Portland’s wet and chilly winters. Plus, if you decide to sell, having an updated heating system can boost your home’s value and make it more appealing to house hunters. High-efficiency furnaces are particularly attractive to prospective buyers since they use less fuel and can lead to lower energy costs.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

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