The COVER extension of Forest Vegetation Simulator (FVS) is used in conjunction with stocking guides, forest inventory data, and field observations to develop a set of prodecures identifying specific central Oregon plant communities that have, as well as those that lack, the biological capability to grow sustainable northern spotted owl (Strix occidentalis caurina) dispersal habitat. Results demonstrate that achievement of stable spotted owl dispersal habitat is heavily influenced by site potential. For example, ponderosa pine stands with site index values greater than 90 feet can be manged to provide stable, sustainable dispersal habitat; those with lower site index values cannot. Results of the analysis were used as a basis for a Deschutes National Forest policy on dispersal habitat. The policy applies to all projects on the Deschutes that implement the President's Forest Plan.