Rudsgrendi was part of Hovin from 1886 until 1 January 1964, when it, together with Gransherad, became a part of Notodden Municipality. At that time, Rudsgrendi had 21 inhabitants.
In the mid-nineteenth century Rudsgrendi was administratively a part of Tinn, but the area became a part of the new Gransherad Municipality in 1860. In 1886, the Hovin area was separated from Gransherad to form a new municipality of its own.