Frequently Asked Questions

An ADU (Accessory Dwelling Unit) is a secondary housing unit on a single-family residential lot. It can be detached, attached, or a converted space within the primary home (like a basement or garage).

• Extra rental income
• Housing for family members or guests
• Increased property value
• Flexible living arrangements (aging in place, multigenerational living)
• More efficient use of existing land

ADU regulations vary by state, city, and county. It’s best to check with your local planning or zoning department for specific rules.

ADU regulations vary by state, city, and county. It’s best to check with your local planning or zoning department for specific rules.

Yes, most municipalities require permits for ADUs, including zoning approval, building permits, and sometimes additional utility approvals.

Costs vary widely but typically range from $50,000 to $300,000, depending on size, location, and construction type (conversion vs. new build).

Yes! You can use:

• Home equity loans or HELOCs
• Cash-out refinancing
• Construction loans
• ADU-specific grants or incentives (available in some states)

In many areas, yes! ADUs can be rented out for long-term or short-term stays (e.g., Airbnb), but some cities have restrictions on short-term rentals.

Rental income depends on your local rental market, ADU size, and amenities. In some cities, ADU rentals can generate $1,500–$3,500+ per month.

Yes, an ADU can boost your property’s value by 10–30% due to its additional living space and rental potential.

ADUs can share utilities with the main house or have separate connections for water, electricity, and sewer (which may increase costs).

Possibly. Property taxes may increase based on the added value of the ADU, but this is usually less than the income potential it provides.