Definition
This is the secondary unit you see tucked beside or behind the main house—a complete little dwelling with its own entrance and utilities. ADUs are increasingly common as a way to create affordable housing options or generate rental income without buying a second property.
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Find my pathAbout this term
ADUs include: coach houses, mother-in-law units, garage apartments, tiny homes. Zoning must allow ADUs. Income generation opportunity. Family housing flexibility. Financing challenging due to secondary status. Appraisals account for ADU value. Growing market due to housing shortage. Property value enhancement. Tax advantages for rental units. Local regulations vary significantly. Professional consultation recommended. Future-oriented housing trend.
Pro Tip
ADU regulations are super localized. Always check your city and county rules before assuming you can build one or rent it out.
Example
ADU provided $1,500 monthly rental income from garage apartment.