Definition
A coach house is that cute smaller building above a garage or tucked in back. Historically, staff lived in these. Today, they're your ticket to rental income, guest accommodations, or housing a family member—all while maintaining separate spaces on the same lot.
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Find my pathAbout this term
Coach houses are secondary residential units, historically built for coaches or household staff. Modern coach houses serve as rental units, guest houses, or multi-generational housing. Typically 500-1,200 square feet with complete living facilities. Zoning must allow accessory dwelling units or secondary rentals. Coach houses generate rental income while providing additional housing flexibility. Construction costs vary based on lot configuration and utilities. Financing options differ from primary residences. Coach houses appeal to property owners seeking rental income and investors creating affordable housing. Local regulations strictly control secondary unit density and uses.
Pro Tip
Verify your local zoning allows coach houses and rental operations before building or assuming you can rent one out.
Example
A coach house above the garage provided $1,200 monthly rental income while housing a family guest house.