Is an Accessory Dwelling Unit (ADU) Right for You? Here’s What Sacramento Homeowners Need To Know

What Is an ADU?

An Accessory Dwelling Unit (ADU) is a secondary living space on the same lot as a primary home. According to Fannie Mae, an ADU must have its own living, sleeping, cooking, and bathroom spaces. These units can take several forms:

? Detached ADU: A separate unit, like a tiny home or guesthouse.
? Attached ADU: A living space over a garage or an addition to the home.
? Interior ADU: A converted basement or in-law suite.

Why Are ADUs Popular in Sacramento?

With rising home prices in Sacramento, ADUs have become a sought-after feature for homeowners and buyers. A recent survey found that 24% of homebuyers actively seek properties with an ADU. Here’s why:

1. Extra Income Potential

Owning an ADU allows you to rent it out for passive income, helping offset your mortgage or other expenses. An ADU can be a great investment in Sacramento's competitive rental market.

2. Housing for Family Members

ADUs provide multigenerational living without sacrificing privacy. Whether for aging parents, adult children, or relatives, an ADU keeps loved ones close while maintaining independence.

3. More Affordable Homeownership

For first-time buyers, purchasing a home with an ADU can make homeownership more affordable. Rental income from the unit can help cover mortgage costs, making it easier to qualify for a loan.

4. Increased Property Value

Homes with ADUs are often more attractive to buyers, boosting resale value. A well-designed ADU can enhance your home’s functionality and long-term investment potential.

What to Consider Before Adding an ADU in Sacramento

While ADUs are a great option, regulations vary by city. In Sacramento, zoning laws, permitting requirements, and design restrictions may apply. Some key considerations:

• Permits & Zoning: Check local Sacramento ADU guidelines before building.
• Utility Connections: Some ADUs require separate water, electricity, and sewer hookups.
• Rental Laws: If you plan to rent out your ADU, be aware of tenant laws in Sacramento.

Bottom Line

Adding an ADU to your Sacramento home or buying a home with one can be a smart move in today’s market. Whether you’re looking for rental income, multigenerational housing, or property value appreciation, an ADU could be the right choice.

Want to explore homes with ADUs in Sacramento? Let’s connect 916-320-9953! ????????