What Is an ADU? (Accessory Dwelling Unit)

What is an ADU? Learn how accessory dwelling units add value, provide rental income, and offer flexible living space for your property.
In the current economy, many homeowners are looking for ways to add space, increase property value, or create rental income. To accomplish this, some are turning to ADUs — short for accessory dwelling units. But what is an ADU? Would an ADU be a good addition to your home?
This brief guide explains what an ADU is, the different types available, and key factors to consider before building one.
What is an ADU?
An accessory dwelling unit (ADU) is a smaller, secondary housing unit on the same property as a primary home. In most cases, these units go beyond a man cave or she shed; they’re fully functional living spaces, typically with their own entrance, kitchen, bathroom, and sleeping area. ADUs can be used to house family members, generate rental income, or increase your home’s property value.
A medium to large ADU will range from 600 to 1,200 square feet. Many state or county jurisdictions limit ADUs to no more than 1,200 square feet. The number of bedrooms an ADU can have may also be restricted by local building codes.

Examples of ADUs
If you’re thinking about adding an ADU, you have options. Of course, which type you choose will depend on your property and purpose. You’ll want to think about how you want it to look and function. (See our six assessment questions later in this post.)
Here are five examples of different accessory dwelling units:
- Detached ADUs: A separate unit in the backyard, often called a guesthouse, casita, granny flat, or mother-in-law suite.
- Attached ADUs: An addition to the primary home with its own entrance.
- Garage conversions: A former garage transformed into a living space.
- Basement apartments: A finished basement with an independent entrance, kitchen, and bathroom.
- Above-garage units: A living space built above a detached garage.