Benefits of ADUs

San Antonio needs more housing, especially for older adults, students and small families. Accessory Dwelling Units (ADUs) provide the right-sized housing for these people directly in their neighborhood.

You can build an ADU in your backyard or as an addition to your house. This gives you an extra home that you can use to suit your needs like making income, housing family and friends, or aging in place. Check out the list below for some of the great benefits of ADUs.

Source of Income

You can rent out an ADU for income or live in the ADU and rent out your main house instead. As long as you are living in the main house or the ADU, you can rent out the other home. To receive incentives from the city, your renter must meet certain income limits. For information on potential rent limits for your ADU, check out NHSD HUD CPD Program limits(PDF, 86KB).

Picture this: You're nearing retirement and decide to build an ADU in your backyard. Once built, you move into the ADU and rent out the main house to a young family with two children. The family loves growing up in your house, and you continue to get a steady income in your retirement.

Rental Housing

Many people don't want a large house. Most ADUs are smaller than other housing options, so they are often more affordable. This makes them a great way to house those with a smaller income.

Picture this: A recent college graduate wants to find an affordable home where she can live without a roommate. She finds a one-bedroom ADU in the neighborhood she grew up in and can now live and work on her own for the first time.

Housing for Friends or Family

ADUs can house family or friends - either as full-time residents or when they come to visit. An ADU can give them an independent living space while still being near you.

Picture this: A couple's children have all grown up and moved out of the house, and the couple no longer needs so much space. The couple builds an ADU in the backyard and move in. Then, they rent out the main house! If their children want to move back and start their own families, they can move into the main house.

Aging in Place

Some people use ADUs as a way to "age in place." An older adult may want to stay in their neighborhood but also want a smaller living space for themself, their family, or a live-in employee. With an ADU, an older adult can have extra housing on-site and still live in their neighborhood.

Picture this: Your grandmother recently sold her house and is looking to downsize. She wants to stay in the same neighborhood so she's close to family. If you have an ADU, she can move right into your backyard! She gets to stay in her current neighborhood and have her own living space, but you can also see each other any time.

Cost

The small size of ADUs means they're usually cheaper to build than a full-size house. This can make them a more affordable way to increase the number of housing opportunities in San Antonio. However, building an ADU is still a major expense. The City of San Antonio and other agencies offer many resources to help you understand the costs associated with an ADU. They also offer some tools that can help you save money. For more information, visit Financing an ADU.

Picture this: Your friend wants to move to San Antonio but cannot find an affordable home for her and her child. You have been wanting to build an addition to your home for a while, but always found it too expensive. You find out about the potential incentives associated with building an ADU, so you decide to build one in your backyard for your friend and her child to live in. Now, your friend can move to the city, have an affordable home, and live nearby.

Permit-Ready Plans

The City will provide permit-ready plans for residents to use in October 2024. These plans will come in a variety of sizes and designs. Selected design firms and organizations designed ADU permit-ready plans. The Development Services Department reviewed each plan for code and permit compliance. This will help save time and money creating your ADU. For more information, view our Permit-Ready Plan Library.

Picture this: You want to build an ADU but don't have the time or money to design it. On the ADU website, you find ADU designs that already meet City permit requirements. One modern design matches your main house well. You also find a contractor on the website who you trust and are excited to work with. This Permit-Ready Plan saves you both time and money, and now you're ready to construct an ADU.

Incentives

Building an ADU is a major expense, so the City will offer incentives to help. These incentives, or benefits, assist homeowners in financing and building ADUs. Homeowners can apply by contacting Neighborhood & Housing Services staff, and the City will provide incentives based on their eligibility. More information on these incentives will be available in Fall 2024. There are currently opportunities to get your City permit fees waived.

Picture this: You built a one-bedroom ADU and committed to renting to lower-income residents. This commitment reduced your permit fees, making the ADU more affordable to build. Now, you want to rent it out to students from the nearby college. You meet a first-generation college student and their spouse looking for housing close to campus. You got reduced permit fees, an extra monthly income from renting the ADU, and the couple gets affordable housing close to campus.

Area Median Income (AMI)