What is an ADU and how does it relate to tiny houses?

An accessory dwelling unit (ADU) is a small, separate living space on the same property as a main house. It can be a standalone tiny house, a converted garage, or an addition to the main house. Many cities now allow ADUs as a way to increase housing options. Some property owners rent their ADU for income—use our investment calculator to estimate rental returns. Tiny houses work well as ADUs. Check your local zoning requirements for ADU rules using our zoning finder tool.