ADU in Texas: Increased Property Value & Rental Income

Key Takeaways for Building an ADU in Texas

Houston

• Allowed ADU size up to 900 sq ft
• Minimum 5-foot side and rear setbacks
• Height limited to 30 feet
• Permit fees from $8,000 to $20,000
• Construction must match the primary dwelling
• Allowed citywide unless deed restricted

Dallas

• Neighborhood approval process required
• Easier to buy a property with existing ADU
• Consult zoning attorneys and ADU architects
• Prepare for the 12-18 month approval process
• Focus on single-family zoning districts

Austin

• Minimum 5,750 sq ft lot size
• Maximum 1100 sq ft or 15% of lot size
• The 10-foot separation between ADU and the main house
• Limit short-term ADU rentals to 30 days per year
• South Austin neighborhoods are the most ADU friendly

San Antonio

• Must occupy either primary or ADU unit
• ADUs are limited to specific zoning districts
• 1 bedroom ADUs only
• Reduced setbacks possible with fire-rated building
• Max height consistent with the zoning district

Accessory dwelling units (ADUs), granny flats, or secondary housing units can be an excellent option for Texas homeowners looking to add living space, rental income potential, or housing flexibility to their property. 

However, ADU regulations vary significantly depending on which major Texas city you live in.

This Introductory guide examines the essential ADU requirements for building a compliant accessory unit in the Lone Star State.

Size Limits and Minimum Lot Requirements

The maximum allowed size for a Texas ADU differs by city and can range from 800 to 1,100 square feet. Some also impose minimum lot size requirements before an ADU is permitted. 

For example, Austin requires single-family lots to be at least 5,750 square feet to qualify for building an accessory unit.

Always check your city’s municipal code for the current size and lot requirements. 

Constructing an oversized ADU or building one on an undersized property is asking for trouble.

Height Restrictions and Setback Rules

Most Texas cities impose height limits of 30 feet and two stories for any detached ADU building. 

Setback minimums requiring the ADU structure to be positioned several feet from rear and side property lines are also commonplace. This helps reduce looming visibility and preserve privacy.

Some cities like San Antonio allow reduced 3-foot setbacks for ADUs as long as fire-rated building materials are utilized in construction. 

However, some places may only permit reduced setbacks, so check your local ordinances.

Design and Aesthetic Standards

Most municipalities mandate that ADUs match your home’s architectural style and exterior design. 

ADUs must usually sit at a reasonable height or mass behind the primary residence. Maintaining aesthetic continuity preserves neighborhood character.

Owner Occupancy and Rental Regulations

Most Texas cities require owner occupancy of either the primary dwelling or the ADU. 

You can typically only build an ADU for purely investment purposes if you live on-site. 

Some cities limit ADU rental periods to 30+ days, disallowing daily vacation rentals.

Consult local codes for occupancy and rental allowances, restrictions, and required licenses or inspections for ADUs in your area. 

Non-compliance with use regulations can lead to heavy fines or other legal actions.

Parking Requirements

Off-street parking requirements are often imposed for ADUs to prevent overburdening street parking availability in established neighborhoods. 

One dedicated parking space is typically mandated, although certain ADU types may be exempt.

If you plan to rent the ADU, insufficient parking availability could deter prospective tenants and reduce the unit’s income potential and appeal.

Permitting and Inspection Process

ADUs must go through the permitting, review, and inspection process like any significant home addition or new detached structure. 

Requirements for architectural plans, contractor licensing, permitting fees, site surveys, and inspections apply.

Streamlining through an experienced architect and builder familiar with your area’s often complex ADU rules is wise. 

Failed inspections or plan rejections can quickly balloon into budget overruns.

Special Exception and Overlay Zoning Procedures

In cities like Dallas, with heavy ADU restrictions, obtaining special exception permits or going through an arduous zoning overlay approval process may be mandatory before building permits are issued.

Navigating these complex zoning procedures almost always requires consulting specialized legal, design, and construction professionals. 

Attempting the approval process without experienced advisors often disappoints Texas property owners seeking ADUs.

HOAs and Deed Restrictions

Homeowner associations (HOAs) and private deed covenants may prohibit or limit ADUs independent of municipal zoning rules. 

Suppose an HOA or deed restriction applies to your Texas property. In that case, obtaining approvals or amending private agreements to permit an ADU becomes an additional obstacle.

Always review HOA rules and deed records thoroughly at the start of ADU planning and consult an attorney experienced in Texas real estate law as needed to clarify what’s allowed.

Conclusion

With proper planning, design, permitting, and construction, adding an ADU in Texas can be a gratifying experience that enhances your property in countless ways for decades. 

Just be sure to thoroughly research the specific requirements in your city and master plan or subdivision before diving in to turn your ADU dreams into reality.

Contact Steve Silver at Silver Mortgage, at 1-800-920-5720.

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