Many homeowners decide to use their ADU as a long-term rental, which typically includes renting to a tenant for a term of more than 30 days. Some homeowners may also decide to rent their primary dwelling and live in their ADU, depending on their current needs. Choosing a long-term rental can provide a continuous stream of revenue, which is beneficial for homeowners on a fixed income, or those looking to increase equity and save for retirement. Rental income is more likely to keep up with inflation and could help you remain on your property if you are on a fixed income.
Your ADU may be used to rent to lower-income individuals/families through Sacramento’s Housing Choice Voucher Program.
Some homeowners may decide to use their ADU as a short-term rental, which includes temporary night-to-night lodging that does not exceed a 30 day period. Short-term rentals offer a source of income and may provide more flexibility to the homeowner to use their ADU for other purposes throughout the year, such as providing a place to stay for family and friends. Please keep in mind that ADUs and other residential units can only be used as a short-term rental for a total of 90 days per calendar year unless a Bed and Breakfast Inn Conditional Use Permit (CUP) is obtained. A Bed and Breakfast Inn CUP may be required by the Planning Division in the Community Development Department. Please refer to the Sacramento City Code for the CUP requirements:
Bed and Breakfast Inn CUP Requirements >>
In addition to the CUP, all short-term rentals must receive a Short-Term Vacation Rental Permit by the Revenue Division in the Finance Department. Please refer to the City's Short-Term Vacation Rental webpage for more information:
Owners of rental property are required to submit a Rental Housing Program Registration Form for each rental property owned. Additional information about the program, including the registration form, can be found on the City's website:
Congratulations! You Have Completed Sacramento ADU Resource Center's Step-By-Step Process!