Everything homeowners need to know about building an accessory dwelling unit in Minneapolis - size limits, setbacks, permits, and the recent changes that made it easier than ever.
Last verified: August 2026
9/10 · Very ADU-friendly
1,000 sq ft*
Max ADU size
20 ft
Max height
Not required
Owner-occupancy
By-right
Permit type
This page summarizes Minneapolis Zoning Code Chapter 537 (Accessory Uses and Structures) for general reference - it is not legal advice. Regulations change; always confirm current requirements with Minneapolis Community Planning & Economic Development (CPED) before designing or applying for permits. See sources below.
Zoning & size requirements
What you're allowed to build
ADU type
Max size
Max height
Notes
Detached (new build or garage conversion)
1,000 sq ft or 50% of the primary dwelling's finished floor area, whichever is smaller
Sized within the primary structure - no separate detached-style cap
Same as primary structure
Common approach for basement or above-garage conversions
Allowed zoning districts
Lots zoned for one- and two-family residential use, citywide. Confirm your parcel's zoning district with CPED.
Additional standards
Setbacks, parking & other rules
Setbacks
3 ft from side and rear property lines; 5 ft from an alley for above-garage units
Parking
No additional off-street parking required for the ADU itself
Units per lot
1 ADU permitted in addition to the primary dwelling
Owner-occupancy
Not required citywide as of a recent zoning amendment (previously required). Some internal ADUs may still require a recorded covenant - confirm with CPED.
Building code
Must meet 2020 Minnesota Residential Code dwelling unit standards
Rental license
A separate city rental license is required if the ADU or the primary home is rented out
Ordinance history
How Minneapolis's ADU rules got here
2014ADUs first legalized. The original ordinance, adopted in December 2014, only allowed ADUs on owner-occupied properties.
2019Owner-occupancy repeal introduced. Following the Minneapolis 2040 comprehensive plan's housing-supply goals, the City Council took up an amendment to allow ADUs on both owner-occupied and non-owner-occupied one- and two-family lots.
2021Owner-occupancy requirement eliminated citywide. Homeowners no longer need to live on site to build or rent out an ADU.
2022Cumulative permitting milestone. Reporting that fall put the total number of ADUs permitted in Minneapolis since 2014 at roughly 176 - still modest, but among the highest totals in the metro.
Worth knowing: even with a workable ordinance, Twin Cities ADU construction has stayed far slower than in cities like Seattle or Los Angeles - regional reporting points to construction cost and financing as the bigger remaining barriers now that the zoning itself has loosened up.
Permit process
How Minneapolis ADU permitting works
1
Pre-application check
Confirm zoning eligibility for your specific lot with CPED before designing.
2
Prepare your plan set
You'll need a site plan, floor plans and elevations for the ADU, and floor plans of the existing house to verify the size-limit calculation.
3
Submit zoning application
File your site plan with the ADU zoning review; the administrative fee is typically around $325.
4
Plan review
The city reviews for zoning and building code compliance. Incomplete applications get a deficiency notice within 15 business days.
5
Building permit & inspections
Once zoning is approved, pull your building permit, begin construction, and schedule the standard framing, plumbing, electrical, and final inspections.
6
Rental license (if renting)
Apply for a separate city rental license before placing tenants in the ADU or the primary home.
Applications left incomplete for 30+ days are typically withdrawn, and decisions can be appealed within 10 calendar days. Fees and timelines are approximate - confirm current figures with CPED.
Budgeting
What it costs to build an ADU in Minneapolis
Garage conversion
Roughly $70,000-$160,000, the least expensive path since the shell already exists
Basement conversion
Roughly $110,000-$220,000, depending on existing ceiling height and utility access
New detached ADU
Roughly $140,000-$280,000+ for a code-compliant, fully insulated freestanding unit
Zoning application fee
Around $325 for the ADU zoning review, separate from the building permit fee
SAC fee (if applicable)
$2,485 per unit in 2026, charged by Metropolitan Council Environmental Services on units that add new sewer demand
These are general ranges from local contractor estimates and regional reporting, not quotes - actual cost depends heavily on lot conditions, finishes, and whether utilities need to be extended. Minnesota's climate adds real cost too: a detached ADU is a fully insulated, freestanding structure, not just a room.
Before you apply
Tips for a smooth approval
Confirm your zoning district before you design. A quick pre-application check with CPED avoids redesigning a project that doesn't fit your lot.
Double-check the size formula against your actual house. The 1,000 sq ft cap only applies if 50% of your home's floor area is larger - many homes are capped well below 1,000 sq ft.
Get your application complete the first time. Deficiency notices go out within 15 business days, and applications left incomplete for 30+ days are typically withdrawn, costing you the fee and the time.
Budget for both the zoning fee and the building permit fee. They're billed separately, and it's easy to price only one when comparing contractor quotes.
Decide on rental plans before you build. If you'll rent either unit, you'll need a rental license - it's easier to plan the layout with that in mind from the start.
FAQ
Common questions
Do I need to live on the property to build an ADU in Minneapolis?
No. Minneapolis removed its citywide owner-occupancy requirement in 2021, so you can build and rent out an ADU without living on site. Some internal ADU conversions may still require a recorded covenant - confirm with CPED.
How many ADUs can I build on one lot?
Minneapolis allows one ADU per lot in addition to the primary dwelling.
Do I need extra parking for an ADU?
No additional off-street parking is required specifically for the ADU.
How long does the permit process take?
Zoning review and building permit approval commonly take several weeks to a couple of months depending on application completeness and project type - confirm current timelines with CPED.
What's the maximum size for a detached ADU?
Up to 1,000 sq ft or 50% of your home's finished floor area, whichever is smaller, with a 20 ft height limit.
How much does an ADU cost to build in Minneapolis?
Garage conversions tend to run roughly $70,000-$160,000, basement conversions $110,000-$220,000, and new detached units $140,000-$280,000 or more, based on local contractor estimates and regional reporting - not counting permit fees or SAC charges where they apply.
How many ADUs has Minneapolis actually permitted?
Reporting from late 2022 put the cumulative total at roughly 176 ADUs permitted citywide since the 2014 ordinance first allowed them - still a small fraction of the city's single-family housing stock, though among the higher totals in the metro.
Can I rent my ADU out on Airbnb or a short-term rental platform?
Minneapolis regulates short-term rentals separately from standard rental licensing, with its own license category and rules. If that's the plan, confirm current short-term rental requirements with the city before you finalize your design.
