Everything homeowners ask about building an ADU in Minneapolis — answered with 2026 data.
Yes, ADUs are allowed in Any lot whose main building is a permitted or conditional single- or two-family dwelling: the urban neighborhood, residential mixed-use and commercial mixed-use districts citywide. An ADU may not be accessory to a 3+ unit building or a non-residential use, and it cannot be split onto its own tax parcel (550.1420, 550.1430(2)). in Minneapolis, MN. The maximum size for a detached ADU is 1,300 sq ft gross floor area on all levels (garage space counts) or 16% of lot area, whichever is greater; never more than 1,600 sq ft or larger than the main house. Separately, the combined footprint of the ADU, every other detached accessory building and any attached garage is capped at 800 sq ft or 10% of lot area, whichever is greater (550.1460(2)-(3)). Attached ADUs can be up to 800 sq ft gross floor area. Minneapolis has an ADU-friendliness score of 9/10. Check our full Minneapolis ADU rules page for complete zoning details.
ADU construction in Minneapolis typically costs $150,000-$465,000. The cost per square foot averages $180-$550. Garage conversions are more affordable at $95,000-$185,000, while prefab ADUs cost $150,000-$350,000. Permit fees add $325 zoning application, plus a valuation-based building permit: about $3,200-$5,400 on $150,000-$300,000 of work (permit fee + 65% plan-review fee + 0.05% state surcharge, 2026 schedule). Plumbing, mechanical and electrical permits are separate. to your budget. See our detailed Minneapolis ADU cost guide.
Detached ADUs in Minneapolis can be up to 1,300 sq ft gross floor area on all levels. Attached ADUs are limited to 800 sq ft gross floor area. Junior ADUs (JADUs) have a cap of No JADU category. An internal ADU (inside the house) is limited to 800 sq ft on a single level; it may exceed 800 sq ft only within a part of the house that existed on Jan. 1, 2015, and never more than the floor area of the first floor (550.1440(1)-(2)). Maximum height is Detached: 21 ft, unless a variance is granted (550.1460(1)). Internal and attached ADUs are governed by the height allowed for the main house in its built form overlay district (545.350(a)). You are allowed up to 1 ADU per zoning lot, and this limit cannot be varied on a qualifying lot.
Rear setback: Detached: may be reduced to 3 ft, except no reduction on a side where vehicle-access doors face the rear lot line, and at least 5 ft from a rear lot line that coincides with the side lot line of a lot in an urban neighborhood or residential mixed-use district (550.1460(5)-(6)). Internal/attached: the district's rear-yard setback applies. Side setback: Detached: not less than 3 ft, except no reduction where vehicle-access doors face the interior side lot line; on a reverse corner lot, the corner-side setback is two-thirds of the front-yard depth required for the lot to the rear (550.1460(4),(6)). Decks, including rooftop decks, at least 5 ft from an interior side line; balconies may not face one (550.1430(3)). Front setback: Detached ADUs must sit entirely to the rear of the main house (545.390) and at least 10 ft from its habitable portion (550.1460(7)); the district front-yard setback still applies. Internal and attached ADUs follow the district front setback and may not add an entrance facing the street (550.1440(3), 550.1450(2)). Note that garage conversions may be exempt from setback requirements if the existing structure is already within the setback area.
None: there is no minimum or maximum off-street parking requirement for the ADU or for the main house (city ADU application packet, rev. July 2024). Many cities and states have been relaxing ADU parking requirements in recent years. In California, no additional parking is required for ADUs near transit.
Required only for an internal ADU that is not a separate dwelling unit under the State Building Code: the owner must live in one of the units and record a covenant with Hennepin County before the building permit issues; this cannot be varied (550.1440(5), 525 variance limits). Not required for attached or detached ADUs since March 6, 2021; older covenants stay until released after inspection (550.1450(5), 550.1460(11)). Note that owner-occupancy rules vary by state law — California and several other states have eliminated this requirement for standard ADUs.
The ADU permit review timeline in Minneapolis is typically City target: 15 business days for the initial building-plan review and 5 business days per resubmittal; zoning staff send any incompleteness letter within 15 business days. No end-to-end time is published. Plan check: 15 business days for the initial review, 5 business days for each resubmittal (city permit application process page). Pre-approved plans availability: None published. The city offers a detached-ADU code-requirements handout (Dec. 2024), not stock plans; drawings must meet the 2020 Minnesota Residential Code.
Average ADU rental income in Minneapolis: 1-bedroom units rent for $1,250-$1,700/month, 2-bedroom units for $1,700-$2,300/month. Short-term rentals: Yes, with a license: stays of 30 days or less need a City short-term rental license (occupancy capped at 10; an owner may hold only one non-homestead STR license besides their home). Expected ROI: 5-8% gross rental yield on a $250,000-$400,000 detached ADU renting at $1,500-$2,300/mo, before taxes, vacancy, insurance and financing; a $95,000-$220,000 garage or basement conversion renting at $1,250-$1,700/mo return.
The minimum lot size for an ADU in Minneapolis is No minimum lot size or lot width is set for an ADU (Chapter 550, Article IX sets none); the lot needs only a permitted or conditional single- or two-family home. On small lots the 16%-of-lot and 10%-of-lot rules shrink a detached unit. This applies to detached ADUs — garage conversions and JADUs may have different or no lot size requirements.
Garage conversions are one of the most popular and affordable ADU options. In Minneapolis, a garage conversion typically costs $95,000-$185,000. The key advantages are lower cost (no foundation work), potential setback exemptions, and faster permitting. Read our complete garage conversion guide.
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