Minneapolis is one of the nation's most ADU-friendly cities, allowing up to three dwelling units per lot in many zones. The city's progressive housing policy makes it an excellent market for ADU development and investment.
Zoning & Size Requirements
| Allowed Zones | All residential zones |
| Max Size (Detached) | 1,050 sq ft |
| Max Size (Attached) | 900 sq ft |
| Max Size (JADU) | 800 sq ft |
| Max Height | 35 feet |
| Max Units | 3 units per lot possible |
Setback Requirements
| Rear Setback | 10 feet |
| Side Setback | 3 feet |
| Front Setback | 15 feet |
| Parking Required | Optional |
| Owner Occupancy | Not required |
| Min Lot Size | 3,500 sq ft |
Permit Process & Fees
| Approval Process | Building permit (by-right in many zones) |
| Review Timeline | 40-60 days |
| Permit Fees | $1,800-$3,000 |
| Impact Fees | Minimal |
| Plan Check | 2-3 weeks |
| Pre-Approved Plans | Available |
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Construction Costs
| Average Build Cost | $140,000-$280,000 |
| Cost per Sq Ft | $130-$270 |
| Garage Conversion | $70,000-$160,000 |
| Prefab ADU (Installed) | $100,000-$230,000 (installed) |
Finance Your ADU Project
Most ADU projects are funded through HELOCs, construction loans, or cash-out refinancing. Compare rates from top lenders in minutes.
Compare ADU Financing Options →Rental Income Potential
| Avg Rent (1 Bedroom) | $1,350-$1,800/mo |
| Avg Rent (2 Bedroom) | $1,700-$2,400/mo |
| Short-Term Rental | Permitted with registration |
| Est. Annual ROI | 7-10% annual return |
Explore Prefab ADU Options
Prefab ADUs can save 20-40% vs. traditional construction and cut build time in half. Compare top prefab manufacturers.
Compare Prefab ADUs →Recent Law Changes
What's Changed Recently
- 2024: Approved citywide triplex allowance in many zones
- 2023: Eliminated parking requirements for ADUs
- 2024: Streamlined permitting for multiple dwelling units
- 2023: Created affordable housing incentive program
Tips for Building an ADU in Minneapolis
- Minneapolis is at forefront of zoning reform; exceptional ADU policies
- Three-unit allowance creates maximum flexibility and income potential
- Progressive city support means strong policy stability
- Winter climate creates seasonal rental considerations
Frequently Asked Questions
Can I build an ADU in Minneapolis?
Yes. ADUs are allowed in All residential zones in Minneapolis. The maximum size for a detached ADU is 1,050 sq ft. No owner-occupancy is required.
How much does an ADU cost in Minneapolis?
ADU construction in Minneapolis typically costs $140,000-$280,000. Garage conversions run $70,000-$160,000, and prefab ADUs cost $100,000-$230,000 (installed).
How much can I rent an ADU for in Minneapolis?
Average ADU rents in Minneapolis are $1,350-$1,800/mo for a 1-bedroom and $1,700-$2,400/mo for a 2-bedroom unit.
Do I need parking for an ADU in Minneapolis?
Optional. Check with Minneapolis planning department for the latest Minnesota ADU parking rules, as many states have relaxed requirements in recent years.
How long does it take to get an ADU permit in Minneapolis?
The permit review timeline in Minneapolis is 40-60 days. Fees range from $1,800-$3,000.
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