Yes: Minneapolis allows one internal, attached or detached ADU on any lot with a single- or two-family home, by administrative zoning approval plus a building permit (Code of Ordinances 550.1400-550.1460). A detached unit may be 1,300 sq ft or 16% of the lot, whichever is greater (capped at 1,600 sq ft and never larger than the house), 21 ft tall, 3 ft from side and rear lot lines and 10 ft from the house; attached and internal units are capped at 800 sq ft. No parking is required, and owner-occupancy applies only to internal ADUs. Budget $325 for the zoning application, roughly $3,200-$5,400 in building permit and plan-review fees, and $150,000-$465,000 for a new detached unit.
Zoning & Size Requirements [1][2][3][4][5][6]
Yes — Minneapolis allows ADUs. The size limit is a formula rather than one figure — see the size rule in the table below — under current Minnesota and Minneapolis zoning rules.
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| Allowed Zones | 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)). |
| Max Size (Detached) | 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)). |
| Max Size (Attached) | 800 sq ft gross floor area (550.1450(1)); at least 300 sq ft, as for any dwelling unit (550.310(1)); must stay smaller than the main unit; no new street-facing entrance; exterior materials must match the house (550.1450(2),(4)). |
| Max Size (JADU) | 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)). |
| Max Height | 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)). |
| Max Units | 1 ADU per zoning lot, and this limit cannot be varied (550.1430(1); Chapter 525 variance exclusion). ADUs are allowed only with a single- or two-family home, so a three-unit building gets none. |
Setback Requirements [1][2][3][4][5][6]
Minneapolis requires a rear setback of about 3 ft for a detached ADU, and no additional parking is required. Owner-occupancy is required.
| 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)). |
| Parking Required | 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). |
| Owner Occupancy | 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)). |
| Min Lot Size | 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. |
Permit Process & Fees [7][8][9][10]
An ADU permit in Minneapolis goes through a standard permit review. Typical timeline: 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. Fees range from $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.
| Approval Process | Administrative ADU application to Zoning ($325), decided by the zoning administrator without a hearing (appeal to the Board of Adjustment within 10 days), then a building permit through Minneapolis Development Review in ProjectDox; an internal ADU records its owner-occupancy covenant before the permit issues (550.1410; application packet rev. July 2024). |
| Review Timeline | 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. |
| Permit Fees | $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. |
| Impact Fees | No city impact fee: the building permit fee schedule lists only the permit fee, 65% plan review and the 0.05% state surcharge. A Metropolitan Council sewer availability charge (SAC) may apply to a new dwelling unit; confirm the current rate with Development Review. |
| Plan Check | 15 business days for the initial review, 5 business days for each resubmittal (city permit application process page) |
| Pre-Approved Plans | None published. The city offers a detached-ADU code-requirements handout (Dec. 2024), not stock plans; drawings must meet the 2020 Minnesota Residential Code. |
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Construction Costs [11][12][13]
Building an ADU in Minneapolis typically costs $150,000-$465,000 ($180-$550 per sq ft); a garage conversion runs $95,000-$185,000.
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| Average Build Cost | $150,000-$465,000 |
| Cost per Sq Ft | $180-$550 |
| Garage Conversion | $95,000-$185,000 |
| Prefab ADU (Installed) | $150,000-$350,000 |
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Rental Income Potential [14][15][16][17]
A 2-bedroom ADU in Minneapolis rents for around $1,700-$2,300/mo, an estimated 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.
| Avg Rent (1 Bedroom) | $1,250-$1,700/mo |
| Avg Rent (2 Bedroom) | $1,700-$2,300/mo |
| Short-Term Rental | 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). |
| Est. Annual 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. |
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Recent Law Changes
What's Changed Recently
- May 23, 2025: the Zoning Code corrections ordinance (Ord. 2025-023) re-adopted 550.1450 and 550.1460 with wording fixes only; every ADU figure (21 ft, 1,300/1,600 sq ft, 800 sq ft footprint, 3 ft, 5 ft, 10 ft) is unchanged.
- July 1, 2023: the Land Use Rezoning ordinance moved the ADU rules from the old Chapter 537 into Chapter 550, Article IX (550.1400-550.1460) and replaced the R1-R6 districts with urban neighborhood districts; an ADU is allowed wherever a single- or two-family home is.
- March 6, 2021: owner-occupancy dropped for attached and detached ADUs; it still applies to internal ADUs, and pre-2021 covenants remain until released after a building inspection (550.1450(5), 550.1460(11)).
- 2026 session: Minnesota's Starter Home Act (HF 3895 / SF 4123), which would have required every city to allow one ADU on any single-family lot, stalled in its first committees; Minnesota has no statewide ADU law, so the city code governs.
- Pending: the 'Housing with 1 to 3 units' zoning amendment (hearing dates to be set) proposes to allow separate street-facing ADU entrances and to let detached-ADU siding match the house regardless of material; not in force.
Tips for Building an ADU in Minneapolis
- Choose the ADU type with the covenant in mind: only an internal ADU triggers the owner-occupancy covenant recorded against the deed; an attached or detached unit does not, so investors and owners who may move should build outside the house.
- Footprint trap: the ADU, garage and every shed together may not exceed 800 sq ft or 10% of the lot. On a 5,000 sq ft lot with a 440 sq ft garage, a new detached ADU footprint is limited to 360 sq ft, so most owners build up to 21 ft or put the unit above a rebuilt garage.
- Worked fee example: a $200,000 detached ADU pays $2,320.50 permit + $1,508.33 plan review (65%) + $100 state surcharge = $3,929, plus the $325 zoning application; plumbing and mechanical permits and the state (DLI) electrical permit are billed separately.
- Winter construction rules from the city's detached-ADU handout: frost footings (an existing garage slab usually does not qualify), 1-hour-rated walls and eaves within 5 ft of a lot line, no openings within 3 ft of a side lot line, egress windows in every bedroom, 7 ft ceilings, R-30 between garage and unit.
- Renting it: any unit the owner does not live in needs a City rental license (fees due March 1 each year); a stay of 30 days or less needs a short-term rental license and the license ID on the listing.
- Cost basis: build costs are two Minneapolis remodelers' published ranges (July 2025: detached $150,000-$250,000+; June 2026: detached 500-800 sq ft $265,000-$465,000, garage conversion $95,000-$185,000, basement $110,000-$220,000) and a Minnesota prefab builder's late-2025 estimate ($150,000-$350,000, $180-$400 per sq ft). Rents: HUD FY2026 FMR for the metro (1BR $1,405, 2BR $1,709) and Sept. 2026 citywide medians (1BR $1,259, 2BR $1,765).
- Cost basis (2026-09-20 re-verification): short term allowed: 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). Longer rentals need a regular rental license, required for any unit the owner does not live in. An internal ADU also carries the owner-occupancy covenant (550.1440(5)). | roi estimate: 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 returns 7-18% gross
ADU Builders in Minneapolis
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Sources & References
All data on this page is sourced from official government records and verified market data. View our full methodology.
- Minneapolis Zoning Code (Title 20), Chapter 550, Article IX, Accessory Dwelling Unit Standards, 550.1400-550.1460; 545.350-545.390; 550.310; 525 fee table (effective July 1, 2023, city-published PDF) Municipal Code — Accessed 2026-09-20
- Minneapolis Code of Ordinances, Title 20, Ch. 550, Art. IX Accessory Dwelling Unit Standards (Municode) Municipal Code — Accessed 2026-09-20
- Zoning code corrections ordinance 2025-00221 (Ord. 2025-023, effective May 23, 2025), amending 550.1450 and 550.1460 — Minneapolis LIMS Municipal Code — Accessed 2026-09-20
- Accessory Dwelling Unit Application packet (rev. July 2024): summary table of Chapter 550 ADU standards, process, $325 fee — City of Minneapolis Planning Department — Accessed 2026-09-20
- Covenant for Accessory Dwelling Unit (owner occupancy, section 550.1440(5)) — City of Minneapolis Planning Department — Accessed 2026-09-20
- Proposed and adopted zoning code amendments (Housing with 1 to 3 Units amendment pending) — City of Minneapolis Planning Department — Accessed 2026-09-20
- Accessory Dwelling Unit application page (updated June 30, 2026) — City of Minneapolis Planning Department — Accessed 2026-09-20
- Minneapolis Building Permit Fee Schedule (permit fee by construction value, 65% plan review, state surcharge) — City of Minneapolis Planning Department — Accessed 2026-09-20
- Permit application process: 15 business days initial plan review, 5 per resubmittal — City of Minneapolis Planning Department — Accessed 2026-09-20
- Detached accessory dwelling unit: key minimum code requirements (Dec. 10, 2024) — City of Minneapolis Planning Department — Accessed 2026-09-20
- ADU & In-Law Suite Rules in Minneapolis and St. Paul (June 11, 2026): detached 500-800 sq ft $265,000-$465,000, garage conversion $95,000-$185,000, basement $110,000-$220,000 — Reetz Construction (industry) industry — Accessed 2026-09-20
- How Much Does it Cost to Build an ADU in Minneapolis (July 14, 2025): detached $150,000-$250,000+, attached $125,000-$200,000+, above-garage $180,000-$300,000+ — Hanson Remodeling (industry) industry — Accessed 2026-09-20
- Minnesota ADUs (late 2025): $150,000-$350,000 per project, $180-$400 per sq ft — DC Structures (industry) industry — Accessed 2026-09-20
- FY2026 Fair Market Rents, Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area: 0BR $1,242, 1BR $1,405, 2BR $1,709, 3BR $2,262 — HUD User Government Data — Accessed 2026-09-20
- Minneapolis, MN rent research (data as of Sept. 19, 2026): median 1BR $1,259, 2BR $1,765 — Zumper (market data) Market Data — Accessed 2026-09-20
- Short-term rental licenses (stays of 30 days or less) — City of Minneapolis Planning Department — Accessed 2026-09-20
- Rental license rules and regulations — City of Minneapolis Planning Department — Accessed 2026-09-20
- HF 3895 (2026) Minnesota Starter Home Act, status: referred to committee March 2, 2026, no further action — Minnesota Revisor Government Data — Accessed 2026-09-20
- SF 4123 (2026) companion, status: referred to State and Local Government March 4, 2026, no further action — Minnesota Revisor Government Data — Accessed 2026-09-20
- Housing with 1 to 3 units zoning amendment (proposed; effective date to be determined) — City of Minneapolis Planning Department — Accessed 2026-09-20
Frequently Asked Questions
Can I build an ADU in Minneapolis?
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. 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)).. Owner-occupancy is required: 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)).
How much does an ADU cost in Minneapolis?
ADU construction in Minneapolis typically costs $150,000-$465,000. Garage conversions run $95,000-$185,000, and prefab ADUs cost $150,000-$350,000.
How much can I rent an ADU for in Minneapolis?
Average ADU rents in Minneapolis are $1,250-$1,700/mo for a 1-bedroom and $1,700-$2,300/mo for a 2-bedroom unit.
Do I need parking for an ADU in Minneapolis?
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).. 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 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.. Fees range from $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.
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