Nashville allows Detached Accessory Dwelling Units (DADUs) in specific overlay districts and certain zoning districts. Owner occupancy required. Unit must be subordinate to primary dwelling. Strong rental market with growing demand.
Zoning & Size Requirements [1]
| Allowed Zones | RS (single-family) with DADU overlay; R or RM zones with alley access or UDO; Urban Services District; General Services District with DADU overlay |
| Max Size (Detached) | 1200 sq ft (but must not exceed footprint of primary structure) |
| Max Size (Attached) | Limited; must be subordinate to primary dwelling |
| Max Size (JADU) | N/A (Nashville uses DADU terminology) |
| Max Height | Must be subordinate to primary dwelling; typically 1-2 stories |
| Max Units | 1 DADU per lot (with conditions) |
Setback Requirements [1]
| Rear Setback | 5 ft minimum |
| Side Setback | 5 ft minimum |
| Front Setback | 10 ft minimum separation from primary dwelling (alley edge consideration) |
| Parking Required | Typically included on-site |
| Owner Occupancy | Required - owner must live in primary dwelling or DADU |
| Min Lot Size | Varies by overlay district; typically 10,000 sq ft minimum for some areas |
Permit Process & Fees [2]
| Approval Process | Requires contractor permit pull (not self-permit allowed). Restrictive covenant required for Historic Overlays. ePermits system available. |
| Review Timeline | 60-90 days typical; longer for Historic Overlay reviews |
| Permit Fees | $2,500-$5,000 estimated (permit fees + covenant recording) |
| Impact Fees | School impact fees may apply |
| Plan Check | 3-4 weeks typical |
| Pre-Approved Plans | City has DADU design standards and guidelines |
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Construction Costs
| Average Build Cost | $150,000-$250,000 |
| Cost per Sq Ft | $225-$350 |
| Garage Conversion | $100,000-$180,000 |
| Prefab ADU (Installed) | $80,000-$140,000 |
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Rental Income Potential
| Avg Rent (1 Bedroom) | $1,200-$1,700 |
| Avg Rent (2 Bedroom) | $1,600-$2,200 |
| Short-Term Rental | Restricted under restrictive covenants; long-term only |
| Est. Annual ROI | 7-10 year payback; $100K+ supplemental income over 5 years |
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Recent Law Changes
What's Changed Recently
- 2025 DADU design standards updated for streamlined approval
- Overlay district map clarifies eligible areas
- Urban Design Overlay (UDO) creates new eligible zones
- Restrictive covenant requirement for all DADUs
Tips for Building an ADU in Nashville
- Check if property is in DADU overlay district (required for RS zones)
- Owner occupancy requirement is non-negotiable
- Restrictive covenant required; record at register's office
- Contractor must pull permit; cannot be self-permitted
- Strong rental market; high occupancy rates in Nashville
Sources & References
All data on this page is sourced from official government records and verified market data. View our full methodology.
- Nashville Planning Department — ADU Information Planning Department — Accessed 2026-03-15
- Nashville Building Department — Permit Information building_dept — Accessed 2026-03-15
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