Accessory dwelling units, or ADUs, are becoming an increasingly valuable addition to residential properties, according to the Greater Portland Board of Realtors.
“The benefits extend beyond creating room for family or guests,” said Yvonne Myer, the board’s president. “For many homeowners and buyers, an ADU can also provide rental income and today’s mortgage guidelines are being revised to increasingly recognize that value.”
An ADU is a secondary abode on a residential property, either attached or detached, or created by converting a garage or basement.
The Maine Legislature passed a law in 2023 requiring municipalities to revise land-use ordinances to allow at least one ADU on any lot with a single-family home. Regulations can vary from town to town.
That change makes it easier for homeowners to create additional living space while adding housing, said Myer.
Depending on the loan program and borrower qualifications, income from an existing ADU may be used to help qualify for financing on a primary residence, Myer said.
In many cases, lenders may also consider rental income from ADUs located on eligible investment properties, helping investors leverage the property’s earning potential when purchasing or refinancing.
