Is building an ADU a good investment in Anaheim?

Anaheim is home of the Disneyland Resort. The city is proactively expanding its housing alternatives by permitting the construction of Accessory Dwelling Units (ADUs). ADUs, defined as small secondary units that can be erected on single-family lots, offer a viable solution for individuals seeking more affordable housing. With median monthly rent priced at $40.00 per square foot, developing an ADU in Anaheim is bringing homeowners yearly returns on investment exceeding 12% 

Anaheim Accessory Dwelling Unit Requirements.

ADU permits are rapidly increasing in Anaheim. Here is a breakdown of ADU requirements for 2024.

General ADU requirements

Detached, attached, and conversion ADU types, along with JADU’s are all allowed in Anaheim. Both, single and two-story ADU’s are permitted.

For independent living your ADU must be equipped with: Exterior access separate from primary residence, Living, Sleeping, Dining, Cooking, and Bathing.

The kitchen must have at minimum the following: A sink, a refrigerator, a cooktop or range and cabinetry.

JADU can share a bathroom with the primary residence. However, JADU’s must have their own separate entrance.

Zoning

All zones single-family and multi-family most probably are eligible for ADU’s.

Number of Units

  • One ADU + One JADU in lots zoned single-family
  • For lots zoned multi-family, up to two detached ADU’s.
  • In multi-family, conversion units cannot be more than 25% of original number of units.

Building Size

  • JADU, maximum 500 SF
  • 150 SF Minimum for ADU’s and JADU’s.
  • 850 SF maximum for detached ADUs
  • Attached ADUs maximum 1,200 SF or 50% of the existing residence. (whichever is less)

Building Height

  • Detached ADUs have a height limit of 16 Feet or height of primary residence whichever is greater.
  • Attached ADU’s follow local zoning height limit.

Setbacks

Minimum setbacks:

  • 4 feet side and rear yard setbacks
  • 10 feet separation from existing structure.

Parking

Unless the property is exempt, one parking space is required for an ADU. Your ADU is exempt from parking in the following situations:

  • Your property is situated on a street where a parking permit is mandatory.
  • If the ADU is a studio (no proposed bedrooms)
  • You property is within 1/2 mile of public transportation.
  • Your property is less than a block away from a care share area.
  • Your property is situated in an area of architectural or historical significance.
  • On-street parking permits are required and not offered to the ADU tenants.
  • The ADU is part of the proposed or existing primary residence or an accessory structure. (No proposed addition)

Fees

The exact number of fees depends on the zoning of your lot and the overall scope of your ADU project. This is a list of some of the typical fees you can expect to pay.

  • Plan Check fees
  • City Impact Fees
  • School Impact Fees
  • Building Code and Green Code Fees
  • Permit Fees
  • Utility Connection fees

Sprinkler System

When a fire sprinkler is not required for the primary residence, they are not required for your ADU or JADU.

Basements

You can convert an existing unfinished basement space to an attached ADU.

Owner Occupancy

Owner occupancy is not a requirement for permitting an ADU. Owners are required to live on the property only if a JADU has been constructed on it. This is a state law requirement.

Taxes

Building an ADU does not trigger a reassessment of the value of the primary residence. However property taxes are based on property values and an ADU does increase the value of the property.

Rental Limitations

Short-term rentals under 30 days are not allowed in Anaheim.

< All ADU Regulations