Reno just unlocked a major opportunity for homeowners and investors: the city’s updated ADU ordinance makes it easier than ever to build income-generating units in Northern Nevada’s fastest-growing neighborhoods.
The City of Reno has officially adopted new Accessory Dwelling Unit (ADU) regulations, effective October 2025; a major win for homeowners and out-of-state investors seeking new income opportunities in Northern Nevada’s growing housing market.
ADUs, often called granny flats, casitas, or guest houses, provide flexible housing solutions that can increase property value, create passive rental income, and help address housing demand.
This guide breaks down everything you need to know about Reno’s new ADU ordinance, from lot size and design rules to rental allowances and estimated fees.
What Is an Accessory Dwelling Unit (ADU)?
An ADU is a secondary home on the same lot as a single-family residence.
It can be:
Attached ADU – integrated with the primary home (e.g., over-garage or basement unit)
Detached ADU – a separate backyard structure, cottage, or guest house
ADUs are becoming a powerful tool for housing affordability, multi-generational living, and investment diversification.
Reno’s 2025 ADU Ordinance: Key Highlights
Under the updated ordinance, ADUs are now permitted across all single-family zoning districts with straightforward development standards.
| Requirement | Details |
|---|---|
| Number Allowed | One ADU per single-family property |
| Lot Size | Minimum 5,000 sq. ft. |
| Height Limit | Cannot exceed the main home |
| Design Standards | Must match roof pitch, materials, and style of primary home |
| Parking | At least one on-site space required |
| Entry Rule | Attached ADU doors cannot face the same street as the main home |
| Rental Use | Long-term and short-term rentals (Airbnb) allowed |
| Ownership | Cannot be sold separately from the main home |
These changes make it simpler and more profitable for both local owners and remote investors to add income-producing units to existing properties.
Estimated ADU Fees and Costs (As of Oct 2025)
Fees vary based on the ADU’s size, design, and type of construction. Here’s a general breakdown:
| Fee Type | Estimated Range |
|---|---|
| Regional Road Impact | ~$3,700 |
| Park Fee | $800 – $1,000 |
| Police Impact Fee | $100 – $140 |
| Sewer Connection | $8,700 – $13,200 |
| Building Permit & Plan Review | Based on valuation and construction type |
Pro Tip: Reno’s Building Division provides a valuation estimator to help determine accurate permit costs before you start your project.
How to Start Your ADU Project in Reno
Let's talk about finding a top investment property for your goals, time, energy, lifestyle, and capital. Once we find a solid property, here are the next steps for an ADU.
Get the Full 2025 ADU Guide (Free Download)
Want to see the official City of Reno ADU Guide (Revised Oct 2025)?
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Full Reno ADU ordinance summary
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Final Takeaway
Reno’s new ADU ordinance represents one of the most flexible and investor-friendly housing updates in the West.
For homeowners, it’s a chance to add value and create income.
For out-of-state investors, it’s a chance to build scalable rental portfolios in a high-growth, low-tax market.
Whether you’re planning to build, buy, or invest, the new 2025 Reno ADU rules are worth exploring
Here is the link to the original article - Reno's New ADU Ordinance Could Reshape Rental Investing
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Brad Buxton Senior Investment Specialist | Address Income 775.298.1114 bbuxton@addressincome.com |