Is a Property With an Accessory Dwelling Unit Right for You? Here’s What To Know
Are you having a hard time finding the right home within your budget? Or maybe you already own a home but could use some extra income or a designated space for aging loved ones. Either way, a home with an Accessory Dwelling Unit (ADU) could be the smart solution you’ve been looking for in today’s market.
What Is an ADU?
According to Fannie Mae, an ADU is a small, separate living space on the same lot as a single-family home. It must include its own areas for living, sleeping, cooking, and bathrooms independent of the main house. ADUs can take shape in different ways:​
- Within the main home: A basement apartment or converted interior space.​
- Attached to the main home: A living area built above a garage or as an addition.​
- Detached from the home: A separate cottage, guest house, or converted garage.​
New Laws Making ADUs More Accessible in Massachusetts
As of February 2025, Massachusetts’ Affordable Homes Act has made ADUs more feasible for homeowners by streamlining the approval process. The new law allows homeowners to build ADUs by-right in single-family zoning districts, eliminating the need for special permits. Key aspects of the law include:​
- By-Right Approval: Homeowners no longer need special permits for ADUs in most areas.​
- Size Restrictions: ADUs must be no larger than 900 square feet or 50% of the main home’s square footage, whichever is smaller.​
- Occupancy Rules: The law eliminates owner-occupancy requirements, allowing greater flexibility for renting ADUs.​
This change is expected to help alleviate the housing shortage while giving homeowners more options for utilizing their property.​
ADUs on Martha’s Vineyard: What You Need to Know
While the new Massachusetts law makes ADUs more accessible, Martha’s Vineyard has unique factors to considerdue to zoning restrictions, infrastructure limitations, and the island’s architectural preservation efforts.​
- Zoning Adjustments in Progress: Some towns on Martha’s Vineyard have historically allowed ADUs under specific conditions, such as requiring occupancy by a family member or caretaker. However, with the state law now in effect, individual towns may need to revise their zoning codes to comply.​
- Design and Aesthetic Guidelines: Homeowners must ensure ADUs fit within the island’s strict architectural standards to maintain the character of neighborhoods.​
- Septic and Infrastructure Considerations: Many homes rely on septic systems, and adding an ADU may require an upgraded system to accommodate the additional usage.​
Why Are Homes With ADUs a Smart Investment?
ADUs offer practical and financial benefits, making them a sought-after feature in today’s real estate market. Rather than thinking of ADUs as something to buy separately, the best strategy is purchasing a home that already has one, allowing you to start generating rental income immediately.​
- Supplemental Income: A homeowner can rent out an ADU to help offset mortgage costs and property taxes.​
- Multigenerational Living: ADUs allow families to keep aging parents, adult children, or caregivers close while maintaining privacy.​
- Housing Shortage Solution: With limited housing inventory, ADUs provide additional rental options without requiring large-scale developments.​vineyardgazette.com
- Increased Property Value: Homes with legal ADUs tend to appreciate more due to their income potential.​
What to Consider Before Adding an ADU
If you’re thinking about buying a home with an ADU or adding one to your existing property, keep these factors in mind:​
- Local Regulations Still Apply: Even with the state law, town-specific requirements may impact ADU development.​
- Costs and ROI: While ADUs can generate income, the initial costs of construction, permitting, and infrastructure upgrades should be considered.​
- Property Suitability: If you’re looking to build, make sure your home’s lot size, septic capacity, and zoning allow for an ADU.​
Bottom Line
With new laws in place, ADUs are a more viable option for homeowners in Massachusetts, including Martha’s Vineyard. If you’re buying a home, one with an existing ADU could be a smart investment, providing immediate rental income. If you already own a home, adding an ADU could help maximize your property’s value and function.​
If you’re considering buying a home with an ADU or exploring the option of adding one, The O’Hanlon Group can help. Contact us today to learn more about ADUs on Martha’s Vineyard and how they can work for you!
