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What Is an ADU? Meaning, Types & Why California Loves Them

Last reviewed: August 11, 2026. Planning ranges are based on contractor experience and are not city service guarantees. Rules and lender requirements vary by property, jurisdiction, and program.

The short version

ADU stands for accessory dwelling unit — a complete, self-contained dwelling on the same lot as a primary residence, with permanent provisions for living, sleeping, eating, cooking and sanitation. You may know it as a granny flat, in-law suite, casita or backyard cottage. California law provides ministerial pathways for ADUs on many qualifying residential lots, subject to objective standards, site conditions, and the applicable state and local rules.

“ADU” is the least helpful name in housing — three letters that explain nothing. So here is the plain-English version of what an accessory dwelling unit actually is, what counts as one, and why Orange County homeowners keep building them.

01What “accessory dwelling unit” actually means

Break the term apart and it makes sense:

  • Accessory — it’s secondary to the main house on the lot, not a separate property you can sell on its own.
  • Dwelling — it’s a real home, not a shed or a bonus room. Legally that means permanent provisions for living, sleeping, eating, cooking and sanitation: a kitchen, a bathroom, and its own entrance.
  • Unit — it’s independent. A tenant, a parent or an adult child can live there without walking through your house.

That last part is the legal line that separates an ADU from a “guest room over the garage.” No kitchen, no separate entrance — not a dwelling unit.

02One thing, many names

All of these are the same legal object — an ADU — wearing different outfits:

What people call itWhat it usually means
Granny flatAn ADU built with aging parents in mind — see our granny flat guide
In-law suiteSame idea, in-laws edition — often attached to the main house
CasitaThe Spanish-derived name common across Southern California — a permitted casita is an ADU
Backyard cottage / backyard homeA detached ADU standing free in the yard
Garage conversionAn ADU created inside an existing garage — see the garage conversion guide
Second unit / granny unitOlder planning-department vocabulary for the same thing

The name changes; the permit does not. Whatever you call it, the city reviews it as an accessory dwelling unit.

03The four types (plus one junior)

  1. Detached ADU

    A detached ADU is a separate backyard dwelling. Government Code section 66321 prevents a local ordinance from setting a maximum below 850 square feet, or 1,000 square feet for an ADU with more than one bedroom, and protects a pathway for at least an 800-square-foot unit under specified standards. Local ordinances may allow larger units, so verify the maximum for the property rather than assuming a statewide 1,200-square-foot entitlement.

  2. Attached ADU

    Shares a wall with the main house (including above-garage units) — efficient on tighter lots, and the most reliable path to a two-story unit.

  3. Garage conversion

    The existing garage becomes the home — usually the lowest-cost path because the slab, walls and roof already exist.

  4. Junior ADU (JADU)

    A JADU is no more than 500 square feet of interior livable space and is contained within a proposed or existing single-family residence, which may include an attached garage. Under Government Code section 66333, owner occupancy may be required when the JADU shares sanitation facilities with the existing structure; it is not required when the JADU has separate sanitation facilities, subject to the statute's other exceptions and deed restriction requirements.

04Why California made ADUs easy

Since 2017, a series of state laws has stripped away the barriers that used to make second units nearly impossible: approval is now ministerial (no public hearing, no neighbor veto), side and rear setbacks drop to 4 feet, cities cannot demand replacement parking in most cases, and since 2026 the review itself runs on a legal clock — 15 days to confirm your application is complete, 60 days to decide. Cities can apply objective standards; they cannot say no to a code-compliant unit. The full rulebook lives in our California ADU laws guide.

05What homeowners actually use them for

The four jobs an ADU does
  • Long-term rental use — rent varies by city, unit size, utilities, parking, condition, and current comparable listings. Use current property-specific market evidence rather than a countywide promise.
  • Family under a separate roof — aging parents or adult children, close but independent.
  • Long-term property value — a legal, permitted second dwelling on the lot.
  • Space that flexes — office now, rental later, parents after that.

Project cost depends on the ADU type, scope, site, utilities, access and finishes. Review the current pricing references and project-specific cost drivers in our ADU cost guide, and review the assessment framework in the property-tax explainer.

Quick answers

What does ADU stand for?
Accessory dwelling unit — a self-contained second home (kitchen, bathroom, own entrance) on the same lot as a primary residence. Granny flat, in-law suite, casita and backyard cottage are nicknames for the same legal thing.
Is a garage conversion considered an ADU?
A permitted garage conversion can qualify as an ADU when it provides the required independent living facilities. Cost still depends on the existing structure, utilities, code upgrades, site conditions and finish scope.
What is the difference between an ADU and a JADU?
A JADU is no more than 500 square feet of interior livable space and is contained within a proposed or existing single-family residence, including an attached garage. Owner occupancy may be required when sanitation is shared with the existing structure; it is not required when the JADU has separate sanitation facilities, subject to Government Code section 66333's other exceptions and deed restriction requirements. A standard ADU may be attached, detached or converted space and follows different size and occupancy rules.
Can I rent out my ADU in California?
A permitted ADU may generally be rented on a term longer than 30 days, subject to applicable restrictions. Some mortgage programs may allow a documented portion of ADU rent to be considered in qualifying income. For example, certain FHA scenarios use 75% of eligible gross or market rent, but transaction, appraisal, lease, occupancy, documentation and income-cap requirements apply. Confirm the current program with a licensed lender. Review the financing guide for more context.
Does an ADU need its own address?
It gets its own unit designation and mail delivery in most cities, but it remains part of your property — an ADU cannot be sold separately from the main house except under narrow condo-style programs a few cities have adopted.

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