Skip to content

Accessory apartments. Garden cottage. Granny pod. Carriage House. Coach House. Mother-in-law suite. Multigenerational home. Accessory dwelling units (ADUs). No matter what you choose to call it, ADUs (as they’re best known by) are gaining popularity, particularly with Airbnb hosts.

What is an accessory dwelling unit?

The Bureau of Development Services in Portland, Oregon defines an ADU as:

“A small, auxiliary dwelling unit on the same lot or within a house, attached house, or manufactured home. The unit includes its own independent living facilities with provisions for sleeping, cooking, and sanitation, designed for residential occupancy independent of the primary dwelling unit.”

While zoning regulations for ADUs vary depending on your area, ADUs offer a lot of benefits to Airbnb hosts all around the country.

4 Benefits of Using Accessory Dwelling Units as Airbnb Rentals

carriage house accessory dwelling unit

Since its creation in 2008, Airbnb has become a new source of income for those who want to host guests in their respective rental properties. Of approximately 650,000 Airbnb hosts worldwide, 38% of them are making between $100-$499 per month, while 22% of those hosts are making between $500-$999 per month.

With accessory dwelling units, hosts can experience multiple benefits.



Since ADUs stand as independent living units, hosts don’t have to worry about using their own personal homes as rental properties, which opens up more availability to host guests for longer periods of time. More Airbnb guests, of course, leads to more profit.


lock illustration for privacy of accessory dwelling units


Both hosts and guests can benefit from accessory dwelling units by having more privacy. Since ADUs are separate units that include their own sleeping, cooking, and sanitation quarters, hosts and guests don’t have to worry about coexisting and sharing these areas. This can create much-needed privacy for both parties, and separate living spaces are oftentimes more attractive to those renting an Airbnb.


thumbs up illustration for convenience of accessory dwelling units


While some hosts have rental properties scattered all over, ADUs offer the convenience of being on your property. This obviously reduces travel time but also makes cleaning, general upkeep, and being an attentive host much more convenient.


Icon of three arrows pointing different directions


Part of the beauty of having an ADU is the opportunity for a variety of uses. Accessory dwelling units are an addition to an existing property that can serve several purposes aside from just being an Airbnb house.

What can an Accessory Dwelling Unit (ADU) be used for?

  • Rental property investment
  • Guesthouse for family or friends
  • Storage unit
  • Poolhouse
  • Workshop
  • Office
  • Studio
  • And more

Benefits of Mighty Small Homes as an Accessory Dwelling Unit

Mighty Small Homes has a variety of kit home models that can be converted into your very own ADU. Whether you prefer the carriage, modern, ranch, cottage, or tiny, any of these small-home kits can be customized to build an ADU.

All models are flexible and feature a variety of benefits for those looking to build an ADU as an Airbnb rental property or for another use. Here are the benefits of building with Mighty Small Homes:


Piggy bank iconLifetime Savings on Utilities

Mighty Small Homes are built using an envelope system with Structural Insulated Panels (SIPS) at its core. This envelope system allows our small and tiny home models to be airtight and 48% more energy-efficient than traditional, stick-built ADUs. As energy is used more efficiently, fewer utilities are used, ultimately leading to a lifetime of savings.


Arm flexing iconDurability

Each Mighty Small Homes model is composed of some of the strongest building materials on the market. The panels of our small and tiny home kits are secure, structurally stable, and able to withstand a Category 5 Hurricane. These durability features ensure the longevity of your ADUs and drastically reduce the amount of maintenance you’ll have to encounter throughout your lifetime.


Wrench iconCustomization

With five model kits (carriage, modern, ranch, cottage, and tiny), the opportunity for customizing a Mighty Small Home into the exact ADU you need is only limited to your imagination. All models come in varying sizes and can be customized if needed. Essentially, you have the ability to build your ADU exactly how you want, which can go a long way in the eyes of potential renters as well.


Hammer iconEase of Construction

Using prefab small home kits make the process of building an ADU smooth and efficient. Each Mighty Small Homes kit comes with pre-cut panels that eliminate waste and the need to measure and cut. Those who consider themselves handy have been able to get under roof in less than 24 hours. Being able to build quickly, efficiently, and without the need of a large crew saves hosts precious time and energy.


Accessory Dwelling Units as Airbnb Rentals Make Perfect Sense

It’s easy to see why so many people are considering building ADUs as Airbnb properties. They’re profitable, convenient, versatile, and give you privacy.

If you’re already a homeowner and looking to add an ADU to your property, or if you’re considering building a home with an ADU on your property, consider using Mighty Small Homes. Our small home kits are perfect for ADUs, allowing you to rent them out for Airbnb guests, use them for storage, temporarily house your mother-in-law, etc.

Reach out to our team today to learn more about building an Accessory Dwelling Unit.