The City of Madison has just unveiled new efforts to make housing more accessible and flexible, and it’s great news for anyone considering an ADU (Accessory Dwelling Unit) or tiny home. These changes are designed to remove roadblocks, open up more property options, and create more opportunities for families looking to add space, income potential, or long-term housing solutions.
Two ADUs in a Detached Building
Until now, most homeowners were limited to just one ADU on their property. The new proposal would allow two detached ADUs, giving families more flexibility. For example: one ADU for aging parents and another as a rental or guest house.
Increased Investment and Rental Opportunities
This change is also a big win for investors and landlords. Adding two ADUs can significantly increase rental opportunities and overall property value—turning one single-family lot into a small income-producing property without having to buy more land.
Simplified Rules for Accessory Structures
The city plans to streamline regulations for things like setbacks, lot sizes, and placement of structures. This means fewer restrictions and fewer surprises during the planning and permitting process.
Adjustments to Lot Area and Setbacks
Smaller lots that previously weren’t eligible for an ADU may now qualify, opening the door for more homeowners to create additional housing.
Height Increases in Transition Zones
In some areas, the city will allow slightly taller buildings where different housing types meet. For ADUs, this can mean more design flexibility—like adding a loft or creating more comfortable headroom.
Cottage Courts & Transit Zones
Future updates will make it easier to create small clusters of homes (“cottage courts”) and simplify building near public transit. Both changes support creative small-scale housing solutions that fit seamlessly into neighborhoods.
Why This Matters for You
These changes make ADUs in Madison more practical and attainable than ever. Here’s what it could mean for you:
More Options on Your Lot – Build one ADU, or even two, depending on your needs.
Better Use of Space – Relaxed rules mean your lot may now qualify for an ADU even if it didn’t before.
Faster, Smoother Process – With simplified regulations, the path from design to approval gets clearer.
Added Flexibility – Use an ADU for family today, and transition it into a rental tomorrow if your situation changes.
Increased Value – More housing options on your property typically boost property value and income potential.
What’s Next
The city will be finalizing these proposals this fall, with opportunities for public input. Once adopted, they’ll make a real difference for Madison homeowners who want to add living space for parents, kids, guests, or renters.
If you’ve been on the fence about an ADU, now is the perfect time to revisit the idea. With Madison moving to make the process easier, you’ll have more options and fewer hurdles.
At Boundless Tiny Homes, our mission is to help families like yours create thoughtful, high-quality ADUs that fit your life—whether that’s keeping loved ones close or unlocking new income potential.
