2026-22038·DEPARTMENT OF AGRICULTURE

Single Family Housing Guaranteed Loan Program-Income Producing Accessory Dwelling Unit (ADU) Provisions

Final RuleFinal Rule

Published: Oct 29, 2026
Effective: Dec 28, 2026
Citation: 91 FR 68025
Docket: Docket No. RHS-26-SFH-0100
Agencies: DEPARTMENT OF AGRICULTURE, Rural Housing Service

Final rule.

Summary

The Rural Housing Service (RHS) of the U.S. Department of Agriculture has updated the rules for its Single‑Family Housing Guaranteed Loan Program to allow borrowers to finance a primary residence that includes an income‑producing accessory dwelling unit (ADU). The change is intended to expand affordable housing options in rural areas by letting homeowners generate rental income from a separate living space on the same lot, and to clarify that homes designed for home‑based businesses can qualify as long as they use only non‑commercial real‑estate features. The final rule, issued by USDA’s Rural Development agency, applies to prospective homebuyers, lenders, and other participants in the guaranteed loan program who are seeking financing for single‑family homes in eligible rural locations. It specifically addresses properties with ADUs and those that accommodate home‑based operations, ensuring they meet the program’s eligibility criteria. The rule was published in the Federal Register on October 29, 2026 (91 FR 68025) and becomes effective on December 28, 2026. Because it is a final rule, the public comment period has already closed, and the agency will now begin implementing the new provisions, allowing lenders to process qualifying loan applications under the revised standards.

AI-generated summary — verify against the Federal Register text.

Official abstract

The Rural Housing Service (RHS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), is amending the Single Family Housing Guaranteed Loan Program (SFHGLP) regulation to permit the financing of single family homes with income producing Accessory Dwelling Units (ADUs) and clarify the eligibility of properties with features designed to accommodate home- based operations using non-commercial real estate features.