Can You Build an ADU in Minneapolis?
ADU rules in Minneapolis are set by local zoning in Minnesota. Many Minnesota cities allow ADUs — here's what to check, plus typical costs ($161,500–$264,500 for a 700 sq ft detached unit).
Construction costs in Minneapolis track close to the Minnesota state average.
Detached ADU (700 sq ft)
$161,500–$264,500
Garage conversion (400 sq ft)
$50,500–$92,500
Statewide protection
Local rules
What applies in Minneapolis
This state has no statewide by-right ADU law, so accessory dwelling units are governed entirely by your city or county zoning code. Many cities still allow ADUs — check your local planning department for size, setback and parking rules.
Check the Minneapolis planning or building department for ADU size, setback and parking rules before you design.
Estimate your Minneapolis ADU cost
Your property
ADU typeEstimated cost in Minnesota
$161,500 – $264,500
≈ $231–$378/sq ft turnkey · midpoint $213,000
- $144,900
- Construction
- $38,300
- Design & permits
- $29,800
- Site work
- iSize set locally. This state leaves ADU size limits to your city — typical caps run 600–1,200 sq ft. Check your local code.
- iParking. Set by local ordinance — commonly 1 space per ADU unless near transit.
- iOwner-occupancy varies. Owner-occupancy rules are set locally in this state.
- ✓Lot has room. A 700 sq ft ADU uses about 12% of your 6,000 sq ft lot — comfortably within typical coverage limits.
Rule basis: Local zoning governs — rules vary by city/county
If you rent it out
$1,125–$1,825
est. rent/mo
8.3%
gross yield
12.9 yrs
payback
~$16,461/yr after a 7% vacancy allowance, before financing & maintenance.
Financed over 20 yrs at 7.5%, the build is about $1,716/mo — vs ~$1,475/mo in estimated rent.
Estimates are for planning only and are based on regional construction-cost indices and published statewide ADU statutes. Local ordinances, lot conditions and contractor pricing vary — always confirm with your city planning department and a licensed contractor.
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Other Minnesota cities
Estimates are for planning only and are based on regional construction-cost indices and published statewide ADU statutes. Local ordinances, lot conditions and contractor pricing vary — always confirm with your city planning department and a licensed contractor.