USDA Final Rule: Rural Homes With Income-Producing Accessory Dwelling Units Eligible for Guaranteed Loans From December 28
The U.S. Department of Agriculture's Rural Development agency published a final rule on October 29 in Washington, D.C., allowing lenders to offer USDA-guaranteed home loans on rural properties that include an income-producing accessory dwelling unit (ADU). The rule, issued under the Single Family Housing Guaranteed Loan Program, takes effect on December 28, 2026.
An accessory dwelling unit is a small, independent living unit on the same lot as a primary home. Under the new rule, rural homebuyers purchasing a property with such an income-producing unit can finance it through the USDA guaranteed loan program instead of being excluded because the property carries a rental unit.
Through the program, Rural Development provides approved lenders a 90 percent loan guarantee, and eligible low- and moderate-income rural households can obtain 100 percent financing with no money down. Guaranteed loans can be used to buy an existing home, build a new one, or cover the cost of rehabilitating, improving, or relocating a home.
"President Trump promised to put American families first and that includes making the dream of homeownership achievable in rural America," said Under Secretary for Rural Development Glen Smith. "By giving rural homebuyers the flexibility to earn income from an ADU, we're helping families afford a home and strengthen the small towns that are the backbone of this country." Rural Housing Service Administrator George Kelly said USDA Rural Development is committed to reducing barriers to homeownership by increasing the supply of affordable housing for rural residents, under the leadership of President Trump and Agriculture Secretary Brooke Rollins.
The rule is the latest expansion of USDA rural housing guarantees this year. GSM previously reported that USDA widened its delegated-authority pilot for rural housing guaranteed loans, adding six lenders able to fully process loans starting December 1.
Source: GSM · USA (original Chinese edition)
Photo: 图：新墨西哥州 Zuni 的农业部农村发展署自助建房项目住宅（资料图）。USDA 图，Lance Cheung 摄，公共领域，Wikimedia Commons / USDA Rural Development self-help housing in Zuni, New Mexico (file photo). USDA photo by Lance Cheung, public domain, via Wikimedia Commons
