U.S. FEDRegulation
United States: USDA permits guaranteed loans for homes with income-producing accessory dwelling units in 7 CFR Part 3555
The Rural Housing Service published a final rule on October 29, 2026 amending the Single Family Housing Guaranteed Loan Program regulation at 7 CFR Part 3555. The rule permits loan guarantees for properties with one or more income-producing accessory dwelling units, clarifies eligibility for properties accommodating home-based operations, and adds definitions for accessory dwelling unit and living unit. The rule takes effect December 28, 2026.
Key points
- Revised section 3555.102(b) permits a guarantee when loan funds finance a property including a single or multiple income-producing accessory dwelling units.Federal Register
- Section 3555.102(c) permits guarantees for properties accommodating home-based operations, while property principally used for income-producing purposes remains prohibited.Federal Register
- RHS will not count potential ADU rental income in applicant income calculations, citing section 3555.152(a)(3) on unverifiable or unstable income.Federal Register
- RHS received comments from 28 respondents on the March 31, 2026 proposed rule; nineteen supported the proposal as accommodating more rural buyers.Federal Register
- The program is authorized by section 502(h) of the Housing Act of 1949, 42 U.S.C. 1472(h); FR Doc. 2026-22038, 91 FR 68025.Federal Register
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RegulationU.S.Single Family Housing Guaranteed Loan Program - Income Producing Accessory Dwelling Unit Provisions (7 CFR Part 3555)Financial servicesReal estateFor practitionersFor governance