USDA Final Rule: Financing Properties with Income Producing ADUs

USDA Rural Development sent this bulletin at 11/02/2026 01:13 PM EST

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USDA Rural Development - Together, America Prospers

SFH Guaranteed Origination

November 2, 2026

USDA Final Rule: Financing Properties with Income-Producing ADUs

The U.S. Department of Agriculture Rural Development published the Single Family Housing Guaranteed Loan Program (SFH-G) - Income Producing Accessory Dwelling Unit (ADU) Provisions Final Rule to expand housing options for rural homebuyers. This rule allows lenders to offer USDA-guaranteed home loans on properties that include an income-producing ADU. The rule further clarifies borrowers may finance properties with non-commercial features designed to support home-based operations.

The final rule and the related revisions to Handbook 1-3555 will take effect on December 28, 2026.

Please direct questions about this announcement to sfhgld.program@usda.gov or (833) 314-0168.

Thank you for supporting the Single Family Housing Guaranteed Loan Program!

USEFUL LINKS:

SFHGLP Webpage: https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program

USDA LINC Training and Resource Library: https://www.rd.usda.gov/resources/usda-linc-training-resource-library

Rural Development Directives: https://www.rd.usda.gov/resources/directives

Help Resources

Rural Development Help Desk:

For GUS system, outage or functionality assistance

Email: RD.HD@USDA.GOV

Important Links:

SFHGLP Webpage: https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program

USDA LINC Training and Resource Library:

https://www.rd.usda.gov/programs-services/lenders/usda-linc-training-resource-library

Procedure Notices: https://www.rd.usda.gov/resources/directives/procedures-notices

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