ADU House Hacking in East Hills: What to Know

Thinking about offsetting your mortgage with a backyard cottage or a clever conversion in East Hills? With Grand Rapids’ 2024 zoning updates, ADU house hacking is more attainable than ever. You want clear rules, real costs, and a simple plan that fits this walkable, centrally located neighborhood. This guide covers what you can build, the permits and timelines, financing and taxes, and practical tips for East Hills lots. Let’s dive in.

Why ADUs fit East Hills

East Hills sits close to downtown, the Medical Mile, and several colleges, which supports steady demand for long-term rentals. The neighborhood is walkable with active community groups and distinct business corridors along Cherry, Fulton, and Wealthy. That mix makes an ADU a flexible way to create space for extended stays or a long-term tenant. You can learn more about local engagement through the East Hills Council of Neighbors.

Key ADU rules in Grand Rapids

Grand Rapids adopted zoning changes on April 23, 2024, that expanded where and how ADUs can be built citywide, effective May 23, 2024. The city’s ADU FAQ outlines the details homeowners care about most. Review the complete rules in the city’s ADU FAQ (April 2025) and the adoption summary from the City Commission.

• One ADU is allowed per lot with a single-unit home or a duplex.
• Minimum size is 400 sq ft; maximum is the lesser of 40% of the main home’s gross floor area or 850 sq ft.
• ADUs can have up to two bedrooms.
• ADUs used as rentals cannot be leased for fewer than 30 days.
• A deed restriction must be recorded to prevent selling the ADU separately.
• ADUs follow accessory setbacks: typically not forward of the main house, at least 6 feet from the primary structure, and about 3 feet from side and rear lot lines. Detached height is generally up to 25 feet if primary setbacks are met, otherwise up to 20 feet. Greenspace and lot coverage limits can affect footprint.
• The city removed a specific off-street parking space requirement for ADUs, although base zoning parking rules for the property still apply.

What you can build here

East Hills lots often have older garages, modest rear yards, and occasional historic considerations. That means garage conversions, basement or attic conversions, and attached additions are often the most feasible ADU paths. Detached new builds can work when lot depth, greenspace, and height allow. If your property is within a local historic district, you may also need design approval. Start by reviewing the city’s ADU FAQ to understand setbacks and size limits before you sketch plans.

Step-by-step permits and timing

Here is a simple sequence to keep your project on track.

1. Confirm zoning: Use the city’s resources or contact Planning to verify your lot’s zone and whether your ADU is permitted outright or needs Director Review. Start here with City Planning.
2. Meet a planner: Do a quick consult to review setbacks, greenspace, and height so you design to code.
3. Prepare plans: Gather a survey, site plan, elevations, and a brief neighborhood outreach summary as outlined in the city FAQ.
4. Apply for permits: Submit the appropriate building permit. Detached units typically use the Accessory Structure Permit application. Trade permits for mechanical, electrical, and plumbing will also be required.
5. Build to code: Expect fire separation between units, safe egress, appropriate detectors, and separate HVAC or air handling as required. Inspections will be scheduled.
6. Coordinate utilities: Discuss water and sewer early. Detached ADUs often require a dedicated service and meter work.
7. Record the deed restriction: File it with the county before occupancy as an ADU.
8. Register rentals: If you will lease the ADU, enroll in the city’s Rental Certification Program and obtain a Certificate of Compliance.

Plan for several weeks to months for design, permits, and inspections. Construction timelines vary by scope and contractor capacity.

Budget and financing basics

ADU costs vary by type, size, and utility work. National ranges for 2024–2025 run roughly 150 to 400 dollars per square foot, with conversions often lower and new detached builds typically higher. For ballpark context, see this overview of ADU cost ranges, then collect local bids and include a contingency for utility upgrades and fire separation.

Financing is evolving. FHA updated policy in 2023 so some ADU rental income can help borrowers qualify under specific programs. Review the FHA update and speak with your lender early about how they treat ADU income, appraisal, and occupancy. Learn more in the HUD/FHA announcement. Policies vary by lender and loan product, so plan your financing and design together.

Taxes, insurance, utilities

• Property taxes: A permitted ADU is an improvement that can increase assessed value. Michigan’s Principal Residence Exemption rules depend on occupancy and square footage. Review the state’s overview of the Principal Residence Exemption and consult the City Assessor or a tax professional for your parcel.
• Insurance: An ADU changes coverage needs, especially if you plan to rent. Contact your insurer before you finalize plans.
• Utilities: Expect meter and service discussions, especially for detached units, and budget for possible upgrades.

House-hacking ideas that work

• Convert a tall basement with proper egress to a code-compliant one-bedroom.
• Rebuild an aging garage as a compact, detached studio within height and setback limits.
• Add an attached suite over a rear addition to stay within lot coverage rules.
• Buy a duplex lot and add a small ADU for a third long-term unit, subject to size and greenspace limits.

Common pitfalls to avoid

• Ignoring setbacks or greenspace limits when sketching a detached plan.
• Skipping the deed restriction step, which is required before occupancy as an ADU.
• Assuming short-term rentals are allowed. They are not for ADUs.
• Forgetting rental registration and the Certificate of Compliance if you plan to lease the unit.
• Underestimating utility costs or fire-separation work in conversions.

How to pick the right property

Focus on lots with realistic build envelopes and existing structures you can leverage. Rear access, a solid garage shell, or a tall basement with a clear path to add egress can save time and money. Verify zoning and speak with a planner before you write an offer or commit to plans. Your first step is a quick check with City Planning, then align your design to the city’s ADU FAQ.

If you are exploring an ADU in East Hills, you do not have to figure it out alone. For a concierge, data-smart plan that fits your goals, connect with Matt Goldman for local guidance on property selection and strategy.

FAQs

What are the ADU size and bedroom limits in Grand Rapids?

• Minimum 400 sq ft, maximum is 40% of the main home’s gross floor area or 850 sq ft, whichever is less, and up to two bedrooms per ADU.

Are short-term rentals allowed for ADUs in Grand Rapids?

• No. ADUs cannot be rented for fewer than 30 days under city rules.

How many ADUs can I build on an East Hills lot?

• One ADU is allowed per lot with a single-unit home or a duplex, subject to zoning and dimensional standards.

What permits do I need to build an ADU in East Hills?

• You will submit building and trade permits, meet building code and inspection requirements, record the deed restriction, and register the unit if you plan to rent.

How long does ADU permitting take in Grand Rapids?

• Plan for several weeks to months, depending on plan completeness, reviews, inspections, and contractor scheduling.

Will building an ADU raise my property taxes in Michigan?

• Likely yes. Permitted improvements can increase assessed value; PRE eligibility depends on how you occupy and use the property.