Seattle DADU Rules, Costs and Rental Income Potential

Updated January 2026 | Seattle DADU regulations current as of ordinance update effective July 2024

ADU planning

Seattle DADU Rules (2025-2026)

Seattle legalized Detached Accessory Dwelling Units (DADUs) citywide in 2019, then expanded the rules in 2024. Here is what you can actually build:

  • Maximum size: 1,000 sqft or 50% of lot size, whichever is less
  • Height limit: 24 feet in most zones, 22 feet in lowrise zones
  • Setbacks: 5 feet from side/rear property lines (reduced from previous 8 ft)
  • Owner occupancy: NOT required as of 2024 – huge change for investors
  • Parking: No additional parking required citywide

Contractor Quote: “I’m building DADUs for $280-$350/sqft right now. A typical 800 sqft unit runs $224,000-$280,000 turnkey. Add $15,000-$25,000 for utility connections if you can’t tap existing service.” – Sarah Okonkwo, Greenwood Construction, December 2025

Actual Permit Costs

  • Building permit: $6,500-$9,000
  • Plan review: $2,500-$4,000
  • Impact fees (SEPA): $3,000-$8,000
  • Sewer connection: $5,000-$15,000 (varies by distance)
  • Total permit/fee costs: $17,000-$36,000

Rental Income Potential

Current Seattle DADU rents (December 2025 data from Zillow):

  • 600 sqft studio: $1,600-$1,900/month
  • 800 sqft 1BR: $2,100-$2,500/month
  • 1,000 sqft 2BR: $2,600-$3,100/month

At $2,200/month rent, a $270,000 DADU generates ~$26,400/year gross income. After expenses (maintenance, insurance, vacancy), expect ~$18,000-$20,000 net. That is a 7-7.5% return – competitive with other real estate investments.

Neighborhood Considerations

DADU construction is concentrated in neighborhoods with larger lots and alley access:

  • Best for DADUs: Ballard, Phinney Ridge, Greenwood, Columbia City, Rainier Beach
  • Challenging: Capitol Hill (small lots), Queen Anne (steep terrain), Magnolia (restrictive covenants)
Marcus Chen

Marcus Chen

Author & Expert

Marcus is a defense and aerospace journalist covering military aviation, fighter aircraft, and defense technology. Former defense industry analyst with expertise in tactical aviation systems and next-generation aircraft programs.

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