Question 1

What is an ADU and how is it different from a guest house?

Accepted Answer

ADU stands for Accessory Dwelling Unit — it's a secondary residential unit on the same parcel as a primary home. 'Guest house' is the informal term most homeowners use, especially when the unit is detached. Legally they're the same thing in Texas: a separate structure with its own kitchen, bath, and entrance on a residentially-zoned lot.

Question 2

Are ADUs legal in Waco, Texas?

Accepted Answer

Yes. Waco updated its zoning code in 2022 to explicitly permit ADUs in RS-1, RS-2, and RS-3 single-family residential zones. The ADU cannot exceed 50% of the primary dwelling's square footage (max 1,200 sq ft), and the minimum lot size is 6,000 sq ft. A building permit is required.

Question 3

How much does an ADU add to property value?

Accepted Answer

In Central Texas markets, a permitted, finished ADU consistently adds $85,000–$140,000 to assessed property value based on comparable sales data. The return varies by neighborhood, quality of finish, and whether the unit is income-producing. In high-demand Austin-adjacent markets, value adds can exceed $200,000.

Question 4

Can I rent out my ADU in Texas?

Accepted Answer

Yes. Detached ADUs in Texas can be rented as long-term or short-term rentals, subject to local STR ordinances. Waco allows short-term rentals with a permit. Most Central Texas municipalities allow long-term residential rental with no additional licensing. Check your specific city or county for STR regulations.

Question 5

How long does it take to build an ADU?

Accepted Answer

Aura's Minimalist Villa ADU builds typically run 90–120 days from signed contract to move-in. This includes permit filing (4–8 weeks in Waco), site prep, foundation, fabrication, delivery, installation, and finish work. We handle the permit application on your behalf.

Question 6

Do I need a separate utility meter for my ADU?

Accepted Answer

Not necessarily. Many ADUs in Texas share utility connections with the primary residence and are sub-metered internally. Waco and most Central Texas municipalities allow shared connections for detached ADUs. A separate meter is required if you plan to rent to an unrelated party in certain utility districts — we review this during your site assessment.

Question 7

What size ADU can I build on my lot?

Accepted Answer

In Waco: up to 50% of the primary dwelling square footage, not to exceed 1,200 sq ft, on a minimum 6,000 sq ft lot. In unincorporated McLennan County: no size restriction beyond IRC habitability minimums and setback requirements. Most Aura ADU builds fall between 400–900 sq ft — the sweet spot for functionality and permit compliance.

Question 8

Can I finance an ADU separately from my primary home?

Accepted Answer

Yes — the most common approach is a HELOC (Home Equity Line of Credit) using equity in your existing home. You can also use a construction loan, cash-out refinance, or personal loan. Aura clients frequently offset the HELOC payment with ADU rental income from day one. See our financing guide for full details.

Add a Guest House
to Your Property.

Six reasons to add a second unit to your property.

In-Law Suite

Long-Term Rental

Short-Term Rental (Airbnb)

Home Office / Studio

Boomerang Children

Passive Asset

A complete home in a refined footprint.

From site assessment to move-in — 90 to 120 days.

Site Assessment

Design Selection

Permit Filing

Foundation & Site Prep

Build & Delivery

Finish & Move-In

ADU questions Texas homeowners ask most.

Free site assessment — no obligation.

Add a Guest Houseto Your Property.