USDA Rural Development Rural Housing Service Publishes Final Rule to Increase Affordable Housing Opportunities in Rural Communities

(Washington, D.C., October 29, 2026) - The U.S. Department of Agriculture Rural Development today published the Single Family Housing Guaranteed Loan Program - 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 takes effect December 28, 2026 .

"President Trump promised to put American families first and that includes making the dream of homeownership achievable in rural America," said Under Secretary for Rural Development Glen Smith. "By giving rural homebuyers the flexibility to earn income from an ADU, we're helping families afford a home and strengthen the small towns that are the backbone of this country."

"Under the leadership of President Trump and Agriculture Secretary Brooke Rollins, USDA Rural Development is committed to reducing barriers to homeownership by implementing solutions that increase the supply of affordable housing for rural residents," said Rural Housing Service Administrator George Kelly.

Through the Single Family Housing Guaranteed Loan Program Rural Development provides approved lenders with the ability to offer 100% financed, no money-down loans to eligible low- and moderate-income households in rural areas. Rural Development backs the 90% loan guarantee. With a Single Family Housing loan guarantee, homebuyers can buy existing, build new, or cover the cost of rehabilitating, improving, or relocating a home.

For more information about USDA Rural Development programs, visit www.rd.usda.gov .

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