Markets That Allow Multiple ADUs for Vacation Rental “Micro-Community”

Member since 2022 · 3 posts · 2 votes

Hi there, I'm an STR investor with 4 properties in the Bay Area / wine country and I'm looking to build my next project from the ground up — acquiring acreage somewhere beautiful, and building a mini-hotel or micro-community with 6-10 ADU-style units (similar to what TomuHaus offers).

Zoning in the Bay Area does not allow for this (1 primary + 1 accessory max, if that) — so I’m wondering if you know any markets across the country that do? West coast is ideal, but I’m willing to do out of state. The most important requirement is “beautiful setting”.

Here’s an example of a similar concept in Waco, TX - Live Oak Lake.

Do you know of any potential markets that would allow for this zoning?

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Jay ThomasPro Member

Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes

While zoning rules in the Bay Area can be pretty strict, there are plenty of other stunning spots across the country where you might find more leeway for your project. Check out the Texas Hill Country with places like Austin, Fredericksburg, Wimberley, and Gruene. They offer beautiful landscapes and a chill zoning vibe that's great for ADU development. If mountains are more your thing, consider Asheville, Boone, and Blowing Rock in the North Carolina Mountains. Besides the amazing views, these places often allow multiple small dwellings on one lot. Out west, places like Bozeman, Big Sky, and Whitefish in Montana provide access to breathtaking mountains and lakes, and their zoning laws can be friendly to creative housing ideas. On the Oregon Coast, spots like Cannon Beach, Lincoln City, and Manzanita mix sandy beaches and cliffs, with zoning rules often allowing detached guest houses and ADUs. Lastly, there's Vermont, including Stowe, Woodstock, and Manchester, where you get stunning fall foliage, charming towns, and zoning that might suit your concept. So, there's a bunch of places to explore beyond the Bay Area!

[email protected]832-889-5607

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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
2y
Well @Sonja Kristiansen, what you are proposing isn't ADU's but a boutique hotel or resort type thing.
Your best bet would be to look for something zoned commercial. Every area has a different set of zoning codes. Some areas have specific resort zoning. Others just lump it all into commercial.
What you might look for is a run down motel/hotel of some kind. You know that the zoning will be OK (but check anyways) and you could redo the site.
Finding something "beautiful" while allowing what is essentially a hotel is going to be the tough part.
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Sarah KensingerPro Member
Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
2y
If want the look Live Oak Lake has, you'll probably need to find a piece of land anywhere that would be a draw for tourists. It might also be a good idea to find a commercial property, so you don't have to worry about regulations etc. shutting your operations down. Or you can get a rundown motel, fix it up, and run it as a boutique style. It all depends on what you're looking for and what your goals are.
[email protected]330-557-3021
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Trevor Caswell
Real Estate Agent · Waco, TX · Member since 2020 · 61 posts · 53 votes
2y
The benefit that Live Oak Lake has is its proximity to the Silos and Homestead Heritage. It's a short distance from I-35 making it a no-brainer for people heading into Waco for a weekend. There have been a lot of people looking to do this same concept, but they are unable to find the land that is zoned correctly (Commercial, or land in the ETJ zone) or within a good driving distance of I-35 or the silos.
Proximity and uniqueness are key to successful STRs in Waco due to the high quality of workmanship in our homes and everyone's desire to be close to the Silos. The Gaines family has set the standard around here for Air BnBs and Flips.
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Sonja Kristiansen
OP
Member since 2022 · 3 posts · 2 votes
2y
Thanks Trevor, this is helpful. My current STR properties are modern and highly curated, so I'm looking to replicate this type of aesthetic with my next project:
Vista Luna Sonoma
Hygge Haus Sonoma
The Gaines are indeed an inspiration for setting the standard (as is Live Oak Lake - they’ve done a wonderful job).
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Jay ThomasPro Member
Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
2y
While zoning rules in the Bay Area can be pretty strict, there are plenty of other stunning spots across the country where you might find more leeway for your project. Check out the Texas Hill Country with places like Austin, Fredericksburg, Wimberley, and Gruene. They offer beautiful landscapes and a chill zoning vibe that's great for ADU development. If mountains are more your thing, consider Asheville, Boone, and Blowing Rock in the North Carolina Mountains. Besides the amazing views, these places often allow multiple small dwellings on one lot. Out west, places like Bozeman, Big Sky, and Whitefish in Montana provide access to breathtaking mountains and lakes, and their zoning laws can be friendly to creative housing ideas. On the Oregon Coast, spots like Cannon Beach, Lincoln City, and Manzanita mix sandy beaches and cliffs, with zoning rules often allowing detached guest houses and ADUs. Lastly, there's Vermont, including Stowe, Woodstock, and Manchester, where you get stunning fall foliage, charming towns, and zoning that might suit your concept. So, there's a bunch of places to explore beyond the Bay Area!
[email protected]832-889-5607
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y
Just a side tip - If you find good land sitting it does not hurt to try and get a variance. I have had success in the past!
[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
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AJ WongBusiness Member
Real Estate Broker · Oregon & California Coast · Member since 2022 · 822 posts · 695 votes
2y
Quote from @Jay Thomas:

While zoning rules in the Bay Area can be pretty strict, there are plenty of other stunning spots across the country where you might find more leeway for your project. Check out the Texas Hill Country with places like Austin, Fredericksburg, Wimberley, and Gruene. They offer beautiful landscapes and a chill zoning vibe that's great for ADU development. If mountains are more your thing, consider Asheville, Boone, and Blowing Rock in the North Carolina Mountains. Besides the amazing views, these places often allow multiple small dwellings on one lot. Out west, places like Bozeman, Big Sky, and Whitefish in Montana provide access to breathtaking mountains and lakes, and their zoning laws can be friendly to creative housing ideas. On the Oregon Coast, spots like Cannon Beach, Lincoln City, and Manzanita mix sandy beaches and cliffs, with zoning rules often allowing detached guest houses and ADUs. Lastly, there's Vermont, including Stowe, Woodstock, and Manchester, where you get stunning fall foliage, charming towns, and zoning that might suit your concept. So, there's a bunch of places to explore beyond the Bay Area!

Great post. ADU's are mostly welcomed throughout Oregon and on the Oregon Coast. In fact, cities of a specific population can build an ADU outright on any SFR. Cheers.
541-800-0455
Sesemi | STR Brokers powered by Fathom Realty 516 Reviews
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Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
2y
Quote from @Sonja Kristiansen:

Hi there, I'm an STR investor with 4 properties in the Bay Area / wine country and I'm looking to build my next project from the ground up — acquiring acreage somewhere beautiful, and building a mini-hotel or micro-community with 6-10 ADU-style units (similar to what TomuHaus offers).
Zoning in the Bay Area does not allow for this (1 primary + 1 accessory max, if that) — so I’m wondering if you know any markets across the country that do? West coast is ideal, but I’m willing to do out of state. The most important requirement is “beautiful setting”.

Here’s an example of a similar concept in Waco, TX - Live Oak Lake.
Do you know of any potential markets that would allow for this zoning?

why not buying large rural land in livermore and put those container homes ?
0 Reply
John HayesBusiness Member
Real Estate Agent · Whitefish, MT · Member since 2023 · 24 posts · 5 votes
2y
Quote from @Jay Thomas:

While zoning rules in the Bay Area can be pretty strict, there are plenty of other stunning spots across the country where you might find more leeway for your project. Check out the Texas Hill Country with places like Austin, Fredericksburg, Wimberley, and Gruene. They offer beautiful landscapes and a chill zoning vibe that's great for ADU development. If mountains are more your thing, consider Asheville, Boone, and Blowing Rock in the North Carolina Mountains. Besides the amazing views, these places often allow multiple small dwellings on one lot. Out west, places like Bozeman, Big Sky, and Whitefish in Montana provide access to breathtaking mountains and lakes, and their zoning laws can be friendly to creative housing ideas. On the Oregon Coast, spots like Cannon Beach, Lincoln City, and Manzanita mix sandy beaches and cliffs, with zoning rules often allowing detached guest houses and ADUs. Lastly, there's Vermont, including Stowe, Woodstock, and Manchester, where you get stunning fall foliage, charming towns, and zoning that might suit your concept. So, there's a bunch of places to explore beyond the Bay Area!
Great post. I’ll add just outside of national parks to the list. I’m in Whitefish, MT, outside of Glacier NP, and we have quite a few of these micro ADU communities popping up.
[email protected]850-375-4113
PureWest Christie's Real Estate
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Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
2y
Quote from @Sonja Kristiansen:

Hi there, I'm an STR investor with 4 properties in the Bay Area / wine country and I'm looking to build my next project from the ground up — acquiring acreage somewhere beautiful, and building a mini-hotel or micro-community with 6-10 ADU-style units (similar to what TomuHaus offers).
Zoning in the Bay Area does not allow for this (1 primary + 1 accessory max, if that) — so I’m wondering if you know any markets across the country that do? West coast is ideal, but I’m willing to do out of state. The most important requirement is “beautiful setting”.

Here’s an example of a similar concept in Waco, TX - Live Oak Lake.
Do you know of any potential markets that would allow for this zoning?

btw, curious if you ever ask them whether the project is financially profitable ?
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