Aaron its called an Accessory Dwelling Unit.

Rather, there is what's called an "Accessory Apartment" permit. 

I have 2 rental properties on Long Island, NY and they're both located in the same town.Property #1-Legal 2-family duplex (2 units)-Does not need to be owner-occupied since it’s a legal 2-family-Has active rental permit with the townProperty #2-Single family house w/accessory apartment (2 units + illegal basement apartment)-I live in the upstairs unit-Needs to be owner-occupied in order to get rental permit for the 2nd unit since it’s not a legal 2-family-No scenario where the basement apartment will ever be legalMy family has been renting this house without a rental permit for several decades without any issue.

https://www.arlnow.com/2019/03/07/county-readies-zoning-changes-to-encourage-construction-of-new-detached-accessory-dwelling-units/

Originally posted by @Isaac Passmore:Originally posted by @Russell Brazil:You can only have a full kitchen if you have a licensed accessory dwelling unit, which is available only to owner occupants.So if I occupy the unit and do the conversion while living there I'd be ok. 

It is zoned for an ADU (Accessory Dwelling Unit).

Focus on cheap DIY shower heads and fancy accessories only after you’ve taken care of the basics, which is most often all about trapping rental-destroying moisture out of your walls/floors/ceilings. 

One alternative is to take the extra step past the house hack and make your own; in DC, Arlington & Montgomery Co it's now legal to create a second, "accessory" unit within most existing houses:https://www.smartergrowth.net/...

Baltimore has a handful, as does Frederick.Multifamily is amongst the most competitive segment of the DC areas market due to the low amount of them that even exist (and that number is shrinking with condo conversions) and the extremely high demand of them.Montgomery County and DC allow for something called Accessory Dwelling Units.

Wanted to connect with BiggerPocket members who are located in San Jose and actively interested to build and invest in Accessory Dwelling Units (ADU) as an affordable rental option.