Are basement apartments legal in Utah County?

Internal accessory dwelling units are permitted in many Utah County cities, but the rules differ by city and sometimes by zone — owner-occupancy requirements, parking minimums, and size limits all vary. Because this changes and because it's parcel-specific, we verify your city's current requirements for your address before any design work begins.

How much rent could a basement apartment bring in?

That depends heavily on size, finish, location, and the rental market when you list. We'd rather you check current comparable listings in your specific city than take a number from a contractor's website — anyone quoting you a guaranteed rent figure is selling, not advising. What we can tell you is what the unit costs to build, in writing.

What's the difference in cost versus just finishing the basement?

Expect a meaningful premium. A full kitchen, separate entrance, fire separation, sound attenuation, dedicated egress, and often a second HVAC zone add real cost over a standard finish. The tradeoff is that this is the one remodel that produces monthly income rather than only equity.

Can you build it now and rent it later?

Yes, and it's a common approach — build it as a permitted unit for a family member now, rent it when circumstances change. The important part is permitting it as a dwelling unit from the start. Converting later is far more expensive and disruptive than building it right the first time.

Will a basement apartment affect my property taxes or insurance?

It can affect both, and you should plan for it. Adding finished square footage and a rental unit may change your assessed value, and you'll need to tell your insurer you have a rental unit — a standard homeowner's policy may not cover tenant-related claims. Talk to your insurance agent early; it's a small conversation that prevents a large problem.

Turn unused square footage into monthly income — legally.

Legal Basement Apartments in Utah County

A rentable basement is the cheapest legal housing unit you can add to a house, because the foundation, roof, walls and utilities already exist. We build them permitted, so a lender, an appraiser, and an insurer can all see the unit.

Typical investment: $45,000–$110,000 for a complete legal unit
Timeline: Typically 8–14 weeks depending on zoning review and scope.

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Orem to Lehi
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Why this market rewards basement apartments

Utah County has a rental demand profile most places would envy. Utah Valley University sits in Orem, the Silicon Slopes corridor runs through Lehi and American Fork, and household formation has outpaced new housing for years. Meanwhile, multigenerational living is common here — a basement apartment often gets built for a parent first and becomes a rental later.

The result is that a well-built basement unit rarely sits vacant long. It's also the rare improvement that changes your monthly cash flow rather than just your equity.

The rules are local, so we check yours first

Zoning for accessory dwelling units varies city by city, and sometimes parcel by parcel. Owner-occupancy requirements, parking minimums, maximum unit size, and whether internal ADUs are allowed at all are local questions. Utah has moved toward allowing internal ADUs more broadly, but the specifics still come down to your city and your lot.

We check that before you spend a dollar on design, so you know what your parcel supports on day one rather than after framing is up. Where the rules are awkward, there's usually a version of the project that works — that conversation is worth having before you rule anything out.

What separates an apartment from a finished basement

A basement apartment has to work as an independent dwelling, and that drives a specific set of requirements: a separate exterior entrance, a full kitchen, dedicated egress from every sleeping room, fire separation between units, sound attenuation so both households can live comfortably, and adequate HVAC for the unit.

Utility strategy is worth deciding early. Some owners submeter, some bundle utilities into rent. It affects both the build and your long-term landlord experience, so we talk it through during design rather than leaving it to figure out later.

What's included

Zoning and ADU feasibility check for your specific parcel before design
Full permitted construction — framing through final inspection
Separate exterior entrance and code-compliant egress
Complete kitchen with appliances, cabinetry, and countertops
Full bathroom
Fire separation and sound attenuation between units
Dedicated HVAC or zoning for the unit
Electrical subpanel and optional utility submetering
Rental-durable finish selections that hold up to tenant turnover

What the process looks like

Feasibility first. Before anything else, we confirm your city's ADU rules and whether your parcel qualifies. This is free and it's the most valuable hour of the whole project.
Design to code. We lay out the unit around egress, separate entry, kitchen plumbing, and fire separation — the four things that determine whether it passes.
Permit and zoning approval. ADU permits often involve zoning review in addition to building review. We manage both and keep you posted on timing.
Build and inspect. Full construction with inspections at each stage, including the fire separation and egress details that inspectors look at closely on rental units.
Rent-ready handoff. Final inspection, walkthrough, and a unit that's genuinely ready for a tenant — not one that needs another month of small fixes.

Frequently asked questions

Are basement apartments legal in Utah County?: Internal accessory dwelling units are permitted in many Utah County cities, but the rules differ by city and sometimes by zone — owner-occupancy requirements, parking minimums, and size limits all vary. Because this changes and because it's parcel-specific, we verify your city's current requirements for your address before any design work begins.
How much rent could a basement apartment bring in?: That depends heavily on size, finish, location, and the rental market when you list. We'd rather you check current comparable listings in your specific city than take a number from a contractor's website — anyone quoting you a guaranteed rent figure is selling, not advising. What we can tell you is what the unit costs to build, in writing.
What's the difference in cost versus just finishing the basement?: Expect a meaningful premium. A full kitchen, separate entrance, fire separation, sound attenuation, dedicated egress, and often a second HVAC zone add real cost over a standard finish. The tradeoff is that this is the one remodel that produces monthly income rather than only equity.
Can you build it now and rent it later?: Yes, and it's a common approach — build it as a permitted unit for a family member now, rent it when circumstances change. The important part is permitting it as a dwelling unit from the start. Converting later is far more expensive and disruptive than building it right the first time.
Will a basement apartment affect my property taxes or insurance?: It can affect both, and you should plan for it. Adding finished square footage and a rental unit may change your assessed value, and you'll need to tell your insurer you have a rental unit — a standard homeowner's policy may not cover tenant-related claims. Talk to your insurance agent early; it's a small conversation that prevents a large problem.

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Detached ADUs & Backyard Cottages

A standalone unit in the backyard: its own foundation, roof, kitchen, and address. Utah law now requires most cities to permit one on lots of 11,000 square feet or more. It's the more expensive of the two ways to add a rental, and sometimes it's the right one.

$190–$350 per square foot

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Basement Finishing

Your basement is already framed, already under roof, and already connected to utilities. Finishing it costs a fraction of building an addition and a small fraction of moving — and in a market this tight, that math is hard to argue with.

$35–$75 per finished square foot

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Egress Window Installation

An egress window is the code-required escape route from a basement sleeping room — and the thing that lets the room count as a bedroom when your house is appraised or listed. If you don't have one yet, it's the first move.

$3,500–$7,500 per window, installed

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Ready to talk about your project?

Get a real number you can plan around — no appointment needed to find out roughly what your project costs, and no pressure when you do.

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Pricing Published Up Front
Orem to Lehi
One Point of Contact