
Two-unit properties in San Francisco, also known as duplexes, are an attractive option for buyers due to the potential for extra living space, rental income, or extended-family living arrangements. These properties offer a range of opportunities, with median and average prices ranging from $1.5 million to $2.3 million and beyond for an entire building. However, the prices for two-unit buildings can vary significantly, influenced by factors such as location, size, and finish level, as well as tenant history and legal zoning. Understanding the regulatory landscape, including rent control and eviction control laws, is crucial when considering the purchase of a two-unit property in San Francisco. Additionally, the city offers the option to add Accessory Dwelling Units (ADUs) to existing residential buildings, providing flexibility for housing family members or generating additional income through rentals.
| Characteristics | Values |
|---|---|
| Name | Accessory Dwelling Units (ADUs), also called secondary units, in-law units, cottages, granny flats, or garage apartments |
| Definition | Smaller residential units located on the same lot as a primary dwelling |
| Zoning | Allowed in all districts that permit residential use; check the zoning map to determine the specific zoning district of a property |
| Benefits | Provides housing for family members, simplifies lifestyle, increases financial flexibility, and adds property value |
| Number | Up to 8 ADUs, but not more than the number of existing units on the lot |
| Requirements | Comply with Planning Code requirements (e.g., rear yard, exposure, density, etc.); meet city requirements for building safety and neighborhood livability; adhere to specific design specifications, building codes, and safety regulations |
| Size | Minimum of 220 sq ft with a minimum 7.5 ft ceiling height; detached ADUs must be located within the buildable area of the property |
| Utilities | Independent wiring is required for each unit; gas lines may need to be extended to the new unit if the ADU has gas appliances; all gas and electric meters must meet PG&E requirements |
| Fire Safety | Smoke detectors, carbon monoxide detectors, and fire alarms may be required; for multi-family homes with 3 or more units, a fire sprinkler system may be required |
| Rent Control | Subject to the City's rent control law, which limits rent increases and handles complaints about wrongful evictions |
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What You'll Learn

Zoning laws and restrictions
In San Francisco, zoning laws and restrictions play a crucial role in determining the possibilities for converting a property into a 2-unit dwelling or duplex. The city has designated specific zoning districts, such as RH-1 (Residential House, One-Family) and RH-2 (Residential House, Two-Family), which allow varying degrees of housing density and unit numbers. It is essential to refer to the zoning map to determine the specific zoning district of a property before considering any conversion.
Accessory Dwelling Units (ADUs), also known as secondary units, in-law units, or cottages, are commonly added to existing or new residential buildings in San Francisco. The city's zoning laws for ADUs have been updated to make it easier to add these units to properties. However, there are still restrictions and requirements that must be considered:
- Zoning and Density: The number of ADUs allowed depends on the zoning district and existing density. In most cases, you can add up to 8 ADUs, but not more than the number of existing units on the lot.
- Building Codes and Safety: ADUs must comply with building codes and safety regulations, including fire safety, structural integrity, and adequate natural light and ventilation. Specific requirements include minimum square footage (220 sq ft) and ceiling height (7.5 ft), smoke detectors, carbon monoxide detectors, and rescue openings in bedrooms.
- Rent Control: San Francisco's rent control laws apply to ADUs, limiting rent increases and providing protections for tenants. The Local Program ADUs are subject to the city's rent control laws, while the State and Hybrid Programs are exempt.
- Utilities and Infrastructure: ADUs must have independent wiring and meet specific requirements for gas, electrical, and water infrastructure. Garages can be converted into ADUs, but they must meet specific city codes and have proper foundations and framing.
- Design and Space: ADUs must comply with planning code requirements for rear yards, exposure, and open space. Stand-alone ADU structures must adhere to setback requirements and height limits as dictated by local zoning laws.
- Eviction and Tenant Rights: There are specific laws and restrictions regarding eviction and tenant rights for ADUs, such as the requirement to notify tenants of their right to reoccupy after capital improvements.
It is important to carefully review the zoning laws, building codes, and specific program requirements (Local, State, or Hybrid) before planning any conversion or addition of a 2-unit dwelling in San Francisco. These regulations help maintain the character and consistency of neighbourhoods while also providing opportunities for additional housing options.
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Rent control laws
The City and State have made it easier to build Accessory Dwelling Units (ADUs) to increase the availability of housing. ADUs are smaller residential units located on the same lot as the primary dwelling. They are also referred to as secondary units, in-law units, or cottages. ADUs can be added to existing or new residential buildings, and they can be attached or detached from the primary dwelling.
ADUs in the Local Program are subject to the City's rent control laws and contribute to the City's affordable housing stock for middle-class households. However, state law prevents the City from applying rent control provisions to some ADUs. ADUs in the State and Hybrid Programs are exempt from certain design and neighbourhood notification requirements.
In San Francisco, the process of converting a single-family home into a duplex or a two-unit dwelling involves various considerations, including construction elements, zoning laws, and utility access. Garages can be converted into ADUs if they meet specific city codes, and outdoor spaces like decks and rear yards can be utilised for duplex conversions. Compliance with fire safety regulations is crucial, and additional requirements may apply for multi-family homes with three or more units.
Overall, understanding the financial implications of constructing an ADU is essential for property owners, as it can impact rental income, property value, and financing options.
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Building codes and requirements
In San Francisco, two-unit dwellings, also known as duplexes, are subject to specific building codes and requirements. These regulations are essential to ensure the safety of the structure and maintain the character and consistency of the surrounding neighbourhood. Here is a comprehensive overview of the building codes and requirements for two-unit dwellings in San Francisco:
Zoning Laws and Restrictions
Adhering to zoning laws is crucial when considering a two-unit dwelling in San Francisco. Residential zones like RH-1 (Residential House, One-Family) and RH-2 (Residential House, Two-Family) have varying degrees of housing density and unit numbers. It is essential to consult the zoning map to determine the specific zoning district of a property before planning any construction. This will help identify potential limitations or possibilities for converting a single-family home into a two-unit dwelling.
Accessory Dwelling Units (ADUs)
Accessory Dwelling Units (ADUs) are additional residential units that can be added to existing or new buildings. In San Francisco, ADUs can be in the form of secondary units, in-law units, or cottages. Since 2016, San Francisco has allowed ADUs citywide in all zoning districts that permit residential use. California implemented new laws in 2020, permitting ADUs in single- and multi-family buildings statewide.
There are different types of ADUs, including Conversion ADUs, Attached ADUs, Detached ADUs, and Junior ADUs (JADUs). Each type has specific requirements and benefits. For instance, Detached ADUs must be located within the buildable area of the property, and JADUs convert up to 500 square feet of space in a single-family structure.
Design and Construction Specifications
Two-unit dwellings must meet specific design and construction specifications to ensure safety and functionality. For example, each unit must have a minimum of 220 square feet of space and a minimum ceiling height of 7.5 feet. Adequate natural light and ventilation must be provided for each unit, and fire safety requirements must be met, including safe entry and exit paths.
In multi-family homes with three or more units, a fire alarm and sprinkler system may be required on the ground floor, especially for ADUs under the Local Program. Additionally, smoke detectors and carbon monoxide detectors are mandatory in every residential building.
Utilities and Services
Two-unit dwellings must also comply with regulations regarding utilities and services. Each unit must have independent wiring, and occupants should have access to all overcurrent devices protecting the conductors supplying their unit. If the unit has gas appliances, the property's gas lines must extend to the new unit, and gas meter installation must be coordinated with the appropriate authorities, meeting specific requirements for meter placement.
Occupancy Classification and Fire Safety
The San Francisco Building Code includes regulations for occupancy classification, which defines how different parts of the building are used. When converting a single-family home into a two-unit dwelling, the occupancy classification changes, impacting fire safety rules. For instance, converting a duplex from an R-3 to an R-2 occupancy results in stricter fire safety regulations.
Rent Control and Eviction Laws
San Francisco's rent control laws impact the value of two-unit dwellings. These laws limit rent increases and protect tenants from wrongful evictions. Understanding these laws is crucial for landlords and property owners, as they outline the rights and responsibilities of both tenants and landlords.
In summary, constructing or converting a two-unit dwelling in San Francisco requires careful consideration of zoning laws, the addition of ADUs, design and construction specifications, utility and service requirements, occupancy classification, and compliance with rent control and eviction laws. These building codes and requirements ensure the safety, functionality, and livability of two-unit dwellings within the city.
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Property value considerations
When considering a 2-unit dwelling in San Francisco, several factors come into play that can impact the property's value. Firstly, the regulatory environment in San Francisco is crucial. Rent control and eviction control laws, as well as zoning laws, can significantly influence property values. For instance, rent control laws limit how much landlords can increase rent annually, affecting potential rental income and, consequently, property values. Understanding these regulations is essential for buyers and homeowners considering adding an Accessory Dwelling Unit (ADU).
The location, size, and finishes of a property typically play a significant role in determining its value. However, in San Francisco, the building's history may sometimes outweigh these traditional factors. The scarcity of certain property types and the incentives for condo conversion buyers can also contribute to the wide variation in prices for 2-unit dwellings.
Adding an ADU to a property can increase its value by maximizing space and providing additional housing options. However, it is important to carefully consider the financial aspects, including construction costs, potential rental income, and tax implications. San Francisco has implemented regulations to make it easier for homeowners to build and rent out ADUs, and there may be tax incentives available, such as deductions for construction expenses or property tax exemptions for certain ADU types.
Compliance with zoning laws and building codes is crucial. Stand-alone ADU structures must adhere to setback requirements, height limits, and safety regulations. Fire safety is a key consideration, with specific requirements for smoke detectors, rescue openings, and sprinkler systems. Additionally, each unit must have independent wiring and meet electrical, gas, and meter requirements.
Finally, it is important to understand the impact of owner-occupancy requirements on property values. San Francisco's duplex conversion laws mandate that all but one unit must be owner-occupied for at least three years, with certain exceptions for inherited properties and owners with disabilities or senior citizens. These regulations aim to ensure that conversions primarily benefit those living in the property rather than investors.
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Accessory Dwelling Units (ADUs)
There are several benefits to adding an ADU to your property, such as providing housing for family members, simplifying your lifestyle, and increasing financial flexibility. Adding an ADU will likely increase the value of your property, which means higher property taxes. You can also rent out the space for extra income, but San Francisco's rent control laws limit how much landlords can increase rent each year. For example, due to the California Tenant Protection Act, rent hikes are capped at 5% plus inflation, with a maximum increase of 9.2% from August 2023 to July 2024.
There are various types of ADUs to choose from, including:
- Conversion ADUs: New units that convert space in a residential building.
- Attached ADUs: New units that expand a residential building.
- Detached ADUs: New free-standing buildings located on a residential property.
- Junior ADUs (JADUs): New units that convert up to 500 square feet of space in a single-family structure.
ADUs must meet specific city requirements and codes that ensure buildings are safe and neighbourhoods remain livable. For instance, ADUs must meet fire safety requirements and have adequate natural lighting and ventilation. They should also have independent wiring for each unit and meet specific height and space requirements.
In San Francisco, duplex conversions and ADU additions must also adhere to zoning laws and building codes. Garages can be converted into ADUs if they meet specific city codes, and outdoor spaces such as decks and rear yards can be vital in duplex conversions.
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Frequently asked questions
An ADU, or Accessory Dwelling Unit, is a smaller residential unit located on the same lot as a primary dwelling.
Adding an ADU can provide housing for family members, simplify your lifestyle, and increase financial flexibility. It will also likely increase the value of your property.
ADUs must meet city requirements that keep buildings safe and neighbourhoods livable. This includes fire safety requirements, minimum square footage and ceiling height, and adequate natural light and ventilation.
There are three main types of ADUs: Conversion ADUs, Attached ADUs, and Detached ADUs. Conversion ADUs convert space in an existing residential building, Attached ADUs expand an existing building, and Detached ADUs are new free-standing buildings on a residential property.
The number of ADUs you can add depends on how many units you currently have, your zoning, and building code requirements. It's important to check the zoning map to determine the specific zoning district of your property and understand the potential limitations and possibilities for adding an ADU.

























