The Truth About ADUS in Bryan & College Station: (5 Things to Know + Where the Opportunity Is)

The Truth About ADUS in Bryan & College Station:

5 Things to Know + Where the Opportunity Is

What’s an ADU (Accessory Dwelling Unit)?

A second, independent living space on the same lot as the main home: garage apartment, backyard cottage, or a separate suite with its own entrance, kitchenette, and bath.

In College Station, they’re called ALQs—and they’re rentable

College Station regulates these asAccessory Living Quarters (ALQs). Since 2018, ALQs have a legalpath to be rented (not just “guest quarters”). That same update added a +1 off-street parking requirement for the ALQ. LINK: City of College Station

3 things you need to know in College Station

On single-family property in College Station, ALQs require:

• The owner lives on site as their primary residence
• One ALQ per lot, and
• One additional off-street space for the ALQ

Tight lots often fail on parking before anything else. (Confirm setbacks/lot coverage/utilities during feasibility.)

LINK: Texas College Station

Side note (multifamily): ALQrulestarget SFR use. If your lot is a fourplex/multifamily, additions are governedby MF zoning(density/parking/site plan), not the ALQ section.

2025 changed occupancy limits in College Station

Texas SB 1567 (effective Sept. 1, 2025) bars cities from enforcing occupancycaps based on whether people are related.Translation: the old “two-unrelated” limit is no longer enforceable after Sept. 1, 2025. Underwritedeals aroundbedrooms, parking, and livability—not headcount caps.

Financing & Appraisal: when ADUincome actually counts

Not every lenderor appraiser gives full credit tonew ALQ/ADU income. You’ll want:

• Clean rent comps (long-term, mid-term, or STR as applicable)
• A simple pro-forma (cost, NOI, DSCR, breakeven)
• An appraiser familiar with ALQs/ADUs

DSCR and portfolio lendersare often more flexible than plain-vanilla conventional when it comes to underwriting new accessory-unit income.

NEW: The Bill That Could Change Everything — SB 673

Texas SB 673 would loosen city-level ADU restrictions statewide by (a) allowing leasing of ADUs (cities couldn’t ban it), (b)prohibiting owner-occupancy mandates for ADUs, and (c) limiting extra parking requirements (often max 1 space, with relief in certain contexts). It preserves cityhealth/safety standards anddoes not override HOAs, deed restrictions, or historic rules.

As introduced/passed-out versions moved in 2025, it did not become law before adjournment; expect it to be re-filed. If enacted in a future session, it could open the door to more build/rent options on single-family lots in B/CS.LegiScan+3Texas Legislative Online+3Texas Legislative Online+3

My 2 Cents

Duplexes provide the same value with less regulations. Plus there are more of them!!