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Homes with Casitas & Guest Houses in Salt Lake City, Utah
Casitas and guest houses are less common in Salt Lake City than in places like Scottsdale or St. George, but the inventory is real and growing. The city loosened its accessory dwelling unit rules in 2018, and you'll see permitted ADUs scattered across the Avenues, Sugar House, 9th & 9th, Liberty Wells, and Federal Heights — often as converted carriage houses behind older bungalows, or as new detached studios above garages. Larger estate-style guest houses tend to show up in the foothills neighborhoods east of I-15: Federal Heights, St. Mary's, Olympus Cove, and parts of Holladay just south of the city line. Lot size matters here, since most SLC parcels are narrow and the zoning requires owner-occupancy on the primary residence.
Buyers shopping these properties usually fall into one of three camps: multigenerational families wanting space for aging parents or adult kids, remote workers who need a separate office or studio, and investors who want to live in one unit while renting the other on a longer-term lease (short-term rentals are tightly restricted inside city limits). Pricing varies widely — a basic detached ADU in Sugar House might add $80K–$150K to a comparable home, while a full guest house on a foothill lot can push a property well past $1.5M. Verify the unit is permitted and legal before you write an offer, because unpermitted backyard cottages are common in older Salt Lake neighborhoods. Browse the active listings below to see what's currently on the market.
May 2026 · Salt Lake City market
Live from the Utah MLS — what's actually happening in Salt Lake City right now.
Median sale
$577,450
270 closed in May 2026
Median DOM
7 days
listing → contract
Sale-to-list
99.3%
of final list price
Unsold inventory
754
active + pending
30 matching · page 1 of 2
Active listings
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Common questions
About homes with casitas & guest houses in Salt Lake City.
What's the difference between a casita, a guest house, and an ADU in Salt Lake City? ▾
In SLC listings, the terms get used loosely. A casita usually means a small detached living space, often without a full kitchen. A guest house typically implies a fully self-contained second dwelling with kitchen and bath. An ADU (accessory dwelling unit) is the legal/zoning term — that's what the city permits and tracks. If rentability matters to you, look specifically for permitted ADUs.
Can I rent out the casita on Airbnb? ▾
Generally no. Salt Lake City prohibits short-term rentals (under 30 days) in residential zones unless the owner lives on-site and obtains a conditional use permit, which is rarely granted. Long-term rentals of 30+ days are allowed in permitted ADUs. Always confirm with SLC Planning before assuming income potential.
Which Salt Lake neighborhoods have the most homes with guest houses? ▾
The Avenues and Federal Heights have the highest concentration of historic carriage houses and converted detached units. Sugar House and 9th & 9th have seen the most new ADU construction since the 2018 ordinance changes. For larger estate-style guest houses on bigger lots, look at Olympus Cove, St. Mary's, and the upper Avenues.
Do I need to verify the casita is permitted? ▾
Yes, and this is the single most important due diligence step. Many older Salt Lake homes have backyard cottages or basement units that were built without permits and can't legally be rented or sometimes even occupied. Ask the listing agent for the ADU permit number and verify with SLC Building Services before closing.
How much does a casita add to the home's value? ▾
It depends on whether it's permitted, has a full kitchen, and has separate utilities. A permitted detached ADU with kitchen typically adds $80,000 to $200,000 to a Salt Lake City home's value. An unpermitted finished outbuilding might add little to nothing on appraisal, even if it's nicely built.
Can I get a mortgage on a home with a guest house? ▾
Yes. Conventional, FHA, and VA loans all work on single-family homes with ADUs, since the property is still classified as one residential unit. Some lenders will even count a portion of projected rental income from the ADU toward your qualifying income — ask your loan officer about Fannie Mae's ADU rental income guidelines.