The Rural Housing Service amended the Single Family Housing Guaranteed Loan Program regulation on October 23, 2026, to permit financing of single-family homes with income-producing Accessory Dwelling Units. The final rule is effective 60 days after publication in the Federal Register.

The rule clarifies eligibility for properties accommodating home-based operations using non-commercial real estate features. Lenders may not use potential Accessory Dwelling Unit income to calculate an applicant’s ratios because it is considered unstable or unverified. An Accessory Dwelling Unit is a dwelling on a property where the occupant has all necessary facilities, but where the dwelling belongs to a larger main home.

The agency published a proposed rule on March 31, 2026, and received comments from 28 respondents. Nineteen respondents supported the proposed rule, stating it would accommodate more buyers in rural America. Four respondents recommended expanding eligibility to include small home-based operations with commercial real estate features.