How Much Can You Rent an ADU for in Omaha (and Who Can You Rent It To?)
While they have been widely built on the west coast for the last decade, Accessory Dwelling Units (ADUs) are gaining major traction across Omaha. With zoning updates making them easier to build, more homeowners are realizing these small homes can serve as both flexible family spaces and smart long-term investments.
If you have ever wondered what kind of income an ADU could generate or whether it could help offset the building cost, let’s break down what is realistic in Omaha right now.
Omaha’s Rental Market at a Glance
Like much of the country, Omaha’s rental market has been quietly heating up. In 2025, local rents generally look like this:
Studios: around $850 - $1,050 per month
One-bedrooms: around $1,050 - $1,350
Two-bedrooms: around $1,300 - $1,750
(According to data from Apartments.com, RentCafe, and Rentometer.)
Those numbers make Omaha one of the most competitive rental markets in the Midwest. It is part of why ADUs, small private homes tucked into existing neighborhoods, are becoming so appealing.
While an ADU’s rent potential is similar to a small apartment on paper, it often attracts a different kind of renter, someone who values privacy, outdoor space, and home-like setting over shared walls and parking garages.
How Much You Can Rent an ADU for in Omaha
Let’s look at three common ADU sizes and what you can expect from each.
These are realistic, data-backed ranges based on 2025 rental listings across Midtown, Aksarben, and West Omaha.
ADUs often fall near the higher end of these ranges when they are newly built, well-designed, and located in established neighborhoods.
Furnished vs. Unfurnished ADUs: What Makes Sense for You?
This decision can make a big difference in your rental income and in how much management you want to take on.
Unfurnished ADUs
Rent range: lower monthly rent, but more stable long-term tenants
Lease terms: 12+ months typical
Maintenance: Minimal, renters bring their own furniture and stay longer
Perfect for: Homeowners who want passive, consistent income with less turnover
Furnished ADUs
Rent range: Typically 20-40% higher
Lease terms: 1-6 months (travel nurses, visiting professors, contractors, or families between moves)
Maintenance: More setup and upkeep, but higher ROI if occupancy stays strong
Perfect for: Properties near UNMC, Creighton, or Aksarben Village, where demand for furnished, short-term housing stays high year-round
Example: A 600 sq ft mid-size ADU rented unfurnished at $1,300 per month earns $15,600 per year. The same unit, furnished and rented mid-term at $1,850 per month for 10 months of occupancy, earns $18,500 per year, about 19% more.
What Impacts Your ADU’s Rent Potential
Several factors determine whether your ADU rents at the lower or upper end of the range:
Location: Central Omaha (Midtown, Dundee, Aksarben) commands higher rents than suburban areas
Design and finishes: Light-filled, open layouts with quality kitchens and bathrooms justify premium pricing
Privacy: Detached backyard units rent for more than over-garage ADUs
Access: Even a shared driveway is fine, just ensure safe, well-lit entry
Outdoor space: Small patios, gardens, or fenced yards add instant appeal
In short, the more your ADU feels like a small home, the more it is worth.
Who You Can Rent To (and What’s Allowed)
In Omaha, long-term ADU rentals are always allowed under the updated zoning rules. Shorter stays are also possible, but they depend on your zoning district and whether a permit is required.
Common renter types include:
Family members: Adult children, parents, or grandparents living independently
Professionals: Traveling nurses or corporate consultants, especially near UNMC
Students: From Creighton or UNO looking for quiet housing close to campus
Tenants between moves: Local families building or remodeling their main home
Always check neighborhood covenants if you are in an HOA, since some may restrict rental use even when the city allows it.
The Financial View
Even conservatively, an ADU generating $1,000 to $1,200 per month brings in $12,000 to $14,000 per year in gross income. That is enough to offset a significant portion of a home equity or construction loan, and over time, it can create a valuable new income stream while increasing your property’s overall worth.
And unlike a stock or rental property across town, an ADU is an investment you can see, use, and adapt over time, whether that means housing family today or earning income tomorrow.
The Bottom Line
Building an ADU in Omaha is not just about adding space, it is about creating options.
Whether you plan to rent it, host family, or prepare for the future, understanding local rent ranges helps you make confident, informed decisions. With the right design and a clear plan, your ADU can pay for itself faster than most homeowners expect.
Ready to explore what your ADU could earn?
Schedule your free consultation with us today or call 402.239.7597. We will help you navigate zoning, design, and build your ADU so it fits your goals and your bottom line.
Frequently Asked Questions About Renting an ADU in Omaha
1. Can I rent out my ADU right away after it’s built?
Yes. Once your ADU receives its final inspection and certificate of occupancy from the City of Omaha, you can legally rent it. Be sure to verify your zoning district, since some areas may have additional requirements for short-term or mid-term rentals.
2. Do I need a business license or rental permit?
In Omaha, long-term ADUs typically fall under standard residential rental rules. If you plan to rent to short-term or mid-term tenants (for example, furnished month-to-month stays), you may need to register your property or obtain a conditional use permit depending on your zoning area.
3. How is ADU rent income taxed?
Rent earned from an ADU is treated as rental income. You can typically deduct property taxes, insurance, maintenance, utilities (if you pay them), and a portion of construction loan interest. Always consult with a tax professional for details specific to your situation.
4. What kind of insurance do I need for an ADU?
You should extend your homeowner’s policy to cover the new structure or consider a separate rental dwelling policy if you plan to rent it regularly. Notify your insurance provider before you begin renting, as some carriers require specific coverage for tenants or short-term stays.
5. Can I use my ADU for short-term rentals like Airbnb?
Short-term rentals are allowed in certain zoning districts but may require a conditional use permit. Omaha’s approach focuses on protecting neighborhood character, so if your goal is to operate a short-term rental, it is important to review your zoning designation or consult the Building Department before listing it online.
6. What upgrades help an ADU rent for more?
High-efficiency HVAC systems, in-unit laundry, and small outdoor patios are among the most sought-after features. Renters also place high value on privacy, natural light, and full kitchens rather than kitchenettes.
7. Can I rent to family members instead of traditional tenants?
Yes. Many Omaha homeowners use ADUs to house family members such as parents, grandparents, or adult children. This can be a smart way to support family needs while maintaining privacy and flexibility for future income use.
