Buda ADUs: Zoning, Setbacks and Insurance Essentials

Thinking about adding an accessory dwelling unit to your Buda property? The right ADU can create flexibility for family, long-term rental income, or future resale value. But in Buda, details like zoning, setbacks, floodplain rules, and insurance can make or break your plan. This guide gives you the essentials so you can move forward with confidence. Let’s dive in.

ADU basics in Buda

Buda’s Unified Development Code (UDC) defines accessory dwellings and allows them in several residential zones, either by right or with a Special Use Permit depending on the district. You are limited to one ADU per lot, and the unit can be occupied by guests or rented. Always confirm your zoning district and whether an ADU is permitted by right or requires a permit using the UDC’s Use Chart. You can review the rules in the City’s code portal at the City of Buda UDC.

Lot size, size caps, setbacks and height

ADU size is controlled by the UDC’s accessory-structure caps. On lots up to 7,500 square feet, the combined floor area of all accessory structures is capped at 484 square feet. On lots up to 1 acre, the cap is 1,000 square feet. Only one accessory structure may be used as living quarters, so plan your total accessory space strategically. See the UDC tables for full details in the City of Buda UDC.

Height and placement also matter. Maximum height for accessory structures is 18 feet on lots up to 7,500 square feet, and 25 feet on lots up to 1 acre. Side and rear setbacks are 10 feet if the structure is 20 feet tall or less; taller buildings must meet main-building setbacks. You must place the ADU behind the front facade of the main home.

If your property is in the R‑2 (Suburban Residential) district, a Specific Use Permit is not required when the ADU sits at least 20 feet behind the front line of the primary structure and the lot is at least 100 feet wide with a 12,000 square foot minimum area. Always confirm your district’s standards in the City of Buda UDC.

Permits, codes and inspections

Buda requires building permits for ADUs, and you must secure a Certificate of Occupancy before anyone moves in. Applications run through the City’s MGO Connect portal. Homeowners (homestead-only), licensed general contractors, or design professionals may submit. Plan review typically takes about 10 business days when submittals are complete, and all building, mechanical, electrical, plumbing and UDC inspections must pass before the C.O. is issued. Start with the City’s Building Codes and Permitting page.

Floodplain rules that affect ADUs

Parts of Buda sit in FEMA Special Flood Hazard Areas. The City participates in the NFIP and adopts Hays County flood studies and maps dated January 17, 2025. If your project is in a flood zone, a Floodplain Development Permit is required, and your ADU will need to meet finished-floor elevation standards and may require elevation certificates and engineering. Review the City’s flood rules in the Flood Damage Prevention regulations.

FEMA and Hays County released preliminary updated maps in 2025. Mapping changes can affect whether you must elevate the ADU and whether a lender will require flood insurance. Check the latest updates on FEMA’s page for Hays County preliminary FIRMs.

Renting your ADU and STR permits

You can rent your ADU in Buda, but short-term rentals have specific rules. The City’s Short‑Term Residential Rental permit requires proof of ownership, tax compliance, annual reporting of nights rented, and proof of current property insurance. The City may suspend STR registrations for violations. Review permit requirements in the City of Buda UDC.

Insurance essentials for ADU owners

Insurance depends on how you use the ADU. If it is owner‑occupied and not rented, many homeowners policies can be endorsed to include an accessory dwelling, but you should notify your insurer first. If you plan long‑term rentals, ask your agent about a landlord policy that covers the structure, liability and optional loss‑of‑rent; tenants typically need their own renters insurance. For an overview of landlord coverage, see this Texas landlord insurance guide.

Short‑term rentals are a different risk profile. Many insurers require a specific STR endorsement or a separate policy, and platform protections are not a substitute for primary insurance. The Insurance Information Institute explains key considerations for renting in its guidance on coverage when renting out your home.

Remember that flood insurance is separate from homeowners or landlord policies. If your property sits in a FEMA flood zone, your lender may require a policy through the NFIP or the private market. NFIP policies have coverage limits and special basement restrictions, so review what is and is not covered on FEMA’s page for flood insurance basics.

Quick planning checklist

• Confirm zoning and whether an ADU is by-right or needs a SUP in your district. Start with the City of Buda UDC.
• Measure your lot and calculate allowable accessory square footage (484 square feet on small lots, up to 1,000 square feet on larger residential lots up to 1 acre).
• Verify height, setbacks and placement behind the front facade.
• Check FEMA maps for flood risk and whether elevation or a Floodplain Development Permit applies; review the City flood regulations and FEMA’s preliminary map updates.
• Apply for permits through the City portal and plan for required inspections and a Certificate of Occupancy. Start at Building Codes and Permitting.
• If renting: confirm STR permit requirements in the UDC and notify your insurer about long‑term or STR use.
• Ask your lender and insurer about flood‑insurance requirements if the property is in or near a mapped flood zone.
• Review HOA rules, separate utility metering needs and whether a separate address will be assigned.

Avoidable pitfalls

• Building without permits or skipping the Certificate of Occupancy.
• Exceeding accessory-structure area caps or placing the ADU in front of the main home.
• Ignoring floodplain rules, elevation requirements or new FEMA maps.
• Assuming homeowners insurance covers rentals or STRs without endorsements.
• Overlooking how a separate meter or address could change insurance treatment.

Ready to evaluate a Buda ADU?

A well-planned ADU can support family needs today and long-term wealth tomorrow. If you want help reviewing a lot, modeling rent potential or preparing a compliant plan, connect with Courtney Unangst for strategic, local guidance.

FAQs

Can I build an ADU on my Buda lot?

• It depends on your zoning district, lot size, and UDC standards for accessory structures. Check the Use Chart and dimensional rules in the City of Buda UDC.

How big can an ADU be in Buda?

• The UDC caps the combined floor area of accessory structures at 484 square feet on lots up to 7,500 square feet, and 1,000 square feet on lots up to 1 acre, with only one accessory dwelling allowed as living quarters. See the City of Buda UDC.

Do I need permits and a Certificate of Occupancy for an ADU?

• Yes. Apply through the City portal, complete inspections, and obtain a C.O. before anyone moves in. Start with Building Codes and Permitting.

What if my property is in a FEMA flood zone?

• You will need a Floodplain Development Permit and elevation compliance, and your lender may require flood insurance. Review the City’s flood regulations and FEMA’s map updates.

Will my homeowners policy cover a rented ADU or an STR?

• Not automatically. Long‑term rentals often need a landlord policy, and STRs usually need endorsements or a separate policy. See the Insurance Information Institute’s renting coverage guide.

Do short‑term rentals require proof of insurance in Buda?

• Yes. STR registration requires proof of current property insurance along with tax compliance and reporting, as outlined in the City of Buda UDC.