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Annapolis, MD Accessory Structures: ADU Owner Occupancy (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Owner-occupancy
Owner must live in ADU or house
Ownership
ADU and house share one owner
Per-lot limit
One ADU per lot
Size cap
850 sq ft if not in existing footprint
Licensing
Rental license required, Chapter 17.44

Summary

Annapolis requires the property owner to live in either the accessory dwelling unit or the principal structure: an investor-owned ADU rented out while the owner lives elsewhere is not allowed.

An accessory dwelling unit and principal structure on any one lot shall be in common ownership and the owner shall reside in either the accessory dwelling unit or the principal structure. (Ord. No. O-9-21, § I, 10-11-2021)

Editor's note— Section III of Ord. No. O-9-21, adopted Oct. 11, 2021 provides that this ordinance shall take effect from the date of its passage; provided, that there shall be an amnesty period from the date of passage of this ordinance through close of business on January 10, 2022 to encourage compliance with the rental license requirements enacted by this ordinance by allowing owners of unlicensed accessory dwelling units to participate in this amnesty period by voluntarily entering the rental license process while continuing to rent such unlicensed accessory dwelling unit. Any owner of an unlicensed accessory dwelling unit who participates in this amnesty program shall be exempt from the penalties set forth in Chapter 17.44 for the duration of the amnesty period. For the purpose of this ordinance, the owner of an unlicensed accessory dwelling unit is participating in the amnesty period if:

(1) A rental operating license application is filed in accordance with Chapter 17.44;

(2) The applicant makes a good faith effort, as determined by the Department, to complete the rental license process during the amnesty period; and

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 2025 Update 2).

Full Breakdown

Annapolis City Code § 21.64.010(G) requires that an accessory dwelling unit and the principal structure on the same lot remain in common ownership, and mandates that the owner reside in either the ADU or the principal structure. Only one ADU is allowed per lot, each must have its own separate entrance, and every ADU needs a rental license under Chapter 17.44. The rule blocks absentee owners from adding an ADU purely as a rental investment.

Violations & Fines

Violating the owner-occupancy requirement is a Zoning Code misdemeanor under § 21.36.030, fined as set by the City Council; operating an unlicensed ADU also triggers the penalties in Chapter 17.44's rental licensing provisions.

Frequently Asked Questions

Can I rent out an Annapolis ADU without living on the property?
No. Annapolis City Code § 21.64.010(G) requires the owner to reside in either the ADU or the principal structure; investor-owned, non-owner-occupied ADUs are not permitted.
Can a tenant add and operate an ADU on a rented property?
No. The ADU and principal structure must be in common ownership under one owner, so a tenant cannot establish or run an ADU independent of the property owner.

Sources & Official References

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