Merced, CA Accessory Structures: ADU Owner Occupancy (2026)
Key Facts
- Pre-2025 permits
- No owner-occupancy requirement at all
- Post-2025 rule
- Owner may rent primary OR ADU, not both
- Zone limitation
- Applies only in R-1 or equivalent PD
- Other zones
- No owner-occupancy requirement applies
- Governing section
- Merced Municipal Code Sec. 20.42.040(A)
Summary
Merced imposed no owner-occupancy requirement on ADUs permitted between January 1, 2020 and January 1, 2025. Starting January 1, 2025, owners in R-1 zones (or equivalent planned developments) may rent only the primary home or the ADU, not both, under Municipal Code Section 20.42.040(A).
A.Owner Occupancy. The city shall not impose owner occupancy requirements on any ADUs or associated primary dwellings permitted between January 1, 2020, and January 1, 2025. After January 1, 2025, the following section shall apply. The owner of a parcel with an ADU shall be permitted to rent either the primary unit or the ADU, but not both, and may reside in either the primary dwelling unit or the ADU, if the ADU is located within an R-1 Zoning District or equivalent designation in a Planned Development or Residential Planned Development only. This requirement does not apply to any other zoning districts.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 85 - 1-26).
Full Breakdown
040(A) sets a date-based owner-occupancy rule for accessory dwelling units. Any ADU or its associated primary dwelling permitted between January 1, 2020 and January 1, 2025 carries no city-imposed owner-occupancy requirement at all, matching the state's temporary moratorium on local ADU owner-occupancy mandates. For permits issued on or after January 1, 2025, the rule changes: an owner of a parcel containing an ADU may rent out either the primary residence or the ADU, but never both units at the same time. The owner may choose to live in either the primary dwelling or the ADU itself, so long as this occupancy condition is confined to parcels within the R-1 (Single-Family Residential) zoning district or an equivalent designation inside a Planned Development or Residential Planned Development.
Parcels zoned anything other than R-1 or its planned-development equivalent are expressly carved out of the requirement, meaning ADUs on multi-family or mixed-use zoned lots in Merced can be rented independently of the primary home with no owner-occupancy string attached. 020(D) directs that if any part of the chapter ever conflicts with state ADU law, state law controls.
Violations & Fines
The code does not spell out a fine schedule for breaching the owner-occupancy condition; compliance is enforced through the deed restriction and permit conditions tied to the ADU. Renting out both the primary dwelling and the ADU on an R-1 parcel after January 1, 2025 violates Section 20.42.040(A), and Development Services can pursue it as a zoning code violation subject to the city's standard nonconforming-use and abatement procedures under Chapter 20.52.
Frequently Asked Questions
Do I have to live in my Merced ADU?
Does the owner-occupancy rule apply to ADUs approved before 2025?
Can I rent both my house and my ADU separately in Merced?
Sources & Official References
Other rules in Merced
California rules heatmap·Compare Merced to another location·View the California accessory structures overview
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