Sioux Falls, SD Accessory Structures: ADU Owner Occupancy (2026)

Sioux Falls' Shape Places Zoning Ordinance (Title 16) does not condition ADU permits on owner-occupancy of either the principal dwelling or the accessory unit. Under Article 15.20: (1) no owner-occupancy affidavit is required at permit application; (2) property owners may build an ADU on a rental property where the principal dwelling is also leased; (3) both units may be rented independently to separate tenant households for long-term housing; (4) the property may be sold without affecting the ADU's legal status, but the ADU cannot be sold separately from the principal dwelling (no condominium conversion). Short-term vacation rental use — defined under Sioux Falls Code §159.303 as a dwelling rented to the public on a daily or weekly basis for more than 14 days per calendar year — requires the city's $50 residential rental permit, registration with the South Dakota Department of Revenue for state sales/tourism tax, and posting of owner contact information inside and outside the property. South Dakota does not have a state ADU preemption statute (unlike California's AB 671 or Oregon's HB 2001), so Sioux Falls' local rules govern, and the city has chosen not to impose owner-occupancy. Private restrictions remain enforceable: HOA covenants, conditions, and restrictions (CC&Rs) recorded against title under SDCL Title 43 (Property) may still mandate owner-occupancy. Many Sioux Falls subdivisions (Prairie Hills, The Bluffs, Tuscany, Hayward, and gated developments in southeast Sioux Falls) have pre-existing CC&Rs that may restrict ADU rental or require resident-owner status.