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Yellowstone County, MT Accessory Structures: ADU Owner Occupancy (2026)

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

Key Facts

Where ADUs allowed
A district conditional; N4, RR1, RR3 by Special Review
Owner residency
6 months per year in primary or ADU
Third-party rentals
Barred in the owner-occupied unit
Deed restriction
Recorded with County Clerk and Recorder
Filing deadline
30 days after ADU approval
N4 district
ADU cannot be sold separately from lot
Governing section
Zoning Code § 27-1009.G.2

Summary

In unincorporated Yellowstone County, an accessory dwelling unit only gets approved if the property owner actually lives on site. The zoning code requires the owner to occupy either the primary home or the ADU as a principal residence at least six months a year and record a deed restriction saying so.

City-specific rules exist: Billings has its own adu owner occupancy rules that differ from Yellowstone County's county-level regulations. If you live in Billings, check the city-specific page instead.

2. Ownership and Occupancy

(a) The property owner shall live in either the primary or accessory dwelling unit, with one of the units serving as their principal residency for at least six months in a year. No third party rentals shall occur in the owner-occupied unit.

(b) The property owner shall record a deed restriction with the Yellowstone County Clerk and Recorder requiring owner-occupancy of the property. Evidence of recordation of the deed restriction shall be provided to the Planning & Community Services Department.

(c) Conditions of approval, as determined by the Director, shall be filed for record with the County Recorder as deed restrictions within 30 days of approval of the accessory dwelling unit. Evidence of such filing shall be submitted to the Director within 30 days of approval.

Full Breakdown

Yellowstone County allows accessory dwelling units conditionally in the Agricultural (A) district and by Special Review in the N4, RR1, and RR3 residential districts, under Section 27-1009.G.1 of the Zoning Code. Approval does not end the county's involvement: Section 27-1009.G.2, Ownership and Occupancy, ties every ADU to the property owner personally. The owner must live in either the primary dwelling or the accessory unit as their principal residence for at least six months of the year, and the code specifically forbids renting out the owner-occupied unit to a third party while the owner lives in the other one.

To make that binding beyond the current owner, the code requires the property owner to record a deed restriction with the Yellowstone County Clerk and Recorder that requires owner-occupancy of the property, and to give the Planning & Community Services Department evidence that the restriction was recorded. Any additional conditions the Director attaches to the approval must also be filed as deed restrictions with the County Recorder within 30 days of ADU approval, with proof of that filing submitted to the Director within the same 30 days. Because the restriction runs with the land, a buyer who purchases a property with an existing ADU inherits the owner-occupancy obligation; it does not expire when the property changes hands.

The rule has one further wrinkle in the N4 district: under Section 27-1009.G.2(d), an ADU built there cannot be sold separately or subdivided from the primary dwelling or lot, closing off the option of splitting the ADU into its own parcel to get around the occupancy requirement.

Violations & Fines

Building or occupying an ADU without recording the required deed restriction, or renting the owner-occupied unit to someone other than the owner, is a zoning code violation under Section 27-1702 and each day it continues counts as a separate offense. The zoning coordinator can deny or revoke permits, issue a stop-work or stop-use order, and refer the case for prosecution as a misdemeanor punishable by a fine up to the state statutory limit or up to six months in the county jail, under Section 27-1704.

Frequently Asked Questions

Do I have to live on the property to get an ADU approved?
Yes. Section 27-1009.G.2(a) requires the property owner to live in either the primary dwelling or the accessory dwelling unit as their principal residence for at least six months a year, and it bars renting the owner-occupied unit to a third party while you live in the other one.
What is the deed restriction the county requires?
Before final approval, you must record a deed restriction with the Yellowstone County Clerk and Recorder committing the property to owner-occupancy, and give the Planning & Community Services Department proof it was recorded. Any conditions the Director attaches must also be filed as deed restrictions within 30 days of approval.
Can I sell the ADU as its own lot?
Not in the N4 district. Section 27-1009.G.2(d) specifically bars selling or subdividing an N4 accessory dwelling unit separately from the primary dwelling or the lot it sits on, so the two stay under one deed.
Does the owner-occupancy requirement transfer when I sell the house?
Yes. Because it is recorded as a deed restriction with the County Clerk and Recorder rather than a permit condition tied to the original owner, the requirement runs with the land and binds whoever buys the property next.

Sources & Official References

Other rules in Yellowstone County

All Yellowstone County rules

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