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Sherman, TX Accessory Structures: ADU Rental Restrictions (2026)

Heavy Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified October 2026

Key Facts

Rental or lease
Prohibited for every accessory building
Commercial use
Prohibited in accessory buildings
Accessory dwelling definition
Treated as an accessory building
Minimum lot for accessory dwelling
12,000 square feet
Maximum accessory dwellings
One per lot
Maximum daily fine
$2,000 per day under § 14.09.003

Summary

In the City of Sherman, Texas, § 14.04.002(c) states that no accessory building shall be rented or leased and none can be used for commercial purposes. Because § 14.08.001 defines an accessory dwelling as an accessory building, a backyard dwelling unit falls under the same ban.

(4) No accessory building shall be rented or leased. ... (6) No accessory building shall be used for commercial purposes.

Full Breakdown

The rental ban sits in subsection (c) of § 14.04.002, the accessory buildings and structures section of the zoning ordinance of the City of Sherman, Texas. Subsection (c)(4) says: no accessory building shall be rented or leased. Subsection (c)(6) adds that no accessory building shall be used for commercial purposes. The code prints no exception, permit, or registration path that lets an owner rent an accessory building to a tenant.

The reach to accessory dwellings comes from the definitions article. Section 14.08.001 defines an accessory dwelling as a secondary dwelling unit established in conjunction with and clearly subordinate in size, location and use to a primary dwelling unit, whether part of the same structure or a detached unit on the same lot, and it adds that an accessory dwelling is considered an accessory building. A garage apartment or guest house is therefore covered by the same sentence that bars renting or leasing an accessory building.

The rule works alongside the siting limits in the same subsection. An accessory building that serves as an accessory dwelling may not be located on a lot less than 12,000 square feet in area, must be zoned R-A, R-E, R-12 or R-6, and one accessory dwelling is allowed per lot. The unit also needs a building permit and city inspection under § 14.04.002(f), and the section applies to residential zoning districts.

The section was most recently amended by Ordinance 6934 adopted 5/4/2026, so owners planning a rental unit behind a house should confirm the current text with Development Services before applying for a permit.

Violations & Fines

Renting or leasing an accessory building breaks Chapter 14, which is enforced as a class C misdemeanor under § 14.09.003 with a fine of not more than $2,000. Each day the violation continues is a separate offense. The city can also seek a civil penalty of up to $1,000 per day, plus injunctions to stop the use.

Frequently Asked Questions

Can I rent out a garage apartment in the City of Sherman, Texas?
Not under the text of § 14.04.002(c)(4), which says no accessory building shall be rented or leased. Section 14.08.001 defines an accessory dwelling, including a detached unit on the same lot, as an accessory building. The code prints no exception for renting an accessory dwelling, so a lease of the unit conflicts with the zoning ordinance.
Can I run a business out of a backyard building in Sherman?
No. Section 14.04.002(c)(6) states that no accessory building shall be used for commercial purposes. That applies to sheds, detached garages and accessory dwellings in the residential zoning districts covered by the section. Non-residential districts follow the standards of the applicable district rather than this subsection.
Where can an accessory dwelling be built at all in Sherman?
An accessory building that serves as an accessory dwelling cannot be located on a lot under 12,000 square feet and must be zoned R-A, R-E, R-12 or R-6. Only one accessory dwelling is allowed per lot. It also needs a building permit and inspection under § 14.04.002(f) before it is built.
What is the penalty for breaking the rental rule in Sherman?
Section 14.09.003 makes a violation of Chapter 14 a class C misdemeanor with a fine of not more than $2,000 on conviction, and each day is a separate offense. The city can also pursue a civil penalty of up to $1,000 per day and seek temporary or permanent injunctions to remedy the violation.

Sources & Official References

Other rules in Sherman

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