Sherman, TX Accessory Structures: ADU Rental Restrictions (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?
Can I run a business out of a backyard building in Sherman?
Where can an accessory dwelling be built at all in Sherman?
What is the penalty for breaking the rental rule in Sherman?
Sources & Official References
Other rules in Sherman
Texas rules heatmap·Compare Sherman to another location·View the Texas accessory structures overview
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