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Homes with Casitas & Guest Houses in Salt Lake City, Utah
Salt Lake City's housing stock is more varied than most outsiders expect, and that variety shows up clearly in the market for homes with casitas and guest houses. From the older brick bungalows of Sugar House and the Avenues — where detached carriage houses and backyard cottages have existed for a century — to newer construction in the Millcreek corridor where accessory dwelling units (ADUs) are increasingly built to code from the ground up, buyers have real options across a wide price spectrum. A modest rancher in Rose Park with a permitted basement apartment conversion reads differently than a Foothill Drive property with a fully detached guest suite and separate entrance, but both serve the same core need: flexible space for family, rental income, or both. Salt Lake City proper amended its ADU ordinance in recent years to encourage this kind of density, which means more listings now include legitimately permitted secondary units rather than unpermitted add-ons — a distinction that matters enormously at the lending and inspection stage.
Buyers drawn to casitas and guest houses in Salt Lake City tend to fall into a few clear groups: multi-generational families who need an aging parent nearby but not underfoot, remote workers who want a true office-away-from-home on the property, and investors counting on long-term rental income to offset a mortgage that's climbed alongside the city's rising median home prices (which have hovered in the $500,000–$600,000 range for single-family homes in recent years). The city's proximity to the University of Utah, Primary Children's Hospital, and a growing tech corridor along the 400 South corridor makes rental demand for guest units consistently strong. Browse the active listings below to see what's currently available across SLC's neighborhoods.
June 2026 · Salt Lake City market
Live from the Utah MLS — what's actually happening in Salt Lake City right now.
Median sale
$597,075
206 closed in June 2026
Median DOM
3 days
listing → contract
Sale-to-list
99.0%
of final list price
Unsold inventory
819
active + pending
27 matching · page 2 of 2
Active listings
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Common questions
About homes with casitas & guest houses in Salt Lake City.
What's the difference between a casita, a guest house, and an ADU in Salt Lake City? ▾
In SLC listings, the terms get used loosely. A casita usually means a small detached living space, often without a full kitchen. A guest house typically implies a fully self-contained second dwelling with kitchen and bath. An ADU (accessory dwelling unit) is the legal/zoning term — that's what the city permits and tracks. If rentability matters to you, look specifically for permitted ADUs.
Can I rent out the casita on Airbnb? ▾
Generally no. Salt Lake City prohibits short-term rentals (under 30 days) in residential zones unless the owner lives on-site and obtains a conditional use permit, which is rarely granted. Long-term rentals of 30+ days are allowed in permitted ADUs. Always confirm with SLC Planning before assuming income potential.
Which Salt Lake neighborhoods have the most homes with guest houses? ▾
The Avenues and Federal Heights have the highest concentration of historic carriage houses and converted detached units. Sugar House and 9th & 9th have seen the most new ADU construction since the 2018 ordinance changes. For larger estate-style guest houses on bigger lots, look at Olympus Cove, St. Mary's, and the upper Avenues.
Do I need to verify the casita is permitted? ▾
Yes, and this is the single most important due diligence step. Many older Salt Lake homes have backyard cottages or basement units that were built without permits and can't legally be rented or sometimes even occupied. Ask the listing agent for the ADU permit number and verify with SLC Building Services before closing.
How much does a casita add to the home's value? ▾
It depends on whether it's permitted, has a full kitchen, and has separate utilities. A permitted detached ADU with kitchen typically adds $80,000 to $200,000 to a Salt Lake City home's value. An unpermitted finished outbuilding might add little to nothing on appraisal, even if it's nicely built.
Can I get a mortgage on a home with a guest house? ▾
Yes. Conventional, FHA, and VA loans all work on single-family homes with ADUs, since the property is still classified as one residential unit. Some lenders will even count a portion of projected rental income from the ADU toward your qualifying income — ask your loan officer about Fannie Mae's ADU rental income guidelines.