Adding a tiny Home Adding an Accessory Dwelling Unit (ADU) to your Knoxville, Tennessee property is a smart investment. These compact, self-contained units offer versatile benefits for homeowners. Here’s why you should consider building one.

First, ADUs boost property value. Knoxville’s real estate market is growing, with median home prices up 8% in 2025. An ADU can increase your home’s worth by 20-30%, appealing to buyers seeking rental income potential.

Second, ADUs generate passive income. Renting out an ADU in Knoxville, where short-term rentals thrive due to tourism (e.g., Great Smoky Mountains visitors), can yield $800-$1,500 monthly.

Third, ADUs provide flexible living options. Use them for aging parents, adult children, or guests, reducing the need for costly external housing. Knoxville’s zoning laws, updated in 2023, now permit ADUs in most residential areas, simplifying approvals. Finally, ADUs are eco-friendly, using fewer resources than traditional homes, aligning with Knoxville’s sustainability goals.

At Tiny Homes of Tennessee, we don't offer Tiny houses for sale in Tennessee... we build Tiny Homes on your property! Our construction costs average between $220-$275 per square foot (nicely appointed). A tiny home in Tennessee TN (ADU) pays off through rentals or family use. In Knoxville’s vibrant market, building an ADU is a practical, profitable choice. Our construction is on site, on foundation, stick built, with permitting and inspections. You are getting residential quality, built to last!