Does a Mother In Law Suite Add Value To a Home? How Much?

Multi-generational homes are increasingly becoming popular among US families. Therefore, more and more Americans are opting for constructing extra living quarters where their aging parents can move in. This additional attachment to the house or a separate dwelling within the property is called an in-law suite. Apart from creating a comfortable haven and a private space for your elderly mom or dad or both, in law suite homes also increase the value of your home. It enhances the appeal of your property to prospective home buyers in the real estate market. Let’s see how.

Why Are In Law Suite Homes a Good Investment Option?

Mother in law suites feature a gamut of designs, forms, and types. They are added as a separate accessory dwelling unit to your home, rather than just as another additional room. And this where their main difference comes in, making it a good investment option. An MIL suite is, in short, is a mini version of your actual home. An all-inclusive unit shall feature a separate entrance, kitchen, full bathroom, living room, and bedroom. They are roomier than guest houses and additional amenities in more up-scale variants can include a fireplace, grab bars, or laundry hookups — depending on your parents’ requirements.

Many home buyers who wish to purchase a property that includes an independent space for their elderly patients, will prefer a property with an in law suite. This will ensure that they avoid assisted living institutes or nursing homes and stay within close reach of their loved ones — while respecting individual privacy. In fact, MIL suites and basements are the two most attractive aspects for which buyers are willing to spend several extra dollars.

How Much Do In Law Suite Homes Cost?

In law suites, of course, boost the value of your property. But remember, they do come with a huge price — ranging from $5,000 to $100,000 or more. The total mother in law addition cost depends on several factors such as your existing layout, local material and labor charges, scope of the project, zip code, etc. The higher your construction price, the more difficult it will be to get a good ROI in the future. Moreover, apart from the monetary gain, having your parents close to you might surpass all these material needs.

Can In Law Suite Homes Generate Extra Revenue?

Yes, in addition to calculating the resale value of your MIL suite, you should also consider how it will increase the value of your home by serving as a source of extra revenue. Since this unit is self sufficient and just a scaled down version of a larger house, it can be leased or rented out on a monthly basis. If you don’t have elderly parents, this is a smart way to make some additional cash. Another approach is to list your suite on short-term rental websites such as Airbnb. You can also use it as an add-on storage room or office area, thereby, avoiding huge expenses involved in renting an extra space.

How Much Value Does a Mother In Law Suite Add?

We can’t give an exact figure of the value that an in law suite will add to your home. This is because of the reason that the final number is largely controlled by the property market. Every real estate market is different. Each market comprises different types of buyers who might be looking for different features in their prospective homes. However, note that an additional suite is considered an attractive element in majority of cases.

If you still want to calculate the value of your suite, find out its total worth. Will your in law suite help you in saving money, which you would otherwise have spent in care-giving or retirement homes? What about rentals? Is this monthly income sufficient? What are the costs involved in adding an in law suite? Analyzing all these factors can help you arrive at an accurate recoup value and ROI.

Final Take

Mother in law suites are highly sought after units in the real estate market. It’s true that every time you won’t see a full ROI after selling it to a buyer. And yes, if you do build a mother in law suite, you might not be able to recoup the entire value during a resale. The exact value it adds to your home should consider all the attributes outlined above. Only a proper analysis of both the tangible and intangible benefits can help you in arriving at the correct value that an in law suite adds to your home.

Does a Mother In Law Suite Add Value to Your Home? was last modified: April 22nd, 2025 by Anisha Dutta

Written by Anisha Dutta. April 16, 2019

A wordsmith and an experienced content developer, Anisha Dutta currently writes for Kukun. She holds keen interest and knowledge about the latest, upcoming trends in the domain of home design and tries to enrich homeowners with inspirational home-improvement tips and tricks -- while breaking down jargons into simple words. An avid reader and a wanderer by habit, she is a writer by passion.

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Comments

August 26, 2019 Log in to Reply
Mindy Jollie
I like your idea of leasing out your mother-in-law unit as an Airbnb rental. My sister is about to have a new home built and they’ve been trying to decide on whether they want to include an in-law unit like this. I think they should try it because of the value and extra revenue it can bring in! I’ll have to make sure they look into that option and find a contractor that will do it for them.
April 7, 2021 Log in to Reply
bkirby@nl.rogers.com
We built MIL Suite 18 years ago and if the build plan/design are done properly and most of all, the In-Law terms of engagement are clear, with every scenario thought about and discussed, it can work very well. In the design, we made it quite clear that we did not want a door coming through our house, she had her own parking space, she had a door off her bedroom onto the patio, a door off the front deck to have access to the driveway. it was a low rise(3 step) front access to her car, that was very safe. Most of all, the suite was built to National Building Code Specs-NO exceptions. It is totally fire protected to the rafters, doors are the proper fire distance. Remember, this house will be sold one day and you do not want a code violation to hang up a sale. I was the General on the build and everything was thought about and carried out. In retrospect- design, design , design. If you drive by the home, you would never say it had a In-Law suite on the home. That is the key IMO.
The pro’s: My wife(in her PJ’s) would bring her mother out her breakfast on the weekends. If she had a problem, we were there and that is the way any son or daughter would like to have it. For me personally, she never had to worry about putting out garbage or her recycling, she never had to shovel or maintain a home and the grand children would visit her or wave to her as they were coming and going. Everything was just seconds away. Her other children were over-joyed and comforted to know she was by our side.
Her place is 1300 Square feet, 2 double-bed bedrooms, as guests from away are always looking to visit, it has a a rec-room with storage rooms. It has a flat huge back garden to walk safely and sit and enjoy the sun. It’s a mini house and family and especially her friends were very happy to see her in her new accommodations and actually they wished they had the same set up.
Future plan: We are thinking that when we retire, we would move into the suite and provide one of our children with an interest free mortgage and that way, they get a financial break and we can go south for the winter.
Overall, like I indicated, this experience has to be done right or don’t take it on.
July 30, 2021 Log in to Reply
lilian_morgan@outlook.com
Any property that you can rent is a good investment if you don’t spend inappropriate money to build the property …
1. October 4, 2021 Log in to Reply
  ava.williams70@yahoo.com
  Whenever a property is rented, I think there is an added value if you allow pets, so renting becomes more lucrative