A Millcreek homeowner has added a 300-square-foot tiny home to her backyard. The detached unit is designed to pull double duty: rental income now, retirement home later.

The resident, identified by the pseudonym Linda Costa to protect her privacy, worked with Millcreek-based Nest Tiny Homes to build the unit on her property, the Millcreek Journal reported Friday. The project comes as Utah Senate Bill 284, signed March 18, makes detached accessory dwelling units (ADUs) a permitted use on qualifying single-family lots statewide. The law's detached-ADU provision takes full effect Oct. 1.

Costa said she plans to rent the unit for six weeks to three months at a time, with tenants paying a single monthly fee covering all utilities. Eventually, her daughter and her daughter's boyfriend would buy the main house, and Costa would move into the tiny home.

"I have thought of the idea for years, and I like the idea of a small footprint especially with climate change," Costa told the Journal. "… My daughter and her boyfriend would like to buy my house, and I would like to live near them when the time comes that they have kids."

The timing underscores a sharp affordability gap. Millcreek's median single-family home sale price hit $833,000 in the second quarter of 2026, requiring an annual household income of $234,937 to afford, according to Deseret News reporting on Salt Lake Board of Realtors data. Median household income in Salt Lake County is $97,494, as we reported Aug. 26.

Inside the unit

Despite its compact footprint, the tiny home includes a full kitchen with an oven, range, dishwasher and refrigerator, plus a stackable washer and dryer. The bathroom has a full-size shower. A combined living room and bedroom will hold a Murphy bed and folding table, Costa said. Vaulted ceilings and many windows make the space feel bigger than 300 square feet.

Walls carry R-21 insulation and the ceiling is rated R-38, within recommended values for northern Utah, according to the Journal's report. Water, power and gas run on the main house's meter, though the tiny home has its own hot water heater.

How the rules work

Under SB 284, detached ADUs will be permitted on single-family lots of 11,000 square feet or larger in covered cities once the Oct. 1 effective date arrives, according to an analysis by ADU Pilot. The owner must live in either the primary home or the ADU. Cities may also prohibit renting a detached ADU for fewer than 90 consecutive days, which could restrict short-term rental use in municipalities that adopt such a rule.

That 90-day provision is worth watching. Costa's plan to rent for six weeks could fall below that threshold depending on how Millcreek updates its local ordinance.

Mike Rutz, project manager at Nest Tiny Homes, told the Journal that Salt Lake County requires 23% permeable space on a property for a detached ADU. The percentage varies by county, he said. Height restrictions must also be submitted to the city for approval.

Nest Tiny Homes, located at 4190 Highland Dr., has been in business for four years. The company offers 10 stock floor plans and handles design, permitting and construction. It is also building a 1,700-square-foot home in Bountiful and a 750-square-foot, two-bedroom unit on a quarter-acre lot in Clinton.

No neighbors objected. Costa said she spoke with those closest to her property before the build. One was mostly curious.

Millcreek's Planning and Zoning Department holds a monthly open house. The next session is Tuesday, Sept. 1, from 5 to 6 p.m. at Millcreek City Hall, 1330 East Chambers Ave.