Benefits of Casitas

San Antonio needs more housing, especially for older adults, students and small families. Casitas provide the right-sized housing for these people directly in their neighborhood.

You can build a casita in your backyard or as an addition to your house. This gives you an extra home that you can use to suit your needs like making income, housing family and friends, or aging in place. Check out the list below for some of the great benefits of casitas.

Source of Income

You can rent out a casita for income or live in the casita and rent out your main house instead. As long as you are living in the main house or the casita, you can rent out the other home. To receive incentives from the city, your renter must meet certain income limits. For information on potential rent limits for your casita, check out NHSD HUD CPD Program limits(PDF, 86KB).

Picture this: You're nearing retirement and decide to build a casita in your backyard. Once built, you move into the casita and rent out the main house to a young family with two children. The family loves growing up in your house, and you continue to get a steady income in your retirement.

Rental Housing

Many people don't want a large house. Most casitas are smaller than other housing options, so they are often more affordable. This makes them a great way to house those with a smaller income.

Picture this: A recent college graduate wants to find an affordable home where she can live without a roommate. She finds a one-bedroom casita in the neighborhood she grew up in and can now live and work on her own for the first time.

Housing for Friends or Family

Casitas can house family or friends - either as full-time residents or when they come to visit. A casita can give them an independent living space while still being near you.

Picture this: A couple's children have all grown up and moved out of the house, and the couple no longer needs so much space. The couple builds a casita in the backyard and move in. Then, they rent out the main house! If their children want to move back and start their own families, they can move into the main house.

Aging in Place

Some people use casitas as a way to "age in place." An older adult may want to stay in their neighborhood but also want a smaller living space for themself, their family, or a live-in employee. With a casita, an older adult can have extra housing on-site and still live in their neighborhood.

Picture this: Your grandmother recently sold her house and is looking to downsize. She wants to stay in the same neighborhood so she's close to family. If you have a casita, she can move right into your backyard! She gets to stay in her current neighborhood and have her own living space, but you can also see each other any time.

Cost

The small size of casitas means they're usually cheaper to build than a full-size house. This can make them a more affordable way to increase the number of housing opportunities in San Antonio. However, building a casita is still a major expense. The City of San Antonio and other agencies offer many resources to help you understand the costs associated with a casita. They also offer some tools that can help you save money. For more information, visit Financing a Casita.

Picture this: Your friend wants to move to San Antonio but cannot find an affordable home for her and her child. You have been wanting to build an addition to your home for a while, but always found it too expensive. You find out about the potential incentives associated with building a casita, so you decide to build one in your backyard for your friend and her child to live in. Now, your friend can move to the city, have an affordable home, and live nearby.

Permit-Ready Plans

Casita Permit-Ready Plans come in a variety of sizes and designs. Selected design firms and organizations designed casita permit-ready plans. The Development Services Department reviewed each plan for code and permit compliance. This will help save time and money creating your casita. For more information, view our Permit-Ready Plan Library.

Picture this: You want to build a casita but don't have the time or money to design it from scratch. On the Casita website, you find casita designs that already meet City permit requirements. One modern design matches your main house well. You also find a contractor on the website who you trust and are excited to work with. This Permit-Ready Plan saves you both time and money, and now you're ready to construct a casita.

Incentives

Building a casita is a major expense, so the City will offer incentives to help. These incentives, or benefits, assist homeowners in financing and building casitas. Homeowners can apply by contacting Neighborhood & Housing Services staff, and the City will provide incentives based on their eligibility. More information on these incentives will be available late 2025. There are currently opportunities to get your City permit fees waived.

Picture this: You built a one-bedroom casita and committed to renting to lower-income residents. This commitment reduced your permit fees, making the casita more affordable to build. Now, you want to rent it out to students from the nearby college. You meet a first-generation college student and their spouse looking for housing close to campus. You got reduced permit fees, an extra monthly income from renting the casita, and the couple gets affordable housing close to campus.

Area Median Income (AMI)