In real estate, a multigenerational home is a house set up with more than one private living area under one roof or on one lot. That can be as simple as a second bedroom suite or as complete as a separate unit with its own kitchen.

The National Association of REALTORS 2026 Profile of Home Buyers and Sellers found that 14% of home buyers purchased a multigenerational home.

Sources: NAR: Top 10 Takeaways from the 2026 Profile of Home Buyers and Sellers

Listings rarely use the word multigenerational, so it helps to search by features. These are the layouts that most often create a second private living area.

• A second primary suite: a large bedroom with its own full bathroom and closet, ideally on a different level from the first.
• A main-floor bedroom and full bath, so one living area needs no stairs. Ranch and reverse 1.5-story plans often have this.
• A finished walkout basement with a kitchenette or wet bar, a bedroom, a full bath and its own door to the yard.
• A separate entrance to a suite or lower level.
• An accessory dwelling unit (ADU). Both FHA and Fannie Mae describe an ADU as a smaller living unit that can be added to, built within, or detached from a one-unit home on the same lot. Fannie Mae says it must have living, sleeping, cooking and bathroom space.
• Extra parking or a wide driveway, and a lot big enough for a future addition if zoning allows it.

Sources: HUD FHA Single Family Housing Policy Handbook 4000.1 · Fannie Mae: Accessory Dwelling Unit Income and HomeReady Boarder Income Flexibilities · Mother & Son Realty Group: Kansas City Metro Ranch Homes · Mother & Son Realty Group: Homes on 1+ Acres

Lenders have rules for homes with an ADU. Here is how two major loan programs describe them. Always confirm the details with your lender, since rules change and each loan is different.

• FHA: A one-unit home with a single ADU is still treated as a one-unit property. Rent from the ADU can count as income, generally at 75% of the lower of the appraiser's market rent or the lease rent, and it can't be more than 30% of the income used to qualify.
• Fannie Mae: ADU rent is treated as rental income and can't be more than 30% of the qualifying income. The appraisal must include a rent schedule (Form 1007) for the ADU.
• Fannie Mae: If a borrower has less than 12 months of property management experience, the ADU rent used to qualify can't be more than the borrower's housing payment.
• A home with a second unit that is a separate legal dwelling may be treated as a 2-unit property instead of a home with an ADU. Ask your lender which applies.

Sources: HUD FHA Single Family Housing Policy Handbook 4000.1 · Fannie Mae: Accessory Dwelling Unit Income Flexibilities

An extra suite inside the house usually raises fewer questions than a separate unit with its own kitchen. If a home already has an apartment or you plan to add one, check the city rules, permits and any homes association covenants first.

• Ask the seller whether the lower-level kitchen or apartment was built with permits.
• Check whether the city requires the owner to live on the property, as Kansas City, Missouri does for ADUs.
• Read the homes association covenants. A Lee's Summit staff report noted that HOAs can prohibit ADUs even where a city allows them.
• Ask about separate addresses, utility meters and parking before you plan to rent any space.

Sources: Kansas City Clerk, Ordinance 230552 · City of Lee's Summit staff report (Jan. 31, 2022)

Related city guides: Kansas City, MO · Lee's Summit