ADU Pass
Franklin
ADU Pass helps homeowners in Franklin, Johnson County, Indiana navigate the permit paperwork for building an accessory dwelling unit. This area covers 3 ZIP codes.
Map
ADU details
ADU legality: with-restrictions
Franklin (Johnson County) has no dedicated ADU ordinance. Within city limits, applicants apply through the Building Permits and Inspections Division using the city's permit application portal; outside city limits the Johnson County Citizenserve portal handles ADU administrator approval. ADUs are not by-right and require zoning compatibility confirmation per the underlying district.
Cost scenarios
| Scenario | Sq ft | Permit | Build | Total |
|---|---|---|---|---|
| minimum | 300 | $1,450 | $66,000 | $67,450 |
| 600 | 600 | $1,660 | $132,000 | $133,660 |
| midpoint | 550 | $1,620 | $121,000 | $122,620 |
| maximum | 900 | $1,880 | $198,000 | $199,880 |
Fee breakdown (as of 2026-04)
Permitting process
- Confirm jurisdiction (city vs unincorporated) (~1d)
Use the City of Franklin Beacon GIS map to confirm whether the parcel is inside Franklin corporate limits (city Building Permits and Inspections handles) or in unincorporated Johnson County (county Department of Planning and Zoning + Citizenserve portal handles). - Pre-application zoning verification (~5d)
Verify district (one of Franklin's 17 districts) and accessory-residential allowance via Beacon GIS or by emailing planning staff. For unincorporated parcels confirm Johnson County district and septic feasibility before any application. - Septic / sewer feasibility (where applicable) (~14d)
Inside Franklin city limits the property typically connects to municipal sewer; unincorporated Johnson parcels need a Johnson County Health Department septic permit or upgrade evaluation before any building permit. - Submit residential building permit application (~1d)
City applicants submit through the Franklin permit portal under Building Permits and Inspections; unincorporated applicants apply through the Johnson County Citizenserve portal using the 'Auxiliary Dwelling Unit (ADU)' administrator-approval form. Both require site plan, floor plan, elevations, structural plans, and energy compliance. - Plan review (~14d)
Johnson County publishes a 10 business-day average review time. Franklin's Planning and Engineering Department typically returns first-cycle comments within 2-3 weeks. - Permit issuance and fee payment (~5d)
Pay permit and plan-review fees per the City of Franklin fee schedule (effective 2009-11-01, updated 2021-07-13) or the Johnson County schedule. Permit issued upon clearance. - Construction inspections
Schedule inspections through the permit portal: footing, foundation, framing, MEP rough, insulation, drywall, final. - Final inspection and certificate of occupancy (~5d)
Pass final; CO issued; ADU eligible for occupancy and rental subject to any city rental-registration ordinance.
Viability (permitted uses)
- Long-term rental: yes Long-term ADU rental permitted under Indiana landlord-tenant law (IC 32-31). No Franklin or Johnson County rent-stabilization regime.
- Short-term rental: with-restrictions (City of Franklin lodging/rental ordinances; Johnson County administrator approval includes Short-Term Rental track) Johnson County's Citizenserve portal has a Short-Term Rental administrator-approval workflow distinct from ADU; Franklin city STR rules are governed by lodging/business code.
- Indiana state innkeeper's tax applies
- City may require business-license/lodging registration
- HOA covenants enforceable - no Indiana ADU-HOA preemption
- Office rental: no Franklin zoning treats ADUs as residential dwelling units; commercial office tenancy requires rezoning.
- Home office: yes Home-occupation use of ADU permitted with limits on signage, customer traffic, and employees.
- Studio / workshop: yes Personal art/workshop use allowed as accessory residential.
- Agriculture: with-restrictions Backyard chickens and limited urban-agriculture allowed in Franklin residential districts subject to district rules; livestock varies.
- Relative support: yes Multigenerational/relative occupancy expressly contemplated under Johnson County ADU administrator approval.
Incentives
- Indiana Homestead Standard Deduction — Owner-occupied homestead deduction caps assessed value reduction; ADU on owner-occupied parcel preserves homestead on the primary structure.
Contacts
Staff: Johnson County Department of Planning and Zoning (County permitting (unincorporated parcels)) building@johnsoncounty.in.gov, City of Franklin Building Permits and Inspections (City permitting (in-city parcels)), City of Franklin Plan Commission (Plan Commission review (variances, special exceptions))
Utilities
- Water: Indiana American Water (Franklin service area) / Franklin Utility Billing Office · 21d connect · $3,500
- Sewer: City of Franklin Wastewater Utility (within city); Johnson County septic outside city) · 30d connect · $4,200
- Electric: Duke Energy Indiana (Franklin and most of Johnson County) · 30d connect · $1,800
- Gas: CenterPoint Energy Indiana North (formerly Vectren) · 21d connect · $1,500
Property values & taxes
Market rent by ADU size
| Sq ft | Rent |
|---|---|
| 400 | $1,050/mo |
| 600 | $1,325/mo |
| 800 | $1,525/mo |
Construction timeline
Realistic total: best 7mo · typical 10mo · worst 16mo
Indianapolis-MSA labor markets are healthy; rural Johnson parcels may face longer lead times for septic and excavation crews.
Modular pathway Indiana Department of Homeland Security - Industrialized Building Systems · inspectors are occasional with modular · 3 modular permits (last 24mo)
Standard interstate access via I-65 and SR-44 to Franklin; suburban lots accommodate single-wide module deliveries.
Financing
State ADU loans:
- Indiana Housing and Community Development Authority (IHCDA) (State of Indiana)
Insurance impact
Modest delta typical of Indianapolis-MSA suburban market; tornado/hail loss profile drives premium rather than ADU itself.
HOA prevalence & preemption
Franklin has a meaningful share of HOA-governed subdivisions, particularly newer northside developments. HOA covenants are enforceable against ADUs - check governing documents before designing.
Regulatory overlays (1)
- flood-zone — FEMA SFHA Zone AE along Hurricane Creek and Youngs Creek tributaries through downtown Franklin · +14d · +8% cost
Finished-floor elevation requirements; flood vents on enclosed below-base areas. (map)
Technical envelope (climate & building code)
Climate & energy code
Building code
Amendments:
- 675 IAC 14 - Indiana Residential Code amendments to IRC 2018 — Indiana strikes IRC R313 mandatory residential sprinkler requirement; retains other IRC provisions with state-specific amendments.
Contractor market (aggregate)
Legal history (timeline)
Current ordinance: Johnson County Zoning Ordinance + City of Franklin Zoning Ordinance, adopted 2022-09-18, last amended 2024-01-01
- 2009-11-01 — City of Franklin Fee Schedule (effective 2009-11-01) (city-ordinance)
Original adopted City of Franklin fee schedule covering building permits, plan review, and related charges.
Effect: Established the base permit-fee framework subsequently applied to accessory-residential and ADU-style applications. - 2021-07-13 — City of Franklin Fee Schedule update (2021-07-13) (city-ordinance)
Updated city fee schedule for residential and commercial building permits.
Effect: Refreshed the per-permit fee table the Building Inspections Division applies to ADU-style accessory residential permits. - 2022-09-18 — Johnson County Zoning Ordinance (current consolidated version) (county-ordinance)
Most recent consolidated Johnson County zoning ordinance covering accessory dwellings on the same lot as a single-family home.
Effect: Confirmed unincorporated-county ADU pathway: permanent foundation, IRC compliance, building permit and septic verification required. - 2024-01-01 — Johnson County Citizenserve portal expanded ADU intake (other)
Johnson County's Citizenserve online portal added an 'Auxiliary Dwelling Unit (ADU)' administrator-approval application alongside Camping, Home Occupation, Short-Term Rental, and Temporary Storage tracks.
Effect: Standardized the ADU administrator-approval intake for unincorporated Johnson; Franklin city applicants still file through the city portal.
Known issues (1)
- jurisdiction-confusion (since 2024-01) — Applicants frequently file in the wrong portal; staff redirect adds 1-2 weeks. Beacon GIS lookup before filing avoids the issue. (source)
Indiana state — ADU law and programs
State ADU law
Indiana enacted statewide ADU-permissive housing legislation in the 2026 session. House Enrolled Act 1001 (HEA 1001), authored by Rep. Doug Miller (R-Elkhart), was signed by Governor Mike Braun on 2026-04-14. The bill makes ADUs and commercial-to-residential conversions permitted uses by right unless a city, town, or county affirmatively opts out by 2026-12-31 via local ordinance. The bill also caps building permit fee increases (180-day delay before new permit-fee ordinances take effect), restricts certain residential design and aesthetic regulations, and requires every Indiana local government to hold a public housing-supply hearing in 2026 and report annually to the Indiana Housing and Community Development Authority. Earlier related bills (HB 1005 in 2025) addressed parts of the housing framework but did not preempt local ADU rules; HEA 1001 is the first true statewide ADU floor.
State financing programs
Indiana does not operate an ADU-specific statewide loan, grant, or forgivable-loan program. The Indiana Housing and Community Development Authority (IHCDA) administers general homeownership, down-payment-assistance, and affordable-housing-development programs that can apply to properties with ADUs when eligibility criteria are met, but none target ADU construction directly. HEA 1001 (2026) gave IHCDA a new oversight role — receiving annual housing-progress reports from every local government — but did not create new ADU financing.
State housing programs
Indiana's primary state-level ADU program is the new HEA 1001 (2026) framework: ADU-by-right permitting unless opted out, capped permit-fee escalation, restricted design regulation, and required local public hearings and annual progress reporting to IHCDA. There is no statewide pre-approved ADU plan catalog, no statewide ADU impact-fee waiver, and no statewide ADU rebate program. Earlier discussion in HB 1005 (2025) of broader housing-process reforms set the policy stage for HEA 1001.
- HEA 1001 ADU-by-right framework — ADUs are permitted uses statewide unless a city, town, or county opts out by ordinance before 2026-12-31. Localities that opt in (the default) must process ADU applications ministerially within their ordinary permit framework.
- HEA 1001 building-permit-fee cap — Local building-permit-fee increases must be published 180 days before they take effect. Limits on the size and frequency of increases apply after 2026-12-31.
- HEA 1001 local housing-supply hearing and reporting requirement — Every Indiana city, town, and county must hold a public hearing on housing supply in 2026 and submit annual progress reports to IHCDA on housing approvals, denials, and timelines.
Federal (United States) — ADU-relevant rules and programs
Federal ADU law
The United States has no federal statute that directly regulates accessory dwelling unit entitlement or design. Land-use authority over ADUs resides with states and local governments under the traditional police power. Federal engagement is limited to financing (Fannie/Freddie/FHA/VA/USDA), flood insurance (FEMA/NFIP), and discretionary housing programs (HUD), which are recorded in sibling sections of this file.
Federal financing programs
Federal housing-finance agencies and GSEs set nationwide underwriting rules that govern whether an ADU can be financed, appraised, and counted toward mortgage qualifying income. The relevant actors are Fannie Mae, Freddie Mac, FHA (HUD), VA, and USDA Rural Development.
Federal tax credits
There is no ADU-specific federal tax credit. ADUs may incidentally qualify for existing federal energy-efficiency and clean-energy tax credits when the ADU construction includes qualifying measures.
Federal housing programs
HUD administers several discretionary programs that can fund ADU-related activity at the grantee's election, but none is an ADU-specific program.
ZIP Codes
- 46106
- 46131
- 46162
Post Office
- 1265 N Main St, 46131