ADU Pass
Arlington
ADU Pass helps homeowners in Arlington, Rush County, Indiana navigate the permit paperwork for building an accessory dwelling unit. This area covers 1 ZIP code.
Map
ADU details
ADU legality: with-restrictions
Arlington (Rush County) has no separate town ADU ordinance. Applicants apply at the Rush County courthouse for an Improvement Location Permit; if the underlying district does not allow a second dwelling unit by-right, a BZA special exception is required. BZA meets first Wednesday monthly at 5:30 PM; APC meets the same day at 6:00 PM.
Cost scenarios
| Scenario | Sq ft | Permit | Build | Total |
|---|---|---|---|---|
| minimum | 300 | $850 | $60,000 | $60,850 |
| 600 | 600 | $985 | $120,000 | $120,985 |
| midpoint | 500 | $950 | $100,000 | $100,950 |
| maximum | 800 | $1,085 | $160,000 | $161,085 |
Fee breakdown (as of 2026-04)
Permitting process
- Pre-application call to Rush County Planning and Zoning (~3d)
Phone Mike Holzback (Executive Director) at 765-932-3090 or visit Rush County Courthouse Room 211 to confirm parcel district and whether the proposed ADU is by-right accessory residential or requires a BZA special exception. - Soil evaluation and septic feasibility (~21d)
Engage a licensed soil scientist for percolation and soil-profile evaluation. Most Arlington/Posey Township parcels rely on private septic. - Septic permit from Rush County Health Department (~14d)
Submit soil report and septic design; permit issuance is a precondition for the Improvement Location Permit. Existing systems may need expansion to accommodate a second residential unit. - BZA special exception (where required) (~35d)
If the underlying district does not allow a second dwelling unit by-right, file a special exception with the Rush County Board of Zoning Appeals. BZA meets first Wednesday monthly at 5:30 PM in the Courthouse Assembly Room. Application deadline runs 3-4 weeks ahead of the meeting. - Improvement Location Permit application (~1d)
Submit Improvement Location Permit application at Rush County Planning and Zoning office with site plan, building plans, septic permit, and any BZA approval letter. - County plan review (~14d)
Rush County staff review for setbacks, lot density, and subdivision-control compliance. - State residential code compliance (~7d)
Confirm Indiana Residential Code (675 IAC, IRC 2018 base) compliance through county building inspector. State Building Standards Admin fee applies. - Construction inspections and final (~7d)
Schedule footing, foundation, framing, MEP rough, insulation, and final inspections through the county building inspector. Septic install gets a Health Department final.
Viability (permitted uses)
- Long-term rental: yes Rural long-term rental permitted; landlord-tenant law per IC 32-31.
- Short-term rental: with-restrictions (Indiana state innkeeper's tax; Rush County does not impose a separate STR registration) Low STR demand outside Indianapolis-MSA periphery; Arlington is too small to anchor STR independently.
- Indiana innkeeper's tax applies
- BZA special exception may be required if district lacks STR allowance
- HOA covenants enforceable on the few HOA parcels
- Office rental: no Rush County zoning treats accessory residential as residential only; office rental requires rezoning.
- Home office: yes Home occupation customary in rural Posey Township parcels.
- Studio / workshop: yes Personal art/workshop use allowed.
- Agriculture: yes Rush County is heavily agricultural; farm uses by-right outside any zoning overlay.
- Relative support: yes Multigenerational and farm-help housing common; staff routinely approve as accessory residential.
Incentives
- Indiana Homestead Standard Deduction — Owner-occupied homestead deduction preserved on primary residence.
Contacts
Staff: Mike Holzback (Executive Director, Rush County Planning and Zoning), Rush County Area Plan Commission (First Wednesday monthly, 6:00 PM, Courthouse Assembly Room), Rush County Board of Zoning Appeals (BZA) (First Wednesday monthly, 5:30 PM, Courthouse Assembly Room - special exceptions, variances), Rush County Health Department (Septic permits and inspections)
Utilities
- Water: Posey Township Water Corporation (rural water) or private well · 30d connect · $4,200
- Sewer: Private septic (no town sewer in Arlington) · 30d connect · $9,000
- Electric: RushShelby Energy REMC (rural electric cooperative) or Duke Energy depending on parcel · 30d connect · $2,000
- Gas: Propane delivery (most rural parcels) or Vectren / CenterPoint Energy where mains exist · 14d connect
Property values & taxes
Market rent by ADU size
| Sq ft | Rent |
|---|---|
| 400 | $700/mo |
| 600 | $875/mo |
| 800 | $1,050/mo |
Construction timeline
Realistic total: best 8mo · typical 12mo · worst 20mo
Rural contractor pool is small; spring/summer farm work competes for crews. BZA-special-exception path adds ~5 weeks to lead time.
Modular pathway Indiana Department of Homeland Security - Industrialized Building Systems · inspectors are rare with modular · 1 modular permits (last 24mo)
Rural two-lane highways (US-52, SR-44) are the main Arlington access routes; county bridges and rural turn radii constrain wide-load modules.
Financing
State ADU loans:
- Indiana Housing and Community Development Authority (IHCDA) (State of Indiana)
- USDA Rural Development Single Family Housing programs (USDA Rural Development - Indiana)
Insurance impact
Rural Indiana profile; tornado/hail loss profile drives premium more than the ADU itself.
HOA prevalence & preemption
Negligible HOA prevalence in unincorporated Posey Township and Town of Arlington.
Regulatory overlays (2)
- flood-zone — FEMA SFHA along Big Flatrock River and Little Flatrock River corridors in Rush County · +14d · +8% cost
Finished-floor elevation requirements; flood vents on enclosed below-base areas. (map) - agricultural-overlay — Rush County is heavily agricultural; right-to-farm protections (IC 32-30-6) and county AG district apply broadly
Agricultural protections typically work in favor of accessory residential supporting farm operations. (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.
- Rush County Building Code amendments — County-specific amendments are minimal; IRC + 675 IAC controls.
Contractor market (aggregate)
Legal history (timeline)
Current ordinance: Rush County Zoning Ordinance + Subdivision Control Ordinance (with 2026 UDO draft pending), adopted 2018-01-01, last amended 2024-01-01
- 1834-01-01 — Town of Arlington, Indiana platted (state-law)
Arlington was platted in Posey Township, Rush County in the 1830s; never grew to city status.
Effect: Established the small-town/county-controlled zoning posture that persists today. - 2018-01-01 — Indiana Residential Code (675 IAC 14) updated to IRC 2018 base (state-law)
Indiana Department of Homeland Security adopted IRC 2018 with Indiana amendments as the base residential code, applicable in Arlington and unincorporated Rush County.
Effect: Set the IRC baseline for any ADU-style secondary unit in Arlington. - 2024-01-01 — Rush County 2024 Comprehensive Plan adopted (county-ordinance)
Rush County Area Plan Commission adopted an updated comprehensive plan establishing growth and housing policy framework.
Effect: Comprehensive plan informs ADU staff guidance until UDO replaces the standing ordinance. - 2026-01-30 — Rush County Unified Development Ordinance Draft C posted (county-ordinance)
Rush County released Draft C of a forthcoming Unified Development Ordinance dated 2026-01-30 for public review.
Effect: UDO consolidation may codify ADU standards explicitly when adopted; current applications continue under the existing zoning ordinance.
Known issues (2)
- name-collision (since data-import) — Arlington (Indiana) is a tiny Posey Township town often conflated online with Arlington, Tennessee or Arlington County, Virginia. Search results from Town of Arlington TN (5854 Airline Rd) or Arlington VA do not apply here. Real authority is Rush County Planning and Zoning in Rushville. (source)
- ordinance-modernization (since 2026-01) — Adoption of the UDO will likely codify ADU standards explicitly; until then, BZA special exception remains the path where the district does not allow a second dwelling unit. (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 Code
- 46104
Post Office
- 2150 N 700 W, 46104