Rental conversions on Long Island

Cost vs. Value prices only a new detached accessory unit, at $192,6571 in its 2025 New York market against $166,4062 nationally, and nothing for converting space inside a house. On Long Island the deciding factor is your town's accessory apartment law: Islip and Babylon require the owner to live in the house and the permit to be renewed, and Oyster Bay limits its version to members of the owner's family.

Calls are recorded. One independent company that handles rental conversions in the Long Island area answers.

Updated October 12, 2026

Illustration of a 1960s high ranch in the Town of Islip with an accessory apartment on its lower level, a separate side entrance under a small roof, a driveway with room for several cars and new septic covers in the side yard.
Illustration

The accessory unit Cost vs. Value prices

The report's accessory dwelling unit is a new detached cottage, not a converted lower level. Its New York market is the nearest to Long Island, and there the cottage costs more than nationally and returns a little less.

MeasureNew York marketU.S. average
Accessory dwelling unit (new detached build), job cost$192,6571$166,4062
Accessory dwelling unit (new detached build), resale value$67,8801$68,6562

A conversion inside an existing high ranch or Cape reuses walls and a roof, so treat these as an outside marker. Fire separation, a second kitchen and, in Suffolk, septic work drive the real cost.

What renters pay

Census gross rent combines the contract rent and any utilities the tenant pays. The two counties' medians are almost identical.

MeasureNassau CountySuffolk County
Median gross rent (rent plus tenant-paid utilities), per month$2,2523$2,2553

These medians mix garden apartments with house conversions. A lower-level unit with its own entrance may rent differently, so ask a local agent before you count on the income.

How many households rent

Long Island is mostly owner-occupied, but each county has a sizable minority of renters.

MeasureNassau CountySuffolk County
Occupied homes that are rented18%418%4

Every one of those rentals sits in a town or village with its own rules on who may rent and which permits are needed, so a new unit joins an established system.

Houses that are already two units

Building-type counts show how many homes are in two-unit buildings and in small buildings of up to four units. Nassau has the larger share on both counts.

MeasureNassau CountySuffolk County
Homes in two-unit buildings6%53%5
Homes in buildings with two to four units7%55%5

A house that is legally two-family on its certificate of occupancy doesn't need an accessory apartment permit, but it still needs a rental permit in towns that require one.

Houses built before the lead rules

The federal lead rules for landlords use a 1978 cutoff, while the Census reports construction in decades; homes from before 1980 are the nearest match, and they are most of Long Island.

MeasureNassau CountySuffolk County
Homes built before 198085%668%6

Before a renter signs a lease for most pre-1978 housing, federal law requires the landlord to disclose known lead-based paint and hazards, share available records, hand over EPA's Protect Your Family From Lead pamphlet and include a Lead Warning Statement.7 Plan on it for almost any Long Island house you convert.

Permits

Whether you can add an apartment depends on your town's zoning law, and each Long Island town writes its own. Islip and Babylon issue accessory apartment permits through a board after a hearing, only for owner-occupied houses, and both require renewal. Separately, Hempstead, Islip and Babylon require a rental permit before anyone other than the owner lives in a unit, and Hempstead inspects each unit before issuing one.

  • In the Town of Islip, no one may create, alter or occupy an accessory apartment without an accessory apartment permit from the Zoning Board of Appeals and a certificate of occupancy from the Building Department.8
  • An Islip accessory apartment cannot be occupied until the house meets the state fire and building code standards for a two-family dwelling, along with state, county and town requirements and all health code requirements.8
  • The Town of Babylon defines an accessory apartment as an additional self-contained unit with a second kitchen inside a one-family house, and using one legally takes an Accessory Apartment Permit from the town's Accessory Apartment Review Board.9
  • In Babylon a building inspector may inspect both units, a public hearing is advertised, and the Accessory Apartment Review Board decides the application after the hearing.9
  • In the Town of Hempstead, an owner may not let anyone other than the owner occupy a dwelling unit as a rental without first getting a rental occupancy permit, which is issued only to the property owner and does not transfer to a buyer.10
  • Hempstead's code enforcement official inspects each proposed rental unit on site, and no rental permit is issued unless the property complies with the town code, the Building Zone Ordinance, the state Uniform Code and Nassau County's housing and sanitary rules.10
  • Islip issues rental occupancy permits for one- and two-family homes for two years at a time, and the owner must certify smoke alarms in every sleeping room and on every story, including basements, and carbon monoxide alarms on each story with a sleeping area.11

Checked October 12, 2026

Before you hire

New York has no statewide contractor license, so check the city or county home improvement license where one is required, and make sure any job over $50026 comes with the written contract state law calls for.

How to check a contractor's license in New York

Talk to a pro who handles rental conversions in Long Island

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Three towns, three accessory apartment laws

Islip grants an accessory apartment permit only if an owner of the lot lives in the main dwelling unit, and the tenants are limited to the accessory unit.8 Islip allows one accessory apartment per lot with at most two bedrooms, at least 300 square feet of floor area, and no more than 800 square feet or half of the house's total floor area, whichever is less.8 Islip accessory apartment permits must be renewed every three years or when title transfers, with an affidavit of residency and notice to the owners of homes within 100 feet.8 In Islip, a house that received its certificate of occupancy after September 1, 1992 must be at least seven years old, counted from that certificate, before it can have an accessory apartment.8

To qualify for a Babylon accessory apartment permit, the house must be owner-occupied as the owner's primary residence, have off-street parking for four cars and meet fire and structural requirements.9 Babylon also requires the house to be at least three years old, both units to have at least 350 square feet of habitable space and every room at least 80 square feet, and a plumbing permit for the sink in a new apartment's kitchen.9 Babylon's accessory apartment permits are temporary exemptions from the zoning law; they must be renewed, and owners reapply three months before the expiration date.9

In Nassau, Oyster Bay takes a narrower approach. The Town of Oyster Bay allows parent-child residences, small dwelling units meant for a member of the resident owner's immediate family, such as a parent, child, sibling, grandparent or in-law, rather than an outside tenant.12 In Oyster Bay, the owner must live in either the main or the accessory unit as a primary residence, only one parent-child residence is allowed per lot, and the accessory unit must be smaller than the main one with no more than two bedrooms.12 An Oyster Bay parent-child residence must keep the look of a one-family house, both units must share one entrance, doorbell, mailbox and electric meter, and the lot needs at least three off-street parking spaces.12

Other towns and the villages set their own terms, so read your own town's law before paying for drawings.

Rental permits

Hempstead rental occupancy permits are valid for two years from the date of issuance.10 Babylon requires a rental permit whenever someone other than the owner is the primary resident of a home, including family members who pay no rent; in a legal two-family house both units may be rented, but each still needs the permit.9

A rental permit and an accessory apartment permit are different things. The first lets someone else live in a legal unit; the second makes the unit legal in the first place.

Sewers, septic and the health department

Suffolk County's Office of Wastewater Management says that building a new home or modifying an existing one may need its approval to confirm the sewage disposal system meets the Sanitary Code, and it has a separate application for the sewage disposal and water supply of an accessory apartment.13 Suffolk's Sanitary Code counts as an expanded single-family residence any addition or change that requires new or modified sewage disposal, or that adds bedrooms beyond the number the Department's Office of Wastewater Management previously approved.14 A second kitchen and a bedroom or two in the lower level is exactly that kind of change.

To qualify for Suffolk's septic improvement grant, the property must be an existing single-family home, two-family home or single-family home with one accessory apartment, with a valid certificate of occupancy, current property taxes and a deed on file with the County Clerk.15 In Nassau, Oyster Bay's law adds a county health step. Unless the house is connected to public sewers, Oyster Bay requires Nassau County Department of Health approval before, or as a condition of, the special use permit for a parent-child residence.12

State money for accessory units

New York's Plus One ADU Program, funded with $85 million in the 2022–2023 state capital budget, works through local governments and nonprofits to help low- and middle-income owner-occupants of single-family homes build a new accessory unit or bring an existing one up to code.16 HCR's list of Plus One ADU localities includes the Suffolk towns of Babylon, Brookhaven, Huntington and Islip, and lists no locality in Nassau County.16 If your town is on that list, the local administrator can tell you whether the grant applies to a conversion like yours.

Building the second unit

These are national model code rules; your town applies New York's version, and Islip requires the house to meet its two-family standards. The 2021 IRC requires the units of a two-family dwelling to be separated by walls and floors with at least a 1-hour fire-resistance rating, or a 1/2-hour rating if the building has an automatic sprinkler system throughout.17

The 2021 IRC requires at least one egress door for each dwelling unit, reached by a continuous path that does not pass through a garage, and opening to a public way or a yard or court that leads to one.17 On a high ranch that usually means a new side or rear door into the lower level rather than sharing the front stairs. The 2021 IRC requires smoke alarms in each sleeping room, outside each separate sleeping area and on every story including basements, interconnected within each dwelling unit so that one sounding sets off all of them.17

EPA's lead renovation rule generally doesn't cover homeowners working on their own pre-1978 homes, but it does apply if you rent out all or part of your home.18 Federal law requires renovation firms working in a rented home to give the renters EPA's Renovate Right pamphlet no more than 60 days before work begins.19

A unit for a parent

More than one in four adults 65 and older fall each year.20 Oyster Bay's law is written for family members, and many owners elsewhere build the unit for a parent too. A step-free entrance, a curbless shower and lever handles cost little more if they're in the first drawings. NAHB's Certified Aging-in-Place Specialist (CAPS) credential trains remodelers in home modifications for aging in place.21

What happens when you call

The number on this page puts you through, on a recorded line, to one independent company that handles rental conversions in the Long Island area. Design, schedule and price are between you and that company.

That company pays us for each call, so connecting costs you nothing, and no one from our side contacts you by phone or text afterward. How we make money

After you're connected

New York State does not license home improvement contractors, but some local governments do, including New York City, the City of Buffalo, and Nassau, Suffolk, Westchester, Putnam and Rockland counties; where a local license is required, the Department of State says to hire only a licensed contractor.22 Nassau County's Office of Consumer Affairs licenses home improvement contractors, and its daily-updated lookup shows each license's status and what work the contractor's insurance does and doesn't cover.23 Suffolk County's License and Complaint Violation Look Up searches county license records, including home improvement, master plumbing and master electrical licenses, by license number, name, business name, phone or address, along with complaint and violation information.24 Check a New York license

A New York home improvement contractor must deposit payments received before the job is finished as the Lien Law requires, or instead give the owner a bond, contract of indemnity or irrevocable letter of credit, and the contract must tell the owner so.25 Make the town's approval of the apartment a condition of the contract, so construction doesn't start before the board has ruled.

Questions people ask

Can I add an apartment to my house on Long Island?

It depends on your town. In the Town of Islip, no one may create, alter or occupy an accessory apartment without an accessory apartment permit from the Zoning Board of Appeals and a certificate of occupancy from the Building Department.8 Babylon and Oyster Bay have their own laws, and Oyster Bay's is limited to family members.

Do I have to live in the house?

Under every town law read for this guide, yes. Islip grants an accessory apartment permit only if an owner of the lot lives in the main dwelling unit, and the tenants are limited to the accessory unit.8 To qualify for a Babylon accessory apartment permit, the house must be owner-occupied as the owner's primary residence, have off-street parking for four cars and meet fire and structural requirements.9

Does my parent living in the apartment need a rental permit?

In Babylon, yes. Babylon requires a rental permit whenever someone other than the owner is the primary resident of a home, including family members who pay no rent; in a legal two-family house both units may be rented, but each still needs the permit.9 Check your own town's rule.

Will adding an apartment in Suffolk mean a new septic system?

It can. Suffolk's Sanitary Code counts as an expanded single-family residence any addition or change that requires new or modified sewage disposal, or that adds bedrooms beyond the number the Department's Office of Wastewater Management previously approved.14 Under Suffolk County's Sanitary Code, applications filed on or after July 1, 2021 for a new or expanded single-family house, or a major reconstruction, on a septic system must use an innovative and alternative onsite wastewater treatment system (I/A OWTS).14

Sources

Page updated October 12, 2026. How we source our numbers

  1. Zonda / Journal of Light Construction, Cost vs. Value 2025, New York, NY. Released 2025. New York, NY (Cost vs. Value market). Industry source.
  2. Zonda / Journal of Light Construction, Cost vs. Value 2025, national. Released 2025. United States. Industry source.
  3. U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25064. Released January 29, 2026. Nassau County, NY, Suffolk County, NY.
  4. U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25003. Released January 29, 2026. Nassau County, NY, Suffolk County, NY.
  5. U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25024. Released January 29, 2026. Nassau County, NY, Suffolk County, NY.
  6. U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25034. Released January 29, 2026. Nassau County, NY, Suffolk County, NY.
  7. U.S. Environmental Protection Agency, Real Estate Disclosures about Potential Lead Hazards. Released May 27, 2026. View source.
  8. Town of Islip, Code of the Town of Islip, Chapter 68 Zoning, Article XLVII Accessory Apartments. No publication date. View source.
  9. Town of Babylon, Frequently Asked Questions: Accessory Apartment Permits and Rental Permits. No publication date. View source.
  10. Town of Hempstead, Code of the Town of Hempstead, Chapter 99, Article II Rental Dwelling Units. No publication date. View source.
  11. Town of Islip, Division of Code Enforcement, Rental Occupancy Permits Application, 1–2 Family Dwellings. No publication date. View source.
  12. Town of Oyster Bay, Code of the Town of Oyster Bay, § 246-5 District Regulations (5.5.18 Parent-child residences). No publication date. View source.
  13. Suffolk County Department of Health Services, Office of Wastewater Management, Residential Permits. No publication date. View source.
  14. Suffolk County Department of Health Services, Suffolk County Sanitary Code, Article 6 (amended 2020-12-01). Released December 1, 2020. View source.
  15. Suffolk County, Septic Improvement Program Information. No publication date. View source.
  16. New York State Homes and Community Renewal, Plus One ADU Program. No publication date. View source.
  17. International Code Council, 2021 International Residential Code, Chapter 3 Building Planning. Released 2021. View source. Industry source.
  18. U.S. Environmental Protection Agency, Lead Renovation, Repair and Painting Program. Released June 17, 2026. View source.
  19. U.S. Environmental Protection Agency, Renovation, Repair and Painting Program: Renters. Released October 9, 2026. View source.
  20. Centers for Disease Control and Prevention, Facts About Older Adult Falls. Released September 4, 2026. View source.
  21. National Association of Home Builders, Certified Aging-in-Place Specialist (CAPS). No publication date. View source. Industry source.
  22. New York State Department of State, Division of Consumer Protection, Consumer Alert: Tips for Avoiding Home Improvement Scams. Released May 20, 2026. View source.
  23. Nassau County Office of Consumer Affairs, Home Improvement Contractor and Other License Lookup. No publication date. View source.
  24. Suffolk County Department of Labor, Licensing and Consumer Affairs, License and Complaint Violation Look Up. No publication date. View source.
  25. New York State Senate (Open Legislation), General Business Law, Article 36-A, Section 771. Released October 29, 2021. View source.
  26. New York State Senate (Open Legislation), General Business Law, Article 36-A, Section 770. Released May 29, 2020. New York State.
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