Tiny Houses, Yurts, and What Comes Next: New Hampshire Creates a New Path for Innovative Housing
New Hampshire is opening the door to tiny houses, yurts, and other innovative housing. A new law creates a legal framework for these unconventional homes while leaving municipalities to decide whether to permit them.
Background
HB 1681, enacted as Chapter 330, Laws of 2026, took effect September 13, 2026.
The law creates a new category called an “innovative housing structure.” A municipality may permit one, but the law does not require statewide approval.
What qualifies as an innovative housing structure
An innovative housing structure is a “unique single residential unit such as a tiny house, tiny house on wheels, or a yurt.”
The phrase “such as” means the definition is not expressly limited to those three examples. Other unconventional single-unit housing could potentially qualify, although the law provides no separate test for determining what other structures fall within the definition.
A tiny house is a detached building used or intended for human habitation. It must provide permanent facilities for living, sleeping, eating, cooking, and sanitation; contain no more than 600 square feet of floor area, excluding lofts; comply with the state building code’s tiny-home provisions; and stand on a stable ground surface or foundation.
A tiny house on wheels is a tiny house built on a trailer chassis without motive power. When constructed for human habitation, it is not considered a camp trailer or recreational vehicle under the new law.
A yurt is a style of tiny house. It must be a round or similarly shaped freestanding structure modeled after traditional nomadic dwellings and constructed with contemporary materials and engineering for permanent or long-term residence.
Where municipalities may permit innovative housing
A municipality may permit an innovative housing structure on an individual house lot where single-family dwellings are allowed. It may also permit the structure as an accessory dwelling unit under RSA 674:72.
Either use remains subject to applicable land-use requirements.
If a municipality permits the structure, it must treat it as a single-family dwelling or accessory dwelling unit for zoning purposes. The structure must also comply with applicable state requirements governing drinking-water supply and wastewater treatment and disposal.
Building-code review and transportation
A structure built at its dwelling site must comply with the state building code. Manufactured elements built off-site run through either the state building-code process or the modular-building program under RSA 205-C, and the local building official at the dwelling site must accept a conforming off-site approval when issuing a certificate of occupancy.
An innovative housing structure is neither federally regulated manufactured housing nor, unless the applicant elects the modular program, a modular building.
A structure permanently built on a flatbed trailer chassis may be moved to its dwelling site on a dealer plate or temporary trailer plate if the trailer meets all roadworthiness requirements, and may be moved again if sold.
Property taxes and state implementation
Although earlier versions of the bill proposed special property-tax treatment, Chapter 330 contains no special property-tax provision for innovative housing structures.
The law directs state agencies to adopt provisions governing wastewater treatment and disposal, specified modular-building standards, and corresponding changes to the state building code.
Key takeaway
HB 1681 gives New Hampshire municipalities a framework for permitting tiny houses, tiny houses on wheels, yurts, and potentially other housing innovations. It does not compel municipalities to permit them. Local land-use requirements remain the gatekeeper.
For assistance with building permits, planning and zoning matters and real estate, please contact Alfano Law at (603) 856-8411 or by filling out our Contact Form. The firm offers free or low-cost initial consultations for most matters.