This is one of a series of booklets prepared as a resource for the American Association of Retired Persons' (AARP) Consumer Housing Information Service for Seniors, a local AARP volunteer program that uses trained Housing Information Volunteers to provide impartial information to older people who have questions of concern about how to find safe, comfortable, affordable housing; how to cut household expenses or use their homes to earn extra income; home maintenance and home improvement; tenants' rights; and local housing subsidy or in-home assistance programs. This booklet provides an overview of accessory apartments, describing the advantages and disadvantages of accessory apartments and steps necessary to create an accessory apartment in one's home. An accessory apartment is described as a complete, self-contained living unit created within an existing single-family home. Financial considerations related to creating an accessory apartment are discussed and the impact of rental income is explained. Other issues considered are apartment design, zoning, getting a special use permit, finding a contractor, renting the accessory apartment, and community considerations. A Model Accessory Apartment Ordinance for Single Family Conversions and a sample lease agreement are appended. (NB)