The Strategic Value of a Guest House: What the Cottage at 800 Holiday Dam Gets You — and Why ADUs are Gaining Momentum Locally

David Locke
3 hours ago
4 min read

I’m David Locke with Locke & Key Associates. I’ve seen many properties in Anderson, Greenville, Honea Path, and the surrounding areas—but few illustrate the power of a guest house (or accessory dwelling unit, ADU) more clearly than the cottage at 800 Holiday Dam Road, Honea Path. It’s not just a charming bonus—it’s a smart piece of real estate strategy. Let me walk you through what makes it special, and why similar features are becoming big levers in our local market.

Guest House with Farm for Sale by Locke and Key Associates in Anderson County

What We’re Looking at: 800 Holiday Dam Road Cottage

This is a fully self-contained cottage: bedroom, full bathroom, kitchenette, living area, private entrances (front porch, French doors out to a patio). The kind of outbuilding that offers privacy and functionality.
It sits on a pastoral, almost retreat-like setting—but still within reasonable reach of Greenville & Anderson, combining rural peace with access to urban amenities.
That kind of cottage gives many options: using it for family, hosting guests, a studio, or renting it out.

The Local Market Context

To understand why this cottage is valuable — and why more buyers / investors are looking for ADUs around here — here’s what the data tells us for Anderson, Greenville-Anderson metro, and Anderson County.

Metric	Data Point	Implication for ADUs / Guest Houses
Population growth(Greenville-Anderson-Mauldin metro)**	~945,300 people as of 2023, up from ~931,400 in 2022 (≈ 1.5% growth) (Data USA)	Growing population means more people moving in—many of whom want flexible housing, secondary units, or rentals. Demand rising.
Median household income (Metro)	~$69,016 in 2023 in Greenville-Anderson-Mauldin (Data USA)	Decent income levels suggest affordability for higher-quality housing, and willingness to pay for premium features (like guest houses, detached cottages).
Homeownership rate in Anderson County	~75.4% in 2023 (Data USA)	Many people owning their land means more opportunity / interest in building ADUs or making use of existing outbuildings. Ownership also aligns with investment mindset.
Average rent in Anderson, SC	About $1,240–$1,250/month for apartments on average. (RentCafe)	If you have a well-finished, smaller cottage, you may be able to rent it for some fraction of that—making real income potential.
Rental price range by size	1-bedroom ~$860; 2-bedroom ~$950–$1,150; full houses more depending on beds/baths. (Zumper - Apartments for Rent & Houses)	A cottage like the one at Holiday Dam Road (if similar in size/amenities) could compete with upper-end 1- or modest 2-bedrooms, offering premium because of privacy.
Housing market momentum	Greenville-Anderson area named one of top housing hot-spots for 2025 by NAR. (South Carolina REALTORS)	Buyers and investors are watching this area: appreciation, demand, migration trends are favorable. Properties with extra amenities—like guest houses—are more likely to stand out.

Why Guest Houses / ADUs Are a Strong Move Here

Given that local data, here are key reasons a cottage like the one at 800 Holiday Dam makes sense:

Income Offset & Return If average apartment rents are ~$1,240/month, you might conservatively estimate a guest cottage could bring $600-$900/month (depending on size, condition, amenities). Over a year that’s $7,200-$10,800 additional income, which helps with mortgage, taxes, maintenance.
Attractiveness to Buyers Many buyers today want flexibility: family stays, remote working, guest space. A property already built with a functional guest cottage checks a lot of boxes. It gives sellers a competitive edge and often leads to faster sales or the ability to price higher.
Lower Risk than Building from Scratch When the ADU is already built (as at Holiday Dam Road), you avoid many upfront costs: architectural design, permits, construction delays. That means nearly all the upside without as much risk or capital outlay.
Lifestyle & Legacy Value Even if you don’t use the cottage for rental or income, it adds quality of life: private space, room for guests, creative studio, etc. And those points often matter more than cold financials when buyers make decisions.

What to Check / Plan When Considering a Cottage or ADU Locally

For you, whether buying or selling, or considering adding a guest house, these are the questions to ask in our market (Anderson / Honea Path / Greenville metro):

Zoning & legal status: Is the cottage permitted as a dwelling? Can it legally be rented (short-term or long-term)? What are the setback, septic/water, utility, and sewage requirements?
Utilities & services: Do you have separate electric/water/sewer service? Do you need to upgrade systems? What are ongoing costs?
Condition and finish: Quality of finishes, privacy (entrance, sound insulation), access—these greatly affect what you can charge and how interested renters/buyers will be.
Distance to amenities: Even rural homes benefit if access to groceries, highways, schools, hospitals isn’t too far. Proximity to Greenville or Anderson increases demand significantly.
Return vs holding costs: Maintenance, insurance, taxes—these eat away at income. Be realistic about net returns, not just gross.

How the Cottage at 800 Holiday Dam Road Exemplifies Best Practices

Already well-constructed and finished: ready for use, which means minimal upfront investment to deploy it as rental or guest quarters.
Set in a larger property (acreage, pond, mature trees, tranquility), which enhances the “retreat” feel—renters will pay for character.
Close enough to Greenville / Anderson to benefit from job centers, markets, schools, commuting—but far enough for peace, privacy.

Final Word

If you’re in the market—whether buying, investing, or selling—properties with a guest house or ADU are quickly becoming golden tickets in Greenville-Anderson / Honea Path. The combination of rising rents, steady population growth, and the premium placed on flexibility is making ADUs a no-brainer.

That cottage at 800 Holiday Dam Road doesn’t just add square footage—it adds value, income, and market distinction. I believe properties with similar built-in guest cottages will continue to outperform.

If you like, I can run numbers (projected rental income, cost recovery, return on investment) specifically for the cottage at Holiday Dam, so you can see what your potential looks like. Let me know if you want those projections.

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