Building an Apartment in a Commercial Structure

In order to increase the stock of affordable housing units and to promote mixed-use development, where appropriate, the Town of East Hampton permits the creation of apartments within commercial structures. 

Generally speaking, all such apartments must obtain a site plan and special permit approval from the East Hampton Town Planning Board in order to be constructed and permitted. Permits may also be required from the Architectural Review Board, Suffolk County Department of Health Services, or other involved agencies. The special permit standards listed in section 255-5-50 (Apartments within Commercial Structures) of the Town Code must be able to be met. Please note that there are different sets of standards for properties within and outside of the Limited Business Overlay District (LBO). 

For more information about the site plan/special permit application process and applicable regulations of the Town Code, please contact the Planning Department. 

In all cases, apartments within commercial structures must obtain or update a permit from/with the Office of Housing and Community Development on a yearly basis. Please contact this office for more information about the annual permit requirement and/or questions about the restrictions related to tenancy of the apartment. 


In all cases, apartments within commercial structures must be made available to moderate-income families, as the same are defined in the Town Code and the maximum rent charged cannot exceed more than 130% of the Fair Market Rent (FMR) as established and updated on a roughly yearly basis by the United States Department of Housing and Urban Development (HUD). This means that there is both an established maximum rent that can be charged by the landlord and a maximum income for the tenant household, as detailed in the tables below. 

2024 Maximum Permitted Rent (not including utilities)

Apartment Size

2023 Maximum Rent per Month



1 Bedroom


2 Bedroom



2023 Income Cap for Tenants

Family Size

Household Income

1 Person


2 Persons


3 Persons


4 Persons


*No more than two bedrooms and two occupants per bedroom are permitted. 







Equal Housing Opportunity
Universal Accessability