Tucked into the backyard of a single-family home in North Chattanooga, Tennessee, this tiny accessory dwelling unit (ADU) is a great example of how much function you can fit into an incredibly small footprint.
The main floor measures just under 150 square feet, but tall ceilings, a sleeping loft, and multiple outdoor living areas make the home feel far more spacious than the footprint suggests. It also sits close to downtown Chattanooga and the Northshore area, making it an especially interesting example of how backyard ADUs can add flexible housing in established neighborhoods. At the end of the article, there is a video walkthrough tour of this beautiful tiny home, as well as booking information!
Main Features 🏡
- 📐 Approximately 150-sqft on the main level
- 🛏️ Loft bedroom with additional floor space around the bed
- 🛋️ Cozy two-person living room
- 🍳 Compact kitchen with cooktop + oven
- 🚿 Full bathroom with tiled shower
- 🪜 Storage built into the loft stairs
- 🔥 Outdoor deck with fire pit + dining area
- 🌳 Additional shaded backyard seating
- 📍 North Chattanooga location near downtown
Cozy Living Room 🛋️
Just inside the entrance is a compact living area with a two-person sofa and wall-mounted TV.
Because there is no permanent dining table inside the home, a folding wall-mounted table can be lowered in front of the couch when it is time to eat or work. It is a simple solution that helps the living room serve multiple purposes without giving up valuable floor space.
There is a set of stairs leading up to the lofted bedroom that has a handful of drawers giving you a lot of bonus storage space that is usually wasted underneath the stairs.
Compact but Functional Kitchen 🍳
The kitchen runs along one wall and includes a surprisingly complete cooking setup for such a small home.
There is a four-burner electric cooktop with a small oven below, stainless-steel sink, microwave, mini fridge, coffee maker, open shelving, and cabinet storage underneath the counter.
A glass door at the end of the kitchen also opens directly to a second outdoor area behind the tiny house, helping the narrow interior feel more connected to the backyard.
Full Bathroom 🚿
Directly across from the kitchen is a roughly 4' x 8' bathroom with a traditional flushing toilet and tiled shower.
There is no separate bathroom sink or vanity, so the kitchen sink serves double duty. While that setup may not appeal to everyone, it saves valuable space and keeps the bathroom feeling relatively roomy for a house this small.
Loft Bedroom + Storage 🛏️
Wood stairs lead to the sleeping loft while also providing built-in storage underneath.
The loft measures roughly 8' x 9.75' and has enough space around the queen bed for luggage and personal belongings. The roof shape also provides more usable headroom than many traditional tiny-house lofts, helping the sleeping area feel surprisingly comfortable.
Outdoor Living Space 🌳
The outdoor areas are an important part of this tiny home's layout.
A large deck at the entrance includes outdoor chairs, string lights, a propane fire pit, and a dining table for four. Around the back is an additional shaded seating area surrounded by greenery.
The current Airbnb listing also highlights a private backyard with a fire pit, hammock, swing, and outdoor dining space.
Final Thoughts
At roughly 150 square feet, this Chattanooga ADU is undeniably tiny, but the layout does a great job of prioritizing the essentials without making the space feel overly cramped.
The tall ceilings, functional sleeping loft, full kitchen, outdoor living areas, and close-to-downtown location all help extend the usefulness of the home beyond its compact footprint.
It is also a good real-world example of what a permitted backyard ADU can offer: extra guest space, a short-term rental, or simply another flexible living area without requiring a separate piece of land.
Would you live in a 150-square-foot backyard tiny house like this? What would you add or change?
Book now: $130+ per night!
📍 Location: North Chattanooga, Tennessee
📐 Size: Approximately 150-sqft on the main level + sleeping loft
🛏️ Sleeps: 2 guests
🏡 Type: Backyard ADU / Tiny House
🌳 Setting: Private backyard near Northshore + downtown Chattanooga
▶️ Watch a walkthrough tour:
▶️ Watch the full tour:
Follow @dreambiglivetiny for more tiny house tours, cozy cottage inspiration, and off-grid escapes around the U.S. & the rest of the world 🏡🌎
Images courtesy of ©Airbnb.
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 is a great example of how much function you can fit into an incredibly small footprint.
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+Hi There!
My name is Alan—founder at Dream Big Live Tiny Co! A few years ago, I quit my consulting job to pursue a life full of adventure. After traveling around the world for a year, I sold most of my stuff and moved into an 160-sqft tiny house. Now I spend most of my time showcasing incredible people living with less in pursuit of more freedom, as well as incredible tiny houses around the world!