A basement apartment is a living space located below ground level, typically within a residential building. These apartments often have separate entrances and can be fully equipped with kitchens, bathrooms, and living areas. They are popular in urban areas where space is limited, providing affordable housing options for renters. Many basement apartments feature windows that allow natural light, although they may be smaller and have lower ceilings compared to above-ground units. They can be found in various types of buildings, including single-family homes and multi-unit dwellings, making them a versatile choice for both landlords and tenants.