ADU Rental Income & Property Value
Test the numbers before relying on them.
Rental potential and resale value depend on the local market and the completed unit. A project budget is not the same thing as the value an appraiser or tenant will assign.
Start a property review →
Research realistic rent
Compare legal units with similar size, condition, location, parking and outdoor space. Account for utilities included in rent and the leasing period. Use more than one comparable and revisit assumptions before committing.
Estimate net income
Subtract vacancy, management, maintenance, reserves, insurance, taxes, utilities and financing payments from the expected rent. Test a lower-rent or longer-vacancy scenario. Positive gross rent does not establish positive cash flow.
Keep resale assumptions separate
Permitted status, quality, privacy, functionality and buyer demand can affect value. Ask a qualified local appraiser about relevant evidence. Do not assume every dollar spent increases value by a dollar, or that appreciation will repay construction costs.
Start with the California ADU Handbook.
The March 2026 edition covers statewide ADU and JADU planning topics. Download the 55-page PDF free, with no signup required.
Bring the plan back to your property.
Virtual Estimates Available. Share your address and goals to discuss the next step.
Request a feasibility reviewBrowse all ADU resources