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Financing & ROI

What rental income can an ADU generate in California?

California ADU rents range $1,400–$4,800/month in 2026 depending on city, size, and finish. Coastal LA and Bay Area metros lead: detached 800 sqft ADUs achieve $3,200–$4,800/mo in Santa Monica, Palo Alto, and Berkeley. Inland markets land at $1,400–$2,400/mo for comparable units.

ROI math: a $280K detached ADU at $3,200/mo gross yields ~13.7% gross before vacancy, maintenance, and tax. Net cash-on-cash after expenses typically lands at 6–9% in California's primary metros.

Property tax adds ~1.1% of constructed value annually under Prop 13. A $280K ADU adds ~$3,080/year in property tax — covered by ~1 month of rent in most markets.

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