ROI & Resale

ADU Cost and ROI in 2026: The Best Square Footage You Can Add

What an accessory dwelling unit costs, what it rents for, and why it has the highest long-term return of any addition.

ADU Cost and ROI in 2026: The Best Square Footage You Can Add
$100k–$250kDetached 400–800 sq ft
~41%Added appraisal value
5–7 yrsPayback on rent alone

Key takeaways

  • Detached ADUs run $100k–$250k; garage conversions $50k–$120k; average build near $180k.
  • ADUs add roughly 41% of their cost in appraisal value, plus rental income on top.
  • At $1,500–$2,500/mo rent, a $120k unit can pay for itself in five to seven years.

The short answer

A detached ADU of 400 to 800 square feet typically costs $100,000 to $250,000. Garage conversions and attached units run $50,000 to $120,000. The national average build lands near $180,000.

Why the ROI is different

Most additions are valued at resale. An ADU is valued at resale and every month in between. It adds roughly 41% of its cost in appraised value, but the real engine is rent. At $1,500 to $2,500 a month in most US markets, a $120,000 unit can recoup its full cost in five to seven years on rental income alone. No other addition type does that.

Where ADUs make the most sense

High land-value metros, where building up or out beats moving. California, led by Los Angeles and San Diego, leads the country on ADU-friendly policy. Portland, Seattle, and San Jose are close behind. If you own a lot in one of these markets, an ADU is often the single highest-impact project available to you.

What separates a good ADU build

  • Designed to local setback and ADU ordinance from the first sketch
  • Separate metering and entrance so it actually rents cleanly
  • Income-property finish standards, not builder grade
  • Permitting handled by the builder, not pushed to you

See our ADU construction service or get a tailored estimate from the cost tool.

FAQ

How much does an ADU cost to build in 2026?

A detached 400–800 sq ft ADU typically costs $100,000 to $250,000. Attached units and garage conversions run $50,000 to $120,000. The national average build is around $180,000.

What is the ROI on an ADU?

An ADU adds roughly 41% of its cost in appraised value, but the real return is rent. At $1,500 to $2,500 a month, many units recoup their full cost in five to seven years.

Do I need special permits for an ADU?

Yes, and rules vary by jurisdiction. States like California cap local restrictions, but setbacks, parking, and utility metering still apply. We handle the permitting end to end.

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