A two-bedroom ADU rents for $1,531 to $3,604 a month across the 31 cities we track, per HUD's FY2026 Fair Market Rents, and a detached 2-bedroom costs $226,950 to $647,700 to build there by our cost engine (estimate). That is a gross payback of 10.2 to 19.0 years, before vacancy, tax and upkeep.
Every homeowner I build for asks the same two questions in the same order: what will it cost, and what will it rent for. Most rent numbers online are one builder's guess for one market. So I did it the boring way: HUD's published rent for every city we price, next to what our engine says a detached two-bedroom costs to build in that same city, divided out into years.
None of this is a promise about your unit. It is a sourced starting point you can check, which is more than most rent figures give you.
What an ADU Rents For, City by City
Sorted from fastest to slowest gross payback. Rents are HUD's FY2026 Fair Market Rents for the metro area containing each city; build cost is our engine's point estimate for an 850 sq ft detached ADU at standard finish (an estimate, not a bid). Payback is build cost divided by twelve months of the two-bedroom rent.
| City | Studio rent | 1BR rent | 2BR rent | Detached 2BR build cost (estimate) | Gross payback | Rent source |
|---|---|---|---|---|---|---|
| Anaheim ADU costCalifornia | $2,682 | $2,746 | $3,236 | $397,800 | 10.2 yrs | HUD FY2026 FMR, Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area |
| Las Vegas ADU costNevada | $1,333 | $1,478 | $1,735 | $226,950 | 10.9 yrs | HUD FY2026 FMR, Las Vegas-Henderson-North Las Vegas, NV MSA |
| Henderson ADU costNevada | $1,333 | $1,478 | $1,735 | $234,600 | 11.3 yrs | HUD FY2026 FMR, Las Vegas-Henderson-North Las Vegas, NV MSA |
| Campbell ADU costCaliforniabest ADU builders in the San Francisco Bay Area | $2,621 | $2,982 | $3,483 | $507,450 | 12.1 yrs | HUD FY2026 FMR, San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area |
| San Diego ADU costCaliforniabest ADU builders in San Diego, California | $2,288 | $2,459 | $3,001 | $441,150 | 12.3 yrs | HUD FY2026 FMR, San Diego-Chula Vista-Carlsbad, CA MSA |
| Los Angeles ADU costCaliforniabest ADU builders in Los Angeles | $1,863 | $2,085 | $2,601 | $397,800 | 12.7 yrs | HUD FY2026 FMR, Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area |
| Spokane ADU costWashington | $1,103 | $1,193 | $1,531 | $234,600 | 12.8 yrs | HUD FY2026 FMR, Spokane, WA HUD Metro FMR Area |
| San Jose ADU costCaliforniabest ADU builders in San Jose, California | $2,621 | $2,982 | $3,483 | $558,450 | 13.4 yrs | HUD FY2026 FMR, San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area |
| Oakland ADU costCalifornia | $2,142 | $2,385 | $2,912 | $471,750 | 13.5 yrs | HUD FY2026 FMR, Oakland-Fremont, CA HUD Metro FMR Area |
| Sacramento ADU costCaliforniabest ADU builders in Sacramento, California | $1,748 | $1,832 | $2,255 | $367,200 | 13.6 yrs | HUD FY2026 FMR, Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area |
| San Francisco ADU costCalifornia | $2,485 | $2,977 | $3,604 | $589,050 | 13.6 yrs | HUD FY2026 FMR, San Francisco, CA HUD Metro FMR Area |
| Long Beach ADU costCalifornia | $1,863 | $2,085 | $2,601 | $425,850 | 13.6 yrs | HUD FY2026 FMR, Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area |
| Tacoma ADU costWashington | $1,428 | $1,605 | $1,971 | $323,850 | 13.7 yrs | HUD FY2026 FMR, Tacoma, WA HUD Metro FMR Area |
| Riverside ADU costCalifornia | $1,692 | $1,777 | $2,201 | $367,200 | 13.9 yrs | HUD FY2026 FMR, Riverside-San Bernardino-Ontario, CA MSA |
| Reno ADU costNevada | $1,289 | $1,489 | $1,870 | $316,200 | 14.1 yrs | HUD FY2026 FMR, Reno, NV HUD Metro FMR Area |
| Cupertino ADU costCaliforniabest ADU builders in the San Francisco Bay Area | $2,621 | $2,982 | $3,483 | $589,050 | 14.1 yrs | HUD FY2026 FMR, San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area |
| Santa Clara ADU costCaliforniabest ADU builders in the San Francisco Bay Area | $2,621 | $2,982 | $3,483 | $589,050 | 14.1 yrs | HUD FY2026 FMR, San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area |
| Sunnyvale ADU costCaliforniabest ADU builders in the San Francisco Bay Area | $2,621 | $2,982 | $3,483 | $589,050 | 14.1 yrs | HUD FY2026 FMR, San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area |
| Colorado Springs ADU costColorado | $1,196 | $1,464 | $1,735 | $300,900 | 14.5 yrs | HUD FY2026 FMR, Colorado Springs, CO HUD Metro FMR Area |
| Los Altos ADU costCaliforniabest ADU builders in the San Francisco Bay Area | $2,621 | $2,982 | $3,483 | $632,400 | 15.1 yrs | HUD FY2026 FMR, San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area |
| Los Gatos ADU costCaliforniabest ADU builders in the San Francisco Bay Area | $2,621 | $2,982 | $3,483 | $632,400 | 15.1 yrs | HUD FY2026 FMR, San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area |
| Saratoga ADU costCaliforniabest ADU builders in the San Francisco Bay Area | $2,621 | $2,982 | $3,483 | $647,700 | 15.5 yrs | HUD FY2026 FMR, San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area |
| Bend ADU costOregon | $1,362 | $1,371 | $1,784 | $346,800 | 16.2 yrs | HUD FY2026 FMR, Bend-Redmond, OR HUD Metro FMR Area |
| Fresno ADU costCalifornia | $1,347 | $1,355 | $1,664 | $323,850 | 16.2 yrs | HUD FY2026 FMR, Fresno, CA HUD Metro FMR Area |
| Salem ADU costOregon | $1,181 | $1,201 | $1,560 | $316,200 | 16.9 yrs | HUD FY2026 FMR, Salem, OR MSA |
| Seattle ADU costWashingtonbest DADU builders in Seattle, Washington | $2,074 | $2,146 | $2,501 | $515,100 | 17.2 yrs | HUD FY2026 FMR, Seattle-Bellevue, WA HUD Metro FMR Area |
| Portland ADU costOregonbest ADU builders in Portland, Oregon | $1,570 | $1,677 | $1,922 | $397,800 | 17.2 yrs | HUD FY2026 FMR, Portland-Vancouver-Hillsboro, OR-WA MSA |
| Bellevue ADU costWashington | $2,074 | $2,146 | $2,501 | $530,400 | 17.7 yrs | HUD FY2026 FMR, Seattle-Bellevue, WA HUD Metro FMR Area |
| Eugene ADU costOregon | $1,223 | $1,286 | $1,688 | $367,200 | 18.1 yrs | HUD FY2026 FMR, Eugene-Springfield, OR MSA |
| Denver ADU costColorado | $1,643 | $1,754 | $2,089 | $456,450 | 18.2 yrs | HUD FY2026 FMR, Denver-Aurora-Centennial, CO MSA |
| Boulder ADU costColorado | $1,553 | $1,795 | $2,124 | $484,500 | 19.0 yrs | HUD FY2026 FMR, Boulder, CO MSA |
How I Built This Table
HUD sets a Fair Market Rent for every metro area each year. It is gross rent, meaning shelter rent plus the utilities a tenant pays, set near the 40th percentile of what recent movers paid for a standard unit. Three things follow from that. It is a metro number, so every Silicon Valley city here shares San Jose's rent. It leans low for a brand-new unit. And if you include utilities in the rent, your take is lower than the figure shown.
HUD's FY2026 figures run from October 1, 2025 through September 30, 2026. The next year's figures took effect October 1, 2026, but HUD's machine-readable data still carried FY2026 when we pulled it on October 18, 2026, so that is what is shown and labeled. We will refresh the table when the feed updates.
On the cost side, 850 square feet is the size our engine uses for a two-bedroom ADU, and the same unit at the national average prices at $255,000 ($191,250 to $318,750). Each city row applies that city's labor and materials index. Our detached ADU cost guide prices the other sizes, from a 400 square foot studio to 1,200 square feet.
What the Table Actually Tells You
The fastest payback here is not in the most expensive rental market. Anaheim pays back in about 10.2 years because rent there is high relative to what it costs to build. Boulder, at 19.0 years, is the reverse: solid rents, but a build cost that outruns them.
The pattern I see on real jobs matches this. Coastal California has the biggest rents and the biggest build costs, and they roughly cancel out. Some of the best rent-to-cost ratios sit in places with moderate construction costs and tight rental supply. Well, sort of: a quick payback in a market with weak rent growth is still a thin cushion if anything goes wrong.
How to Estimate Your Own ADU's Rent
- Start with HUD's number for your bedroom count. Use the table above or look up your county's Fair Market Rent. It is your sourced baseline.
- Pull five live comparables. Same bedroom count, similar size, within a mile or two. Private entrances, small houses and backyard units are better matches than apartments.
- Decide who pays utilities. HUD's figure includes them. If you cover utilities, subtract your expected monthly bill from what you net.
- Adjust for what your unit has. In-unit laundry, a private yard and off-street parking all move the number. A shared driveway and a long walk past the main house pull it down.
- Take the lower of HUD and your comparables for your budget. Use the higher one only for your best case.
I have priced more units off step five than any other. Homeowners who budget on their best-case rent are the ones who call me stressed in year two.
ROI Worked Example: A Detached 2-Bedroom in Los Angeles
Here is the math for one city, carried past gross rent. Every input comes from the table above or is a labeled assumption.
| Line | Per year | Where it comes from |
|---|---|---|
| Build cost | $397,800 one time | Cost engine, Los Angeles, 850 sq ft detached (estimate) |
| Gross rent | $31,212 | HUD FY2026 2BR, $2,601 × 12 |
| Vacancy | −$1,561 | Assumption: 5% (about one empty month every 20) |
| Property tax on the ADU | −$3,978 | The 1% base levy on the new construction; local bonds add more |
| Repairs and insurance | −$3,978 | Assumption: 1% of build cost a year |
| Net operating income | $21,695 | About $1,808 a month; payback about 18.3 years |
So 12.7 years gross becomes about 18.3 years net. That is if you paid cash. Finance the whole build with a 20-year home equity loan at the 7.35% average (as of September 11, 2026) and the payment is about $3,168 a month, against roughly $1,808 of net rent. Here is the part nobody warns you about: on HUD-level rent, a fully financed LA ADU does not cash-flow until the loan is paid down or rents rise. It builds equity, and it can raise what the property is worth, but the monthly math is negative for a while.
That is why I push homeowners to run the loan side before they run the rent side. Our ADU loans guide runs the same payment math across a HELOC, home equity loan, cash-out refi and construction loan, and our piece on whether an ADU increases property value covers the equity side of the return.
Long-Term vs Short-Term Rental
In California, plan on a long-term tenant. Three rules stack up against the short-term model:
- A city may require that a property with an ADU be rented only for terms of 30 days or longer (Gov. Code 66315).
- A junior ADU rental must be longer than 30 days (Gov. Code 66333, as amended by AB 1154 effective January 1, 2026).
- Many cities ban short-term rental of an ADU outright. Our Cupertino ADU permit guide covers a code that bars renting any ADU or JADU for under 30 days, and our Berkeley ADU permit guide covers the recorded deed restriction against short-term use.
Outside California it depends on the city. Portland, for example, waives its system development charges only if you sign a ten-year covenant against short-term rental of the whole property; our Portland ADU permit guide has the details. Honestly, I would never underwrite an ADU on nightly rates. Rules change faster than a loan pays down.
California Property Tax: Only the New Unit Is Reassessed
Building an ADU does not reset your home's Prop 13 value. Under Revenue and Taxation Code section 71, the assessor sets a new base year value only for the newly built portion, and the rest of the property keeps its existing base. In the example above, that is why the tax line is based on the ADU's cost, not the whole lot. Your actual added value is the assessor's call, and it can come in above or below what you spent.
Other states assess differently, so check with your county assessor before you count on California's rule.
Mistakes I See With ADU Rent Projections
- Budgeting on the best listing on the block. Use the lower of HUD and your comparables.
- Forgetting utilities. HUD's rent includes them. If you pay them, your net is lower.
- Leaving out the loan payment. Rent covers the payment in some cities and not in others. Run both.
- Planning on short-term rental in California. State law and many city codes push you to 30 days or more.
- Ignoring grants and lender credit for rent. Our ADU financing guide covers both, including how lenders count 75% of ADU rent toward qualifying.
Frequently Asked Questions
How much can I rent my ADU for?
For a two-bedroom ADU in the 31 cities we track, HUD's FY2026 Fair Market Rent runs from $1,531 a month (Spokane) to $3,604 (San Francisco), including tenant-paid utilities. Treat that as a floor-leaning benchmark: it sits near the 40th percentile of recent-mover rents, so a new, private ADU often lists above it. Check live listings for units with the same bedroom count before you set a number.
How long does it take for an ADU to pay for itself?
On gross rent alone, 10.2 to 19.0 years across our city table, using a detached 2-bedroom priced by our cost engine and HUD's 2-bedroom rent. After vacancy, property tax and upkeep, add a few years: our Los Angeles example goes from 12.7 years gross to about 18.3 years net.
What is the 2% rule, and does an ADU meet it?
The 2% rule says monthly rent should be at least 2% of what the unit cost. ADUs almost never meet it. Our Los Angeles example would need $7,956 a month to pass; HUD's 2-bedroom rent there is $2,601, about 0.65% of the build cost. An ADU's case rests on adding a unit to land you already own, not on investor rules of thumb.
Can I rent my ADU on Airbnb in California?
Usually not. State law lets a city require ADU rentals of 30 days or longer (Gov. Code 66315), a junior ADU rental must be longer than 30 days (Gov. Code 66333), and many cities, including Cupertino and Berkeley, bar short-term rental of an ADU outright. Plan your numbers on a long-term tenant.
Does building an ADU raise my property taxes in California?
Yes, but only on the new construction. Revenue and Taxation Code section 71 has the assessor set a new base year value for the newly built portion and leaves the rest of the property's base year value unchanged, so your existing house is not reassessed.
Does ADU rental income help me get a loan?
It can. Fannie Mae, Freddie Mac and FHA each have paths to count ADU rent on a one-unit primary residence, generally at 75% of the rent and capped at 30% of qualifying income. Our ADU loans guide has the citations.
If I were deciding today, I would find my city in the table, price my actual size in the calculator, and then run the payment on the cheapest loan I qualify for. If the rent covers that payment with room left over, build. If it does not, a smaller unit or a garage conversion is usually the fix, not a rosier rent number.
Education, not financial advice. I am a builder, not a lender or advisor. Program terms and rates move, so confirm every figure against the official source linked next to it before you count on it.