What Would A Backyard Rental Return For You?
Check your numbers with the Abodu ADU Calculator: your local rent against the expected all-in project cost, with vacancy, operating costs, and property tax. No fluff, no teaser math.
Abodu ADU Calculator.
Where Your Rent Goes
Net income = rent, less vacancy, operating costs, and property tax on the ADU's assessed value. Cost basis is the expected all-in price (home + typical installation). Excludes financing, rent growth, and home-value appreciation, all of which improve the picture over time. Indicative only, not financial advice.
How To Read Your Result.
Two numbers matter. Annual net income is the cash the unit generates after real-world costs. Net yield on cost is that income divided by the all-in project cost, comparable to what you'd earn on other investments, before counting rent growth or the value the second dwelling adds to your property at resale.
What Drives ADU Rents.
Three factors dominate: location (walkable coastal metros command the most), bedroom count (each bedroom step raises rent meaningfully), and newness (a brand-new detached unit with its own entrance outrents dated apartments of the same size). Pull comps for small new units in your zip code from the major listing sites and use the real number, not an average.
Rental Income Is Only One Return.
Owners also bank returns this calculator can't count: a second dwelling reflected in resale value, housing for parents or adult kids at zero market rent, and California's newest option, selling the ADU as a condominium where cities have adopted AB 1033 (see our California ADU laws guide). For the rules in your city, start with our 44 local guides.
Frequently Asked Questions.
What rent can an ADU earn in California?
It depends on your city and unit size. Check rents for comparable small units in your neighborhood on the major listing sites, then enter that number above. Coastal metros commonly support significantly higher ADU rents than inland markets.
Does this calculator include loan payments?
No. It models the property economics: rent, vacancy, operating costs, and taxes against the expected all-in project cost. How you fund the project, cash or borrowing, is a separate personal decision, and net yield is the cleanest way to compare the investment itself.
What about the value an ADU adds to my home?
Rental income is only one return. An ADU also adds livable square footage and a second dwelling to your property, which is reflected at resale, and many owners bank the non-financial return: housing family, aging in place, or working steps from home.
How is property tax handled?
Adding an ADU does not trigger reassessment of your existing home in California; the ADU itself is assessed on its added value. The calculator defaults to an effective rate typical of California and lets you adjust it.
Is ADU rental income legal everywhere in California?
Long-term rentals (30+ days) are allowed statewide; most cities prohibit short-term ADU rentals. Check your city's rules in our local guides before planning a vacation-rental strategy.