ADU ROI by City 2026
How many years to break even on an ADU? Payback period (annual gross rent ÷ build cost) across 11 major US metros — ranked from fastest to slowest.
Fastest ROI breakeven
0 years
San Francisco (gross rent basis)
Years to break even by city (simple payback: annual rent ÷ cost)
$350,000 build cost → $38,400/yr rent
$210,000 build cost → $22,800/yr rent
$310,000 build cost → $33,600/yr rent
$290,000 build cost → $28,800/yr rent
$320,000 build cost → $31,200/yr rent
$240,000 build cost → $21,600/yr rent
$250,000 build cost → $23,400/yr rent
$220,000 build cost → $19,800/yr rent
$270,000 build cost → $24,000/yr rent
$230,000 build cost → $20,400/yr rent
$220,000 build cost → $18,600/yr rent
📊 Run your own ADU ROI scenario.
These are gross-rent breakeven figures. Factor in maintenance, vacancy, property tax, and financing cost with our interactive ADU ROI calculator.
Data & method: Simple payback period = (build cost) ÷ (annual gross rent). Build costs are ADUCosts 2026 baseline; rents are market-typical 1-bedroom ADU rates (2026). Does NOT account for vacancy, maintenance, property tax, insurance, financing cost, or appreciation — see the ROI calculator for net returns.
Track Every Dollar of Your ADU Build
TerraLine is the construction finance cockpit that shows your loan balance, budget burn, and forecast at completion — all on one screen. No more spreadsheets.
Your Next Steps
Keep planning your ADU project