The benefits
One small building. Six big wins.
An ADU isn't just a rental. It's a financial instrument, a family asset, and an upgrade to how your property works for the rest of your life.
Predictable monthly income
A typical 600 sq ft ADU rents for $2,000–$3,200/month depending on market. That's $24K–$38K of pre-tax income arriving on your doorstep, every year.
A bigger, better appraisal
ADUs add roughly 25–35% to home value. A $700K home with a new ADU often appraises at $850K–$950K — equity you can refinance, borrow against, or cash out later.
Multi-generational living
House aging parents close by while preserving privacy. Give adult children a launch pad. Or host long visits without rearranging your home.
Future-proof flexibility
Rent it now, move into it later, downsize and rent the main house. ADUs adapt as your life changes — few investments do that.
Smart land use
You already own the land — the most expensive ingredient in any new home. Building an ADU is dramatically cheaper than buying a second property.
Hedge against inflation
Rents historically rise with inflation. Your mortgage doesn't. Every year your ADU produces more cash flow in real terms.