The income potential from a backyard ADU varies by market, unit type, and rental strategy. Here are real numbers from California markets — and how to estimate what yours could earn.

Long-Term Rental by Market (400 sqft, 1-bed)

Bay Area: $2,400–$3,500/mo. Los Angeles: $2,000–$3,200/mo. San Diego: $1,900–$2,800/mo. Sacramento: $1,400–$2,000/mo. Inland Empire: $1,100–$1,600/mo. Central Valley: $900–$1,400/mo.

Short-Term Rental Income

Bay Area / coastal: $120–$200/night, 50% occupancy = $1,800–$3,000/mo. Los Angeles: $90–$160/night, 50% occupancy = $1,350–$2,400/mo. Secondary markets: $65–$110/night, 50% occupancy = $975–$1,650/mo. With year-round demand from tourists, business travelers, and visiting family, Los Angeles remains one of California’s strongest short-term rental markets.

Payback Period Example

Total project cost: $42,000. Long-term rent $1,800/mo net. Payback: 25.5 months. After payback: ~$19,800/year net income — indefinitely. Airbnb at 60% occupancy nets ~$1,500/mo after expenses (platform fees, cleaning, supplies).

The Free Evaluation Tells You Your Number

The figures above are ranges. Your number depends on your specific lot, location, and the unit type that makes sense for your property. Our free evaluation includes a rental income estimate based on real comparable rentals in your area.