ADU Value Increase Estimator

Will it pay off? Estimate the market value and home equity boost you'll gain by adding an Accessory Dwelling Unit to your property.

Check Zillow or Redfin for your zip code average.
Estimated Value Increase
$216,000
New Home Value
$866,000
% Increase
33%

How ADUs build equity

I genuinely believe that an ADU is the "infinite money glitch" of real estate. Unlike a kitchen remodel which might only return 60% of its cost, an ADU adds living square footage to your property. Appraisers in the US generally value this additional space at about 70-80% of the main house's price per square foot.

The Rental Yield: Beyond the property value, you have to consider the cash flow. A $200k investment that adds $250k in value *and* pays $2,000 a month in rent is a financial grand slam. It's why cities in California and Oregon are seeing record-breaking ADU permit applications.

Value Factors:

  • Permitted vs Unpermitted: If you build it without a permit, it adds ZERO legal value to your home. In fact, it might even make it harder to sell.
  • Comparables: Look for other homes in your neighborhood with guest houses. These are your "comps" that an appraiser will use.
  • Quality: A high-end ADU that matches the main house's style will always command a higher valuation than a converted shed.