Ultimate Guide 12 min read Updated 2026-02-06

ADU Guide 2026: Backyard Homes & In-Law Suites

Build an accessory dwelling unit. Costs, regulations, and ROI for rental income.

ADU Types

Detached ADU: Standalone backyard unit
  • Cost: $150,000-$350,000
  • Size: 400-1,200 sq ft
Attached ADU: Addition to main house
  • Cost: $100,000-$250,000
  • Size: 300-800 sq ft
Garage Conversion:
  • Cost: $50,000-$150,000
  • Converts existing space
Basement Conversion:
  • Cost: $50,000-$100,000
  • If basement exists

Rental Income Potential

LocationMonthly Rent
California$1,500-$3,000
Texas$1,000-$1,800
Florida$1,200-$2,000
ROI Timeline: 5-10 years to recoup costs Property value increase: 20-30%

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