ADU Investment
Your backyard could generate $1,800–$2,800/month
Bay Area homeowners are turning unused backyard space into rental income. An Epic Modulars ADU starting at $79,000 all-in typically breaks even in 3–5 years — then generates income indefinitely.
Get a Free Site AssessmentNo obligation. We assess your lot and give you a fixed all-in price.
The Numbers
Estimated ROI by ADU size
Based on Bay Area market rents and Epic Modulars all-in pricing. Gross figures before vacancy (5–10%) and property management (8–10%).
| ADU Type | All-In Cost | Est. Monthly Rent | Annual Yield | Payback Period |
|---|---|---|---|---|
| Studio (252 sq ft) | $79,000 | $1,600/mo | 24.3% | ~4.1 years |
| 1-Bed (480 sq ft) | $99,000 | $2,000/mo | 24.2% | ~4.1 years |
| 1-Bed (600 sq ft) | $115,000 | $2,200/mo | 22.9% | ~4.4 years |
| 2-Bed (800 sq ft) | $145,000 | $2,700/mo | 22.3% | ~4.5 years |
Rent estimates based on Bay Area market data. Individual results vary by location, unit finishes, and market conditions.
Why California ADUs
The case for ADU investing in California
Severe housing shortage
California is short 3.5 million homes. Rental vacancy rates in the Bay Area hover near 3–4%. Your ADU won't sit empty.
Prop 13 protection
Adding an ADU only reassesses the new structure — not your home. Your existing property tax is locked in. The ADU income adds to your bottom line.
Turnkey. No construction drama.
Factory-built means your ADU is built in a controlled environment while permits are processed. No weather delays, no cost overruns. Fixed price, fixed timeline.
Factory-built. Delivered. Installed.
The Epic Advantage
Lower entry cost means higher yield
Traditional site-built ADUs in California cost $150,000–$450,000+. At those prices, payback periods stretch to 10–20 years. Epic Modulars factory-built ADUs start at $79,000 all-in — same rents, half the investment, double the yield.
Every dollar you save on construction is a dollar that never needs to be recovered. That's why our investors see 22–25% annual yields on Bay Area projects.
- ✓Fixed all-in price — no surprises after signing
- ✓Permit handling included in all 17 CA cities
- ✓Factory precision = consistent quality, faster delivery
- ✓24 ADU models to match your lot and budget
Quick comparison
Investor FAQ
Common questions
How much can I rent an ADU for in California?
It depends on location. In the Bay Area (San Jose, Santa Clara, Fremont, Oakland), 1-bedroom ADUs typically rent for $1,800–$2,800/month. Studio ADUs rent for $1,400–$2,000/month. Central Valley cities like Fresno and Stockton run lower — $1,000–$1,600/month. Southern California (LA, San Diego) runs $1,800–$3,000+ for a 1-bedroom. These are unfurnished, long-term rental figures based on current market data.
How long until an ADU pays for itself?
At Bay Area rental rates and Epic Modulars pricing, most projects break even within 3–5 years. A $99,000 all-in ADU renting at $2,000/month generates $24,000/year in gross rental income — that's a 24% annual yield and a ~4.1-year payback before operating costs. After accounting for property management (8–10%), vacancy (5–10%), and utilities if included, expect 3.5–6 years depending on rent achieved and occupancy rate.
Does adding an ADU increase my property taxes significantly?
Under California's Prop 13, adding an ADU triggers a supplemental assessment only on the new structure — your existing home is not reassessed. For a $99K ADU, the additional annual property tax is typically $1,100–$1,400. At $2,000/month rental income, that's covered in less than one week of rent. The tax increase is nearly always negligible relative to the income generated.
Can I rent an ADU on Airbnb or as a short-term rental?
California cities have varying short-term rental rules. Many cities (including San Jose) allow STRs on owner-occupied properties with a permit. STR income can be 1.5–2× long-term rental rates but requires more active management and has higher vacancy risk. We recommend starting with a long-term tenant to establish income, then evaluating STR if the city permits it and you want to manage it actively.
Do I need to live on the property to rent out an ADU?
No. California law eliminated the owner-occupancy requirement for ADUs built after January 1, 2020. You can build an ADU on a rental property, an investment property, or a home where you don't live. Some cities had local rules — we assess your jurisdiction before project start.
What ADU size is best for maximizing rental income?
1-bedroom units (450–700 sq ft) typically achieve the best rent-per-square-foot in California. Studios are cheaper to build but rent for less. 2-bedroom units achieve higher absolute rent but cost more to build and attract fewer renters in the Bay Area market. For pure ROI, a well-designed 1-bedroom in the $79K–$120K range hits the sweet spot.
What is the process for building a rental ADU with Epic Modulars?
It starts with a free site assessment — we review your lot, setbacks, utilities, and local jurisdiction rules. If your site qualifies, we provide a fixed all-in price including permits, factory build, delivery, and installation. Typical project timelines are 4–8 months from signing to move-in. Our team handles the permit process in all 17 California cities we serve, so you never deal with the building department directly.
The Process
What happens after you reach out
Free site assessment
We review your lot, setbacks, utility hookups, and local jurisdiction rules. Typically a 15-minute call.
Fixed all-in quote
If your site qualifies, we send you a fixed price — permits, factory build, delivery, and installation included. No surprises.
We handle the rest
Our team manages permits, manufacturing, and install. Most ADUs are move-in ready within 4–8 months of signing.
Ready to see what your lot can generate?
We'll assess your property, confirm ADU eligibility, and give you a fixed all-in price. No obligation, no cost.
Get Your Free Site Assessment