How much value will an ADU add to my property, and is it a good investment in San Diego’s market?
How Much Value Does an ADU Add in San Diego?
Properties with legal, permitted ADUs in San Diego sell for 25–35% more on average than comparable homes without ADUs.
In dollar terms, many San Diego homeowners see $200,000 or more in added value after completing an ADU, with some reports of smaller units costing about $200,000 and yielding $300,000 in increased equity.
National data backs this up: California homes with ADUs often sell for up to 35% above similar homes without, according to the National Association of Realtors.
Is an ADU a Good Investment?
Rental Income Potential: ADUs typically rent for $1,900–$3,700 per month, depending on size and location (studios to 2-bed units).
ROI and Payback: Typical ROI (return on investment) for detached ADUs in San Diego is estimated at 25%–35% just from value added, and 40%–55% when first-year rental income is included.
Strong Demand: Homes with ADUs often sell faster, up to a month sooner, due to higher buyer interest from both investors and multi-generational families.
Long-term Appreciation: Properties with ADUs appreciate at about 9.3% annually, outpacing homes without ADUs which average 7.7%.
Versatility: An ADU can be used for rental, home office, guest housing, or family, adding flexibility and market appeal.
Rental Income Example: A well-located 2-bedroom ADU renting for $3,000/month can gross $36,000/year, easily offsetting financing payments and generating positive cash flow.
Factors That Influence Value Added
Size, Design, and Quality: Larger, well-finished units tend to add more value. (MOMO Homes by LuxMod is a strong contender as the come complete with high end finishes and include all appliances!)
Neighborhood and Demand: ADUs built in high-demand areas or near transit and jobs generally see the strongest returns.
Permitting: Only properly permitted ADUs unlock full market value; unpermitted units may not be counted by appraisers or buyers and can cause headaches!
Rental Strategy: Long-term rentals deliver steady income, while short-term rentals (where allowed) can further boost ROI.
Table: ADU Value and Investment Snapshot – San Diego
Conclusion:
Building an ADU in San Diego can boost your property’s value by up to 35%, or more, provide strong ROI and deliver reliable rental income. For many local homeowners, an ADU is a smart investment with lasting benefits for equity, flexibility, and resale potential, especially in one of California’s most competitive housing markets.
Sources:
https://www.blockrenovation.com/guides/how-much-value-does-an-adu-add-in-california-markets
https://waymakerca.com/blog/how-adus-impact-san-diego-home-value-and-resale
https://www.kbbeyond.com/post/how-profitable-are-adus-profit-potential-from-an-adu-in-san-diego
https://www.housetohome.com/what-value-does-an-adu-add-for-your-home-in-san-diego/
https://snapadu.com/blog/roi-adu-good-investment-valuation-appraisals/
https://streamlinedesigngroup.com/blog/garage-adu-conversion-cost
When Listings Go Cold, Smart Real Estate Agents Heat Up Their Income with MOMO Homes powered by LuxMod Homes
When the market slows down, commissions shrink, listings sit, and deals drag on. Open houses go quiet, leads dry up, and agents start asking themselves: What’s next?
If you’re a real estate agent feeling the pinch, here’s the truth, downturns don’t have to mean downtime. The best side hustle in real estate right now is partnering with MOMO Homes, where you can earn up to $10,000 per referral helping homeowners, investors and builders.
Up to $10k per referral
Why Real Estate Agents Are Turning to MOMO Homes powered by LuxMod Homes
Homeowners are looking for new ways to create income and increase property value. ADUs (also called backyard homes, casitas, and granny flats, are the fastest-growing trend in housing across the country.
MOMO Homes builds modern, steel-frame ADUs designed to last longer, install faster, and deliver better returns. And when you become a MOMO Partner, you get paid for every qualified referral!
Instead of chasing slow listings, you can offer clients something different: a new stream of equity, income, and freedom through ADUs. And line your pockets at the same time. A true win-win scenario.
What Makes the MOMO Partner Program So Powerful:
Earn up to $10,000 per referral!
No inventory or selling required - just connect interested homeowners or investors
Perfect side income for agents during a market slowdown
You already have the connections. MOMO gives you the opportunity to earn more from them!
How to Become a MOMO Homes Partner
Becoming a partner is FREE and takes less than five minutes! Here’s how to get started:
Step 1: Go to www.theaduwizard.com and click “Start Building Smarter.”
Step 2: Click Menu and choose “Industry Partners.”
Step 3: Scroll down and find the “For Realtors” section. Click “Get Started.”
Step 4: Enter your information — and you’re on your way to becoming a MOMO Partner, earning up to $10,000 per referral!
The Bottom Line
While other agents wait for the market to recover, the smart ones are already earning with MOMO Homes. Every homeowner, investor, landlord, and builder you know could benefit from an ADU — and every referral could put thousands of dollars in your pocket.
Don’t just survive the slowdown. Profit from it.
Visit www.theaduwizard.com and become a MOMO Homes Partner today.
What are the size limitations for ADUs and JADUs in San Diego?
San Diego allows a wide range of ADU (Accessory Dwelling Unit) and JADU (Junior Accessory Dwelling Unit) sizes. With MOMO ADU models from The ADU Wizard, you have flexibility, from compact studios to large multi-bedroom homes. MOMO’s models, like the 428 sq ft Seed Studio and the 1,002 sq ft Umbra 2BD XL, are designed to fit city regulations perfectly, making them an ideal, build ready choice for your property.
Size Limitations for ADUs in San Diego
Detached and Attached ADUs: The City of San Diego permits detached or attached ADUs up to 1,200 sq ft, with a minimum of 150 sq ft. For many homeowners, this means significant flexibility in design and space planning.
ADUs Up to 800 sq ft: Units 800 sq ft or less are especially advantageous: they are exempt from certain lot coverage, open space, and floor-area-ratio requirements, making them easier and faster to approve. MOMO ADUs have 3 models that are 800 sq ft or less.
JADUs: Junior ADUs must be carved from existing space within a single-family dwelling and are limited to 500 sq ft. JADUs must include an efficiency kitchen and typically require owner occupancy.
Seed Studio ADU from MOMO Homes.
MOMO Models: From Efficiency Studios to Spacious Family Homes
MOMO ADU models are selected to fit precisely within San Diego’s regulations, so you can choose the right size and function for your property:
The Seed Studio: At just 428 sq ft, this ultra-efficient studio is ideal for small backyards or as a compact rental unit, well above the city’s 150 sq ft minimum, and below the key 800 sq ft threshold for regulatory exemptions.
The Umbra 2BD XL: Offering 1,002 sq ft, this spacious 2-bedroom, 2-bathroom home is nearly at the city’s maximum but still fully permit-compliant. It’s perfect for extended family or as a lucrative rental, combining comfort and style on a larger scale.
Other Models: MOMO offers a variety of designs and footprints between these two sizes, ensuring a solution for almost any lot and housing need.
Umbra XL from MOMO Homes
The ADU Wizard Advantage
With The ADU Wizard and MOMO models:
You get pre-engineered, build ready designs that fit San Diego’s detailed size and zoning rules, reducing uncertainty and delays.
Every MOMO model includes a stamped site plan ready for permit submission, so your project moves forward faster while staying compliant with local code.
If you’re exploring your options and want expert guidance, plus a portfolio of high-quality, build ready ADUs, explore MOMO ADU models at www.theaduwizard.com. With sizes ranging from 428 sq ft to just over 1,000 sq ft, there’s a perfect fit for every San Diego property.
San Diego ADU Permits: Step-by-Step Process and How to Get Approved Fast
To build an ADU (Accessory Dwelling Unit) in San Diego, homeowners must obtain a building permit by submitting thorough and city-compliant plans to the city's Development Services Department. Using a MOMO ADU models from The ADU Wizard, which includes a stamped site plan for permit application, is one of the best ways to streamline this process and maximize approval speed.
What Permits Are Needed for an ADU in San Diego?
Every type of ADU, standalone or attached, or a garage conversion, requires a building permit from the City of San Diego. There are no exemptions: approval is always required to ensure that your proposed ADU meets local zoning, building codes, fire regulations, and California energy standards. Additional permits may be necessary if your project is in coastal or historic zones, or if it involves more complex issues or site conditions.
The Step-by-Step ADU Permit Process
Building an ADU involves several mandatory steps:
Confirm Zoning and Eligibility: Before investing in design, verify your property’s zoning, lot coverage, setback regulations, and parking standards using city bulletins and Planning Department resources.
Prepare Complete Plans: Submit a full architectural set, including site plans, floor layouts, elevations, Title 24 energy reports, and structural calculations if needed. Incomplete or substandard plans are the leading cause of project delays.
Digital or In-Person Submission: San Diego encourages online applications for fastest processing. Upload all documents via its Digital Permit Portal, pay the initial fees, and watch for correction requests from the city’s reviewers.
Plan Review and Corrections: City officials meticulously review the application for code compliance. Timely responses to correction notices are crucial; most delays happen during this back-and-forth phase.
Permit Issuance and Inspections: Once all corrections are satisfied, permits are issued digitally. Construction may begin, but multiple city inspections (structural, electrical, energy) are required for final occupancy approval.
Why The ADU Wizard and MOMO ADU Models Make Permitting Faster and Easier
Navigating San Diego’s complex permit process can feel overwhelming, especially for first-time homeowners. Ready-to-build ADU solutions like the MOMO ADU models from The ADU Wizard significantly simplify the experience. Here’s how:
Stamped Site Plan Included: MOMO ADU models come with permit-ready, architect-stamped site plans tailored for San Diego’s code requirements, addressing this hurdle for permit approval.
Streamlined Build: By providing a panelized package, MOMO ADU models are a faster build, with less labor, than a traditional build. Time equals money and this is where MOMO ADU models have a huge advantage.
Conclusion
Securing a building permit for your San Diego ADU is a multi-step but manageable process with the right resources. The ADU Wizard and its MOMO ADU models offer a streamlined solution, combining stamped plans for cost-effective permit approval.
If you want a worry-free journey to your ADU with the least hassle, choosing The ADU Wizard is the best step you can take. Visit www.theaduwizard.com to learn more about MOMO ADU models and contact them today!
P.S.
If you are looking for permit assistance in California, I recommend My Permit Solutions.
What is an ADU?
An ADU is an Accessory Dwelling Unit that some zones allow. It is a complete dwelling unit with a bedroom, kitchen and bathroom.
They can be ether attached to the main primary home, or detached.
In both cases, the structure(s) will still have to comply with the zoning regulations of setbacks from the front, side and rear property lines. Depending on where you live there may be height restrictions or other areas of concern like critical areas, shorelines or slopes. Check with your local planning department, they probably have online resources you can use also.
The Seed ADU by MOMO Homes.
Your local planning commission department should have a section in the zoning code about ADUs and if they are allowed, how they are allowed, and list any restrictions such as how large or small they can be, and if they require any additional parking.
One thing to keep in mind is the site plan requirements when submitting for permits (If you hire a permit specialist or the ADU Builder knows about this and is handling this for you, they should already know this) the site plan must be accurate, to scale, and include all the relevant and needed information for review. Again the local planning department should have a resource on their webpage as to what is required for the site plan.
In some cases the zoning will allow for more than one ADU on your lot, which is great news! You can add more units for a larger equity gain and greater cash flow, or you can rent one out and use the other for a family member in need.
But what if your lot, with the required setbacks, can’t accommodate the size? Go up my friend, go up. Building a two story ADU, with the second story unit having an external stair case for access, could be your answer. If yes, you may want to consider asking the building what it would take to build the ceiling/floor slightly thicker with better sound dampening material and what that would cost extra, if anything.
The Seed ADU Floor plan.
How much can they cost? There are many variables that go into this, including tariffs, access to building materials and goods, and labor. On average an online search shows about $200 - $350 per sq ft to build, plus your permit fees, drawing fees for building designs and site plans, plus any fees from the utilities and power departments to hook up. Also, if you are near a critical area, stream or shoreline, the planning department may require additional environmental reports submitted to demonstrate it meets those sections of the local code, and those reports will need to be done by a qualified licensed professional which will also cost money.
You may consider choosing a more modern, complete option like something from the MOMO Homes ADU line which includes complete solid wood cabinets with soft close hinges, quartz countertops and backsplashes, brushed nickel finishes, and Bosch and LG appliances. Also included in the price is a stamped site plan for permit application, which equates to thousands of savings. These models also install faster than a traditional build, which is great because we all know time is money.
A online search shows that adding an ADU can increase equity by 30%-50%, will generate cash flow (if being rented out), and in most cases adds up to 200% value when it comes time to sell the property. Although check with your local laws, some places now allow for the selling of an ADU separate from the main home if the ADU has been condo-ized.
An ADU is a great addition to you property and financial security. Personally, I would not hesitate to add one, and add one (or more if allowed) as soon as I was able to to take advantage of the equity and cash flow.