Costs and Financing
How much does an ADU cost in Sacramento?
ADUs in Sacramento typically cost $50,000 to $100,000 for a junior ADU, $80,000 to $150,000 for a garage conversion, $100,000 to $300,000 for an attached ADU and $150,000 to $300,000 or more for a detached ADU. Most homeowners pay with cash, home equity, a refinance or a construction loan.
Estimates by type
Typical ADU cost ranges in Sacramento
These starting-point estimates include design, permits and construction. They are not a quote.
Detached ADU
$150,000 to $300,000+
Commonly up to 1,200 sq ft
Attached ADU
$100,000 to $300,000
Up to 50% of the main home, size limits apply
Garage Conversion
$80,000 to $150,000
Existing garage footprint, often 400 to 600 sq ft
Junior ADU
$50,000 to $100,000
Up to 500 sq ft
All figures are estimates and vary by site.
Costs in the Bay Area are often higher than in the Sacramento Valley because of labor, permitting and site conditions. Call us for a number based on your property.
What drives ADU cost up or down?
The building itself is only part of the price. Site, utilities and finishes decide where you land in the range.
Site conditions
Slope, soil and access. Flat lots with alley or side-yard access cost less to build on.
Utilities
Sewer depth and distance, electrical panel capacity and water service. Often the biggest hidden cost.
Size
Larger units cost more overall but often less per square foot, since kitchens and baths are fixed costs.
Finishes
Cabinets, counters, flooring and fixtures. Our design center lets you price choices before you commit.
Solar requirement
New detached ADUs generally need solar under the California Energy Code.
Foundation
Slab on grade is simplest. Raised or stepped foundations add cost on sloped or tricky lots.
What permit and impact fees apply to ADUs?
Expect plan check and building permit fees, school fees in many districts and utility connection fees. ADUs under 750 square feet are exempt from certain impact fees, so many owners design just under that size.
The City of Sacramento offers free pre-approved ADU plans in studio, one-bedroom and two-bedroom layouts, which can reduce design costs. Fees vary by jurisdiction, so we quote them for your address.
Rules vary by jurisdiction and change often. Call us to confirm what applies to your property.
Financing
How can I pay for an ADU?
Most homeowners use cash, home equity, a refinance or a construction loan. California now lets projected ADU rental income count toward qualifying for some loans. Policies vary, so verify with a lender.
We are a builder, not a lender. This is general information, not financial advice.
Cash or savings
The simplest path, with no interest or loan fees.
Home equity loan or HELOC
Borrow against the equity in your main house. A HELOC lets you draw as construction progresses.
Cash-out refinance
Replace your mortgage with a larger one and use the difference. Makes the most sense when rates are favorable compared with your current loan.
Construction loan
Lends based on the value after the ADU is built, paid out in draws during construction.
Renovation loan
Some renovation loan programs can be used for ADUs, rolling the project into a single mortgage.
Calculator
ADU rental income and payback estimate
Uses the estimated build range $150,000 to $300,000+.
Annual gross rent
$26,400
Illustrative payback range
5.7 to 11.4+ years
Estimate only. Gross rent before taxes, insurance, maintenance, vacancy and financing costs. Not financial advice.
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916.505.2036ADU Design Center2230 26th Street, Sacramento, CA 95818Call to schedule your visit.
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