Rent & payback · HUD FY2027 Fair Market Rents
How long until the ADU pays for itself?
Start from HUD’s Fair Market Rent for your county, or your own rent estimate, and subtract the yearly costs you expect. We divide your total cost by what’s left.
HUD Fair Market Rents, FY2027
Monthly figures for the counties we cover. HUD describes Fair Market Rents as “estimates of 40th percentile gross rents for standard quality units”, effective at the start of the federal fiscal year (generally October 1). Actual ADU rents vary.
| County · HUD area | Studio | 1 bedroom | 2 bedrooms |
|---|---|---|---|
| Alameda CountyOakland-Fremont, CA HUD Metro FMR Area | $2,088 | $2,290 | $2,805 |
| Los Angeles CountyLos Angeles-Long Beach-Glendale, CA HUD Metro FMR Area | $2,151 | $2,402 | $2,964 |
| San Francisco CountySan Francisco, CA HUD Metro FMR Area | $2,574 | $3,003 | $3,697 |
| San Mateo CountySan Francisco, CA HUD Metro FMR Area | $2,574 | $3,003 | $3,697 |
| Santa Clara CountySan Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area | $2,458 | $2,778 | $3,272 |
| Santa Cruz CountySanta Cruz-Watsonville, CA MSA | $3,230 | $3,390 | $4,254 |
Source: U.S. Department of Housing and Urban Development (HUD USER), FY2027 Fair Market Rents, county-level data file (FY27_FMRs.xlsx) (opens in new tab), county rows (studio, 1BR, 2BR columns), checked Oct 18, 2026; definition from HUD USER’s Fair Market Rents page (opens in new tab). Some areas also have ZIP-level Small Area FMRs, not shown here.
Example
How payback is computed
Example: $2,500 a month is $30,000 a year. With 5% vacancy ($1,500), $3,000 of added property tax, $800 insurance and $1,500 upkeep, $23,200 a year is left. A $300,000 ADU pays back in $300,000 ÷ $23,200 = 12.9 years, before financing costs and income tax.