Realistic 2026 rental ranges
Studio garage conversions (300–400 sf): $1,800–$2,500/month. One-bedroom ADUs (500–700 sf): $2,200–$3,500/month. Two-bedroom detached ADUs (800–1,200 sf): $2,800–$4,800/month. Premium markets (Studio City, Encino, Calabasas, Sherman Oaks) sit at the top of these ranges.
What drives rent up
Private entrance, dedicated outdoor space, in-unit laundry, off-street parking, and modern finishes each measurably increase achievable rent. Energy efficiency (heat pumps, good insulation, dual-pane windows) lowers tenant utility costs and reduces turnover.
What it means for cash flow
A typical $300,000 ADU project financed over 30 years at current rates generates monthly debt service of roughly $1,800–$2,200. Most ADUs in the LA market produce rent that meets or exceeds debt service, with the property appreciation and tax benefits layered on top.