Rental Income Projector
Project net rental income after vacancy and ongoing expenses to see how fast the new unit pays for itself.
How the Income Projector Works
Enter your expected monthly rent for the ADU or new space and set a vacancy rate. The tool deducts vacancy, then subtracts the ongoing costs that the addition creates: added property taxes, insurance, maintenance, and utilities. The result is your net monthly income -- the real cash flow the project puts in your pocket each month.
- Gross rent minus vacancy gives effective gross income
- Subtract added insurance, taxes, maintenance, and utilities
- Net monthly income is the true cash flow from the new unit
- Annual net income drives your payback and ROI calculations
Setting Realistic Rent Expectations
ADU rents vary widely by market, size, and finish level. A 600 sqft detached ADU in a strong rental market might command $1,400 to $2,000 per month, while a garage conversion in a softer market may only pull $800 to $1,100. Use local rental comps to set your rent assumption and stress-test with a 5-8% vacancy rate to account for turnover and maintenance gaps.
- Research comparable studio and 1-bedroom rents in your zip code
- Factor in whether the unit has a separate entrance, kitchen, and bathroom
- Account for seasonal vacancy if your market has rental fluctuations
- Include added property tax from reassessment when calculating net income
Sample Output
See what this feature calculates for you.
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