08/05/2026
A backyard ADU pays you back in two ways at once.
The first is rental income. A 400 to 500 square foot detached ADU in NYC's outer boroughs could rent long-term in the $1,500 to $3,000 range, depending on neighborhood and finish. Average potential rent in Brooklyn lands around $2,700 a month. In Queens, around $2,400. Those numbers are based on current studio asking rents (StreetEasy, RentHop, RentCafe, March 2026). A detached ADU usually rents at or above a comparable studio because it offers things most studios do not: a private entrance, outdoor space, no shared walls.
The second is home value. A 2025 study by the Federal Housing Finance Agency (FHFA) tracked a decade of California home appraisals and found that homes with an ADU grew in value 22 percent faster than comparable homes without one. By 2023, the median appraised-value premium had reached $349,000. National studies put the lift in the 15 to 35 percent range.
Financing matters too. NYC's Plus One ADU Program offers up to $395,000 in combined support: an HPD loan up to $220,000 at 0 to 5 percent, plus an HCR grant up to $175,000 that does not get repaid. Application closes June 12, 2026.
If you are a NYC homeowner thinking about an ADU as an investment rather than a project, the first step is the eligibility tool. We check your lot against the City of Yes rules and tell you which ADU types actually fit.
This is informational, not financial advice. Talk to a tax advisor or financial planner about your specific situation.