Numbers on the exact value of an accessory dwelling unit (or, an ADU) can be difficult to calculate. So we set out to answer: while adding an ADU to your property is a smart investment, exactly how great of an investment is it for you?
As experienced Atlanta ADU builders, we’ve seen firsthand how these versatile structures can elevate property worth while creating opportunities for homeowners. Whether you’re planning to rent it out, accommodate family members, or simply enjoy the extra space, an ADU is a worthwhile addition.
Not familiar with ADUs? Check out our beginner’s guide to ADUs. Then, let’s explore how much value an ADU can add to your property, the specific benefits for Atlanta homeowners, and how to maximize your investment.
How Much Value Does an ADU Add?
When it comes to selling your home, in 2021 ADUs added up to 35% to a home’s value on average. The additional square footage, rental potential, and improved utility of your home make ADUs a high-demand feature in today’s real estate market. Appraisers often consider an ADU’s potential to generate income or serve as a private living space, which significantly boosts its perceived value.
Homes with ADUs are not only more attractive to buyers but also more versatile, catering to the diverse needs of modern families. They can serve as primary residences, making them ideal for all walks of life.
How much value does an ADU add in Atlanta, Georgia?
According to Porch’s 2021 report, the average home price was $342k in Atlanta, Georgia. Only 3% of all home listings in Atlanta boasted an ADU, and these homes averaged $540k for their prices. That’s a 58% price difference between a typical home in Atlanta as opposed to one with an ADU.
Neighborhoods like Midtown, Decatur, and East Atlanta Village – which are popular for their walkability and amenities – often see even higher property value increases.
Local zoning laws and ADU-friendly regulations in Atlanta also make it easier to build and market these units. Additionally, the city’s growing rental market ensures a steady demand for ADU spaces, making them a practical and profitable investment.
How Your ADU Improves Your Property Value
Adding an ADU doesn’t just boost your property’s appraised value—it also provides practical benefits that resonate with homeowners and buyers alike. Let’s break down the key ways an ADU enhances your property.
Rental Income
One of the biggest draws of an ADU is its potential to generate rental income. Whether you rent it out long-term or as a short-term vacation rental, an ADU can become a reliable source of extra cash flow. This added income not only helps offset the cost of building the unit but also contributes to your overall financial security.
Atlanta ADU Rental Income
According to Apartment.com, the current average rent for a one-bedroom unit in Atlanta is $1,587/month in January 2025, with an average square footage of 765ft. For studios, the average rent is $1,498/month for about 574 square feet of space.
ADUs in Atlanta are required to stay at 750 feet or below, which means they work well as spacious studios, standard 1-bedroom apartments, or slightly smaller 2-bedroom apartments.
In short, you could expect to make roughly $1,500 a month from your ADU or more if you live in a particularly high demand area or choose to aim for more bedrooms. Properties near universities, tech hubs, or major business centers are extra desirable, making them prime candidates for lucrative rentals.
With Atlanta’s growing population and housing demand, an ADU can quickly become one of your most valuable assets.
Resale Value
Homes with ADUs are in high demand on the real estate market, as buyers see the potential for additional income or flexible living arrangements. By adding an ADU, you’re essentially future-proofing your property, making it more desirable and versatile for prospective buyers. Appraisers also recognize the added utility and earning potential of an ADU, which can translate to a higher selling price.
Intergenerational Housing
ADUs are ideal for families looking to create intergenerational living spaces. They provide a private, comfortable area for aging parents, adult children, or extended family members without compromising anyone’s independence.
Offering an ADU to family members can save significant money compared to paying rent elsewhere, creating a cost-effective solution that strengthens family connections. This feature is especially appealing in Atlanta, where multigenerational households are becoming more common.
How to Maximize Your ADU’s Value
To get the most out of your ADU investment, focus on thoughtful design and high-quality construction. Choose features that appeal to potential renters or buyers, such as energy-efficient appliances, modern finishes, and easy access. Additionally, ensure your ADU complies with all Atlanta zoning and building codes to avoid complications down the line.
Working with an experienced Atlanta ADU builder can make all the difference. With a turnkey construction team like SmartSpaces ADUs, you’ll be guided through the entire process from design to construction, ensuring your ADU is both functional and marketable.
Start building your Atlanta ADU today
Ready to unlock your property’s full potential? As trusted ADU builders in East Atlanta, we specialize in creating customized units that meet your needs and enhance your property value. We serve Brookhaven, Tucker and Grayson with gorgeous backyard cottages and tiny homes.
Whether you’re envisioning a rental space, a guest house, or a private retreat, SmartSpaces ADUs is here to bring your vision to life. Contact us today to schedule a consultation and take the first step toward building your dream ADU.
FAQs
Types of ADUs
ADUs come in various forms, including detached units (standalone structures), attached units (extensions of your home), and converted spaces like garages or basements. Each type offers unique benefits depending on your property layout and goals.
ADUs aren’t just studios, either: they can have multiple bedrooms, too. Check out our floor plans today to get an idea of how versatile ADUs can be.
Are ADUs also tiny homes?
While ADUs and tiny homes share similarities in size and functionality, they’re not necessarily the same. Tiny homes can be mobile and built on trailers, whereas ADUs are permanent structures on your property, designed to comply with local building codes.
In short: ADUs are a type of tiny home, but not all tiny homes are ADUs.
Is building an ADU a good investment?
Absolutely! Building an ADU is one of the best investments you can make in Atlanta. With the potential for rental income, increased resale value, and enhanced property utility, an ADU offers both immediate and long-term financial benefits.
