Top 10 Most ADU-Friendly Cities in America (2026 Ranked by Data)

Not all cities are created equal when it comes to ADU development. We scored 50 cities across 14 states on zoning flexibility, permit costs, approval timelines, construction costs, and rental income potential. Here are the 2026 winners.

#1: Los Angeles, CA (Score: 9/10)

Los Angeles is one of the most ADU-friendly cities in the US, with streamlined permitting and strong state protections. The city has seen a massive surge in ADU construction since 2017, issuing over 2... ADU construction costs average $150,000-$350,000, with rental income potential of $1,800-$2,500/mo for a 1-bedroom unit. Permits take 60-day ministerial review (state-mandated) and cost $4,000-$15,000 depending on size and type (plus 10% General Plan Maintenance Surcharge on permit fees as of June 9, 2026).

#2: San Francisco, CA (Score: 9/10)

San Francisco has embraced ADUs as a key housing solution, with one of the most progressive ADU programs in the state. The city offers expedited review, fee waivers, and pre-approved plans to encourag... ADU construction costs average $200,000-$450,000, with rental income potential of $2,200-$3,200/mo for a 1-bedroom unit. Permits take 60 days from a COMPLETE application under Gov. Code 66317 — but SF requires every ADU applicant to sign an 'Application Processing Time Tolling Declaration Form' electing either to TOLL (pause) the 60-day clock while revising plans, or to hold the City to it. If the applicant declines tolling, DBI may DENY the application if code compliance cannot be established within 60 days, and revised plans must be resubmitted at least 10 business days before the period ends. Most applicants therefore toll and the real elapsed time exceeds 60 days. Add the Local-Program pre-clock: 15 calendar days of posted notice before filing, a Rent Board declaration with a 30-day tenant petition window (Rent Board targets transmitting a determination within 90 calendar days of a petition), then Planning In-House Review and a Planning Approval Letter — all before the building permit is filed. SF states State-Program full permits 'generally has a shorter review and issuance timeline than the Local program.' and cost Replace the guessed range with SF's own published figures. DBI's own estimate: 'City fees range from 6-9% of construction costs' (and architects/engineers about 10%; at least $125,000 in material and labor for a new unit). PLANNING development application fee (Fee Schedule eff. 8/29/2025, rev. 6/15/2026) — New Construction: $3,502 flat under $100k; $3,504 base + 3.855% of cost above $100,000 in the $100k-499,999 band; $19,226 + 1.230% above $500,000. Alteration/Change of Use (garage or interior conversion): $504 under $10k; $516 + 5.274% above $10,000; $3,838 + 3.524% above $50,000; $5,638 + 3.855% above $100,000. Neighborhood notification $121 + $4.25/envelope; permit-revision back check $366. DBI building permit fees are TWO separate charges under SF Building Code Table 1A-A (amended Ord. 112-26, eff. 7/12/2026) — Plan Review: $1,671 + $15.60 per $1,000 over $50,000 ($50k-200k band), $4,011 + $13.31 per $1,000 over $200,000 ($200k-500k band); Permit Issuance: $677 + $4.83 per $1,000 ($50k-200k), $1,402 + $4.21 per $1,000 ($200k-500k). Table 1A-A note 1 states these exclude Public Works, Planning, Fire, Public Health and plumbing/electrical/mechanical permit fees. Add SFUSD school facility fees (calculated by DBI staff), SFPUC and Public Works right-of-way permits. OUR WORKED EXAMPLE (label as our calculation, not a published number): a $300,000 detached ADU = Planning $11,214 + DBI plan review $5,342 + DBI issuance $1,823, roughly $18,400 before trade permits and school fees — about 6% of construction cost, consistent with DBI's 6-9%. FEE WAIVER: building permit fees are waived for permits granting legal status to dwelling units built without permits, for activities prior to 1/1/2020 (Board Ord. 150571)..

#3: San Diego, CA (Score: 9/10)

San Diego remains one of America's highest-volume ADU markets — 5,720 ADUs were permitted from 2021 to 2024 — but its famous ADU Bonus Program was sharply scaled back in 2025. After a 5-4 council vote... ADU construction costs average $120,000-$300,000, with rental income potential of $1,600-$2,200/mo for a 1-bedroom unit. Permits take 60 days (often faster) and cost $3,500-$12,000.

#4: Portland, OR (Score: 9/10)

Portland is one of America's most ADU-friendly cities, with streamlined approval processes and generous size allowances. The city allows both detached and attached ADUs with minimal setback requiremen... ADU construction costs average $150,000-$300,000, with rental income potential of $1,400-$1,900/mo for a 1-bedroom unit. Permits take 30-45 days and cost ~$1,900 permit and plan review; plus System Development Charges (SDCs) of about $19,000 - see impact fees.

#5: Seattle, WA (Score: 9/10)

Seattle rewrote its ADU code in mid-2025: Ordinance 127211 (HB 1337 compliance) and Ordinance 127219 (HB 1110 interim middle-housing zoning, since replaced by permanent Ordinance 127376 effective Jan ... ADU construction costs average $160,000-$320,000, with rental income potential of $1,600-$2,100/mo for a 1-bedroom unit. Permits take Several weeks to a few months depending on review queue and cost $2,000-$5,000+ in SDCI permit fees (varies with valuation; hourly review rates apply).

#6: Minneapolis, MN (Score: 9/10)

Minneapolis is one of the nation's most ADU-friendly cities, allowing up to three dwelling units per lot in many zones. The city's progressive housing policy makes it an excellent market for ADU devel... ADU construction costs average $140,000-$280,000, with rental income potential of $1,350-$1,800/mo for a 1-bedroom unit. Permits take 40-60 days and cost $1,800-$3,000.

#7: Berkeley, CA (Score: 9/10)

Berkeley is one of California's most ADU-friendly cities: detached ADUs up to 1,200 sq ft and 25 ft tall, no parking requirement, no owner-occupancy rule, and an ADU amnesty program for unpermitted un... ADU construction costs average $250,000-$500,000, with rental income potential of $2,300-$2,900/mo for a 1-bedroom unit. Permits take 60-day ministerial review; deemed approved if the city fails to act within 60 days (SB 543, eff. Jan 1, 2026) and cost $250 zoning plan check + $500 neighbor noticing fee at submittal + $250 address assignment; building permit fees based on project valuation (city fee estimator tool available).

#8: San Jose, CA (Score: 8/10)

San Jose has seen rapid ADU growth driven by Silicon Valley housing demand. The city follows CA state law closely and has added local incentives to encourage ADU construction.... ADU construction costs average $180,000-$400,000, with rental income potential of $2,000-$2,800/mo for a 1-bedroom unit. Permits take The city's own published figure is that the first round of building review typically takes 20 business days, with complete and accurate plans staying within one or two review cycles. Preapproved-plan projects may receive same-day permit issuance at the scheduled plan review meeting. The 60-day figure in our record is the state ministerial deadline (Gov. Code Chapter 13 / SB 543), not a San José-published processing time, and should not be presented as a city fact. The city flags the missing water-company flow letter as a main cause of delay. and cost City building permit fees, FY 2026-27 Building and Structure Permits Fee Schedule, effective August 10, 2026. ADU 0-750 sq ft: permit issuance $422, plan review $1,137, inspection $1,732 (total $3,291). ADU 751-1,200 sq ft: permit issuance $633, plan review $1,950, inspection $2,520 (total $5,103). Permit issuance includes addressing assignment for the unit; inspection includes the meter release inspection. Modular fees are 10% lower for plan review and 20% lower for inspections. Separately, an optional preliminary virtual meeting with a planner is billed at the Planning Division's hourly rate of $398/hour with a 30-minute minimum (i.e. $199). These are city permit fees only and exclude school/parkland impact fees, construction taxes, and construction cost..

#9: Sacramento, CA (Score: 8/10)

Sacramento offers an excellent balance of affordability and ADU-friendliness. As California's capital, the city has been proactive in adopting state ADU reforms and offers some of the best ROI in the ... ADU construction costs average $100,000-$250,000, with rental income potential of $1,300-$1,800/mo for a 1-bedroom unit. Permits take 60 days — correct, and this is genuinely in the CITY's code, not merely restated state law, which is worth saying. Two conditions our record omits: (1) the 60 days runs from a COMPLETE application and only where there is an existing residential use on the lot; (2) if the ADU is filed alongside an application for new residential development, the city may defer the ADU decision until the primary is approved, and the clock tolls for any applicant-requested delay. Deemed-approved remedy is in the code text. Separately, AB 1332 preapproved plans carry a 30-day approval — but see pre_approved_plans, the city's AB 1332 catalog is currently empty, so no homeowner can actually use that 30-day path today. and cost Replace the guessed range with the city's OWN published figures. Form CDD-0419, 'Accessory Dwelling Unit (ADU) Fee Estimate (New Construction)', revised 07-12-2026, at a $170.80/sq ft valuation: 749 sq ft = $5,271.90 total; 750 sq ft = $10,624.40; 1,200 sq ft = $14,842.50. Representative line items at 1,200 sq ft: building permit $1,790.36, building plan review $751.95, fire dept administrative $176, fire inspection $294 ($0.11/sq ft, $294 minimum), fire plan review $260, planning inspection $526, planning review $263, public works review $205 deposit + hourly, utilities $205 deposit + hourly, construction excise tax $945.60, general plan fee $533 ($2.60 per $1,000 valuation), residential construction tax $315, technology fee $254.23. NOT included and additional: school district impact fees (calculated and collected by the district, form CDD-0226), Regional Sanitation and Sewer Development fees (the form says 'Check with County'), and possible sewer/water tap, housing and project-area impact fees. The optional ADU Zoning Review is now $0 (the $117 fee was waived). An optional building permit fee estimate service costs $164 (form CDD-0278). Additional review time bills at $216/hr building, $263/hr planning. The city's own caveat: 'This is only an estimate. The actual fees can vary based on project scope, location, fee changes, etc.'.

#10: Oakland, CA (Score: 8/10)

Oakland has embraced ADUs as affordable housing solution with some of the Bay Area's most supportive local policies. Lower land costs than SF make Oakland ADUs particularly attractive for investors.... ADU construction costs average $160,000-$380,000, with rental income potential of $1,800-$2,600/mo for a 1-bedroom unit. Permits take Oakland publishes its own turnaround targets (business days, complete applications): ADU zoning/planning review 10 to 20 days; building plan check 21 days for a new ADU, or 10 days if you use a City of Oakland pre-approved plan; building final check a further 10 days to 3 weeks. Requesting expedited overtime plan review cuts those estimates by roughly 50%. The '60 days' currently on our page is the State ministerial deadline, not an Oakland-published figure - it should be labelled as such rather than presented as the city's timeline. and cost Published Oakland figures, not a guess. PLANNING/ZONING PERMIT (Design Review Exemption - Secondary Units/ADU), FY2025-26 grand totals including the 7.2% General Plan Update and 12.70% Technology/Records surcharges: Category I, II & III $593.95 (base report fee $491.62); Category IV $892.54 (base $738.77); Amnesty Program $1,779.79 (base $1,473.16). PERMIT APPLICATION INTAKE: $201.49 at the counter, $112.83 online. BUILDING PERMIT (Master Fee Schedule effective 8/28/2025, R3 residential): new construction $10.60 per $1,000 of construction valuation for plan review plus $8.00 per $1,000 for inspection (each with a $335.81 minimum); repairs/additions/alterations $17.08 plus $26.11 per $1,000. The City's own summary guidance is 'Building Permit Fees: Usually 4-6% of project value.' Plus a 12.70% Records Management & Technology Enhancement fee on all Building Services fees. ZONING INSPECTION for a building permit up to $200,000 valuation: $537.29. NEW SEWER LATERAL CONNECTION (the schedule expressly includes ADUs): $1,867.40. OUSD SCHOOL FEE collected by Planning & Building on the district's behalf: $5.17 per sq ft residential. Note: the widely circulated City 'Secondary Units' handout quoting a $464.89 planning permit fee and 5-6 week building permits was last updated 10/10/2019 and is obsolete - do not cite it..