San Diego vs San Jose: ADU Rules Compared

Side-by-side comparison of ADU zoning rules, costs, and rental potential. Updated 2026.

9/10San Diego Score
vs 
8/10San Jose Score

Zoning & Size Limits

RequirementSan Diego, CASan Jose, CA
Allowed ZonesAll residential zones; also allowed in some commercial mixedAll residential zones (R-1, R-2, R-M, R-MH)
Max Size (Detached)1,200 sq ft1,200 sq ft
Max Size (Attached)1,200 sq ft or 50% of primary dwelling1,200 sq ft or 50% of primary dwelling
Max Height25 ft (2 stories)25 ft for detached
Parking RequiredNo parking requiredNo parking required
Owner OccupancyNot requiredNot required

Setback Requirements

SetbackSan Diego, CASan Jose, CA
Rear Setback4 ft4 ft
Side Setback4 ft4 ft
Front SetbackPer underlying zonePer underlying zone

Permits & Timeline

DetailSan Diego, CASan Jose, CA
Permit Timeline60 days (often faster)60 days
Permit Fees$3,500-$12,000$4,000-$14,000
Impact FeesWaived for units under 750 sq ftWaived for units under 750 sq ft
Pre-Approved PlansYes — companion unit program with pre-approved desLimited pre-approved options available

Construction Costs

CostSan Diego, CASan Jose, CA
Avg Build Cost$120,000-$300,000$180,000-$400,000
Cost Per Sq Ft$180-$350$250-$450
Garage Conversion$70,000-$160,000$100,000-$220,000
Prefab ADU$90,000-$220,000$130,000-$300,000

Rental Income Potential

RentalSan Diego, CASan Jose, CA
1BR Avg Rent$1,600-$2,200/mo$2,000-$2,800/mo
2BR Avg Rent$2,000-$2,800/mo$2,500-$3,500/mo
Short-Term RentalsAllowed with STRO license in certain zonesRestricted; requires transient occupancy tax registration
Est. ROI7-11% annual return5-9% annual return

Which City Is Better for ADUs?

San Diego scores 9/10 while San Jose scores 8/10 on our ADU-friendliness index. San Diego edges ahead overall. Both cities offer viable ADU development opportunities — the best choice depends on your specific property, budget, and goals.

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