Annual rental income as a percentage of the property's value or cost — a key measure of investment performance.
Gross yield = annual rent ÷ build cost. Net yield subtracts operating costs (property tax, maintenance, vacancy). Typical California ADU gross yields: 8-12%. Net yields: 4-7%. Use our ROI calculator to model your specific numbers.
Part of the BackyardADU California ADU Glossary — plain-English definitions of the regulatory, construction, and financing terms you'll encounter during a California ADU project.