Rental Income.
On Land
You Already Own.
An ADU converts unused backyard into a permanent income-producing asset — without buying a second property, taking on a second mortgage, or managing a separate location.
Get a Free Feasibility Check →Lower capital. Same rental income. Better position.
Buying a rental property in Madison requires a down payment on a second mortgage, a separate location to manage, and a market that has priced out most small investors. An ADU on your existing lot sidesteps all of it.
Rental rate estimates based on Madison, WI market data. Payback period depends on build cost, financing structure, and actual rent. Use our ADU Calculator for your specific numbers.
Two ways to own rental property. Not the same risk profile.
Both generate income. The comparison on capital required, management complexity, and exit flexibility is substantially different.
Not all ADU designs rent equally well.
A well-designed rental ADU has specific characteristics that protect the investment — easy to maintain, appealing to quality tenants, and durable through turnover.
Why Madison specifically supports this investment.
Madison’s rental market is structurally strong. The University of Wisconsin, state government employment, and a growing tech sector create consistent demand from tenants who aren’t going anywhere.
Vacancy rates in Madison have stayed low for years. A well-positioned ADU in a residential neighborhood — close to employment centers, transit, or campus — is not a speculative bet. It’s a commodity product in a supply-constrained market.
Madison’s zoning has also become more permissive on ADUs in recent years. The city actively wants more density in residential areas. The regulatory tailwind helps.
| Assumption | Example |
|---|---|
| Monthly rent | $1,500 / month |
| Annual gross income | $18,000 |
| Estimated vacancy (5%) | − $900 |
| Maintenance reserve (5%) | − $900 |
| Annual net income | ~$16,200 |
| At $130k build cost | ~8 yr payback |
Illustrative only. Does not include financing costs. Use the ADU Calculator for personalized estimates.
Design, permit, build. One firm, start to finish.
We handle design, permitting, and construction. You don’t coordinate between an architect, a permit expediter, and a contractor. One point of contact, defined milestones, no handoff gaps.
See the Full Process →
Find out what an ADU would return on your property.
Start with a free feasibility check. We confirm what’s buildable on your lot, walk through realistic costs, and give you actual numbers to evaluate the investment.