How much rent can a backyard ADU earn in Utah?
A one-bedroom backyard ADU on the Wasatch Front typically rents for $1,200–$1,500 a month in 2026, with well-finished Salt Lake units reaching $2,500. Here's what the numbers actually look like — real rents by city, the payback math on a Cocoon ADU, and the rental rules to know before you build.
Estimate your rental income
Pick a home, set a monthly rent for your area, and we'll show the annual gross rent and a rough gross payback — the all-in cost divided by yearly rent, before vacancy, maintenance, taxes, and insurance.
What ADUs rent for along the Wasatch Front
A detached ADU with its own entrance, full kitchen, and washer/dryer typically rents at or above the local one-bedroom apartment rate, because tenants get privacy and a yard instead of a hallway. Here's the 2026 baseline:
| City / area | Typical 1-bed rent (2026) | Source |
|---|---|---|
| Salt Lake City | $1,300–$1,430 | RentCafe, Zumper |
| Lehi | $1,379 | Rent.com |
| Provo | $1,299 | Rent.com |
| Provo–Orem–Lehi metro (studio) | $1,224 | Rentometer |
| Salt Lake–area ADUs specifically | $1,200–$2,500 | Steadily 2026 ADU guide |
According to Steadily's 2026 Salt Lake City ADU guide, area ADU rents run roughly $1,200 to $2,500 a month depending on size and finish — a range that can offset a significant portion of a mortgage payment.
Does it actually pencil out?
Our most popular backyard unit, the 300 Series — a true one-bed, one-bath at 300 sq ft — starts at $78,000. Site work (foundation, utilities, permits) typically adds 35–50%, putting the all-in range around $105,000–$117,000. Full breakdown on our Utah ADU cost guide.
At $1,300 a month, that's $15,600 a year in gross rent — a gross payback of roughly 7 to 7.5 years, before vacancy, maintenance, taxes, and insurance. Plan on the real number being longer; no honest builder will tell you otherwise. What the rent doesn't capture: Freddie Mac research shows homes with ADUs sell for 20–35% more than comparable homes without one, so the asset works for you even before a tenant moves in.
Can you legally rent out an ADU in Utah?
Under Utah's ADU framework, rentals of 30 days or more are permitted with a standard ADU approval, provided owner-occupancy and other city requirements are met. For detached ADUs under the 2026 SB284 framework, cities may prohibit rentals shorter than 90 consecutive days, according to ADU Zoning's 2026 Salt Lake City guide.
Short-term rental income (Airbnb-style) is generally not the play: it requires a separate short-term rental license, and many Wasatch Front cities restrict or deny them for ADUs. Steady monthly rent, housing for family, or aging-in-place is what the law is built for. City rules vary block by block — check yours on our Utah ADU rules tracker, then confirm with your planning department.
What makes an ADU rent at the top of the range
Three things move a unit from $1,200 toward the top of the market. Every Cocoon home ships with all three, because they're built as homes — not sheds:
A real kitchen
Full-size appliances, not a kitchenette. It's the single biggest thing renters notice.
In-unit laundry
A washer/dryer in the unit lets you command the top of the local rent range.
A private entrance
Separated outdoor space and a door of their own — privacy is what an ADU sells over a basement room.
Size matters less than finish. A well-finished 300 sq ft one-bed often out-rents a rough 500 sq ft unit. If you're housing family or targeting the two-bedroom market, our 400 Series sleeps up to eight.
Utah ADU rental income FAQ
Want the numbers for your lot?
The calculator gets you a ballpark. A short conversation gets you an actual figure — based on your city, your lot, and the rents in your neighborhood. No pressure, no obligation.
Rental figures on this page reflect general Wasatch Front market ranges for 2026 and vary by neighborhood, unit size, and finish — they are estimates to help Utah homeowners budget, not a guarantee of rental income. Payback figures are gross estimates before vacancy, maintenance, taxes, and insurance. Confirm current rents and your city's rental and owner-occupancy rules before relying on any figure.