ADU Value Calculator

Analyze construction costs, equity impact, rental income & Vermont incentives

Property Details

Median home price: $580,000
Use county median
$580,000
Using: $580,000

ADU Details

600 sq ft
Use preset based on type & finish
Using: $275/sq ft × 600 sq ft = $165,000 construction

Vermont Incentives

Apply VHIP-ADU Grant
Up to $50,000 forgivable loan
VHIP-ADU Program (Vermont Housing Improvement Program)
  • Grant Amount: Up to $50,000 forgivable loan for ADU creation
  • Required Match: 20% owner contribution (can include sweat equity)
  • 5-Year Option: Must rent to households exiting homelessness, maintain HUD Fair Market Rent
  • 10-Year Option: Standard rental, maintain HUD Fair Market Rent for full term
  • Disbursement: Funds released at project milestones (25% at start, 25% midpoint, etc.)
Eligibility Requirements:
  • Owner must live on the property
  • Creates new long-term rental (no Airbnb/VRBO)
  • Must meet Vermont housing codes
  • Cannot exceed 30% of home's habitable area or 900 sq ft (whichever is greater)

Contact: Regional Homeownership Centers administer the program. Chittenden County: Champlain Housing Trust • Central VT: Downstreet • Northeast: RuralEdge

What is HUD Fair Market Rent (FMR)?

FMR represents the 40th percentile of typical rentals in an area — essentially "moderately priced" housing. If you take a VHIP grant, your ADU rent is capped at FMR.

Current Chittenden (Burlington) FMRs (FY 2026):
  • Studio: $1,380/month
  • 1-Bedroom: $1,494/month
  • 2-Bedroom: $1,815/month
Market vs. Restricted Comparison:

Market rent in your area is typically 20-30% higher than FMR.

Financing

$161,595
Net Project Cost
$174,000
Value Added
$12,405
Instant Equity
$1,868
Market Rent/Mo
$1,200
Net Monthly Cash Flow

Return on Investment

Break-Even 8.5 years
5-Year ROI 45.2%
10-Year ROI 92.8%
Construction (600 sf × $275/sf) $165,000
Soft Costs (permits, design, engineering) $28,050
Site Prep & Utilities $8,000
Total Project Cost $201,050
Total Out-of-Pocket $201,050
Maintenance (1.5% of build cost) $3,016/yr
Insurance Increase $600/yr
Property Tax Increase (~1.8% of added value) $3,132/yr
Total Annual Costs $6,748/yr
Annual Rental Income $22,416/yr
Net Annual Cash Flow $15,668/yr