Two Stacked ADU Rentals in San Diego
San Diego, CA 92104
Homeowner Story: Generate rental income
Special Circumstance: Multiple ADUs
Video TourTwo Identical Units, Flexible Rental Strategy
This project features two 2BR/2BA ADUs just under 750 sqft each stacked one above the other, each with the same smart floor plan. The layout offers open, comfortable living spaces with modern finishes, making them equally appealing to a wide range of renters. While the design is consistent, the rental strategy varies by level. The lower unit is fully furnished and will be listed for mid-term stays of 30+ days. Above, the second unit will be treated as a traditional unfurnished rental, providing steady, long-term income. Together, the units create a balanced approach that maximizes stability and earning potential.
Why Stack ADUs?
Stacking ADUs is a smart way to add multiple units while preserving yard space, especially on smaller lots or properties where placement options are limited. By building vertically, homeowners can increase rental potential without sacrificing outdoor areas or running into site constraints. Stacking the units on this project allowed for a good amount of space between the units and the primary home for privacy and left space for a private patio. This approach can also create efficiencies by sharing a single footprint and certain construction elements, while still allowing each unit to function independently. With the right design and planning around height limits, access, and fire-rated separation between units, stacked ADUs can be a powerful way to unlock more value from a single property. Read more about stacked ADUs.
Floor Plan:
Two Story Stacked 2BR/2BA 42×17 Long
Community:
The City of San Diego ADU Guide
With more than 70 ADU projects completed or in progress throughout the City of San Diego, we’ve seen firsthand how the city’s regulations create opportunities that are not available in many other jurisdictions.
One of the biggest differentiators is San Diego’s Affordable ADU Bonus Program, which allows qualifying properties to add multiple ADUs when some units are rented at affordable rates. This has made San Diego a leader in ADU development and has opened the door for homeowners and investors to create additional housing beyond what is typically allowed under state law.
In 2025, the city became the first jurisdiction in San Diego County to adopt AB1033, allowing qualifying ADUs to be sold separately from the primary residence. As of June 2026, only the County of San Diego and the City of San Diego have adopted AB1033.
San Diego also offers significant flexibility in the types of ADUs that can be built. The city allows two-story ADUs, ADUs with garages, ADUs with guest quarters, ADUs with rooftop decks, front yard ADUs, and stacked ADUs for multi-unit projects. We’ve worked on all of these project types throughout the city.
Another unique aspect of San Diego is its setback regulations. Many single-story ADUs can be built with 0-foot side and rear setbacks, creating opportunities on properties where space is limited. However, building too close to property lines can trigger additional fire-rating requirements and construction challenges, which is why thoughtful site planning remains critical even when the regulations appear flexible.
San Diego ADU Permitting
Most ADU permits in the City of San Diego are approved within approximately 3 to 5 months after submission, although timelines vary depending on project complexity and city workload.
Compared to many other jurisdictions in San Diego County, the City of San Diego has some of the highest ADU permit fees. Permit costs often range from approximately $26-$28 per square foot, though smaller ADUs under 500 square feet can benefit from reduced fees closer to $14 per square foot. We maintain a detailed breakdown of City of San Diego permit fees, including plan check fees, building permit fees, impact fees, and inspection fees, in our ADU permit fee guide.
Approximately 10% of our City of San Diego projects are located within the Coastal Zone. While coastal properties often raise concerns for homeowners, many ADUs qualify for exemptions from Coastal Development Permit requirements under the City’s updated Local Coastal Program. Learn more about building an ADU in the Coastal Zone.
Working with an experienced ADU builder helps identify potential permitting requirements early and creates a more predictable path through design and permitting.
