ADU Cost, Financing & ROI in Hollywood, Florida
Insights
December 19, 2025
minute read
Key Takeaways
Construction costs in Hollywood range from $45,000 to $280,000 depending on ADU type, with detached units averaging $250-$350 per square foot and hurricane-resistant requirements adding 15-25% to baseline costs
Modular ADUs offer 10-25% cost savings compared to traditional stick-built construction, with Mesocore's Model E ADU starting at $129,000 for a turnkey 410 square foot unit including integrated solar and 10-day on-site installation
Hollywood rental market averages $1,747 monthly with 1-bedroom ADUs commanding $1,500-$1,800 per month, delivering 12% annual ROI compared to 7.8% for traditional single-family rentals
Federal solar tax credits provide 30% back through 2032, potentially saving $9,000+ on energy systems, while Florida's property tax exemption ensures solar installations don't increase taxable value
ADUs typically add $200,000-$250,000 to property value using the income capitalization method, with payback periods ranging from 5.8 to 9.5 years depending on construction costs and rental income achieved
Hollywood permits ADUs on residential lots following Broward County regulations, with permit fees of $3,000-$8,000 and streamlined processing through factory-certified modular units
Understanding ADU Costs in Hollywood, Florida: A Comprehensive Breakdown
Building an ADU in Hollywood costs more than inland Florida locations due to coastal construction requirements and Broward County's strict building standards. Total turnkey costs for a 400-600 square foot unit range from $90,000 for basic detached construction to $280,000 for standard finishes.
Cost by ADU Type:
Garage Conversion: $150-$250 per square foot, $45,000-$150,000 total
Attached ADU: $200-$300 per square foot, $80,000-$240,000 total
Detached ADU (Basic): $225-$325 per square foot, $90,000-$195,000 total
Detached ADU (Standard): $250-$350 per square foot, $150,000-$280,000 total
Hollywood-specific cost factors include hurricane and wind resistance adding 15-25% above inland Florida pricing, flood zone elevation requirements adding $20,000-$50,000 when applicable, and coastal Broward labor rates of $42-58 per hour representing a 4.2% year-over-year increase. Material costs run 12% above national averages due to Florida Building Code requirements.
Mesocore Model E ADU: What's Included in the Base Price?
Mesocore's Model E ADU offers a comprehensive solution at $129,000 starting price. The 410 square foot unit includes a 6kW solar array with 14 PV panels, dual 10kWh lithium-ion batteries providing 20kWh total storage, 1,700-gallon rainwater collection system, and all Energy Star appliances factory-installed.
The base price covers:
180 mph wind-rated construction exceeding Category 5 hurricane thresholds
Five hurricane impact windows and full lite glass entry door
Ductless Amana R-32 PTAC with HEPA filtration
Complete kitchen including induction cooktop, Fisher & Paykel dishwasher, and refrigerator-freezer
Factory-installed and Intertek-certified MEP systems
Eight concrete pier foundation
Site-specific costs for foundation preparation, utility connections, and local permits are handled separately but represent a smaller portion compared to traditional construction where these items often exceed expectations.
Prefab ADUs: A Cost-Effective Solution for Hollywood, Florida Homeowners
Factory-built modular ADUs deliver significant advantages over traditional stick-built construction in Hollywood's challenging coastal environment. Modular construction completes 60-95% of work in controlled factory conditions, eliminating 2-4 months of weather delays common in South Florida.
Traditional stick-built ADUs in Hollywood require 7-15 months for completion, while Mesocore's modular units achieve 10-day on-site installation after site preparation. This speed advantage reduces labor costs, minimizes financing carrying costs, and gets rental income flowing faster.
Comparing Prefab vs. Traditional ADU Construction in Florida
Quality Control: Factory inspections occur at every production stage, catching issues before delivery. Traditional construction often covers critical work before inspectors arrive, leading to expensive corrections.
Weather Independence: Hollywood's afternoon thunderstorms and hurricane season delays don't impact factory production schedules. Site work can proceed during optimal weather windows while the unit is manufactured simultaneously.
Cost Predictability: Goshen Tiny Homes reports typical studio ADUs at $75,000-$110,000, 1-bedroom at $110,000-$155,000, and 2-bedroom at $155,000-$200,000. Mesocore's fixed pricing at $129,000 for the Model E eliminates change-order risk common with traditional contractors.
Hurricane Compliance: Mesocore's robotically welded structural steel core achieves 180 mph wind ratings meeting Florida's High Velocity Hurricane Zone requirements—a standard difficult and expensive to achieve with traditional stick-built methods.
Financing Your ADU in Hollywood, Florida: Options and Strategies
Hollywood ADU developers can access multiple financing pathways in 2025, each suited to different equity positions and financial profiles. Understanding available options helps match the right product to your situation.
Construction Loans: Jaken Finance Group offers construction-to-permanent loans at approximately 7.5% APR with loan amounts up to $500,000+. These single-close loans adjust to actual construction costs and may count projected ADU rental income toward debt-to-income qualification. Down payments typically range from 10-20% with builder draw schedules for phased construction.
Government Programs: The City of Hollywood SHIP Program provides owner-occupied rehabilitation loans up to $150,000-$225,000 at 0% interest with deferred payment. While not direct ADU funding, these can support main house upgrades to free equity for ADU development. Income limits range from 30%-140% of Area Median Income (Broward County AMI is $96,200 for 2025).
Specialized ADU Financing: Ocean Capital Lending partners with Mesocore to provide customized loan options covering land acquisition and construction costs with conversion to traditional mortgage upon completion. Rates range from 6.75-7.5% APR with terms designed specifically for modular ADU projects.
Calculating Your ADU ROI in Hollywood: Rental Income and Energy Savings
Hollywood's rental market creates compelling ROI potential despite higher construction costs. December 2025 data shows average rents of $1,747 monthly across all unit types, with studios at $1,581 and 1-bedroom units at $1,500-$1,800.
Conservative ADU Rental Projections:
Studio (400 sq ft)
Monthly rent: $1,500–$1,700
Annual gross: $18,000–$20,400
Net operating income (after 30% expenses): $12,600–$14,280
1-Bedroom (600 sq ft)
Monthly rent: $1,700–$1,900
Annual gross: $20,400–$22,800
Net operating income (after 30% expenses): $14,280–$15,960
2-Bedroom (800 sq ft)
Monthly rent: $2,000–$2,300
Annual gross: $24,000–$27,600
Net operating income (after 30% expenses): $16,800–$19,320
A 600 square foot detached ADU at $200,000 construction cost renting for $1,800 monthly generates $21,600 annual gross income. After 30% operating expenses ($6,480), net annual income reaches $15,120, producing a 7.6% cash ROI unfinanced or 9.5-year payback period.
Goshen Tiny Homes data shows ADUs delivering approximately 12% annual ROI compared to 7.8% for comparable single-family rentals in Broward County—50% higher returns on investment.
Maximizing ADU Profitability: Solar Integration and Tax Incentives
Mesocore's integrated solar systems generate $1,500-$1,820 in annual utility savings while qualifying for significant tax incentives:
Federal ITC: 30% tax credit through 2032 on total solar system costs (Form 5695)
Florida Sales Tax Exemption: 0% sales tax on solar equipment
Property Tax Exemption: Solar installations don't increase taxable property value through December 31, 2037
Insurance Discounts: Hurricane mitigation features qualify for 20-55% wind premium discounts
A $30,000 solar system generates a $9,000 federal tax credit with no maximum limit. Combined with state incentives, net system cost drops to approximately $19,200—36% savings plus ongoing property tax benefits.
Hurricane-Resistant and Sustainable ADUs: Investing in Florida's Future
Hollywood sits in Broward County's High Velocity Hurricane Zone, requiring strict compliance with Florida Building Code wind requirements. All ADUs must meet minimum wind ratings and use impact-rated products.
Mesocore's Model E ADU carries a 180 mph wind rating—exceeding Category 5 hurricane thresholds of 157 mph. Key resilience features include:
Robotically welded structural steel core
Impact-rated windows and doors meeting HVHZ standards
TPO roofing with enhanced attachment
R15 walls, R24 roof, and R20 floor insulation
Engineered connections throughout
Building for Resilience: Mesocore's Hurricane-Proof Technology
Federal studies show post-1994 manufactured homes meeting modern wind standards experienced zero significant damage during the intense 2004-2005 hurricane seasons. Mesocore's factory-built approach ensures consistent quality control impossible to achieve with traditional site construction.
Insurance benefits compound these advantages. Impact windows alone provide 30% discounts on wind portions of homeowners policies, with total hurricane mitigation features qualifying for 20-55% premium reductions. Given Hollywood's proximity to the coast and Broward County's average homeowners insurance costs, these savings reach $1,000-$3,000 annually.
The integrated 6kW solar array with 20kWh battery storage enables off-grid operation during extended power outages—a common occurrence after hurricanes. Some jurisdictions have approved Mesocore ADUs to operate independently from the main house without utility hookups or separate meters.
Permitting and Regulatory Landscape for ADUs in Hollywood, Florida
Hollywood's Building Division processes ADU permits at 2600 Hollywood Blvd, Hollywood, FL 33020. Contact BldgPermit@hollywoodfl.org or call (954) 921-3471 for permit inquiries.
Permit Fee Structure: Fees are based on construction value using a percentage schedule. A $180,000 ADU typically incurs $4,000-$7,000 in permit fees including:
Building permit (percentage of value)
Technology fee (2%)
Educational fee (1%)
State surcharges (3%)
Broward County fee ($0.52 per $1,000)
Streamlining Your ADU Project: Navigating Hollywood's Regulations
Mesocore units hold Intertek certification for factory-installed MEP systems and are registered with the Florida DBPR modular home program. This certification eliminates rough-in inspections on-site for plumbing, mechanical, and electrical systems in qualifying jurisdictions, reducing total inspection requirements and accelerating construction timelines.
Permit Process Timeline:
Pre-Application: Verify zoning allows ADU on your lot
Design Phase: Architect/engineer prepares plans (1-3 months for traditional; minimal for modular)
Permit Submittal: Submit plans, application, and fees
Plan Review: 4-8 weeks typical
Permit Issuance: Upon approval
Inspections: Multiple during construction (reduced for modular)
Final Certificate of Occupancy: 6-18 months total traditional; 3-4 months modular
The Broward County Property Appraiser handles homestead exemption applications with a March 1 annual deadline. Properties adding ADUs for family use (no rent charged) retain full homestead status and Save Our Homes 3% cap protection.
ADU Advantages: Rental Income, Multigenerational Living, and More
Beyond rental income potential, Hollywood ADUs serve diverse purposes that increase property value and quality of life.
Primary ADU Use Cases:
Rental Income: $1,500-$2,300 monthly depending on size
Multigenerational Housing: Separate living quarters for aging parents or adult children
Home Office: Dedicated workspace separate from main residence
Guest Accommodations: Privacy for extended family visits
Disaster Recovery: Backup housing during main residence repairs
Beyond Rental: Diverse Uses for Your Hollywood ADU
Multigenerational families benefit from ADU proximity while maintaining independence. Florida's "Granny Flat" property tax reduction provides up to 20% reduction on assessed value when a parent or grandparent age 62+ occupies the ADU as primary residence.
Property Tax Impact Scenarios:
Family (no rent): Full homestead — +$4,000–$6,000 annual tax impact
Rental income: Partial (main house only) — +$5,000–$7,000+ annual tax impact
Elderly parent 62+: Full + special exemption — +$2,500–$4,000 annual tax impact
Hollywood's 7.86% taxable value growth citywide demonstrates strong appreciation. Adding an ADU typically increases property value by approximately 100 times monthly rental value—a $1,800/month ADU adds roughly $180,000-$200,000 to property worth.
Frequently Asked Questions
What is the average cost of an ADU in Hollywood, Florida?
Hollywood ADU construction costs range from $45,000 for basic garage conversions to $280,000 for standard detached units. Mesocore's Model E ADU offers a turnkey solution at $129,000 for 410 square feet including integrated solar, battery storage, and 180 mph wind-rated construction. Site-specific costs for foundation, utility connections, and permits add $15,000-$35,000 depending on property conditions.
Can a Mesocore ADU operate off-grid, and what does that mean for my utility bills?
Yes, Mesocore ADUs include 6kW solar arrays with 20kWh battery storage enabling complete off-grid operation. Some jurisdictions including Palm Beach County have approved Mesocore units to operate independently without utility hookups or separate meters. This cuts connection fees, meter costs, and ongoing utility expenses while providing $1,500-$1,820 in annual energy savings compared to grid-dependent units.
How do Hollywood ADU property taxes work if I rent to a tenant versus housing family?
ADUs used by family members without rent charged retain full homestead exemption and Save Our Homes 3% cap on the entire property. Rented ADUs cause the rental portion to lose homestead status, allowing that portion to increase up to 10% annually. The Broward County Property Appraiser offers a special exemption reducing taxable value when an ADU houses a parent or grandparent age 62+, potentially saving $1,400-$2,800 annually.
How long does it take to build an ADU in Hollywood?
Traditional stick-built ADUs require 6-18 months from design through certificate of occupancy. Mesocore's modular approach reduces this dramatically—factory production occurs simultaneously with site preparation, followed by 10-day on-site installation. Total timeline from order to move-in ranges from 12-26 weeks depending on permit processing speed, representing 50% or greater time savings versus traditional construction.
