SB 1211 for 16-unit apartment in San Jose
In San Jose, a 16-unit 16-unit apartment just became one of the highest-yield SB 1211 typologies — 12 new homes, ministerially approved. At San Jose's median rent of $2,900/mo, that's ~$418K in additional gross annual rent.
The San Jose scenario
The capital stack on a typical San Jose 16-unit apartment project: existing equity (the lot itself, owned outright in many cases), construction loan against the new ADU appraised value, refi at completion against the stabilized rent roll.
Local tip for San Jose: San Jose offers pre-approved ADU plan sets.
Large multifamily (10+ unit) design playbook
A 16-unit complex is capped at 8 detached ADUs by statute, so the play shifts toward interior conversions: max(1, ⌊units × 25%⌋) = 4 additional units carved from common rooms, oversized lobbies, basement storage, or laundry rooms.
Pro-forma snapshot
| Existing units | 16 |
| Detached ADUs (SB 1211) | 8 |
| Interior conversions | 4 |
| Total new units | 12 |
| Median 1BR rent in San Jose | $2,900/mo |
| Est. additional gross rent | $418K/yr |
| Estimated total project cost | ~$2,419K |
| Year-1 NOI estimate | ~$314K |
| Stabilized cap rate at cost | 13.0% |
| Replacement parking required | No (§66313) |
| Approval pathway | Ministerial · §66314 |
| Typical permit timeline in San Jose | 60-100 days |
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