Denver is highly ADU-friendly, allowing detached and attached units in most residential zones with streamlined approval. The city's emphasis on infill development and housing affordability makes it one of the nation's better ADU markets.
Zoning & Size Requirements
| Allowed Zones | All residential zones |
| Max Size (Detached) | 1,100 sq ft |
| Max Size (Attached) | 900 sq ft |
| Max Size (JADU) | 800 sq ft |
| Max Height | 40 feet |
| Max Units | 1 detached + 1 attached per lot |
Setback Requirements
| Rear Setback | 10 feet |
| Side Setback | 3 feet |
| Front Setback | 15 feet |
| Parking Required | 1 space per unit |
| Owner Occupancy | Not required |
| Min Lot Size | 3,500 sq ft |
Permit Process & Fees
| Approval Process | Ministerial approval (by-right) |
| Review Timeline | 30-45 days |
| Permit Fees | $1,600-$2,700 |
| Impact Fees | Minimal |
| Plan Check | 1-2 weeks |
| Pre-Approved Plans | Extensive library available |
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Construction Costs
| Average Build Cost | $140,000-$280,000 |
| Cost per Sq Ft | $130-$260 |
| Garage Conversion | $70,000-$160,000 |
| Prefab ADU (Installed) | $100,000-$230,000 (installed) |
Finance Your ADU Project
Most ADU projects are funded through HELOCs, construction loans, or cash-out refinancing. Compare rates from top lenders in minutes.
Compare ADU Financing Options →Rental Income Potential
| Avg Rent (1 Bedroom) | $1,400-$1,900/mo |
| Avg Rent (2 Bedroom) | $1,800-$2,500/mo |
| Short-Term Rental | Yes, with STR license |
| Est. Annual ROI | 7-9% annual return |
Explore Prefab ADU Options
Prefab ADUs can save 20-40% vs. traditional construction and cut build time in half. Compare top prefab manufacturers.
Compare Prefab ADUs →Recent Law Changes
What's Changed Recently
- 2024: Introduced ministerial (by-right) ADU approval
- 2023: Eliminated parking requirement for ADUs
- 2024: Expanded JADU allowance citywide
- 2023: Created ADU affordability program with density bonuses
Tips for Building an ADU in Denver
- Denver's by-right approval means fastest permitting timeline
- Tech and service industry growth ensures strong rental demand
- Short-term rental market strong; explore vacation rental opportunities
- Pre-approved plans available; maximize timeline efficiency
Frequently Asked Questions
Can I build an ADU in Denver?
Yes. ADUs are allowed in All residential zones in Denver. The maximum size for a detached ADU is 1,100 sq ft. No owner-occupancy is required.
How much does an ADU cost in Denver?
ADU construction in Denver typically costs $140,000-$280,000. Garage conversions run $70,000-$160,000, and prefab ADUs cost $100,000-$230,000 (installed).
How much can I rent an ADU for in Denver?
Average ADU rents in Denver are $1,400-$1,900/mo for a 1-bedroom and $1,800-$2,500/mo for a 2-bedroom unit.
Do I need parking for an ADU in Denver?
1 space per unit. Check with Denver planning department for the latest Colorado ADU parking rules, as many states have relaxed requirements in recent years.
How long does it take to get an ADU permit in Denver?
The permit review timeline in Denver is 30-45 days. Fees range from $1,600-$2,700.
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