Denver vs Colorado Springs: ADU Rules Compared

Side-by-side comparison of ADU zoning rules, costs, and rental potential. Updated 2026.

8/10Denver Score
vs 
7/10Colorado Springs Score

Zoning & Size Limits

RequirementDenver, COColorado Springs, CO
Allowed ZonesAll residential zonesSingle-family residential zones
Max Size (Detached)864 sq ft50% of principal dwelling or 1,250 sq ft (whichever is less); 750 sq ft max if principal < 1,500 sq ft
Max Size (Attached)864 sq ft50% of principal dwelling or 1,250 sq ft (whichever is less)
Max Height24 ft maximum16 ft (detached ADUs); 25 ft (converted garage ADU
Parking Required1 space per unitNo parking required (removed April 2025)
Owner OccupancyRequired in single-unit zones (owner must live in primary orNot required (removed April 2025, per CO HB 24-1152)

Setback Requirements

SetbackDenver, COColorado Springs, CO
Rear SetbackMust be within rear 35% of lot; 5 ft minimum rear setback12 feet
Side Setback3 feet5 feet
Front Setback15 feet20 feet

Permits & Timeline

DetailDenver, COColorado Springs, CO
Permit Timeline30-45 days45-65 days
Permit Fees$1,600-$2,700$1,800-$3,000
Impact FeesMinimal$600-$1,200
Pre-Approved PlansExtensive library availableAvailable for select types

Construction Costs

CostDenver, COColorado Springs, CO
Avg Build Cost$140,000-$280,000$130,000-$260,000
Cost Per Sq Ft$130-$260$130-$260
Garage Conversion$70,000-$160,000$65,000-$155,000
Prefab ADU$100,000-$230,000$95,000-$210,000

Rental Income Potential

RentalDenver, COColorado Springs, CO
1BR Avg Rent$1,400-$1,900/mo$1,250-$1,700/mo
2BR Avg Rent$1,800-$2,500/mo$1,600-$2,200/mo
Short-Term RentalsYes, with STR licenseNot typically permitted
Est. ROI7-9% annual return8-10% annual return

Which City Is Better for ADUs?

Denver scores 8/10 while Colorado Springs scores 7/10 on our ADU-friendliness index. Denver edges ahead overall. Both cities offer viable ADU development opportunities — the best choice depends on your specific property, budget, and goals.

Finance Your ADU Project

Most ADU projects are funded through HELOCs, construction loans, or cash-out refinancing. Compare rates from top lenders.

Some links on this page are affiliate links. We may earn a commission at no extra cost to you. Learn more

Get Quotes in Your City

Connect with pre-vetted ADU contractors and get free quotes for your project.

Stay Updated on ADU Law Changes

Get notified when ADU regulations change in your city. Join 5,000+ homeowners and investors.