Cost Guide

How Much Does an ADU Cost in Albuquerque, NM?

Complete 2026 cost breakdown: construction, permits, financing, and expected rental ROI.

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New Construction
$120,000-$240,000
Garage Conversion
$60,000-$130,000
Prefab ADU
$80,000-$170,000
Cost Per Sq Ft
$160-$320

Construction Cost Breakdown

Building an ADU in Albuquerque costs between $120,000-$240,000 for new construction, with per-square-foot costs averaging $160-$320. These figures include design, permitting, site preparation, and construction. The most affordable option is a garage conversion at $60,000-$130,000, while prefab/modular ADUs fall in between at $80,000-$170,000.

Cost CategoryEstimated Range
Architectural Plans$3,000 – $15,000
Permits & FeesValuation-based (Plan Review and Building Permit Fees table, rev. April 2010, still posted): a $150,000-$250,000 casita pays about $640-$920 permit plus $415-$600 plan review (65%), $25 zoning, $50 hydrology and trade permits. Site Plan - Administrative fee: see the Planning General Fee Schedule.
Impact FeesCharged per new dwelling under ROA 1994 14-19-13 (Ord. 2012-034, 100% rate since 2017): the single-family-detached rate totals $2,990 (roads $1,399, parks $902, open space $449, fire $133, police $58, trails $49) plus drainage at $5,104 per impervious acre outside the Central City service area ($0 inside). No ADU exemption: 14-19-15(A)(2) exempts accessory buildings only when they are not a new dwelling unit. The Impact Fee Administrator (505-924-3984) assigns the category; affordable-housing and Metropolitan Redevelopment Area waivers exist (14-19-15(A)(5)-(6)).
Site Prep & Foundation$10,000 – $35,000
Framing & Structure$15,000 – $45,000
Plumbing$8,000 – $20,000
Electrical$5,000 – $15,000
HVAC$3,000 – $8,000
Interior Finishes$15,000 – $40,000

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Quotes for the same ADU commonly vary 20–40% between builders. We pass your request to up to 5 local builders serving Albuquerque, where we have them — free, no obligation.

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Permit Costs & Timeline

Permit fees in Albuquerque are Valuation-based (Plan Review and Building Permit Fees table, rev. April 2010, still posted): a $150,000-$250,000 casita pays about $640-$920 permit plus $415-$600 plan review (65%), $25 zoning, $50 hydrology and trade permits. Site Plan - Administrative fee: see the Planning General Fee Schedule.. The review timeline is Building Safety publishes about 2.5 weeks for residential plan review per cycle; the optional FasTrax service (3x the plan-review fee, $1,000 minimum) targets about 10 days for the first cycle. Site Plan - Administrative review time is not published., with plan check: About 2.5 weeks per residential review cycle (Building Safety FAQ); corrections go back through the standard cycle even for FasTrax jobs.. Impact fees are Charged per new dwelling under ROA 1994 14-19-13 (Ord. 2012-034, 100% rate since 2017): the single-family-detached rate totals $2,990 (roads $1,399, parks $902, open space $449, fire $133, police $58, trails $49) plus drainage at $5,104 per impervious acre outside the Central City service area ($0 inside). No ADU exemption: 14-19-15(A)(2) exempts accessory buildings only when they are not a new dwelling unit. The Impact Fee Administrator (505-924-3984) assigns the category; affordable-housing and Metropolitan Redevelopment Area waivers exist (14-19-15(A)(5)-(6)).. Pre-approved plans: Yes: the Planning Department publishes four free casita construction plan sets (450, 550, 650 and 750 sq ft), each in flat-roof, pitched-roof and 3D-printable versions (12 files), drawn to the adopted building codes; still offered as of September 2026. Pitched-roof versions need truss drawings sealed by a New Mexico-licensed structural engineer..

Rental Income & ROI

Investment Returns

1-Bedroom Rent$1,100-$1,400/month
2-Bedroom Rent$1,350-$1,700/month
Annual Rental Income (est.)$15,000/year
Payback Period (est.)12.0 years
Short-Term RentalYes, with a City STR Permit ($120 first year, $90 annual renewal) and a City business license; the Planning Department's STR FAQ lists casitas as eligible where zoning allows.
Overall ROI EstimateGross yield roughly 7-12% a year on a $150,000-$240,000 build at HUD FY2026 Fair Market Rents ($1,185 1-BR, $1,464 2-BR), before vacancy, taxes and upkeep

A typical ADU in Albuquerque generates approximately $15,000 per year in rental income based on average 1-bedroom rents. At an average construction cost of $180,000, the estimated payback period is 12.0 years — before accounting for the resale value the ADU adds, which an appraiser determines from comparable sales in Albuquerque and varies by market (often less than build cost).

Ways to Reduce ADU Costs in Albuquerque

1. Garage conversions save 40-60% vs new construction since the shell already exists. Average cost in Albuquerque: $60,000-$130,000.

2. Prefab/modular ADUs offer predictable pricing and faster timelines. Average: $80,000-$170,000.

3. Pre-approved plans — available in Albuquerque, which can save $3,000-$10,000 in design costs and 2-3 months in review time. See which cities offer pre-approved ADU plans.

4. State grants — California's CalHFA ADU grant (up to $40K) is currently paused; check calhfa.ca.gov/adu for status and your state for active programs.

5. Get multiple bids — ADU contractor pricing varies 20-40% for the same project. We recommend getting at least 3 quotes.

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About this information: This page is an informational summary of publicly available regulations - it is not legal, financial, or professional advice, and it is not a substitute for confirming requirements with your local planning department. Rules change frequently; always verify current requirements before designing, budgeting, or building. Last verified: 2026-09-20. Contractors we introduce are independent businesses - verify license and insurance directly before hiring. Spotted an error? Tell us - we verify against primary sources and correct quickly.

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