Complete 2026 cost breakdown: construction, permits, financing, and expected rental ROI.
Calculate your Albuquerque ADU cost →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 Category | Estimated Range |
|---|---|
| Architectural Plans | $3,000 – $15,000 |
| Permits & Fees | 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. |
| Impact Fees | 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)). |
| 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 |
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.
Get Albuquerque builder quotes →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..
| 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 Rental | Yes, 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 Estimate | Gross 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).
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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