Yes: Albuquerque allows one detached casita (ADU) by right on any lot zoned R-A, R-1, R-T or R-ML under IDO Section 14-16-4-3(F)(6), with no owner-occupancy rule. The casita is capped at 750 sq ft of gross floor area (650 sq ft in the Downtown CPO-3 area), cannot be taller than the house, must sit behind the rear wall of the house with a 5-ft side or rear setback, and needs one off-street parking space. Approval is a staff-level Site Plan - Administrative plus a building permit through ABQ-PLAN; residential plan review runs about 2.5 weeks per cycle. A $150,000-$250,000 build pays roughly $1,100-$1,600 in building-permit, plan-review, zoning and hydrology fees plus about $3,000 in impact fees at the single-family rate, and the city gives away four casita plan sets (450-750 sq ft).
Zoning & Size Requirements [1][2][3][4][5][6]
Yes — Albuquerque allows ADUs. A detached ADU can typically be up to 750 sq ft under current New Mexico and Albuquerque zoning rules.
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| Allowed Zones | Permissive accessory use in R-A, R-1, R-T and R-ML (IDO Table 4-2-1, 2025 Update effective 4/20/2026); not allowed in R-MC or R-MH. Also allowed as a caretaker unit in MX-T, MX-L, MX-M and most NR zones. Casitas with kitchens have been by right in R-1 and R-A citywide since Housing Forward ABQ (O-22-54, effective 7/27/2023). |
| Max Size (Detached) | 750 sq ft of gross floor area (IDO 14-16-4-3(F)(6)(a)); an attached garage does not count toward the cap. All accessory buildings together may also cover no more than 25% of the combined side and rear yards (14-16-5-11(C)(4)(a)). Downtown Neighborhood Area CPO-3: 650 sq ft (4-3(F)(6)(g)1). |
| Max Size (Attached) | No attached-casita option on a house lot: the ADU must be a detached accessory building (14-16-4-3(F)(6)(a)1). Converting part of the house into a second unit with its own kitchen and entrance is regulated as a two-family dwelling (duplex), which is prohibited in R-A and R-1 except within 1,320 ft of Main Street/Premium Transit areas (14-16-4-3(B)(5)(b)). |
| Max Size (JADU) | No junior-ADU category in the IDO. A second kitchen inside the house is a separate accessory use (14-16-4-3(F)(16)); an interior unit with its own entrance and kitchen is a duplex, not an ADU. |
| Max Height | No taller than the primary house on the lot (14-16-4-3(F)(6)(c)). In Downtown CPO-3 the limit is the house height or 18 ft, whichever is less (14-16-4-3(F)(6)(g)1.b; 14-16-3-4(D)(4)(a)). |
| Max Units | 1 accessory dwelling unit per lot wherever the use is allowed (14-16-4-3(F)(6)(a)). Exterior color must be the same or similar to the main house (14-16-4-3(F)(6)(d)). |
Setback Requirements [1][2][3][4][5][6]
Albuquerque requires a rear setback of about 5 ft for a detached ADU, and one off-street parking space is required. Owner-occupancy is not required — you can rent it out without living on the property.
| Rear Setback | 5 ft minimum from either the rear or one side lot line (14-16-4-3(F)(6)(b)); other accessory-building lot lines carry no zoning setback (14-16-5-11(C)(4)(d)). Separately, the building code needs 5 ft between buildings unless the casita is fire-rated. |
| Side Setback | 5 ft minimum side or rear (one of the two, 14-16-4-3(F)(6)(b)). Corner lots: same street-side setback as the main house (14-16-4-3(F)(6)(f)). A 5-ft-wide passage must be kept somewhere along the yard if the casita spans its full width (14-16-5-11(C)(4)(e)). |
| Front Setback | Not allowed in the required front setback (14-16-5-11(C)(4)(a)); a detached casita must be located behind the rear wall of the primary building in any residential or mixed-use zone (14-16-4-3(F)(6)(f)). |
| Parking Required | 1 off-street space per ADU (IDO Table 5-5-1). O-24-69 (effective 1/28/2025) cut minimums 50% in Urban Center/Activity Center/Employment Center/Main Street areas and 60% within Premium Transit areas (14-16-5-5(C)(5)); confirm with Planning how a reduced single space is counted. |
| Owner Occupancy | Not required. The IDO 2025 Update text (effective 4/20/2026) contains no owner-occupancy clause for accessory dwelling units, and none was added by O-22-54 (2023) or O-24-69 (2025). |
| Min Lot Size | None citywide. Exception: in the Sawmill/Wells Park CPO-12 area, R-1 lots need at least 7,000 sq ft (14-16-4-3(F)(6)(g)2). |
Permit Process & Fees [7][8][9][10][11][12]
An ADU permit in Albuquerque goes through a standard permit review. Typical timeline: 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. Permit 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.
| Approval Process | Two staff-level steps in ABQ-PLAN, no public hearing: (1) Site Plan - Administrative showing property lines, easements, existing structures, the casita and the parking space, with a grading and drainage plan and the required public notice (posted sign plus email to the neighborhood association); (2) building permit with a full construction set, plus separate electrical, plumbing and mechanical trade permits. Inspections: foundation, framing, insulation, electrical, plumbing/mechanical, final. |
| Review Timeline | 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. |
| Permit 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)). |
| Plan Check | About 2.5 weeks per residential review cycle (Building Safety FAQ); corrections go back through the standard cycle even for FasTrax jobs. |
| 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. |
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Construction Costs [13]
Building an ADU in Albuquerque typically costs $120,000-$240,000 ($160-$320 per sq ft); a garage conversion runs $60,000-$130,000.
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| Average Build Cost | $120,000-$240,000 |
| Cost per Sq Ft | $160-$320 |
| Garage Conversion | $60,000-$130,000 |
| Prefab ADU (Installed) | $80,000-$170,000 |
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Rental Income Potential [14][15]
A 2-bedroom ADU in Albuquerque rents for around $1,350-$1,700/mo, an estimated 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.
| Avg Rent (1 Bedroom) | $1,100-$1,400/mo |
| Avg Rent (2 Bedroom) | $1,350-$1,700/mo |
| 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. |
| Est. Annual ROI | 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 |
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Recent Law Changes
What's Changed Recently
- 2025 IDO Update (O-26-2, adopted 2/18/2026, effective 4/20/2026): accessory dwelling unit standards now sit at Section 14-16-4-3(F)(6); the 750 sq ft cap, 5-ft setback, height, color and one-per-lot rules are unchanged from 2023.
- O-24-69 (adopted 1/6/2025, effective 1/28/2025): duplexes, townhouses and multifamily allowed in R-1 within 1,320 ft of Main Street/Premium Transit areas, parking minimums cut 50-60% in centers and transit areas, appeal rules changed; no change to casita standards.
- Housing Forward ABQ (O-22-54, adopted 6/21/2023, effective 7/27/2023): casitas with kitchens became a permissive accessory use in R-1 and R-A citywide, conditional-use requirements in small areas were removed, and the 750 sq ft, 5-ft setback, color-match and height rules were written into the IDO.
- Free casita plans: four sizes in three versions each remain posted by the Planning Department (checked 9/20/2026).
- Entry re-verified 9/20/2026 against the IDO 2025 Update text, the enacted ordinances on Legistar, ROA 14-19-13 impact fees, the city ADU, STR and Building Safety pages and HUD FY2026 FMR; permit and impact-fee figures replaced with schedule amounts.
Tips for Building an ADU in Albuquerque
- Check eligibility first: search your address on the IDO zone look-up map. Casitas are by right in R-A, R-1, R-T and R-ML, not in R-MC or R-MH; Downtown CPO-3 caps size at 650 sq ft and 18 ft, and Sawmill/Wells Park CPO-12 needs a 7,000 sq ft R-1 lot.
- Size the casita from the yard, not the cap: all accessory buildings together may cover only 25% of the combined side and rear yards. The city's worked example is 4,009 sq ft of side plus rear yard, 25% = 1,002 sq ft, so the full 750 sq ft is allowed.
- Use a free city plan set (450, 550, 650 or 750 sq ft) to skip design fees; you still need a site plan, a grading and drainage plan and, for pitched-roof versions, truss drawings sealed by a New Mexico-licensed structural engineer.
- Two different 5-ft rules apply: zoning needs 5 ft from the rear or one side lot line, and the building code needs 5 ft between the casita and any other building unless the casita is fire-rated construction, which costs more.
- Budget impact fees: the single-family-detached rate is $2,990 per new dwelling plus drainage outside the Central City service area. Ask the Impact Fee Administrator (505-924-3984) which category a casita falls in before you finalize financing; Metropolitan Redevelopment Area and affordable-housing waivers exist.
- Post the public-notice sign and email the neighborhood association before filing the Site Plan - Administrative; missing notice is the most common reason a staff review stalls.
- Cost basis: the four cost ranges are the national ranges from the July 2026 Angi guide applied to Albuquerque's 450-750 sq ft plan sizes ($160-$320 per sq ft x 750 sq ft = $120,000-$240,000); no Albuquerque-specific dated industry guide could be fetched on 9/20/2026, so treat them as a planning range and get three local bids.
- Short-term renting a casita is legal with a City STR Permit ($120, then $90 a year), a business license and a New Mexico Business Tax ID; long-term, HUD's FY2026 Fair Market Rents for the metro are $1,185 (1-BR) and $1,464 (2-BR).
- Cost basis (2026-09-20 re-verification): short term allowed: 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. Overnight occupancy is capped at 2 adults per bedroom plus 2, and proof of STR insurance and a posted Good Neighbor Agreement are required.
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Sources & References
All data on this page is sourced from official government records and verified market data. View our full methodology.
- Accessory Dwelling Units - City of Albuquerque Planning Planning Department — Accessed 2026-09-20
- Integrated Development Ordinance, 2025 IDO Update, effective April 20, 2026 (Sections 14-16-4-3(F)(6), 14-16-5-11(C)(4), Table 4-2-1, Table 5-5-1) Municipal Code — Accessed 2026-09-20
- O-22-54 Housing Forward ABQ, enacted O-2023-024 (Legistar) ordinance — Accessed 2026-09-20
- O-24-69 Easing Restrictions on Housing Development, enacted O-2025-004 (Legistar) ordinance — Accessed 2026-09-20
- O-26-2 2025 IDO Biennial Update, enacted O-2026-006 (Legistar) ordinance — Accessed 2026-09-20
- ADU FAQs - City of Albuquerque Planning Department — Accessed 2026-09-20
- Free Casita Construction Plans - City of Albuquerque Planning Planning Department — Accessed 2026-09-20
- Building Safety & Permits FAQs - City of Albuquerque building_dept — Accessed 2026-09-20
- Plan Review Information (ABQ-PLAN, FasTrax) - City of Albuquerque building_dept — Accessed 2026-09-20
- Plan Review and Building Permit Fees (revised April 2010) - City of Albuquerque fee_schedule — Accessed 2026-09-20
- ROA 1994 Section 14-19-13 Fee Schedules and 14-19-15 Exemptions (Impact Fees), supplement S-95 2026 Municipal Code — Accessed 2026-09-20
- Impact Fees Section - City of Albuquerque Planning Planning Department — Accessed 2026-09-20
- Angi - How Much Does an ADU Cost to Build (2026 data) industry — Accessed 2026-07-22
- HUD FY2026 Fair Market Rents - Albuquerque, NM MSA Government Data — Accessed 2026-09-20
- Short Term Rental FAQ - City of Albuquerque Planning Planning Department — Accessed 2026-09-20
- Interactive IDO - effective-date notice (IDO effective 4/20/2026 and 5/6/2026) Planning Department — Accessed 2026-09-20
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