Denver is highly ADU-friendly, allowing detached and attached units in every zone that permits a single-family dwelling (citywide as of CB24-1303, Dec 2024) with streamlined administrative approval. The city's emphasis on infill development and housing affordability makes it one of the nation's better ADU markets.
Zoning & Size Requirements [1][2]
Yes, you can build an ADU in Denver. A detached ADU can be up to the city's size limit under current Colorado and Denver zoning rules.
| Allowed Zones | All zones that allow a single-family dwelling (citywide as of CB24-1303, effective Dec 16, 2024) |
| Max Size (Detached) | Up to 1,000 sq ft on lots over 7,000 sq ft (864 sq ft on 6,000-7,000 sq ft lots; ~650 sq ft on smaller lots) — varies by zone district |
| Max Size (Attached) | Up to 1,000 sq ft (varies by zone district) |
| Max Size (JADU) | Confirm with Denver CPD (Denver regulates ADUs, not a separate JADU category) |
| Max Height | 24 ft / 1.5 stories maximum |
| Max Units | 1 ADU per single-family lot |
Setback Requirements [1][2]
Denver requires a rear setback of about 35 ft for a detached ADU, and no additional parking is required. Owner-occupancy is not required — you can rent it out without living on the property.
| Rear Setback | Must be within rear 35% of lot; 5 ft minimum rear setback |
| Side Setback | Varies by lot width (typically 3-5 ft); confirm with Denver CPD |
| Front Setback | Matches the primary structure front setback (varies by zone); a 15 ft separation is required between the house and the ADU |
| Parking Required | Not required (no parking minimum for ADUs per HB24-1152 / CB24-1303) |
| Owner Occupancy | Not required (removed by CB24-1303, effective Dec 16, 2024; consistent with CO HB24-1152) |
| Min Lot Size | No minimum lot size (removed by CB24-1303) |
Permit Process & Fees [3]
An ADU permit in Denver typically costs $500-$5,000 building permit + ~$2,055 Denver Water SDC (rising to $2,170 on Jul 1, 2026); total permit/utility typically $6K-$10K and takes 4-7 months realistic from application to issued permit (zoning + building review), through a ministerial, by-right review.
| Approval Process | Administrative (by-right) approval — no public hearing |
| Review Timeline | 4-7 months realistic from application to issued permit (zoning + building review) |
| Permit Fees | $500-$5,000 building permit + ~$2,055 Denver Water SDC (rising to $2,170 on Jul 1, 2026); total permit/utility typically $6K-$10K |
| Impact Fees | Denver Water system development charge applies; see fees |
| Plan Check | Several weeks to a few months depending on backlog |
| Pre-Approved Plans | Pre-approved/standard plan options available |
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Construction Costs [4][5]
Building an ADU in Denver typically costs $140,000-$280,000 ($130-$260 per sq ft); a garage conversion runs $70,000-$160,000.
| 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 |
Finance Your ADU Project
Most ADU projects are funded through HELOCs, construction loans, or cash-out refinancing. Compare rates from top lenders.
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Rental Income Potential [6][7]
A 2-bedroom ADU in Denver rents for around $1,800-$2,500/mo, an estimated 7-9% annual return.
| 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.
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Recent Law Changes
What's Changed Recently
- Colorado ADU Grant Program (HB24-1152) Round 3 runs Aug 3-31, 2026 - funds go to certified local governments, not directly to homeowners; if Denver participates, residents may see subsidized pre-approved plans or reduced fees
- Denver CB24-1303 (Dec 2024) fully in effect: ADUs in all residential zones, no lot size min, no owner-occupancy
- Permit fees: $500-$5,000 building + ~$2,055 Denver Water SDC (rising to $2,170 on Jul 1, 2026). Total permit/utility typically $6K-$10K
- Realistic permit timeline: 4-7 months from application to issued permit
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
ADU Builders in Denver
Looking for an ADU builder in Denver? ADU projects need a contractor experienced with local zoning, the permit process, and utility connections — not every general contractor has built one. We match Denver homeowners with experienced local ADU contractors who provide free, no-obligation quotes. Getting at least three bids typically saves 20-40% on the same scope.
Sources & References
All data on this page is sourced from official government records and verified market data. View our full methodology.
- Accessory Dwelling Units (ADUs) in Denver Planning Department — Accessed 2026-02-24
- Citywide ADU Zoning Text Amendment (CB24-1303, eff. Dec 16, 2024) Municipal Code — Accessed 2026-06-28
- ADU Permits | Denver CPD Planning Department — Accessed 2026-02-24
- Angi — ADU Construction Cost Data Market Data — Accessed 2026-02-24
- Angi — Local ADU Contractor Costs Market Data — Accessed 2026-02-24
- Zillow Rental Manager — Market Rent Data Market Data — Accessed 2026-02-24
- HUD Fair Market Rents Government Data — Accessed 2026-02-24
- Denver ADU Interactive Map Planning Department — Accessed 2026-02-24
- Colorado ADU Legislation (HB 24-1152) Government Data — Accessed 2026-02-24
- Denver CB24-1303 Ordinance — Citywide ADUs (City Council, eff. Dec 16, 2024) Municipal Code — Accessed 2026-06-28
Frequently Asked Questions
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