Denver vs Boulder: ADU Rules Compared

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

8/10Denver Score
vs 
8/10Boulder Score

Zoning & Size Limits

RequirementDenver, COBoulder, CO
Allowed ZonesAll residential zonesAll single-family and multi-family zones
Max Size (Detached)864 sq ft800 sq ft (market-rate); 1,000 sq ft (affordable ADU program)
Max Size (Attached)864 sq ftUp to 50% of principal structure or 1,000 sq ft max
Max Height24 ft maximum20-25 ft (detached, depends on roof pitch); 35 ft
Parking Required1 space per unitNo parking required (eliminated March 2025)
Owner OccupancyRequired in single-unit zones (owner must live in primary orNot required (eliminated March 2025, per CO HB 24-1152)

Setback Requirements

SetbackDenver, COBoulder, CO
Rear SetbackMust be within rear 35% of lot; 5 ft minimum rear setback10 feet
Side Setback3 feet3 feet
Front Setback15 feet15 feet

Permits & Timeline

DetailDenver, COBoulder, CO
Permit Timeline30-45 days40-60 days
Permit Fees$1,600-$2,700$1,900-$3,200
Impact FeesMinimalMinimal
Pre-Approved PlansExtensive library availableAvailable

Construction Costs

CostDenver, COBoulder, CO
Avg Build Cost$140,000-$280,000$160,000-$320,000
Cost Per Sq Ft$130-$260$140-$280
Garage Conversion$70,000-$160,000$80,000-$180,000
Prefab ADU$100,000-$230,000$120,000-$270,000

Rental Income Potential

RentalDenver, COBoulder, CO
1BR Avg Rent$1,400-$1,900/mo$1,600-$2,100/mo
2BR Avg Rent$1,800-$2,500/mo$2,000-$2,800/mo
Short-Term RentalsYes, with STR licenseLimited restrictions
Est. ROI7-9% annual return6-8% annual return

Which City Is Better for ADUs?

Denver scores 8/10 while Boulder scores 8/10 on our ADU-friendliness index. 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.