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 zones that allow a single-family dwelling (citywide as oAll single-family and multi-family zones
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 district800 sq ft (market-rate); up to 1,000 sq ft (affordable ADU program)
Max Size (Attached)Up to 1,000 sq ft (varies by zone district)Up to 50% of principal structure or 1,000 sq ft max
Max Height24 ft / 1.5 stories maximum20-25 ft (detached, depends on roof pitch); confir
Parking RequiredNot required (no parking minimum for ADUs per HB24-1152 / CBNot required (no parking minimum for ADUs per Ordinance 8650
Owner OccupancyNot required (removed by CB24-1303, effective Dec 16, 2024; Not required (removed by Ordinance 8650, eff. March 8, 2025;

Setback Requirements

SetbackDenver, COBoulder, CO
Rear SetbackMust be within rear 35% of lot; 5 ft minimum rear setbackConfirm with Boulder Planning (reduced rear setbacks ~3 ft apply to market-rate detached ADUs near alleys)
Side SetbackVaries by lot width (typically 3-5 ft); confirm with Denver CPD3 feet
Front SetbackMatches the primary structure front setback (varie15 feet

Permits & Timeline

DetailDenver, COBoulder, CO
Permit Timeline4-7 months realistic from application to issued permit (zoning + building review)40-60 days
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$1,900-$3,200
Impact FeesDenver Water system development charge applies; see feesMinimal
Pre-Approved PlansPre-approved/standard plan options 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.

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