Denver vs Colorado Springs: ADU Rules Compared

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

8/10Denver Score
vs 
7/10Colorado Springs Score

Zoning & Size Limits

RequirementDenver, COColorado Springs, CO
Allowed ZonesAll zones that allow a single-family dwelling (citywide as oSingle-family residential 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 district50% of principal dwelling or 1,250 sq ft (whichever is less); 750 sq ft max if principal < 1,500 sq ft
Max Size (Attached)Up to 1,000 sq ft (varies by zone district)50% of principal dwelling or 1,250 sq ft (whichever is less)
Max Height24 ft / 1.5 stories maximum16 ft (detached ADUs); 25 ft (converted garage ADU
Parking RequiredNot required (no parking minimum for ADUs per HB24-1152 / CBNo parking required (removed April 2025)
Owner OccupancyNot required (removed by CB24-1303, effective Dec 16, 2024; Not required (removed April 2025, per CO HB 24-1152)

Setback Requirements

SetbackDenver, COColorado Springs, CO
Rear SetbackMust be within rear 35% of lot; 5 ft minimum rear setback12 feet
Side SetbackVaries by lot width (typically 3-5 ft); confirm with Denver CPD5 feet
Front SetbackMatches the primary structure front setback (varie20 feet

Permits & Timeline

DetailDenver, COColorado Springs, CO
Permit Timeline4-7 months realistic from application to issued permit (zoning + building review)45-65 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$1,800-$3,000
Impact FeesDenver Water system development charge applies; see fees$600-$1,200
Pre-Approved PlansPre-approved/standard plan options availableAvailable for select types

Construction Costs

CostDenver, COColorado Springs, CO
Avg Build Cost$140,000-$280,000$130,000-$260,000
Cost Per Sq Ft$130-$260$130-$260
Garage Conversion$70,000-$160,000$65,000-$155,000
Prefab ADU$100,000-$230,000$95,000-$210,000

Rental Income Potential

RentalDenver, COColorado Springs, CO
1BR Avg Rent$1,400-$1,900/mo$1,250-$1,700/mo
2BR Avg Rent$1,800-$2,500/mo$1,600-$2,200/mo
Short-Term RentalsYes, with STR licenseNot typically permitted
Est. ROI7-9% annual return8-10% annual return

Which City Is Better for ADUs?

Denver scores 8/10 while Colorado Springs scores 7/10 on our ADU-friendliness index. Denver edges ahead overall. Both cities offer viable ADU development opportunities — the best choice depends on your specific property, budget, and goals.

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