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ADU ROI Calculator — Colorado
Colorado's ADU market is led by Denver and Boulder, two of the fastest-growing rental markets in the country. Denver updated its zoning code in 2021 to allow ADUs on most residential lots citywide, and the city has seen strong demand from remote workers and young professionals.
Typical Project Cost
$160,000–$280,000
Typical Monthly Rent
$1,400–$2,400/mo
Cap Rate Range
7–11%
Break-Even Range
8–14 years
ADU Rental Income by City — Colorado
Use these figures as a starting point when entering your expected monthly rent above.
| City | 1BR ADU Rent | 2BR ADU Rent | Avg Build Cost |
|---|---|---|---|
| Denver | $1,500–$2,200/mo | $1,900–$2,800/mo | $170K–$270K |
| Boulder | $1,700–$2,600/mo | $2,200–$3,200/mo | $190K–$300K |
| Fort Collins | $1,200–$1,800/mo | $1,500–$2,200/mo | $150K–$240K |
| Colorado Springs | $1,000–$1,500/mo | $1,300–$1,900/mo | $130K–$210K |
Colorado ADU ROI — Frequently Asked Questions
What is a good ADU ROI in Colorado?
Denver ADUs typically achieve 8–11% cap rates. Boulder yields are similar despite higher rents, because construction costs are also higher. Fort Collins and Colorado Springs offer 7–10% returns with lower construction costs.
Can I build an ADU in Denver?
Yes. Denver's 2021 zoning update (Denver Zoning Code, Article 3) allows ADUs on most residential lots citywide. Maximum ADU size is 1,000 sq ft or 50% of the primary dwelling. Denver has a pre-application review service and offers pre-approved ADU plan sets to streamline permitting.
How much does it cost to build an ADU in Denver?
Denver ADU costs range from $130,000–$180,000 for garage conversions to $200,000–$300,000 for new detached ADUs. Denver's permit fees are moderate, and the city's streamlined process reduces soft costs compared to coastal markets.