🏡 ADUs in Fort Collins: What You Need to Know About Permitting, Building, and Earning Passive Income
As housing needs shift and property owners look to increase flexibility and value, Accessory Dwelling Units (ADUs) have emerged as one of the smartest investments in Fort Collins. Whether you’re creating space for family, pursuing passive income, or increasing resale value, an ADU can be a powerful solution—if you understand the permitting, building process, and costs upfront.
At Artemisia Design and Build, we’ve guided homeowners through the full ADU journey—from concept to completion—and here's what you should know before you build.
đź“ś Step 1: Understand Fort Collins ADU Zoning & Permits
Fort Collins is generally ADU-friendly, but each property must meet certain zoning and lot requirements. Here’s a breakdown:
Zoning Eligibility
Your lot must be in a zone that allows ADUs (most low-density residential zones do).
Minimum lot size: 5,000–6,000 sq ft, depending on zone.
One ADU per lot is allowed.
Key Rules
Max size: 1,000 sq ft or 40% of the primary home’s floor area (whichever is less).
Height limits: 25 ft or match existing home.
Must provide 1 additional off-street parking space.
Owner must live on the property in either the main house or ADU.
Permitting Process
Conceptual Review (Optional but Smart): You meet with city staff to review your idea.
Building Permit Application: Submit site plan, ADU design, utility plan, and zoning compliance.
Permit Fees: Varies, but expect $10,000–$18,000 depending on size, impact fees, and sewer/water connections.
🛠️ Step 2: What Does It Cost to Build an ADU in Fort Collins?
Like any custom build, cost depends on finish level, size, and site complexity. Here's a 2025 market breakdown:
Build QualityCost/Sq FtFor 800-1,000 Sq Ft
Entry-Level $200–$225/$160,000–$225,000
Mid-Range. $250–$300/$200,000–$300,000
High-End. $325+/$260,000–$350,000+
Other Costs to Factor In:
Utility extensions: $8,000–$20,000+
Design fees & engineering: $10,000–$20,000
Permits & impact fees: $10,000–$18,000
Landscaping & hardscaping: $5,000–$15,000
Total Turnkey Cost Estimate:
✅ $225,000–$325,000 for a well-built, finished, and code-compliant ADU.
đź’° Step 3: What Can You Earn From Renting an ADU?
Fort Collins has a strong rental market—driven by CSU, remote workers, and retirees relocating to Northern Colorado.
Estimated Monthly Rent for a 2-Bed ADU:
Long-Term Rental: $1,800–$2,200/month
Mid-Term (travel nurses, professionals): $2,200–$2,600/month
Furnished Airbnb (if allowed): $125–$200/night
(Note: short-term rental laws apply)
Annual Income Potential:
Long-term rental: $21,000–$26,000
Mid-term or short-term: $30,000–$45,000+
Cap Rate Estimate (based on $250K build):
🔹 6%–8% long-term
🔹 10%+ for short-term (if eligible)
🌿 Why ADUs Are the Future of Housing
Building an ADU is more than a project—it’s a property evolution:
Multigenerational living without moving
Rental income to offset your mortgage
A home office, guest space, or aging-in-place solution
A high-ROI addition to your home’s value
With Fort Collins’ growing need for flexible housing, a well-designed ADU is one of the most future-proof upgrades you can make.
Ready to Build?
At Artemisia Design and Build, we offer turnkey ADU design and construction, tailored to Fort Collins' codes and your unique property. Whether you’re in the dreaming stage or ready to break ground, we bring clarity, craftsmanship, and care to every step of the journey.
Sage solutions for the modern home—and a smart investment in your future.
