Learn · Rental Income

An ADU earns its keep
twice over.

A second unit on your lot can bring in rent, and it adds permitted, livable square footage to a property you already own. What that is worth depends on your street and what you want the unit to do — which is a conversation, not a calculator.

Why a detached unit holds its value

An ADU is not a converted basement or a room over the garage. It is a separate, permitted dwelling with its own entrance — and that is the difference a tenant, an appraiser and a future buyer all price differently.

Why ADUs command a premium: Detached ADUs offer what a converted basement cannot: a private entry, no shared walls, dedicated outdoor space, and new-construction finishes. That is why they sit apart from the rest of the rental stock — and why they keep doing so at resale.

How an ADU affects property value

Beyond rental income, an ADU changes what your property is worth.

Appraisal impact

A permitted, inspected ADU adds livable square footage to your property record rather than sitting outside it. An appraiser counts that space; an unpermitted conversion does not get the same treatment.

Buyer appeal

Properties with ADUs attract a wider buyer pool: investors see rental income, families see multigenerational flexibility, remote workers see a dedicated office. In competitive Front Range markets, this differentiation matters at resale.

The tax basis advantage

Your ADU construction cost becomes part of your property's tax basis, which matters when you sell. How that plays out depends on your situation — your tax advisor is the right person to ask.

See what your lot can support.

The first step is knowing which plan sizes fit your property. Our free finder checks your lot against the zoning your own jurisdiction publishes — eighteen of them across the Front Range.

Check my propertyView floor plans and pricing

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