Add a detached accessory dwelling unit to your Colorado property — the most popular ADU type for rental income.
A backyard cottage (detached ADU) is a fully independent living unit built in your yard. With Colorado’s 2024 ADU law, most Denver metro properties can add a detached cottage up to 1,000 sq ft.
Backyard cottages typically cost $180,000–$320,000 for a 600–1,000 sq ft unit. ROI is typically achieved in 6–9 years based on current Denver metro rents of $1,800–$3,500/month.