In Denver, the investment for converting a basement into an Accessory Dwelling Unit (ADU) typically ranges from $40,000 to $80,000. This is currently the most popular ADU conversion option in the Denver market.

Several factors influence the final cost of a basement conversion, including:

• Project Scope: The size of the unit and the level of finishes selected.
• Structural Requirements: Potential foundation work and necessary utility upgrades.
• Permitting and Fees: Costs associated with the City and County of Denver ePermits process, which requires site plans, floor plans, and energy calculations.
• Mandatory Amenities: The need for code-compliant kitchen and bathroom build-outs to create a fully independent living space.

In addition to increasing property value, a basement ADU in Denver has a rental income potential ranging from $1,200 to $2,000 per month. To ensure legal compliance, Denver regulations require the primary lot to be at least 5,000 square feet for attached units and mandate owner occupancy for at least one of the units during the first three years.