Do I have to live on the property to rent an ADU in Colorado?
No, not for a long-term rental in the places a 2024 state law covers. HB24-1152 stops those cities and towns from requiring the owner to live in the house or the ADU. Denver, Aurora and Colorado Springs are on the state's list.
WHAT MOST PEOPLE ARE NEVER TOLD
The state law limits cities, and your loan has its own rule. A Fannie Mae loan on a home you live in still asks you to move in within 60 days and stay at least a year.
Covered places had until June 30, 2025 to allow one ADU wherever they allow a detached single-family house. The state's Department of Local Affairs publishes the list.
The law leaves a city two moments when it may ask for proof that the owner lives on the lot. One is when you apply to build or convert the ADU. The other is when you apply for a short-term rental license or permit on the lot. A city may still tie a short-term rental to living there, and Denver does.
In a covered place an HOA may not block the creation of an ADU on a single-family lot, though it may apply what the law calls reasonable restrictions. That part of the law is about building one, so read your covenants for any limit on renting it.
Checked November 11, 2026. Your city's planning or zoning office confirms what its code says now. Your lender confirms how long your loan asks you to live there.
GOOD TO KNOW
The law binds only the places on the state's list, so check yours and ask the planning office about your lot. It skips some lots, such as those in a floodplain or without water and sewer service.
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WHERE THIS COMES FROM
- Colorado Department of Local Affairs: Accessory Dwelling Units (HB24-1152)
- Colorado General Assembly: HB24-1152, Accessory Dwelling Units
- Fannie Mae Selling Guide B2-1.1-01, Occupancy Types
- City and County of Denver: Short-term rental frequently asked questions
Researched and written by Series Homes. Checked against its sources on . Lending rules change. This page is general information, not a loan offer or legal or tax advice.