Olerra accessory dwelling unit in Colorado

Palmer Lake ADU rules, costs & rent (2026)

Palmer Lake’s real rules, taxes and rents — read from the codified ordinance, every figure sourced and dated. Here: a HUD benchmark rent of $1,464/mo for a 1-bed. Run your own numbers below, free.

The ADU rules in Palmer Lake.

Read from the Palmer Lake Code Of Ordinances itself — the operative legal text, not a website summary. Palmer Lake is an HB24-1152 subject jurisdiction: since June 30, 2025, state law requires it to allow an ADU wherever it allows a single-family home, with administrative approval — the local standards below still apply.

Minimum ADU size500 sq ftverified October 2026Palmer Lake Code Of Ordinances §17.05.225
the ordinance text
(2) All ADUs shall be subordinate in size to the principal residence but shall not be less than 500 square feet).
Owner occupancyNoverified September 2026Palmer Lake Code Of Ordinances §17.05.225
the ordinance text
Owner occupancy is not required.
Short-term rentalNoverified September 2026Palmer Lake Code Of Ordinances §17.05.225
the ordinance text
Short-term rentals are not allowed.
Extra parkingNone beyond the main houseverified September 2026Palmer Lake Code Of Ordinances §17.05.225
the ordinance text
ADUs do not require additional parking spaces.
Fire sprinklersNo (for detached ADUs under 800 sq ft; not addressed for larger or attached ADUs in this text)verified September 2026Palmer Lake Code Of Ordinances §17.05.225
the ordinance text
Fire sprinklers are not required for detached ADUs less than 800 square feet.

Source: Palmer Lake Code Of Ordinances, §17.05.225 · ordinance text retrieved 2026-08-25, re-verified October 2026 · open “the ordinance text” under any figure to read the exact sentence it comes from.

What’s different about building in Palmer Lake.

No owner-occupancy requirement — unusual for Colorado (11 of 21 codes we’ve read require it), so a fully tenant-occupied property works here.

Short-term rental of the ADU is not permitted, so the model here is long-term tenancy or family use. No extra parking is required for the ADU.

Property tax runs lighter than most of the state here: 66.96 mills total in the example tax area (El Paso County, Town of Palmer Lake levies), about 26% below the median of the Colorado tax areas we track (levies vary by parcel).

Olerra factory line where Flex Flats are built

The local math.

What an ADU adds to the tax bill in Palmer Lake, and the federal benchmark for what it rents for.

Example mill levy
66.96
36 school · 30.96 local · El Paso County, Town of Palmer Lake levies · tax year 2025 levy, collected 2026 (not final 2026 levies) · an example, not a parcel quote
Tax per $100K of added value
≈$464/yr
TY2026 assessment rates (7.05% school, 6.80% local) on the latest certified levy (TY2025) — a mixed-year estimate until TY2026 levies are certified
1-bed rent benchmark
$1,464/mo
HUD FY2026 Fair Market Rent, El Paso County — a benchmark, not a guaranteed rent
2-bed rent benchmark
$1,735/mo
HUD FY2026 Fair Market Rent — actual rents vary by unit and location

Levies: El Paso County Treasurer - Mill Levies (2025 Mill Levies.xlsx, 'TAX YEAR 2025 / BILLED 2026' column) — example: El Paso County, Town of Palmer Lake levies; levies differ between tax areas inside Palmer Lake; check your parcel with the county assessor. Rates: Colorado DOLA, TY2026 — the 10% reduction on the first $700,000 of value applies to the local-government portion, once per property. Rents: HUD Fair Market Rents, huduser.gov.

What an ADU actually costs here.

Two ways to build the same unit in Palmer Lake. Both figures are all-in — design, permits, foundation, utility connections and installation.

Site-built with a general contractor

≈490 sq ft · one-off design, trades at Front Range site rates, 20–35% GC markup, 12–18 months

Typical all-in range
$500,000–$650,000

Published Front Range ranges for a comparable one-off build, 2025–26

Olerra Flex Flat 490 ADU exterior

Flex Flat 490

490 sq ft · Studio, 1 Bedroom, or Studio + 2‑car garage

All-in project range
$300,000–$365,000

≈ $2,100–$2,600 / month fully financed

In Palmer Lake, the 490 is below Palmer Lake's 500 sq ft minimum ADU size

Olerra Flex Flat 735 ADU exterior

Flex Flat 735

735 sq ft · 2 Bedroom

All-in project range
$420,000–$465,000

≈ $2,800–$3,500 / month fully financed

In Palmer Lake, the 735 meets the 500 sq ft minimum; Palmer Lake's maximum size is not confirmed on this page

Olerra ranges: published all-in project pricing, September 2026 — site preparation, foundation, utility connections and permitting included.

Palmer Lake ADU questions, answered.

Are ADUs allowed in Palmer Lake?

Yes. The Palmer Lake Code Of Ordinances permits accessory dwelling units (§17.05.225), subject to the size, height, setback and use rules quoted above from the ordinance text. Palmer Lake is also an HB24-1152 subject jurisdiction, so since June 30, 2025 state law requires it to allow an ADU wherever it allows a single-family home, with administrative approval; the local standards above still apply. Zoning district, lot size and setbacks still decide what fits on a specific lot — the free property check confirms yours.

Do I need a permit to build an ADU in Palmer Lake?

Yes. An ADU is a new dwelling unit, so Palmer Lake requires a building permit (plus any zoning or site-plan review the code calls for) before construction starts. Olerra's all-in price includes permitting, and factory-built units are inspected to the same building code as a site-built home.

Can I rent an ADU on Airbnb in Palmer Lake?

No — the ordinance does not permit short-term rental of an ADU here, so plan on long-term tenancy or family use.

Does the owner have to live on the property in Palmer Lake?

No — there is no owner-occupancy requirement, so the whole property can be tenant-occupied.

How much does it cost to build an ADU in Palmer Lake?

A one-off site build with a general contractor typically runs about $500,000–$650,000 for a ~490 sq ft unit. Olerra's factory-built Flex Flats run $300,000–$365,000 (490) and $420,000–$465,000 (735) all-in — site preparation, foundation, utility connections and permitting included.

How much property tax will an ADU add in Palmer Lake?

Roughly $464 per year for every $100,000 of value the ADU adds, in the example tax area shown above: Colorado's TY2026 school (7.05%) and local-government (6.80%) assessment rates on the latest certified (TY2025) levy, a mixed-year estimate. Levies differ between tax areas, so check your parcel with the county assessor.

ADU rules in other Colorado cities.

Same method, each city’s own ordinance. The Colorado hub lists every city, and the statewide ADU calculator covers any Colorado address.

Denver864–1,000 sq ft · 79.6 mills · $1,754/mo HUD rent benchmarkAuroraup to 650 sq ft · 98.2 mills · $1,754/mo HUD rent benchmarkBoulder750–1,000 sq ft · 89.2 mills · $1,795/mo HUD rent benchmarkFort Collins750–1,000 sq ft · 92.7 mills · $1,537/mo HUD rent benchmarkLongmont800+ sq ft · 97.6 mills · $1,795/mo HUD rent benchmarkThornton1,000+ sq ft · 113.4 mills · $1,754/mo HUD rent benchmarkArvada600–1,200 sq ft · 97.4 mills · $1,754/mo HUD rent benchmarkGolden500–800 sq ft · 90.7 mills · $1,754/mo HUD rent benchmarkWheat Ridgeup to 1,000 sq ft · 88.2 mills · $1,754/mo HUD rent benchmarkPuebloup to 800 sq ft · 92.6 mills · $967/mo HUD rent benchmarkMonument750–1,250 sq ft · $1,464/mo HUD rent benchmarkSalida800–1,000 sq ft · 46.1 mills · $1,117/mo HUD rent benchmarkDacono118.2 mills · $1,238/mo HUD rent benchmarkEaton750–1,000 sq ft · 80.0 mills · $1,238/mo HUD rent benchmarkHudsonup to 1,000 sq ft · 87.2 mills · $1,238/mo HUD rent benchmarkLa Salleup to 750 sq ft · 69.7 mills · $1,238/mo HUD rent benchmarkSuperior750+ sq ft · 105.0 mills · $1,795/mo HUD rent benchmarkSheridan91.5 mills · $1,754/mo HUD rent benchmarkRidgway1,000–1,200 sq ft · 63.2 mills · $1,245/mo HUD rent benchmarkSilverton800+ sq ft · 45.8 mills · $1,119/mo HUD rent benchmarkWestminsterup to 1,200 sq ft · $1,754/mo HUD rent benchmarkBroomfield500–800 sq ft · $1,754/mo HUD rent benchmarkFirestoneup to 900 sq ft · 104.8 mills · $1,238/mo HUD rent benchmarkTimnath850–1,000 sq ft · $1,537/mo HUD rent benchmarkBerthoudup to 850 sq ft · 95.5 mills · $1,537/mo HUD rent benchmark

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Citation line Olerra ADU Cost Calculator — Palmer Lake, CO. Page updated October 9, 2026; rules verified October 2026. https://www.olerra.com/adu-calculator/palmer-lake/
Link HTML <a href="https://www.olerra.com/adu-calculator/palmer-lake/">Palmer Lake ADU rules &amp; costs</a>

Page updated October 9, 2026. The oldest dated figure on the page is from August 25, 2026.

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