How to Choose an ADU Contractor in Colorado (Questions to Ask)
How to hire an ADU contractor in Colorado, the questions to ask, the red flags to avoid, how licensing works here, and modular versus site-built compared.
Ridgway’s real rules, taxes and rents — read from the codified ordinance, every figure sourced and dated. Here: a HUD benchmark rent of $1,245/mo for a 1-bed. Run your own numbers below, free.
Read from the Ridgway Code Of Ordinances itself — the operative legal text, not a website summary.
| Maximum ADU size | 1,000 sq ft (gross floor area); up to about 1,100 sq ft with the water-conserving landscaping option, or 1,200 sq ft with the sustainable-construction option — the code does not say the two combineverified October 2026Ridgway Code Of Ordinances §7-4-6the ordinance text"The maximum size of an ADU shall not exceed 1,000 square feet of gross floor area unless otherwise allowed by this section." ... "Landscaping. When a property owner requesting an ADU meets one of the applicable water conservation standards below, the proposed ADU may increase its maximum gross floor area by up to ten (10) percent without an administrative adjustment." ... "Sustainable construction methods. When an applicant meets the applicable sustainable construction standards as set forth below, the proposed ADU may exceed the maximum gross floor area by two hundred (200) square feet." (sustainable standards: certified by a professional sustainable construction organization; proof of energy-efficient design exceeding industry standards; 50 percent of materials sourced from Colorado) |
| Height limit | No ADU-specific limit; the zone district's limit applies: 27 ft for single-family/duplex lots in the R and HR districts, 35 ft in MR.verified October 2026Ridgway Code Of Ordinances §7-4-6the ordinance text"All lots where an ADU is proposed shall comply with all dimensional standards applicable to the underlying zone district." Table T-4.4 (Structure Height, ft): R Single-Family and Duplex 27; HR Single-Family and Duplex 27; HR Residential uses with three or four dwelling units 35; MR Single-Family and Duplex 35; MR Residential uses with three or four dwelling units 35. Height is measured "between the elevation of the lowest point of the natural grade abutting any exterior wall or supporting structure and the highest point of the coping of a flat roof or to the deck line of a mansard roof or to the average height of the highest gable or a pitched or hipped roof"; "Allowable building height may be increased by six inches if the roof design includes raised heel trusses." |
| Owner occupancy | No owner-occupancy required for standard ADU use (a 90-day minimum lease applies unless the ADU is owner-occupied); but if the property is used for short-term rental outside the HB/DS/GC districts, at least one dwelling unit on the property must be owner-occupied.verified September 2026Ridgway Code Of Ordinances §7-4-6the ordinance textA minimum of a ninety (90) day rental period shall be required by written lease for an ADU, unless the ADU is owner-occupied. ... For short-term rentals outside of the "HB" Historic Business, "DS" Downtown Service, or "GC" General Commercial Districts, the structure involved: ... (iii) Shall be a property with multiple dwelling units owned by the same owner, in which one of the dwelling units may be used as a short-term rental as long as at least one of the other dwelling unit(s) is/are owner occupied. |
| Short-term rental | Yesverified September 2026Ridgway Code Of Ordinances §7-4-6the ordinance textAn ADU may be used as a Short-Term Rental provided it complies with all provisions of RMC Section 7-4-6(N), Short Term Rental Regulations, and Section 8-5, Short-term Rentals. |
| Setbacks | No ADU-specific setbacks; zone district setbacks apply (front/rear/side/street side, ft) for single-family lots: R 15/8/5/7.5, HR 15/8/3/7.5, MR 10/8/3/7.5. Next to open space they may be cut by up to 50% or 2 ft, whichever is greater, with written Town Manager approval.verified October 2026Ridgway Code Of Ordinances §7-4-6the ordinance text"All lots where an ADU is proposed shall comply with all dimensional standards applicable to the underlying zone district. (i) Required setbacks may be reduced by up to fifty (50) percent, or two (2) feet, whichever is greater, when adjacent to open space. Such a reduction shall be approved in writing by the Town Manager or their designee." "Accessory uses and structures shall comply with the minimum applicable zone district setbacks." Table T-4.4 Min. Setbacks (ft) Front/Rear/Side/Side on Corner Lot: R Single-Family and Duplex 15/8/5/7.5; HR Single-Family and Duplex 15/8/3/7.5; MR Single-Family and Duplex 10/8/3/7.5. "When the rear or side lot line abuts an alley, the setback shall be a minimum of two feet." ADU "shall not be located within the sight triangle" of 7-4-8(F)(8). |
Source: Ridgway Code Of Ordinances, §7-4-6 · ordinance text retrieved 2026-10-08, re-verified October 2026 · open “the ordinance text” under any figure to read the exact sentence it comes from.
Ridgway’s size cap is conditional rather than a single number: 1,000 sq ft (gross floor area); up to about 1,100 sq ft with the water-conserving landscaping option, or 1,200 sq ft with the sustainable-construction option — the code does not say the two combine — worth reading closely before sizing a unit.
Short-term rental of the ADU is permitted (see the licensing terms in the ordinance) — Colorado codes split almost evenly on this, and it changes the revenue math entirely.
Property tax runs lighter than most of the state here: 63.187 mills total in the example tax area (Ouray County tax area 201), about 30% below the median of the Colorado tax areas we track (levies vary by parcel).
And Ridgway is one of only 30 Colorado jurisdictions certified ADU Supportive, which makes residents eligible for CHFA’s state-backed ADU financing — an interest-rate buydown and credit enhancement offered through participating lenders. Most of the Front Range doesn’t have this lever.
What an ADU adds to the tax bill in Ridgway, and the federal benchmark for what it rents for.
Levies: Ouray County Assessor — 2026 Mill Levies Spreadsheet (Mill Levies by Taxing Districts for Taxes Collected in 2026; tax year 2025) — example: Ouray County tax area 201 (the in-town tax area, as identified by the Ouray County Assessor); levies differ between tax areas inside Ridgway; 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.
Two ways to build the same unit in Ridgway. Both figures are all-in — design, permits, foundation, utility connections and installation.
Published Front Range ranges for a comparable one-off build, 2025–26
≈ $2,100–$2,600 / month fully financed
Fits Ridgway’s size rule
≈ $2,800–$3,500 / month fully financed
Fits Ridgway’s size rule
Olerra ranges: published all-in project pricing, September 2026 — site preparation, foundation, utility connections and permitting included.
Free and specific to you. Want to go further?
Yes. The Ridgway Code Of Ordinances permits accessory dwelling units (§7-4-6), subject to the size, height, setback and use rules quoted above from the ordinance text. Zoning district, lot size and setbacks still decide what fits on a specific lot — the free property check confirms yours.
Yes. An ADU is a new dwelling unit, so Ridgway 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.
Per the Ridgway Code Of Ordinances: 1,000 sq ft (gross floor area); up to about 1,100 sq ft with the water-conserving landscaping option, or 1,200 sq ft with the sustainable-construction option — the code does not say the two combine. Both Olerra Flex Flats — the 490 and the 735 — fit under this rule. The free property check confirms what fits on your lot.
Yes — short-term rental of an ADU is permitted, subject to the licensing terms in the ordinance.
Per the ordinance: No owner-occupancy required for standard ADU use (a 90-day minimum lease applies unless the ADU is owner-occupied); but if the property is used for short-term rental outside the HB/DS/GC districts, at least one dwelling unit on the property must be owner-occupied.
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.
Roughly $437 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.
Same method, each city’s own ordinance. The Colorado hub lists every city, and the statewide ADU calculator covers any Colorado address.
Guides and real Colorado numbers from our team — a fresh pick every couple of weeks, or search for exactly what you need.
How to hire an ADU contractor in Colorado, the questions to ask, the red flags to avoid, how licensing works here, and modular versus site-built compared.
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Planning departments and journalists are welcome to reference this data.
Olerra ADU Cost Calculator — Ridgway, CO. Page updated October 9, 2026; rules verified October 2026. https://www.olerra.com/adu-calculator/ridgway/ <a href="https://www.olerra.com/adu-calculator/ridgway/">Ridgway ADU rules & costs</a> Page updated October 9, 2026. The oldest dated figure on the page is from August 25, 2026.
Planning estimates, not quotes or legal advice. Rules, fees, levies and rents change — confirm with the city and your lender before committing. Rules data: codified ordinance as of August 25, 2026, re-verified October 2026. Olerra pricing: published all-in project ranges, September 2026. Corrections: sales@olerra.com.
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