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.
Sheridan’s real rules, taxes and rents — read from the codified ordinance, every figure sourced and dated. Here: a HUD benchmark rent of $1,754/mo for a 1-bed. Run your own numbers below, free.
Read from the Sheridan Code Of Ordinances itself — the operative legal text, not a website summary. Sheridan 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.
| Maximum ADU size | 800 sf (interior, attached, and detached on lots ≤10,000 sf); 1,000 sf (detached ADUs on lots >10,000 sf)verified September 2026Sheridan Code Of Ordinances §56-706the ordinance textDetached accessory dwelling units are limited to 800 square feet in area. Detached accessory dwelling units are limited to 1,000 square feet in area for lots which exceed 10,000 square feet in lot area. |
| Minimum ADU size | 150 sq ftverified October 2026Sheridan Code Of Ordinances §56-707the ordinance text(b) The minimum floor area for any accessory dwelling unit shall be 150 square feet. |
| Height limit | 25 ft or height of principal structure, whichever is less (detached ADUs only); interior and attached ADUs instead follow the underlying zone district height standardverified September 2026Sheridan Code Of Ordinances §56-706the ordinance text(a)(1) Height and setback requirements are based on the underlying zone district for the principal building. (b)(1) same. (c)(4) Height cannot exceed 25 feet or the height of the principal structure, whichever is less. |
| Short-term rental | Yes, but only if the owner occupies one unit on the property, and only one STR license may be issued per property (ADU or primary home, not both)verified September 2026Sheridan Code Of Ordinances Article XXXIthe ordinance textA maximum of one short-term rental license may be issued... for either the accessory dwelling unit or the single-family dwelling unit but not both, as long as the property owner occupies one of these units. Short-term rentals are not permitted unless the property owner occupies one dwelling unit on the property. |
| Extra parking | 0 by default; 1 space may be required if an on-site space already exists, or if the zone required parking pre-2024 AND no usable existing space exists AND on-street parking is prohibited on the blockverified September 2026Sheridan Code Of Ordinances §56-707the ordinance textThe city may require the designation of an existing parking space on the lot... The city may require the construction of a new off-street parking space if: a. the zone district...required one or more off-street parking spaces...as of January 1, 2024; and b. There is no existing parking space on the lot...; and c. ...the city prohibits on-street parking. |
| Setbacks | 5 ft side/rear for detached ADUs up to 15 ft tall, +6 in per ft of height above 15 ft; interior/attached ADUs follow underlying zone setbacks; 5 ft internal separation from primary dwelling requiredverified September 2026Sheridan Code Of Ordinances §56-706the ordinance textMinimum side and rear setbacks are five feet to lot line, with an additional six inches of side and rear setback for every foot of height over 15 feet. Minimum internal setback between the accessory dwelling unit and the single-family dwelling unit on the same lot is five feet. |
Source: Sheridan Code Of Ordinances, §56-706 · 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.
Sheridan’s size cap is conditional rather than a single number: 800 sf (interior, attached, and detached on lots ≤10,000 sf); 1,000 sf (detached ADUs on lots >10,000 sf) — worth reading closely before sizing a unit.
Short-term rental is conditional: Yes, but only if the owner occupies one unit on the property, and only one STR license may be issued per property (ADU or primary home, not both).
Parking: 0 by default; 1 space may be required if an on-site space already exists, or if the zone required parking pre-2024 AND no usable existing space exists AND on-street parking is prohibited on the block.
And Sheridan 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 Sheridan, and the federal benchmark for what it rents for.
Levies: Arapahoe County Assessor Parcel Search (parcelsearch.arapahoegov.com) per-parcel Tax District Levies, Tax Authority 0071, cross-checked against the Arapahoe County Assessor "2025 Taxing District Levy Percentage" (Tax Year 2025) PDF — example: Arapahoe County TAG 0071; levies differ between tax areas inside Sheridan; 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 Sheridan. 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 Sheridan’s size rule
≈ $2,800–$3,500 / month fully financed
Fits Sheridan’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 Sheridan Code Of Ordinances permits accessory dwelling units (§56-706), subject to the size, height, setback and use rules quoted above from the ordinance text. Sheridan 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.
Yes. An ADU is a new dwelling unit, so Sheridan 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 Sheridan Code Of Ordinances: 800 sf (interior, attached, and detached on lots ≤10,000 sf); 1,000 sf (detached ADUs on lots >10,000 sf). Both Olerra Flex Flats — the 490 and the 735 — fit under this rule. The free property check confirms what fits on your lot.
It depends: Yes, but only if the owner occupies one unit on the property, and only one STR license may be issued per property (ADU or primary home, not both).
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 $633 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 — Sheridan, CO. Page updated October 9, 2026; rules verified October 2026. https://www.olerra.com/adu-calculator/sheridan/ <a href="https://www.olerra.com/adu-calculator/sheridan/">Sheridan 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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