Everything homeowners need to know about building an accessory dwelling unit - almost always called a casita here - in Santa Fe: size limits, setbacks, permits, and the paperwork that comes with building in one of the tightest, most tourism-driven housing markets in the Southwest.
Last verified: September 2026
7/10 · ADU-friendly
1,500 sq ft*
Max ADU size
1 story*
Max height
Not required*
Owner-occupancy
By-right*
Permit type
This page summarizes the accessory dwelling unit standards in the Santa Fe City Code (SFCC 1987), Section 14-6.3, for general reference - it is not legal advice. Regulations change, and historic-district rules add another layer of review in much of the city; always confirm current requirements with the Santa Fe Land Use Department before designing or applying for permits. See sources below.
Zoning & size requirements
What you're allowed to build
ADU type
Max size
Max height
Notes
Casita / ADU (attached, detached, or interior conversion)
Up to 1,500 sq ft, but must remain smaller than the primary dwelling's floor area
One story; may not exceed the height of the principal dwelling unit
Allowed by right in most residential zoning districts under the city's use-specific ADU standards
Historic districts add a review step
Santa Fe has several historic districts covering much of downtown and the older surrounding neighborhoods, including the Downtown & Eastside, Don Gaspar, and Westside-Guadalupe districts. Inside them, exterior changes - including a new casita - typically need sign-off from the Historic Preservation Division and, in many cases, the Historic Districts Review Board, on top of standard zoning review.
Additional standards
Setbacks, parking & other rules
Setbacks
Standard zoning-district setbacks apply to the casita just as they would to any structure on the lot - they vary by district, so confirm the number for your specific zone with the Land Use Department
Parking
Standard residential parking requirements apply; no ADU-specific waiver was confirmed for this review - confirm with the Land Use Department
Units per lot
Generally one ADU per lot in addition to the primary dwelling, allowed by right unless a recorded private covenant on the property says otherwise
Owner-occupancy
Not required to build a casita or rent it long-term. It is required for a short-term rental permit - the owner must occupy either the primary home or the casita to rent the other one short-term
Restrictive covenant
Before permit approval, the owner must record a restrictive covenant (or sign an affidavit) acknowledging the ADU's use restrictions - a requirement the city formalized through a 2009 ordinance
Private covenants
The city's by-right ADU allowance doesn't override private neighborhood covenants or HOA restrictions, which can still prohibit a casita on a specific lot
Ordinance history
How Santa Fe's casita rules got here
2008Current ADU framework substantially codified. Santa Fe's accessory dwelling unit standards (SFCC 1987, Section 14-6.3) trace to a 2008 ordinance that laid out the modern by-right approach to casitas in residential zones.
2009Restrictive covenant requirement formalized. A city ordinance clarified accessory dwelling unit ownership rules and required recording a restrictive covenant, or signed affidavit, before a casita permit is approved - the paperwork step still in place today.
2019Ordinance 2019-12 eases the rules. The council revised the 2008 ADU code to make casitas easier to build, while preserving the ability of private covenants to restrict them on individual lots.
2020Short-Term Rental Ordinance (2020-35) adopted. Passed December 9, 2020, it set the current rule that a casita used as a short-term rental requires the owner to occupy either the primary home or the casita itself.
2023FHA mortgage rule change gets local coverage. New federal rules let lenders count ADU rental income toward a buyer's mortgage-qualifying income - notable in Santa Fe given how much of its housing stock already includes a casita.
Santa Fe's housing costs are driven heavily by tourism and a large second-home market, and the city has responded mainly through general affordable-housing programs - the Santa Fe Homes Program's inclusionary requirement, the Affordable Housing Trust Fund - rather than an ADU-specific subsidy. We didn't find a dedicated casita incentive program as of this review; check with the city's Office of Affordable Housing for anything new.
Permit process
How Santa Fe casita permitting works
1
Confirm zoning & historic-district status
Contact the zoning counter (zoningcounter@santafenm.gov) to confirm your parcel's zoning district and whether it falls inside a historic district, which changes what's required next.
2
Prepare your plan set
You'll need a scaled site plan showing property lines and existing structures, floor plans, and elevations; historic-district projects also need exterior material and design details.
3
Historic Preservation review, if applicable
Properties inside a historic district need a Certificate of Appropriateness or Historic Districts Review Board sign-off on the casita's exterior design before or alongside the building permit.
4
Sign & record the ADU restrictive covenant
This has to be recorded (or an affidavit signed) acknowledging the unit's use restrictions before the city will approve the permit.
5
Submit your building permit application
Apply online through the city's permitting portal or by appointment at 200 Lincoln Ave; the plan-check fee is due at submittal and scales with the project's valuation.
6
Construction & inspections
Complete standard inspections through final sign-off. Planning to rent the casita short-term? Apply separately for a short-term rental permit ($325/year plus the business license fee), which requires owner-occupancy of one of the two units.
Fees and timelines are approximate and change - confirm current figures with the Land Use Department (permitcounter@santafenm.gov) before budgeting.
Budgeting
What it costs to build a casita in Santa Fe
Garage / interior conversion
Roughly $65,000-$160,000, generally the least expensive path since much of the structure already exists
New detached casita
Roughly $150,000-$320,000 - Santa Fe's small, high-cost construction market, driven in part by its tourism- and second-home-heavy economy, tends to push new-build costs toward the higher end of typical regional ranges
Plan-check & building permit fees
Follow the city's valuation-based fee schedule - a small flat fee for minimal work, scaling up with construction value
Restrictive covenant recording
A modest recording fee at the Santa Fe County Clerk's office, on top of any legal help drafting the covenant or affidavit
Short-term rental permit (if applicable)
$325 per year for an owner-occupied casita STR, plus a $35 annual business license fee
These are general ranges from local contractor estimates and regional reporting, not quotes - actual cost depends heavily on lot conditions, finishes, and whether your project falls inside a historic district, where design requirements can add real cost. Basement conversions are uncommon in Santa Fe's housing stock, so most conversions here involve garages, additions, or interior space rather than basements.
Before you apply
Tips for a smooth approval
Check your historic-district status before you design. It's a bigger swing factor in Santa Fe than in most cities, and design review can reshape your plans if you skip this step.
Don't count on the full 1,500 sq ft. The casita has to stay smaller than your primary home's floor area, so the real cap depends on your existing house.
Start the restrictive covenant paperwork early. It has to be signed - and often recorded - before the city will approve your permit, so don't leave it for the last step.
Decide your rental plans before you design. A long-term rental casita has no owner-occupancy requirement, but a short-term rental one does - know which you're building for.
Check for a private covenant on your specific lot. The city's by-right ADU rule doesn't override a neighborhood or HOA covenant that restricts casitas, so confirm your deed and any HOA rules separately from zoning.
FAQ
Common questions
Do I need to live on the property to build a casita in Santa Fe?
No, not to build it or rent it long-term. Owner-occupancy is only required if you want to rent the casita short-term (less than 30 nights).
What if I want to rent my casita out short-term, like on Airbnb?
You'll need a separate short-term rental permit, and the property owner must occupy either the primary home or the casita itself to qualify - Santa Fe doesn't allow purely investor-owned short-term rental casitas.
How big can an ADU be in Santa Fe?
Up to 1,500 sq ft, but it must stay smaller than the primary dwelling's floor area - a large cap compared to most cities, though it only helps if your main house is big enough to allow it.
How tall can a casita be?
One story, and it can't exceed the height of the primary dwelling.
Are casitas allowed in Santa Fe's historic districts?
Yes, but expect an extra layer of review - exterior design typically needs sign-off from the Historic Preservation Division and, in many cases, the Historic Districts Review Board.
What is the restrictive covenant requirement?
Before your permit is approved, you generally need to record a restrictive covenant or sign an affidavit acknowledging the casita's use restrictions - a requirement the city has had in place since a 2009 ordinance.
How many ADUs can I build on one lot?
Generally one, in addition to the primary dwelling, allowed by right unless a private covenant on your specific lot says otherwise.
How much does it cost to build a casita in Santa Fe?
Garage or interior conversions tend to run roughly $65,000-$160,000, and new detached casitas roughly $150,000-$320,000, based on local contractor estimates and regional reporting - Santa Fe's small, high-cost construction market tends to push new builds toward the higher end.
Is there a city incentive program for building an affordable ADU in Santa Fe?
Not a dedicated one that we could confirm as of this review. Santa Fe's main affordable-housing tools - the Santa Fe Homes Program and the Affordable Housing Trust Fund - aren't ADU-specific; check with the city's Office of Affordable Housing for anything new.
