The integration of closed biomass cycles into residential buildings enables efficient resource utilization and avoids the transport of biowaste. In our scenario called Integrated Cycles for Urban Biomass (ICU), biowaste is degraded on-site into biogas that is converted into heat and electricity. Nitrification processes upgrade the liquid fermentation residues to refined fertilizer, which can be used subsequently in house-internal gardens to produce fresh food for residents. Our research aims to assess the ICU scenario regarding produced amounts of biogas and food, saved CO2 emissions and costs, and social–cultural aspects. Therefore, a model-based feasibility study was performed assuming a building with 100 residents. The calculations show that the ICU concept produces 21% of the annual power (electrical and heat) consumption from the accumulated biowaste and up to 7.6 t of the fresh mass of lettuce per year in a 70 m2 professional hydroponic production area. Furthermore, it saves 6468 kg CO2-equivalent (CO2-eq) per year. While the ICU concept is technically feasible, it becomes economically feasible for large-scale implementations and higher food prices. Overall, this study demonstrates that the ICU implementation can be a worthwhile contribution towards a sustainable CO2-neutral society and decrease the demand for agricultural land.