The development of new hydro turbines or the optimization of traditional hydro turbines is one of the research directions that scholars have been interested in to broaden the source of hydropower and improve energy efficiency. In our previous work, a Francis turbine was used in the water supply systems of high-rise buildings to properly control water pressure inside the pipeline and recover excess water energy. In this paper, an optimization study of the volute for the sectional shape, design method, inlet parameters, outlet width, and tongue was conducted using numerical simulations to improve the hydro turbine performance. The simulated results show that a circular section could better enhance the flow velocity inside the volute and make the flow velocity distribution more uniform at the volute outlet, and the equal mean velocity method is a more suitable volute design method in this special condition. The results of range analysis show that the water head reduction increases significantly with the increase in the inlet height, and both inlet height and outlet width have a significant effect on the efficiency. In addition, in the tongue optimization, a larger tilt angle corresponds to smaller output power and water head reduction; a larger stretch length in the limited angle range corresponds to larger output power and lower efficiency. Ultimately, the output power of the hydro turbine was increased by 18.65% and the efficiency by 2.1% through the volute optimization.