Yes, with conditions. Phoenix removed its ban on short-term rental use of ADUs in 2024, but every STR needs a city STR permit, and for an ADU with a certificate of occupancy issued on or after September 14, 2024, the property owner must live on site. From April 4, 2026, owners attest to that in a notarized statement.
Why can Phoenix require the owner to live there?
Arizona law limits how cities regulate short-term rentals. HB 2720 carved out an exception: it amended A.R.S. § 9-500.39 so a city or town can require the owner to live on the property when an ADU built on or after the law took effect is used as a vacation or short-term rental. Phoenix uses that power. ADUs with certificates of occupancy before September 14, 2024 fall outside the attestation requirement, according to the city.
What does the Phoenix STR permit involve?
As of October 2026, the City of Phoenix lists these requirements:
- An STR permit from the Planning and Development Department, applied for through SHAPE PHX.
- A $250 non-refundable fee per permit, initial or renewal.
- An Arizona transaction privilege tax (TPT) license.
- An updated rental status with the Maricopa County Assessor.
- Forms including an affidavit, a safety equipment map and an owner's designee.
- Notice to adjacent neighbors and registered HOAs or neighborhood associations.
- The permit number shown on every listing.
The city says it issues or denies a permit within 7 days of receiving a complete application. Court-adjudicated violations carry minimum penalties that start at $500 or one night's rent.
How do neighboring cities compare?
- Scottsdale: an ADU can be a vacation or short-term rental only while the owner physically lives on the property.
- Tempe: its 2024 draft proposed on-site owner residency for short-term rentals; we confirm the adopted rule.
- Paradise Valley: outside the state ADU law; its own rules and state STR law apply.
Can my HOA ban short-term rentals?
It depends on your CC&Rs. City permission is not HOA permission, and Phoenix itself requires you to notify registered HOAs. See the HOA guide.
Is an STR or a long-term lease the better plan?
It depends on whether you live on the property, how much management you want, and what your HOA allows. A long-term lease of 90 days or more is protected by state law and carries none of the STR permit steps. Compare against long-term rents in Phoenix.
Sources, as of October 2026:
- City of Phoenix short-term rental page (phoenix.gov/str), including the April 4, 2026 ADU attestation requirement.
- City of Phoenix staff report Z-TA-2-24 (September 30, 2024).
- A.R.S. § 9-500.39, as amended by HB 2720 (2024).
- City of Scottsdale ADU FAQ; City of Tempe news release on its draft ADU ordinance (October 2024).