Airbnb & Short-Term Rental

Your Backyard.
Your Airbnb.

HB 2720 opened the door to ADU short-term rentals in Arizona. A well-designed casita near Old Town Scottsdale or Arcadia can generate $1,800–$3,200/month on Airbnb.

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About This Use Case

Building a casita for short-term rental.

Arizona's HB 2720 allows ADUs to be used as short-term rentals — a significant change from prior rules. The Phoenix area's tourism economy, corporate travel market, and popularity as a destination make STR casitas financially strong in the right locations.

The key rule to understand: for short-term rental use (under 90 days), Scottsdale currently requires the property owner to live on-site. Phoenix is more flexible.

Scottsdale STR rule: If your property is in Scottsdale and you plan to Airbnb your casita, you must owner-occupy the primary residence. Phoenix is more permissive. We confirm the exact rules for your address on the first call.

Best models for this use

The Studio
400 SF
The Casita
576 SF

The Studio and Casita are the most popular STR models — compact footprints, full kitchen and bath, strong nightly rates near Old Town and Kierland.

Common Questions

Yes. HB 2720 permits ADU short-term rental use. Scottsdale requires you to live on-site (owner-occupancy of the primary residence). Phoenix is more flexible. STR licensing is a separate process completed after your certificate of occupancy is issued.

A Studio or Casita near Old Town Scottsdale can generate $1,800–$3,200/month during peak season (Oct–May). Annual gross income for a well-managed STR casita in 85251 or 85254 is typically $18,000–$28,000.

Yes — Arizona requires a separate short-term rental license in addition to your building permit and certificate of occupancy. We can connect you with a specialist who handles STR registration after construction.

Private entrance, outdoor seating area, in-unit laundry, blackout shades, and a kitchen designed for easy use. We can advise on STR-friendly finish selections during your design consultation.

$1,800–$3,200
Monthly STR income, peak season
85251 & 85254
Top STR zip codes
Owner-occ.
Required in Scottsdale for STR
Separate
STR license after CO
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Other Use Cases
Rental IncomeMultigenerational LivingPrivate Guest House

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