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Scottsdale, AZ Accessory Structures: ADU Rental Restrictions (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Separate sale
prohibited for ADU from main home
Lot subdivision
barred to separate ADU ownership
Restricted-Affordable rent cap
up to 80% area median income
STR ban
Restricted-Affordable ADU cannot be a rental
Prerequisite
recorded deed restriction before permit

Summary

Scottsdale bars selling an ADU separately from the main house and requires a recorded deed restriction before a Restricted-Affordable Detached ADU can be occupied. That unit type can only be rented to households at or below 80 percent of area median income and can never be listed as a vacation or short-term rental.

3.Ownership, renting, and subdivision.a.Any Accessory Dwelling Unit on a single-family residential lot shall not be sold separately from the main single-family residential dwelling on the same lot.b.Any Accessory Dwelling Unit that is rented, leased, offered for rent or lease, or occupied as a Vacation Rental or Short-term Rental shall be subject to the requirements of Sec. 7.203.c.A Restricted-Affordable Detached Accessory Dwelling Unit shall only be rented to households earning up to eighty percent (80%) of area median income and shall not be offered as a Vacation Rental or Short-term Rental. Rent shall be established based on the household size and income in accordance with the rent and income limits published by the Arizona Department of Housing at the time of the lease agreement.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 80).

Full Breakdown

Sec. 3 sets the ownership and rental rules that ride along with every Accessory Dwelling Unit approval. First, an ADU on a single-family lot cannot be sold separately from the main dwelling, and the lot cannot be subdivided, including by condominium plat, to create separate ownership boundaries for the main house and the ADU. Second, if an ADU is rented, leased, offered for rent or lease, or used as a Vacation Rental or Short-term Rental, that use is routed through Sec. 203's short-term rental requirements rather than exempted from them.

Third, the Restricted-Affordable Detached ADU option carries its own income-restricted rental structure: it can only be rented to households earning up to 80 percent of area median income, rent is set using the rent and income limits the Arizona Department of Housing publishes at the time of the lease, and this unit type is barred outright from being offered as a Vacation Rental or Short-term Rental. Sec. 5 backs this up procedurally, requiring the property owner to record a private deed restriction acknowledging the income cap and the short-term rental ban before the City will issue any permit for a Restricted-Affordable Detached ADU. That deed restriction must be in a form satisfactory to the City and stays attached to the property regardless of ownership changes.

Violations & Fines

Selling or subdividing an ADU separately from the main home, subdividing the lot to create separate ownership, or renting a Restricted-Affordable Detached ADU above the 80 percent AMI income cap or as a Vacation Rental or Short-term Rental breaches Sec. 7.902.A.3. Occupying a Restricted-Affordable ADU without the recorded deed restriction required by Sec. 7.903.B.5 can hold up or void the unit's Certificate of Occupancy.

Frequently Asked Questions

Can I sell my Scottsdale ADU separately from the main house?
No. Sec. 7.902.A.3 states an Accessory Dwelling Unit on a single-family lot shall not be sold separately from the main single-family residential dwelling on the same lot, and the lot cannot be subdivided or platted to create separate ownership boundaries for the two structures.
Can I rent a Restricted-Affordable ADU as an Airbnb in Scottsdale?
No. Sec. 7.902.A.3 expressly bars offering a Restricted-Affordable Detached ADU as a Vacation Rental or Short-term Rental. It can only be leased to households earning up to 80 percent of area median income, with rent set under Arizona Department of Housing limits in effect at signing.
Do I need a deed restriction to build a Restricted-Affordable ADU in Scottsdale?
Yes. Sec. 7.903.B.5 requires the property owner to record a private deed restriction, in a form satisfactory to the City, acknowledging the 80 percent AMI rent cap and short-term rental ban before any permit for the unit will be issued.

Sources & Official References

Other rules in Scottsdale

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ADU Rental Restrictions in Nearby Cities

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