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

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

Key Facts

Trigger date
Certificate of occupancy on/after Sept 14, 2024
Condition
Owner must live in primary house on lot
Older ADUs
Not covered by this restriction
Separate requirement
STR permit still needed under SCC 5.25

Summary

An accessory dwelling unit that gets its certificate of occupancy on or after September 14, 2024 cannot be rented out as a vacation or short-term rental in Sedona, unless the property owner actually lives in the primary house on that same lot.

An ADU that is issued a certificate of occupancy on or after September 14, 2024, shall not be used as a vacation rental or short-term rental unless the property owner’s primary residence is the primary structure on the same property as the ADU.

View official code

Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Initiative Ordinance 2026-01, approved by voters at the July 21, 2026 election).

Full Breakdown

Sedona added a use restriction to its accessory dwelling unit standards that targets short-term rental conversions. D(3)(f), any ADU issued a certificate of occupancy on or after September 14, 2024 cannot be used as a vacation rental or short-term rental unless the property owner's primary residence is the primary structure on that same property. In practice, that means an ADU built or finaled after that date can only go on the short-term rental market if the owner is living in the house next to it, not renting out the house separately while also renting the ADU to different transient guests.

D(3)(d). S. 39, leaves cities: state law bars Sedona from banning or capping short-term rentals by classification, but it does not stop the City from tying a specific unit's use, here a post-2024 ADU, to an owner-occupancy condition once construction happens. 25, which requires a permit, an emergency contact and neighbor notification before guests can be booked.

Violations & Fines

Using a post-September 14, 2024 ADU as a short-term or vacation rental while the owner lives off-site violates SLDC Section 3.4.D(3)(f), enforceable under Section 1.7 as a Class 1 misdemeanor or civil citation. Advertising or operating such a rental can also trigger enforcement and penalties under the City's short-term rental licensing chapter, SCC 5.25, since the unit would not qualify for a valid rental permit under either code.

Frequently Asked Questions

Can I rent my new ADU on Airbnb if I don't live on the property?
No, if the ADU's certificate of occupancy is dated September 14, 2024 or later. SLDC Section 3.4.D(3)(f) only allows short-term rental use of such an ADU when the property owner's primary residence is the primary structure on that same lot.
Does this rule apply to an ADU built years before 2024?
The restriction in SLDC Section 3.4.D(3)(f) applies to ADUs issued a certificate of occupancy on or after September 14, 2024, so an older ADU that already had its certificate of occupancy is not subject to this particular owner-occupancy condition, though other ADU standards still apply.
Do I still need a permit to short-term rent a qualifying ADU?
Yes. Meeting the owner-occupancy condition under SLDC Section 3.4.D(3)(f) does not replace the City's separate short-term rental licensing requirement in SCC Chapter 5.25, which requires a permit, an emergency contact and neighbor notification before the unit can be advertised or booked.

Sources & Official References

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