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Tempe, AZ Short-Term Rentals: Night Caps (2026)

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

Key Facts

Annual Night Cap
None (state-preempted)
State Statute
A.R.S. § 9-500.39
STR Threshold
<30 consecutive days
Combined Tax
~14.07% (6.80% city)
Permit Required
Yes (Ch. 16A Art. X)
Sales Tax Office
480-350-2955

Summary

Tempe imposes NO annual or per-stay night cap on short-term rentals. Arizona Revised Statutes § 9-500.39 (SB 1350, expanded by SB 1168) preempts cities from prohibiting STRs or capping the total number of dwelling units used as vacation rentals. Stays under 30 consecutive days are taxed at the combined ~14.07% rate (6.80% city + 7.27% state/county).

A. A city or town may not prohibit vacation rentals or short-term rentals.

B. A city or town may not restrict the use of or regulate vacation rentals or short-term rentals based on their classification, use or occupancy except as provided in this section. A city or town may regulate vacation rentals or short-term rentals as follows:

1. To protect the public's health and safety, including rules and regulations related to fire and building codes, health and sanitation, transportation or traffic control and solid or hazardous waste and pollution control, if the city or town demonstrates that the rule or regulation is for the primary purpose of protecting the public's health and safety.

2. To adopt and enforce use and zoning ordinances, including ordinances related to noise, protection of welfare, property maintenance and other nuisance issues, if the ordinance is applied in the same manner as other property classified under sections 42-12003 and 42-12004.

3. To limit or prohibit the use of a vacation rental or short-term rental for the purposes of housing sex offenders, operating or maintaining a sober living home, selling illegal drugs, liquor control or pornography, obscenity, nude or topless dancing and other adult-oriented businesses.

4. To require the owner of a vacation rental or short-term rental to provide the city or town with emergency contact information for the owner or the owner's designee who is responsible for responding to complaints or emergencies in a timely manner in person if required by public safety personnel, over the phone or by email at any time of day before offering for rent or renting the vacation rental or short-term rental.

Source: A.R.S. § 9-500.39 — STR State PreemptionView official code

Full Breakdown

39 (originally Senate Bill 1350 in 2016, broadened by SB 1168 in 2022), an Arizona city or town may not prohibit vacation or short-term rentals or restrict their use, classification or occupancy except to protect the public's health and safety through fire, building, sanitation, traffic, noise, nuisance and zoning rules of general application. State preemption blocks Tempe from enacting an annual cap on the number of nights a property may be rented or a city-wide cap on the total number of STR units. Tempe's STR ordinance (Chapter 16A, Article X; Ord.

01) accordingly contains no nightly cap; it focuses on permitting, $500,000 liability insurance, neighbor notice, 24/7 emergency contact, sex-offender screening of guests, and nuisance enforcement. 07%, business code 144); rentals of 30 days or more are long-term and fall outside the STR ordinance. ASU football, Fiesta/Cheez-It Bowl and graduation drive heavy demand, but no per-event cap applies. Confirm with Sales Tax & Licensing at 480-350-2955.

Violations & Fines

Because no Tempe night cap exists, there is no per-night-cap citation. Operating without the Article X license, however, can trigger license suspension for up to 12 months plus code-enforcement civil penalties, regardless of how many nights the property was rented.

Frequently Asked Questions

Is there a maximum number of nights I can rent my Tempe home short-term?
No. Arizona Revised Statutes § 9-500.39 preempts cities from capping total nights or total STR units, and Tempe City Code Chapter 16A, Article X (Ord. O2023.01) contains no nightly limit. You may rent year-round so long as your $250 annual city license, $500,000 liability insurance, Arizona TPT license, neighbor notice and emergency contact stay current. Confirm with Sales Tax & Licensing at 480-350-2955.
Can I rent during ASU football and the Fiesta Bowl without a special permit?
Yes. There is no event-specific permit or per-game cap. Under A.R.S. § 9-500.39 and Tempe Ord. O2023.01, the standard annual STR license covers year-round operation including ASU home games, graduation, and bowl-week stays. Just confirm your $500,000 insurance, TPT license and emergency contact remain current and that guests pass the required sex-offender background check, with records kept 12 months.

Sources & Official References

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