Tempe Short-Term Rentals: Night Caps Rules (2026)

Under A.R.S. § 9-500.39 (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. O2023.01) 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. The 30-consecutive-day threshold is defined by state law: rentals of less than 30 days are short-term and subject to the City of Tempe transient lodging tax (combined effective rate ~14.07%, 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.