Phoenix, AZ Short-Term Rentals: Occupancy Limits (2026)

A.R.S. 9-500.39(B) bars a city or town from restricting or regulating short-term rentals 'based on their classification, use or occupancy' except as the statute allows, so Phoenix cannot set a guest-count or occupancy cap specific to STRs. What both the state and Phoenix do prohibit is nonresidential use: A.R.S. 9-500.39(K) states a short-term rental 'may not be used for nonresidential uses, including for a special event that would otherwise require a permit or license' or 'for a retail, restaurant, banquet space or other similar use.' Phoenix City Code Sec. 10-195 (original Ordinance G-6653, Art. XVI) requires posting a notice listing prohibited uses including any nonresidential use, special events requiring a permit, operating a retail business/restaurant/event center/banquet hall, and other uses barred by A.R.S. 9-500.39. Standard residential building/fire/health occupancy limits still apply equally to all dwellings.