Everything homeowners ask about building an ADU in Paradise Valley — answered with 2026 data.
No — under current zoning Paradise Valley does not allow ADUs. Paradise Valley has no accessory dwelling unit use in its Zoning Ordinance (codified through Ord. 2025-05) and sits outside Arizona's casita law: A.R.S. §9-461.18(H) applies only to municipalities with more than 75,000 people, and the Town has about 12,251. A guest house may be built as an accessory building in R-175, R-43, R-35, R-35A, R-18 and R-18A, but Zoning Ordinance §1004.D bars leasing or renting it separate and apart from the main house, and §1005.B bars dwelling use of an accessory building except by residential staff employed on the premises. The Town's own FAQ states that "the entire property must be rented as a whole." Details: A guest house is a permitted accessory use in R-175 (§402.3), R-43 (§502.3), R-35/R-35A (§602.2) and R-18/R-18A (§702.6), each requiring a detached accessory building to sit 60 ft or more from the front lot line. The R-10 use list (§802) names no guest house — ask Community Development. No "accessory dwelling unit" use exists in the Zoning Ordinance (codified through Ord. 2025-05). On R-43CP/R-35CP cluster lots, §909 bars a guest house on a lot below the district minimum area (Policy #25). See our full Paradise Valley ADU rules page for the narrow exceptions and what may change.
ADU construction in Paradise Valley typically costs $300,000-$600,000. The cost per square foot averages $350-$750. Garage conversions are more affordable at $150,000-$250,000, while prefab ADUs cost $200,000-$400,000. Permit fees add Valuation-based (minimum $225 per livable sq ft): $1,436.92 plus $5.40 per $1,000 over $150,000, plus 65% of that for plan review (Master Fee Schedule, App. B, eff. 7/1/2025). About $2,000-$3,500 in Town fees for a 500-1,200 sq ft guest house to your budget. See our detailed Paradise Valley ADU cost guide.
Detached ADUs in Paradise Valley can be up to No square-foot cap. Two limits bind: all accessory buildings and structures together may not occupy more than one-half of the main building's ground area. Attached ADUs are limited to No attached ADU category. Under Policy #27. Junior ADUs (JADUs) have a cap of Not a category in Arizona law or in the Paradise Valley Zoning Ordinance. Maximum height is One storey. Table 1001B caps accessory buildings at 16 ft in R-175 and R-43 and 15 ft in R-35, R-35A, R-18, R-18A and R-10, measured from the lowest natural grade under the structure; the Town's residential submittal requirements add that the accessory limit includes any chimney. The main house may be two storeys and 24 ft on lots under 3 acres (26 ft at 3-4 acres, 30 ft at 4 acres or more; Table 1001-A2). Hillside lots are measured under Article XXII instead. You are allowed up to One dwelling unit per lot. §1004.C: "in no case shall there be more than one on a qualifying lot.
Rear setback: 20 ft in R-175 and R-43; 10 ft in R-35, R-35A, R-18 and R-18A; 7 ft in R-10 — rising to 40 ft (35 ft in R-18A, 20 ft in R-10) where the rear yard fronts a street (Table 1001B). Nothing in state law caps these: the 5-ft ceiling in A.R.S. §9-461.18(B)(6) binds only municipalities over 75,000 people. In R-10 an owner may instead use the setback on the recorded plat or as it existed at annexation, with documentation (Policy #50, rev. 9/20/17). Side setback: 20 ft in R-175 and R-43; 10 ft in R-35, R-35A, R-18 and R-18A; 7 ft in R-10 — 40 ft (35 ft in R-18A, 20 ft in R-10) on a side with street frontage (Table 1001B). A setback certification stamped by an Arizona-registered surveyor, engineer or architect is required at stem inspection whenever the structure is within 3 ft of its minimum setback (Standard Residential Flatland Submittal Requirements). Front setback: 60 ft in R-175, R-43, R-35, R-35A, R-18 and R-18A (Table 1001B, repeated in each district's use regulations); 100 ft on an R-175 lot with no primary building built before June 13, 1991; 20 ft in R-10 or as shown on the recorded plat. That is deeper than the main house's own front setback — 40 ft in R-43 and R-35, 35 ft in R-18A (Table 1001-A1) — so a detached guest house must sit further from the street than the home it serves. Note that garage conversions may be exempt from setback requirements if the existing structure is already within the setback area.
No guest-house parking requirement. Each district requires two on-site spaces per dwelling unit (§§403, 503, 603, 703, 803), and a guest house without cooking facilities is not a "dwelling unit" under §201, so it adds none — but a garage converted to living space must replace the two spaces it removes. The state ban on ADU parking requirements, §9-461.18(B)(3), does not reach Paradise Valley. Many cities and states have been relaxing ADU parking requirements in recent years. In California, no additional parking is required for ADUs near transit.
Stricter than owner-occupancy: house and guest house are one tenancy. §1004.D: no accessory building on a residentially-zoned property "shall be leased, subleased or rented, separate and apart from the main building," and vice versa. §1005.B bars using an accessory building "for dwelling purposes other than by residential staff employed on the premises," and §201 says staff quarters "may not be rented for profit." Town FAQ: "the entire property must be rented as a whole". Note that owner-occupancy rules vary by state law — California and several other states have eliminated this requirement for standard ADUs.
The ADU permit review timeline in Paradise Valley is typically Up to 15 business days per plan-review round, then 3-5 business days to issue the permit once plans are approved (Town Building Permit Application Information). Hillside lots add Hillside Building Committee review before the permit application is accepted. Plan check: In-house residential plan review; the 65% fee covers two rounds, further rounds $145 per hour. Fire sprinklers are required in every new structure (deferred submittal; residential sprinkler plan review $0.06 per sq ft). Setback and height certifications by an Arizona-registered professional are required at stem inspection when within 3 ft of a setback or 2 ft of the height limit, and a stamped FAR certification at framing or roof-nail once the lot's FAR reaches 22%. Water-meter verification is required on Town sewer; ACCA Manual J and S calculations with new dwellings. Pre-approved plans availability: None. Paradise Valley publishes no pre-approved guest house or ADU plans, and the Class 4 pre-approved ADU plans required by A.R.S. §9-461.20 from July 1, 2026 apply only in areas that allow ADUs, which the Town has none of. Factory-built units are held to the same IRC standard as site-built ones, must have fire sprinklers and an IRC R403.1 masonry or concrete footing, and must connect to sewer or an approved septic system (Policy #37).
Average ADU rental income in Paradise Valley: 1-bedroom units rent for $1,800-$1,950/month, 2-bedroom units for $2,250-$2,400/month. Short-term rentals: For the whole property, yes; for the guest house alone, no. A.R.S. §9-500.39 stops the Town banning short-term rentals, and its FAQ says so — but "the entire property must be rented as a whole" (§1004.D). Expected ROI: No rental return — a guest house may not be leased separately from the house (§1004.D); its value comes through resale and use by family or live-in staff, not rent.
The minimum lot size for an ADU in Paradise Valley is No guest-house-specific minimum; the district minimum lot governs — 175,000 sq ft in R-175, 43,560 sq ft in R-43, 35,000 sq ft in R-35 and R-35A, 18,000 sq ft in R-18 and R-18A, 10,000 sq ft in R-10 (Table 1001-A1). On a cluster-plan lot allowed below the district minimum, §909 bars a guest house; Policy #25 (1/16/03) reads this as: a CP lot unchanged since the plan was recorded may have one, a lot later reduced by right-of-way dedication or replat may not. This applies to detached ADUs — garage conversions and JADUs may have different or no lot size requirements.
Garage conversions are one of the most popular and affordable ADU options. In Paradise Valley, a garage conversion typically costs $150,000-$250,000. The key advantages are lower cost (no foundation work), potential setback exemptions, and faster permitting. Read our complete garage conversion guide.
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