No — Paradise Valley does not permit accessory dwelling units, and Arizona's casita law does not reach it: A.R.S. §9-461.18(H) applies only to municipalities with more than 75,000 people, and the Town has about 12,251. What the Zoning Ordinance allows instead is a guest house — Section 201 defines it as "an accessory building of one or more rooms designed for occupancy by not more than one family" with its own sanitary facilities — as a permitted accessory use in R-175, R-43, R-35, R-35A, R-18 and R-18A (§§402.3, 502.3, 602.2, 702.6). It is one storey and 15 or 16 ft tall, sits at least 60 ft from the front lot line, and together with every other accessory structure may not exceed half the main house's ground area (§1005.A) or push the lot past its 25% floor area ratio (Table 1001-A1). It cannot be rented: §1004.D bars leasing any accessory building separate from the main house, and the Town's own FAQ says "the entire property must be rented as a whole." A guest house is an ordinary building permit — about $2,000-$3,500 in Town fees for 500-1,200 sq ft, up to 15 business days per review round, fire sprinklers required.
In Paradise Valley you will also hear an ADU called a casita — Arizona's ADU statute (A.R.S. §9-461.18) and most local codes use it. The rules on this page apply either way.
Zoning & Size Requirements [1][2][3][4][5][6][7][8][9][10][11]
No — Paradise Valley does not allow ADUs under current zoning. 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."
| Allowed Zones | 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) |
| Max Size (Detached) | 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 (§1005.A; Policy #53: first floor incl. covered patios and attached garage, overhangs excluded; Policy #59: wall face to wall face plus roofed patios and ramadas); and the guest house counts toward the lot's 25% floor area ratio in R-175 through R-18A, "inclusive of all areas under roof" (Table 1001-A1; FAR Certification handout rev. 6-29-26) |
| Max Size (Attached) | No attached ADU category. Under Policy #27 (rev. 1/30/09) a wing joined to the house by a continuous roof, with an opening of 20 ft or less and direct doorways, is part of the main building: it follows the main-house table (two storeys and 24 ft on lots under 3 acres; 40 ft front setback in R-43) rather than the accessory table, counts fully against the 25% FAR, and cannot be a separate dwelling unit — §1004.C allows one main building per lot |
| Max Size (JADU) | Not a category in Arizona law or in the Paradise Valley Zoning Ordinance |
| Max Height | 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 |
| Max Units | One dwelling unit per lot. §1004.C: "in no case shall there be more than one (1) main building on one (1) lot." A guest house is an accessory building, not a second dwelling, and no section authorises a second unit. The state entitlement to one attached plus one detached ADU (§9-461.18(A)) is a mandate on municipalities over 75,000 people and does not apply to the Town |
Setback Requirements [1][2][3][4][5][6][7][8][9][10][11]
Because Paradise Valley does not permit ADUs, there are no ADU-specific setback or parking standards; the accessory-structure rules below are what a future unit would start from. Owner-occupancy is set by local rules (confirm with the city).
| 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 |
| Parking Required | 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 |
| Owner Occupancy | 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" |
| Min Lot Size | 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 |
Permit Process & Fees [12][13][14][15][16][17]
Paradise Valley cannot issue an ADU permit under current zoning. The fees and timelines below are the general building-permit terms that would apply if the rules change.
| Approval Process | Standard building permit through Community Development (6401 E Lincoln Dr; 480-348-3692). The Town's Building Permit Application Information sheet lists "guest house" among the structures needing their own permit and warns not to file every permit at once because each is valid 180 days. The site plan must show the accessory-to-main-house ground-area percentage (50% maximum) and a FAR table (Standard Residential Flatland Submittal Requirements). Hillside lots with a building-site slope of 10% or more go to the Hillside Building Committee before a permit application. There is no path to a rental unit: §1004.D leaves the Board of Adjustment nothing to vary |
| Review Timeline | 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 |
| Permit Fees | 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 |
| Impact Fees | None. The Master Fee Schedule (Appendix B, amended through Res. 2025-05, effective July 1, 2025) has no development impact fee. The only capacity charge is the Wastewater Development Fee — $7,847 for a 1-inch-or-smaller meter (Res. 2017-02) — due on a new sewer connection or meter enlargement, so a guest house on the existing connection normally owes nothing; the Town verifies meter size and installation date. On a septic lot, Maricopa County Environmental Services must approve the added bedrooms before the Town permit issues |
| 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 | 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) |
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Construction Costs [18][19][20]
If ADUs become legal in Paradise Valley, building one would run roughly $300,000-$600,000 ($350-$750 per sq ft) at today's regional rates; a garage conversion about $150,000-$250,000.
See what this means for your lot — ask Paradise Valley ADU builders for a quote →
| Average Build Cost | $300,000-$600,000 |
| Cost per Sq Ft | $350-$750 |
| Garage Conversion | $150,000-$250,000 |
| Prefab ADU (Installed) | $200,000-$400,000 |
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Rental Income Potential [21][22][23][24][25][26]
A 2-bedroom unit in Paradise Valley would rent for around $2,250-$2,400/mo at current market rates — a hypothetical figure while ADUs are not permitted.
| Avg Rent (1 Bedroom) | $1,800-$1,950/mo |
| Avg Rent (2 Bedroom) | $2,250-$2,400/mo |
| Short-Term Rental | 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). |
| Est. Annual 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 |
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Recent Law Changes
What's Changed Recently
- 2026-09-20 re-verification: every zoning figure re-read from the Town Code as codified on Municode (Appendix A, Zoning Ordinance; codified through Ord. 2025-05 of December 11, 2025; supplement posted August 3, 2026). No ADU use has been added; the guest-house rules date from Ord. 564 (2005) and Ord. 2021-01. Corrections made: the cluster-plan guest-house rule is now §909 of Article IX (Article XXI was repealed by Ord. 564); the R-10 use list (§802) does not include a guest house; the $150,001-$750,000 permit tier is $1,436.92 plus $5.40 per $1,000 (the Town handout's "$930.84 plus $6.75" line is a typo); the Policy #59 link now points to the right document
- A.R.S. §9-461.18(H) still reads "a municipality with a population of more than seventy-five thousand persons" (azleg.gov, read 9/20/2026). HB 2928 (Laws 2025, ch. 217, approved May 23, 2025) restructured the section — moving the population clause from subsection A to H and extending ADU mandates to counties in new §11-810.01 — without lowering the threshold, and no 2026 session law amending §9-461.18 was found. Paradise Valley (about 12,251 people) remains outside the casita law; the county section covers unincorporated land only
- Because the statute never applied, the Town had nothing to adopt by the January 1, 2025 deadline, and the §9-461.18(F) default — ADUs allowed without limits where a city fails to act — cannot bite. Municode's pending-ordinance list for the Town (Ord. 2025-03, 2025-05, Res. 2025-05) contains nothing on ADUs or guest houses
- Master Fee Schedule (Appendix B) amended by Resolution 2025-05, effective July 1, 2025: building permit tiers, 65% plan review, $145/hour extra reviews, $6,600 Hillside Building Committee review, $1,775 variance, $250 short-term rental permit; Wastewater Development Fee unchanged since Resolution 2017-02
- Town FAQ "Are short-term or vacation rentals allowed in Paradise Valley?" re-read 9/20/2026 — still states that long-term rental is permitted under §1004 and that "the entire property must be rented as a whole"; Town Code Article 10-14 (short-term rental permits) last amended by Ord. 2022-06
Tips for Building an ADU in Paradise Valley
- Do not buy a Paradise Valley lot expecting rental income from a casita. §1004.D and the Town FAQ are explicit: the whole property rents as one, or not at all. Zumper's September 2026 median for a Paradise Valley home is $9,900 a month — the rental market here is whole estates, not units
- Check the accessory front setback before you site anything: 60 ft in every district but R-10 (100 ft on a post-1991 R-175 lot), deeper than the 40 ft the main house observes in R-43. On a shallow lot that alone can rule out a detached guest house — Policy #27 lets a roof-connected wing within 20 ft of the house follow the main-house setbacks instead
- Run the half-the-footprint test early: guest house, detached garage, ramada, covered patio and gazebo combined may not exceed half the main house's first-floor ground area (§1005.A; Policies #53 and #59)
- Then run the 25% FAR test. Everything under roof counts, second storeys and eaves included; fully subterranean space is excluded (§201, Table 1001-A1). A stamped FAR certification is required at framing or roof-nail once you reach 22%
- A guest house is one storey and 15 or 16 ft including the chimney. A two-storey casita is not buildable as an accessory building; only long-term-storage buildings may exceed the storey limit (§1005.E)
- The ordinance expressly allows cooking facilities only in residential-staff quarters (§201); the guest-house definition mentions sanitary facilities only, and a building with its own kitchen meets the §201 definition of a dwelling unit, which §1004.C limits to one main building per lot. Get any kitchen approved in writing by Community Development (480-348-3692) before you design it in
- Budget for fire sprinklers (required in every new structure), a Maricopa County on-site wastewater permit if you are on septic, and — on Camelback Mountain, Mummy Mountain or the foothills — the $6,600 Hillside Building Committee review under Article XXII, which comes before the building permit
- Cost basis: build costs are Phoenix-metro industry ranges — Hochuli (Scottsdale, updated July 2026) detached $300,000-$600,000+, attached $225,000-$275,000, garage conversion $150,000-$250,000; Fenn Rogers (May 2026) $200-$400+ per sq ft; Dwelling Index (May 2026) prefab $200,000-$400,000 installed. Rents: HUD FY2027 Small Area FMR for ZIP 85253 ($1,940 1BR, $2,250 2BR) and Zumper Paradise Valley, September 20, 2026 ($1,825 1BR, $2,390 2BR) — hypothetical here, since a guest house cannot be rented
- Ignore the generic "Arizona now allows ADUs statewide" articles. They describe A.R.S. §9-461.18, which by its own subsection H reaches only municipalities above 75,000 people. Paradise Valley, Cave Creek, Carefree, Fountain Hills, Litchfield Park and Youngtown are all below it
- Cost basis (2026-09-20 re-verification): short term allowed: 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). Town Code Article 10-14 (Ord. 2019-12 through 2022-06) requires registration and a $250 permit, a state TPT licence, Maricopa County Assessor registration, $500,000 of liability insurance, a responsive local contact and the permit number on every advertisement; the Town decides within 7 business days. HOA CC&Rs can still prohibit the use (Camelback Country Estates Unit One HOA v. Forty Sixth Place LLC, Maricopa County Superior Court, 2019)
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Sources & References
All data on this page is sourced from official government records and verified market data. View our full methodology.
- A.R.S. §9-461.18 — Accessory dwelling units; regulation; applicability; definitions (subsection H: applies to municipalities over 75,000) state_statute — Accessed 2026-09-20
- Laws 2025, Chapter 217 (HB 2928) — amending §9-461.18 (population clause moved to subsection H) and adding §11-810.01 (counties); approved May 23, 2025 state_statute — Accessed 2026-09-20
- Town of Paradise Valley Code of Ordinances, Appendix A Zoning Ordinance, Article II — Zoning Definitions (§201: Accessory Building, Dwelling Unit, Family, Guest House, Residential Staff, Floor Area Ratio); codified through Ord. 2025-05 Municipal Code — Accessed 2026-09-20
- Zoning Ordinance Article X — Height and Area Regulations (Table 1001-A1, Table 1001-A2, Table 1001B, §1004 Building Restrictions, §1005 Accessory Building/Structure Regulations) Municipal Code — Accessed 2026-09-20
- Zoning Ordinance Article V — (R-43) Single-Family Residential District (§502.3 guesthouse as accessory use, 60-ft front setback; §503 parking); Articles IV, VI, VII and VIII read for R-175, R-35/R-35A, R-18/R-18A and R-10 Municipal Code — Accessed 2026-09-20
- Zoning Ordinance Article IX — Cluster Plan District (§909 guest house barred on CP lots below district minimum area; Article XXI repealed by Ord. 564) Municipal Code — Accessed 2026-09-20
- Town Zoning Interpretation — Policy #25, Cluster Plan (CP) Guest Houses (1/16/03) Planning Department — Accessed 2026-09-20
- Town Zoning Interpretation — Policy #27, Attached Structure Requirements (rev. 1/30/09: continuous roof, 20-ft opening, direct access) Planning Department — Accessed 2026-09-20
- Town Zoning Interpretation — Policy #50, R-10 Setbacks (rev. 9/20/17) Planning Department — Accessed 2026-09-20
- Town Zoning Interpretation — Policy #53, Section 1005A Ground Area (11/30/09) Planning Department — Accessed 2026-09-20
- Town Zoning Interpretation — Policy #59, Accessory Structure Area (6/16/11) Planning Department — Accessed 2026-09-20
- Town of Paradise Valley — Building Permit Application Information (separate permit per structure incl. guest house, 180-day validity, plan review 15 business days per round, sprinklers, septic, hillside, minimum valuation table) Planning Department — Accessed 2026-09-20
- Town Code Appendix B — Master Fee Schedule (1.1.1 building permit tiers, 1.1.7 plan review 65%, 1.3.1 Wastewater Development Fees, 2.1 variance, 2.3 Hillside Review, 3.8 STR permit); amended through Res. 2025-05, effective July 1, 2025 Planning Department — Accessed 2026-09-20
- Town of Paradise Valley — Floor Area Ratio (FAR) Certification for Main House, Addition, Guest House, or Accessory Structure (rev. 6-29-26) Planning Department — Accessed 2026-09-20
- Town of Paradise Valley — Standard Residential Flatland Submittal Requirements (site-plan data, 50% accessory ground-area test, FAR table, setback/height certifications, 16-ft accessory limit incl. chimney) Planning Department — Accessed 2026-09-20
- Town Zoning Interpretation — Policy #37 (rev.), Factory Built Homes (7/21/06) Planning Department — Accessed 2026-09-20
- Town Zoning Interpretation — Policy #74, Existing Accessory Structures & New SFR (rev. 3/4/2022; quotes §1005 A and B) Planning Department — Accessed 2026-09-20
- ADU Cost in Phoenix (2026) | Hochuli Design & Remodeling Team, Scottsdale — last updated July 2026 (Essential $150K-$250K, Premium $250K-$400K, All-In $400K-$750K+; detached $300K-$600K+) industry — Accessed 2026-09-20
- ADUs in Arizona: Rules, Costs, What to Know (2026) | Fenn Rogers Custom Homes, Mesa — updated May 12, 2026 ($200-$400+/sq ft; luxury $250K-$400K+) industry — Accessed 2026-09-19
- Prefab Modular ADU: 2026 Costs, Code Paths & Lot Fit | Dwelling Index — May 27, 2026 (finished $200K-$400K+) industry — Accessed 2026-09-19
- HUD FY 2027 Small Area Fair Market Rent Schedule — Phoenix-Mesa-Chandler, AZ MSA, ZIP 85253 (studio $1,770, 1BR $1,940, 2BR $2,250, 3BR $3,030) Government Data — Accessed 2026-09-20
- Zumper — Paradise Valley, AZ Rent Research (as of September 20, 2026: 1BR $1,825, 2BR $2,390, 3BR $7,697; overall median $9,900) Market Data — Accessed 2026-09-20
- Town of Paradise Valley FAQ — Short-Term or Vacation Rental ("the entire property must be rented as a whole") Planning Department — Accessed 2026-09-20
- Town Code Chapter 10, Article 10-14 — Short-Term Rentals Responsible Party Requirements (registration, $250 permit, TPT licence, Assessor registration, $500,000 insurance; Ord. 2019-12, 2022-03, 2022-04, 2022-06) Municipal Code — Accessed 2026-09-20
- A.R.S. §9-500.39 — Limits on regulation of vacation rentals and short-term rentals state_statute — Accessed 2026-09-20
- U.S. Census Bureau QuickFacts — Paradise Valley town, Arizona (population estimate) Government Data — Accessed 2026-09-01
- Town of Paradise Valley — Zoning Interpretations index (Community Development Director's written policies) Planning Department — Accessed 2026-09-20
- Town of Paradise Valley Code of Ordinances — Municode (Town Code, Appendix A Zoning Ordinance, Appendix B Master Fee Schedule; codified through Ord. 2025-05, Dec. 11, 2025) Municipal Code — Accessed 2026-09-20
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