Peoria adopted a full accessory dwelling unit ordinance (Peoria City Code §21-316) on December 17, 2024, ahead of the state deadline in Arizona's casita law. ADUs are a by-right permitted use — no hearing, no conditional use permit — on any lot where the zoning allows a single-family dwelling, with a 5-foot rear and side setback, no extra parking, and no requirement that the casita match the house. The binding limit is size: the lesser of 1,000 sq ft or 75% of your home's interior habitable area.
Zoning & Size Requirements [1][2][3]
Yes — Peoria allows ADUs. A detached ADU can typically be up to 1,000 sq ft under current Arizona and Peoria zoning rules.
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| Allowed Zones | Any lot or parcel where the zoning allows a single-family dwelling — including the R1-43, R1-35, R1-18, R1-12, R1-10, R1-8, R1-7 and R1-6 single-family districts (Peoria City Code §21-316.D.1.a and §21-422.B). Not permitted on a lot or parcel with a duplex or other multiple-family development (§21-316.D.1.b) |
| Max Size (Detached) | The lesser of 75% of the gross floor area of the existing single-family dwelling or 1,000 sq ft (Peoria City Code §21-316.C.2); 'gross floor area' means interior habitable area (§21-316.B) |
| Max Size (Attached) | Same cap — the lesser of 75% of the primary dwelling's gross floor area or 1,000 sq ft (Peoria City Code §21-316.C.2) |
| Max Size (JADU) | Not a category in Arizona — Peoria's ordinance has no junior ADU designation |
| Max Height | Same height limit that applies to a single-family dwelling in the district — 30 feet in every R1 district (Peoria City Code §21-316.D.4; district table at §21-420.A) |
| Max Units | 2 per lot — one attached plus one detached ADU. On a single-family lot of 1 acre or more: one attached plus two detached, but only if at least one of the detached units is a 'restricted-affordable dwelling unit' deed-restricted to households earning up to 80% of area median income (Peoria City Code §21-316.C.1 and §21-316.E.2) |
Setback Requirements [1][2][3]
Peoria requires a rear setback of about 5 ft for a detached ADU, and no additional parking is required. Owner-occupancy is not required — you can rent it out without living on the property.
| Rear Setback | 5 feet from the property line (Peoria City Code §21-316.D.2.a) — a relaxation from the 15-foot rear setback the main house must observe in R1-6 through R1-18. State law caps what the city may require here at 5 feet (A.R.S. §9-461.18(B)(6)) |
| Side Setback | 5 feet from the property line (Peoria City Code §21-316.D.2.a); state law caps the city's side setback requirement at 5 feet (A.R.S. §9-461.18(B)(6)) |
| Front Setback | The principal front building setback of the underlying zoning district (Peoria City Code §21-316.D.2.b) — per §21-420.A that is 20 ft in R1-6 through R1-12 with a front-facing garage (10 ft for a side-entry garage), 20 ft in R1-18, 30 ft in R1-35 and 35 ft in R1-43 |
| Parking Required | None — no additional parking space or in-lieu parking fee may be required for a new ADU (Peoria City Code §21-316.D.6; A.R.S. §9-461.18(B)(3)) |
| Owner Occupancy | Not required. Under state law Peoria may not prohibit leasing or advertising either the house or the ADU as separate long-term rental housing, and may not require any familial, marital, employment or other pre-existing relationship between the occupants (A.R.S. §9-461.18(B)(1)-(2)) |
| Min Lot Size | No ADU-specific minimum lot size — an ADU is allowed wherever the zoning allows a single-family dwelling. The district's maximum lot coverage (30% in R1-43 up to 45% in R1-10 through R1-6, §21-420.A) is the practical constraint, and a lot of 1 acre or more unlocks a third unit |
Permit Process & Fees [4][5]
An ADU permit in Peoria goes through a ministerial, by-right review. Confirm with Peoria Planning & Community Development — no published ADU review timeline found in a city source. Permit fees: Building permit and plan review fees apply — Confirm current amounts with Peoria Development Services.
| Approval Process | By-right permitted use — approved without a public hearing, variance, conditional use permit, special permit or special exception (Peoria City Code §21-316.B, definition of 'Permitted Use'). If an application is denied or deemed not a permitted use, the Zoning Administrator's decision may be appealed to the Board of Adjustment (§21-316.C.3, §21-162) |
| Review Timeline | Confirm with Peoria Planning & Community Development — no published ADU review timeline found in a city source |
| Permit Fees | Building permit and plan review fees apply — Confirm current amounts with Peoria Development Services |
| Impact Fees | Confirm with Peoria Development Services — the zoning ordinance does not address ADU impact fees, and no ADU fee waiver was found in a city source |
| Plan Check | Full construction plan review under Peoria's building and fire codes and the Peoria Engineering Standards Manual (§21-316.A). State law bars the city from applying a commercial building code to an ADU or requiring a fire sprinkler (A.R.S. §9-461.18(D)) |
| Pre-Approved Plans | No city pre-approved ADU plan library found — Confirm with Peoria Development Services |
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Construction Costs [6]
Building an ADU in Peoria typically costs $120,000-$245,000 ($145-$270 per sq ft); a garage conversion runs $55,000-$135,000.
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| Average Build Cost | $120,000-$245,000 |
| Cost per Sq Ft | $145-$270 |
| Garage Conversion | $55,000-$135,000 |
| Prefab ADU (Installed) | $85,000-$200,000 |
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Rental Income Potential [7][8]
A 2-bedroom ADU in Peoria rents for around $1,600-$2,000/mo, an estimated 6-9% annual return.
| Avg Rent (1 Bedroom) | $1,300-$1,600/mo |
| Avg Rent (2 Bedroom) | $1,600-$2,000/mo |
| Short-Term Rental | Confirm with the City of Peoria — §21-316 does not address short-term rental of an ADU, and Arizona limits how far cities may restrict vacation rentals. What state law does guarantee is the long-term side: Peoria cannot prohibit leasing the house or the ADU separately on a 90-day-or-longer or month-to-month basis (A.R.S. §9-461.18(B)(1), (I)(3)) |
| Est. Annual ROI | 6-9% annual return |
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Recent Law Changes
What's Changed Recently
- Ordinance No. 2024-20, adopted December 17, 2024, created Peoria City Code §21-316 (Accessory Dwelling Unit) and amended §§21-200, 21-300, 21-400 and 21-600 to comply with Arizona HB 2720 before the January 1, 2025 deadline
- Arizona HB 2720, codified at A.R.S. §9-461.18, requires every municipality over 75,000 people to allow at least one attached and one detached ADU as a permitted use wherever single-family dwellings are allowed — Peoria's population of roughly 199,900 puts it squarely inside the mandate
- State law bars Peoria from requiring extra parking or in-lieu fees, exterior design matching, a city-imposed restrictive covenant, or rear/side setbacks greater than 5 feet (A.R.S. §9-461.18(B))
- Peoria's ordinance expressly subordinates itself to the statute: 'To the extent any provision in this Section conflicts with A.R.S. 9-461.18, the state law shall control' (§21-316.A)
- ADUs built or in existence without a permit before September 15, 2024 may be legalized by applying for a building permit under current building standards (§21-316.E.1)
Tips for Building an ADU in Peoria
- Measure your house before you design: the cap is the lesser of 1,000 sq ft or 75% of your home's interior habitable area, so a 1,200 sq ft house limits the casita to 900 sq ft
- You can build two ADUs by right — one attached and one detached — which is unusually generous outside California
- The 5-foot rear and side setback is a state-law ceiling, not a floor: Peoria cannot require more, so don't accept a plan reviewer's larger number without asking about A.R.S. §9-461.18(B)(6)
- Your casita does not have to match the house — §21-316.D.5 only asks that the exterior 'complement to the greatest extent possible', and state law forbids a matching mandate
- The third unit on an acre-plus lot comes only with a deed restriction capping rent at 80% AMI — run that against market rent before committing
- Check your plat for public utility easements early: an ADU may not encroach on an existing or planned easement without written consent from every easement holder and affected utility (§21-316.D.7)
- Sequence matters — no ADU may be built before the single-family dwelling it is accessory to (§21-316.D.1.c), and an ADU can never be sold separately (§21-316.E.3)
ADU Builders in Peoria
Looking for an ADU builder in Peoria? ADU projects need a contractor experienced with local zoning, the permit process, and utility connections — not every general contractor has built one. We match Peoria homeowners with experienced local ADU contractors who provide free, no-obligation quotes. Getting at least three bids typically saves 20-40% on the same scope.
Sources & References
All data on this page is sourced from official government records and verified market data. View our full methodology.
- Peoria City Code §21-316 — Accessory Dwelling Unit (Ord. No. 2024-20, 12-17-24) Municipal Code — Accessed 2026-09-01
- Peoria City Code §21-420 — Property Development Standards for Permitted Principal Uses (R1 districts) Municipal Code — Accessed 2026-09-01
- A.R.S. §9-461.18 — Accessory dwelling units; regulation; applicability; definitions state_statute — Accessed 2026-09-01
- Code Amendment: Accessory Dwelling Units and Backyard Fowl (TA24-02) — Peoria Planning & Zoning Commission Staff Report, Nov 14, 2024 Planning Department — Accessed 2026-09-01
- Ordinance No. 2024-20 (Exhibit A) — City of Peoria Municipal Code — Accessed 2026-09-01
- Angi — ADU Construction Cost Data Market Data — Accessed 2026-09-01
- Zillow Rental Manager — Market Rent Data Market Data — Accessed 2026-09-01
- HUD Fair Market Rents Government Data — Accessed 2026-09-01
Frequently Asked Questions
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