Scottsdale's ADU policies are restrictive, limiting units to select zones and requiring conditional use permits. The city's focus on preserving residential character makes ADU development more challenging than neighboring Phoenix.
Zoning & Size Requirements [1][2]
Yes, you can build an ADU in Scottsdale. A detached ADU can be up to 1,000 sq ft under current Arizona and Scottsdale zoning rules.
| Allowed Zones | Very limited residential zones |
| Max Size (Detached) | 1,000 sq ft or 75% of primary dwelling (whichever is less); 500 sq ft for second/third ADU |
| Max Size (Attached) | 1,000 sq ft or 75% of primary dwelling (whichever is less) |
| Max Size (JADU) | Not allowed |
| Max Height | Per underlying zoning district (no ADU-specific height limit beyond zone standard) |
| Max Units | 2 per lot (1 attached + 1 detached); a 3rd detached affordable ADU allowed on lots 1+ acre |
Setback Requirements [1][2]
Scottsdale 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 (detached ADU may be as close as 5 ft to rear lot line) |
| Side Setback | 5 feet (detached ADU may be as close as 5 ft to side lot line; may not be in required front yard) |
| Front Setback | Per zone (detached ADU may not be built in a required front yard) |
| Parking Required | No additional parking required for the ADU (existing parking for the main dwelling must be maintained; ARS 9-461.18 / HB 2720) |
| Owner Occupancy | Not required for long-term rental; owner must reside on-site only if the main home or ADU is used as a vacation/short-term rental |
| Min Lot Size | 7,500 sq ft |
Permit Process & Fees
An ADU permit in Scottsdale typically costs $5,000-$8,000 and takes 120-180 days, through a ministerial, by-right review.
| Approval Process | Administrative review approval (by-right permitted use; HB 2720 prohibits requiring a conditional use permit or public hearing) |
| Review Timeline | 120-180 days |
| Permit Fees | $5,000-$8,000 |
| Impact Fees | $2,000-$3,000 |
| Plan Check | 6-8 weeks |
| Pre-Approved Plans | Not available |
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Construction Costs [3][4]
Building an ADU in Scottsdale typically costs $140,000-$280,000 ($200-$400 per sq ft); a garage conversion runs $75,000-$170,000.
| Average Build Cost | $140,000-$280,000 |
| Cost per Sq Ft | $200-$400 |
| Garage Conversion | $75,000-$170,000 |
| Prefab ADU (Installed) | $110,000-$240,000 |
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Rental Income Potential [5][6]
A 2-bedroom ADU in Scottsdale rents for around $1,900-$2,600/mo, an estimated 4-6% annual return.
| Avg Rent (1 Bedroom) | $1,500-$2,000/mo |
| Avg Rent (2 Bedroom) | $1,900-$2,600/mo |
| Short-Term Rental | Not permitted |
| Est. Annual ROI | 4-6% annual return |
Explore Prefab ADU Options
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Recent Law Changes
What's Changed Recently
- Scottsdale City Council adopted Ordinance 4687 on Sept 30, 2025 to comply with HB 2720/HB 2928: allows one attached + one detached ADU by-right (3rd affordable detached on 1+ acre), caps rear/side setbacks at 5 ft, removes added-parking and (long-term) owner-occupancy mandates
- Second/third ADU on a lot is capped at 500 sq ft (notably restrictive)
- Arizona HB 2720 (ARS 9-461.18, effective Jan 1, 2025) for cities over 75,000; HB 2928 (signed May 2025) extended ADU rules to counties
- Owner-occupancy is required only when the main home or an ADU is operated as a short-term/vacation rental
Tips for Building an ADU in Scottsdale
- Scottsdale is challenging for ADU development; verify zone compatibility early
- Conditional use permit and design review require 120+ days
- Owner-occupancy often required; limits pure investment strategies
- High property costs with lower ROI make Scottsdale less attractive for ADUs
ADU Builders in Scottsdale
Looking for an ADU builder in Scottsdale? ADU projects need a contractor experienced with local zoning, the permit process, and utility connections — not every general contractor has built one. We match Scottsdale 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.
- Accessory Dwelling Units (ADUs) | City of Scottsdale (Ordinance 4687) Planning Department — Accessed 2026-06-28
- ARS 9-461.18 — Accessory dwelling units; regulation; applicability; definitions Government Data — Accessed 2026-06-28
- Angi — ADU Construction Cost Data Market Data — Accessed 2026-02-24
- Angi — Local ADU Contractor Costs Market Data — Accessed 2026-02-24
- Zillow Rental Manager — Market Rent Data Market Data — Accessed 2026-02-24
- HUD Fair Market Rents Government Data — Accessed 2026-02-24
- Arizona ADU Legislation (SB 1132, 2023) Government Data — Accessed 2026-02-24
Frequently Asked Questions
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