Phoenix vs Scottsdale: ADU Rules Compared

Side-by-side comparison of ADU zoning rules, costs, and rental potential. Updated 2026.

6/10Phoenix Score
vs 
5/10Scottsdale Score

Zoning & Size Limits

RequirementPhoenix, AZScottsdale, AZ
Allowed ZonesSingle-family residential zonesVery limited residential zones
Max Size (Detached)1,000 sq ft on lots up to 10,000 sq ft (75% of primary dwelling, whichever is less); on lots over 10,000 sq ft, the lesser of 3,000 sq ft or 10% of net lot area1,000 sq ft or 75% of primary dwelling (whichever is less); 500 sq ft for second/third ADU
Max Size (Attached)75% of primary dwelling, capped at 1,000 sq ft (lots ≤10,000 sq ft)1,000 sq ft or 75% of primary dwelling (whichever is less)
Max Height15 ft when within required rear/side yards (greatePer underlying zoning district (no ADU-specific he
Parking RequiredNo additional parking required (ARS 9-461.18 / AZ HB 2720 prNo additional parking required for the ADU (existing parking
Owner OccupancyNot required for long-term rental; owner must reside on-siteNot required for long-term rental; owner must reside on-site

Setback Requirements

SetbackPhoenix, AZScottsdale, AZ
Rear Setback5 feet (3 ft for some detached configurations per ZO 706; statute caps rear/side at 5 ft)5 feet (detached ADU may be as close as 5 ft to rear lot line)
Side Setback5 feet (3 ft for some detached configurations per ZO 706)5 feet (detached ADU may be as close as 5 ft to side lot line; may not be in required front yard)
Front SetbackPer underlying zoning district (no ADU-specific frPer zone (detached ADU may not be built in a requi

Permits & Timeline

DetailPhoenix, AZScottsdale, AZ
Permit Timeline60-90 days120-180 days
Permit Fees$2,500-$4,200$5,000-$8,000
Impact Fees$900-$1,600$2,000-$3,000
Pre-Approved PlansLimited availabilityNot available

Construction Costs

CostPhoenix, AZScottsdale, AZ
Avg Build Cost$120,000-$240,000$140,000-$280,000
Cost Per Sq Ft$135-$270$200-$400
Garage Conversion$60,000-$140,000$75,000-$170,000
Prefab ADU$85,000-$200,000$110,000-$240,000

Rental Income Potential

RentalPhoenix, AZScottsdale, AZ
1BR Avg Rent$1,250-$1,700/mo$1,500-$2,000/mo
2BR Avg Rent$1,600-$2,200/mo$1,900-$2,600/mo
Short-Term RentalsVaries by neighborhoodNot permitted
Est. ROI7-10% annual return4-6% annual return

Which City Is Better for ADUs?

Phoenix scores 6/10 while Scottsdale scores 5/10 on our ADU-friendliness index. Phoenix edges ahead overall. Both cities offer viable ADU development opportunities — the best choice depends on your specific property, budget, and goals.

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