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]
| 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 | 30 feet |
| Max Units | 1 attached + 1 detached per lot (2 total); up to 3 on lots 1+ acre |
Setback Requirements [1]
| Rear Setback | 25 feet |
| Side Setback | 5 feet |
| Front Setback | 30 feet |
| Parking Required | No additional parking required (AZ HB 2720) |
| Owner Occupancy | Not required for long-term rental; required only if ADU used as vacation rental |
| Min Lot Size | 7,500 sq ft |
Permit Process & Fees
| Approval Process | Conditional use permit + design review |
| 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 [2][3]
| 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 [4][5]
| 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 |
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Recent Law Changes
What's Changed Recently
- Phoenix expanded ADU-allowed zones to cover all single-family residential (2026)
- Scottsdale updated ADU design standards with modern architectural options
- Tucson ADU incentive program: Waived permits for units under 500 sq ft
- Arizona SB 1117 effects: State preemption of local ADU restrictions expanding
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
Sources & References
All data on this page is sourced from official government records and verified market data. View our full methodology.
- ADU FAQs — City of Scottsdale Planning Department — Accessed 2026-02-25
- HomeAdvisor — 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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