House hacking in Arcadia can work beautifully when your casita is built and rented within city rules. Maybe you want to offset a jumbo mortgage or create a flexible guest suite that also earns income. You can do both if you follow Arizona law and Phoenix’s ADU standards. This guide shows you what’s allowed, how to permit a casita, and the smartest ways to rent it for steady returns. Let’s dive in.
What Phoenix and Arizona allow
Arizona’s ADU law protects your right to add and rent an accessory dwelling on most single-family lots. The statute requires big cities like Phoenix to allow ADUs and limits certain local restrictions. Review the core protections in Arizona Revised Statutes §9-461.18 to understand your baseline rights and limits before you design or buy a property with ADU potential. Read the statute.
Phoenix has implemented ADUs citywide, which includes Arcadia. Key rules you should know, drawn from the City’s official materials:
- Number of ADUs: Phoenix allows up to two ADUs on a single-family detached lot; a third may be possible on large lots with an affordability restriction. See the City’s ADU overview.
- Size caps: An ADU may not exceed 75% of the main home’s gross floor area. Absolute caps also apply. On lots up to 10,000 sq ft, the cap is 1,000 sq ft. On larger lots, the cap is the lesser of 3,000 sq ft or 10% of lot area. Review the Beginner’s Guide.
- Setbacks and height: Side and rear setbacks can be as small as 3 to 5 feet in many cases. Detached ADUs in rear or side yards are generally limited to 15 feet in height unless you secure a use permit. Check the detailed standards.
- Parking: State law generally prevents cities from demanding extra parking for ADUs. If you convert a garage, you must replace any required off-street parking elsewhere on the lot, not in the front setback. See state protections and the City’s Beginner’s Guide.
- Short-term rentals: Phoenix permits short-term rentals with a city STR license, and state law now lets cities require owner residency in certain ADU STR scenarios depending on build dates and prior rights. Always confirm your situation before pursuing an STR plan. See Phoenix’s zoning amendment and the City Council STR item on Legistar.
How this works in Arcadia
Arcadia is part of the City of Phoenix, so Phoenix’s ADU rules apply. Lots here are often larger and may already have detached structures, which can be an advantage if they meet code.
Start with these checks before you design or buy:
- Zoning district and lot coverage. Use Phoenix’s mapping tools to confirm your zoning and base setbacks. ADU standards layer on top of base zoning. The City’s Beginner’s Guide explains the basics.
- Net lot area. Many Arcadia lots are near or above 10,000 sq ft. Your absolute size cap depends on lot size and the 75% rule. Calculate both to see what actually limits you.
- Existing backyard structures. If a “casita” was never permitted, plan to legalize or rebuild to current code before you apply. The Planning and Development Department (PDD) ombudsman can help you triage issues. See the City’s guidance.
- HOA or private covenants. CC&Rs can still restrict ADUs or rentals even when the City allows them. Review your documents and timelines carefully under state law. See ARS §9-461.18.
Design choices matter in Arcadia’s context. Keep the ADU subordinate to the main house, use thoughtful placement for privacy, and consider visibility from alleys or street sides to reduce friction during review. The zoning amendment outlines standards that influence massing and placement.
Permit steps and timeline
Follow a simple sequence to keep your project on track:
- Preliminary property check
- Confirm zoning, setbacks, and any overlays. Pull lot size to understand lot coverage and your ADU size cap. The City’s Beginner’s Guide is a great starting point.
- Pre-application call
- Contact Phoenix PDD’s site planning team or the ombudsman early. They will flag issues like unpermitted structures, utility connections, or whether you qualify for more than one ADU.
- Design and plan set
- Hire a designer or evaluate pre-approved plans if available. If converting a garage, plan to replace required parking elsewhere on the lot.
- Permit submittal and plan review
- Phoenix uses valuation-based permit fees and multi-department review. Some projects may qualify for expedited pathways. Expect iterations based on corrections. Use the City’s ADU page for process context.
- Utilities and inspections
- Your ADU must meet building, electrical, plumbing, and fire safety standards. Avoid placing structures on utility easements without written consent. See the zoning amendment notes.
- Final and occupancy
- Obtain final approvals before renting. If you plan to use the unit as a short-term rental, secure the city STR permit under Chapter 10 Article XVI. Review the council item.
Timing and costs vary by scope, corrections, and whether you need utility work. In Metro Phoenix, modest detached ADUs commonly range from tens of thousands to low six figures depending on design and finishes. Plan review often takes several weeks or more, and discretionary approvals like a height use permit will extend timelines. The City’s Beginner’s Guide outlines the submittal basics.
Renting the casita: long-term vs STR
Long-term rentals are straightforward under state law and are often the easiest way to house-hack for steady income. Arizona protects your right to rent ADUs long-term, and Phoenix’s implementation supports it. Check the statute.
Short-term rentals remain viable but come with extra steps. Phoenix requires an STR permit, and state updates allow the City to require owner residency in certain ADU STR situations tied to build dates and prior rights. Confirm your ADU’s build date, your rights at the time of construction, and the City’s current permit rules before you invest. Review the zoning amendment and the STR ordinance record on Legistar.
Also plan for insurance, taxes, and neighbors. Notify your insurer about the new rental exposure, budget for potential increases in property valuation, and design for privacy to minimize friction. The Maricopa County Assessor considers improvements when assessing value. See the Assessor’s FAQ.
Design moves that boost ROI
- Right-size the unit. On Arcadia lots up to 10,000 sq ft, the 1,000 sq ft cap commonly applies. Many owners find a 500 to 800 sq ft layout balances cost and rent potential. Confirm your size limit in the City’s guide.
- Plan the layout for renters. A separate entry, efficient kitchen, in-unit laundry, and storage help with long-term demand.
- Solve parking early. If you convert a garage, replace required parking elsewhere on the lot and keep it out of the front setback. See the Beginner’s Guide.
- Think utilities. Decide whether to share or separately meter utilities. Separate metering can simplify accounting but may require added work and fees.
- Keep scale and privacy in mind. Use placement, height, and landscaping to keep the ADU subordinate to the main home and neighbor-friendly. Review the zoning standards.
Quick Arcadia checklist
- Confirm zoning, setbacks, and lot coverage for your address.
- Measure net lot area and calculate your ADU size cap under both rules.
- Review CC&Rs or HOA rules for any private restrictions.
- Contact Phoenix PDD or the ombudsman before design.
- Get preliminary quotes and timeline guidance from designers and contractors.
- If considering STR, confirm permit rules and any owner-residency triggers.
- Update your insurance and model tax implications, including possible assessment changes.
Build vs buy: which path fits you
If you already own in Arcadia, a well-executed ADU can turn unused yard space into income while keeping guest options open. If you are buying, you can target lots and floor plans that align with Phoenix’s ADU standards so you are not surprised by size or placement limits. In both cases, start with zoning, lot size, and parking feasibility, then map permits and timelines before you spend on plans.
Ready to evaluate properties with casita potential or position your Arcadia home to appeal to ADU-minded buyers? Reach out to Clayton Wolfe for a confidential, concierge consultation tailored to your goals.
FAQs
How big can a casita be on an Arcadia lot?
- Phoenix caps ADUs to 75% of the main home’s gross floor area, with absolute caps of 1,000 sq ft for lots up to 10,000 sq ft and up to 3,000 sq ft or 10% of lot area on larger lots. See the City’s guide.
Can I rent an Arcadia casita long-term or short-term?
- Long-term rentals are protected under Arizona law, while STRs require a Phoenix STR permit and may trigger owner-residency depending on build dates and prior rights. Review state law and the City’s STR materials.
Do I need new parking if I convert a garage to a casita?
- Yes. If you convert required parking to living space, you must replace the required off-street parking elsewhere on the lot, not in the front setback. See the City’s Beginner’s Guide.
Are HOA rules in Arcadia still enforceable over ADUs?
- They can be. State law stops cities from conditioning ADU permits on private covenants, but private CC&Rs may still limit ADUs or rentals. Read ARS §9-461.18.
Will adding a casita raise my property taxes in Arcadia?
- Likely. New construction is an improvement and can increase assessed value. Expect a reassessment after completion. See the Maricopa County Assessor FAQ.
