What state law allows
Under A.R.S. § 9-500.39, Arizona cities cannot ban short-term rentals, but they can require:
- A permit or license, with a fee capped at the cost of issuing it or $250, whichever is less, issued or denied within seven business days.
- Liability insurance of at least $500,000.
- A 24/7 emergency contact.
- Notice to neighbors next to and directly or diagonally across the street before the first rental.
- Your permit number (or TPT license number) on every advertisement.
Fines for verified violations: up to $500 or one night’s rent for the first, $1,000 or two nights for the second, and $3,500 or three nights from the third, whichever is greater. Three violations in 12 months can suspend a permit for up to 12 months.
City by city
| City | What it requires | Fee | Notes |
|---|---|---|---|
| Phoenix | STR permit | $250/yr | Neighbor notice by certified mail. Since Apr 4, 2026, ADUs with a certificate of occupancy after Sep 14, 2024 need a notarized owner-occupancy attestation. Operating without a permit: up to $1,000/month. |
| Scottsdale | STR license | $250/yr | $500k insurance; emergency contact must reach the property within 1 hour when public safety asks; neighbor letter within 30 days; Maricopa County rental registration. |
| Mesa | STR license | $250/yr | Per unit, valid one year; TPT license required. |
| Tempe | STR license | $250/yr | Per property; TPT license required. |
| Chandler | STR license per location | Check city | TPT applies to stays under 30 days. |
| Gilbert | Town STR license | Check town | Each address on your TPT license; proof of county rental registration. |
| Glendale | City registration | Check city | Emergency contact posted within 4 feet of the entrance; $500k insurance. |
| Peoria | Vacation rental permit | Check city | $500k insurance, 24-hour contact, neighbor notice, TPT. |
| Queen Creek | Registration only | $0 | The town removed the license requirement and fee. |
| Fountain Hills | Annual permit | $250/yr | Emergency contact, neighbor notice, posting on the property, insurance. |
| Sedona | Annual STR permit | ~$210/unit | No special events allowed. |
| Tucson | City business license (no STR permit) | $95 first year | New 10% city tax on short-term rentals since Mar 1, 2026. |
Sources: city websites and codes (Phoenix, Scottsdale, Mesa, Chandler, Gilbert, Glendale, Peoria, Queen Creek, Sedona), local press (Fountain Hills), Arizona Department of Revenue (Tucson). For Surprise, Avondale, Buckeye and Apache Junction, contact the city directly.
What changed in 2026
HB 2429, which would have let cities limit overnight occupancy, passed the House but stalled in the Senate. SB 1076, which would let towns under 70,000 residents cap permits, was introduced; we found no record of it becoming law. Reform bills return almost every session, so we review the rules each January.