Stephen R. Mannenbach · J.D., MBA · Licensed Arizona REALTOR® (ADRE #SA713873000 · HomeSmart LLC) · Brokered by HomeSmart LLC (Arizona Dept. of Real Estate)Direct Scottsdale Desk: (480) 485-1229
HomeDaddy AIStephen R. Mannenbach, REALTOR® · HomeSmart
Zoning & Value-Add

ADU (Accessory Dwelling Unit / Casita) & Arizona HB 2720

Bottom Line Up Front: Arizona HB 2720 mandates that cities with 75,000+ residents permit at least one attached and one detached ADU (up to 75% of primary home square footage or 1,000 sq ft) on single-family lots.

Formula / Statutory Rule

Up to 1,000 Sq Ft Detached Casita + 3rd ADU on Lots ≥ 1 Acre

Scottsdale & Greater Phoenix Benchmark (HomeDaddy AI)

Adding a 650–950 sq ft luxury detached guest casita in Arcadia, North Scottsdale, or Tempe adds $225,000–$410,000 in ARV and $2,400–$4,200/mo in rental revenue.

Stephen R. Mannenbach is a Licensed Real Estate Salesperson / REALTOR® in the State of Arizona (ADRE #SA713873000), brokered by HomeSmart LLC. Equal Housing Opportunity. All property square footage, HOA fees, school boundaries, business financials, and market statistics are deemed reliable but not guaranteed and should be independently verified through ARMLS and Maricopa County records.

Capitalization Rate (Cap Rate)IRC Section 1031 Tax-Deferred Like-Kind ExchangeBINSR (Buyer’s Inspection Notice and Seller’s Response)After-Repair Value (ARV)Scottsdale & Phoenix Short-Term Rental (STR) Licensing OrdinanceNet Operating Income (NOI)Cash-on-Cash (CoC) Return
ADU (Accessory Dwelling Unit / Casita) & Arizona HB 2720 — Definition, Formula & Scottsdale Benchmark | HomeDaddy AI