🎯 STRisker: Bulletin - Coconino County, AZ
Coconino County Updates ADU and Short-Term Rental Rules to Match New State Law
Coconino County Aligns with State Housing Law
Coconino County is adjusting its local playbook on housing and short-term rentals, bringing its codes in line with new state legislation while trying to strike a balance between housing supply and neighborhood stability. On December 21, the county board unanimously approved updates to both its accessory dwelling unit (ADU) regulations and its short-term rental ordinance changes that will shape how future rentals operate across the county.
At the center of the discussion is House Bill 2928, a recent state housing law that requires counties to allow more ADUs on residential properties. In response, Coconino County adopted an amendment allowing up to two ADUs on all lots, one attached and one detached. For larger properties of one acre or more, a third ADU will now be permitted.
However, county leaders made it clear they don’t want additional ADUs automatically turning into short-term rentals. To address that concern, the Planning & Zoning Commission recommended—and the board approved—a deed restriction on the second detached ADU for properties of one acre or larger. That unit must be used as affordable housing, with renter eligibility tied to a percentage of the area median income. County staff said this requirement is designed specifically to prevent the unit from being converted into a short-term rental.
Alongside the ADU changes, the board also updated the county’s short-term rental ordinance to reflect another state-level allowance. Under the new rule, if an ADU receives its certificate of occupancy on or after January 1, 2026, and the owner intends to use it as a short-term rental, the owner must live on the property.
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Community development compliance manager Mark Stento told the board that this update will likely affect only a small number of future cases. Still, officials see it as an important guardrail. The owner-occupancy requirement is intended to protect neighborhood character while still allowing ADUs to be built for long-term housing needs not just as income-producing vacation rentals.
Taken together, the changes show a clear effort by Coconino County to comply with state housing mandates without opening the door to unchecked short-term rental growth. The county is allowing more flexibility in how properties can be developed, but with conditions aimed at ensuring ADUs contribute to housing availability rather than solely to the short-term rental market.
With both amendments adopted unanimously, the message from county leaders is consistent: growth is welcome, but it needs to be thoughtful. As state housing laws continue to evolve, Coconino County appears focused on threading the needle between expanding housing options and maintaining community expectations around short-term rentals.
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