Arizona's recent legislative changes have made it easier to build and rent accessory dwelling units, commonly known as casitas, but real estate experts caution that the laws do not automatically guarantee rental income for Tucson home buyers. The gap between what a casita could earn and what it is legally allowed to do is where expensive assumptions can arise, according to Tony Ray Baker, team leader at REMAX Fine Properties. Baker notes that buyers are increasingly inquiring about homes with rental-ready guest houses, driven by the desire to offset mortgages, house aging parents, or provide space for adult children saving for their own homes. However, he emphasizes that research must precede any offer.
The legal landscape shifted with the passage of House Bill 2720 in 2024, which requires larger cities to allow accessory dwelling units on residential lots where single-family homes are permitted. House Bill 2928, signed in 2025, extended similar requirements to counties. Baker views these changes as positive developments for multigenerational housing and rental supply. Arizona law also protects the ability to rent a qualifying unit on a long-term basis, so the old assumption that a casita in unincorporated Pima County cannot be rented is no longer generally accurate. Nevertheless, the laws set only a framework; setbacks, building codes, lot coverage, utility requirements, and permits still apply.
A critical factor for buyers is jurisdiction. A Tucson mailing address does not confirm that a home sits inside the City of Tucson. Two nearly identical homes can fall under different jurisdictions—one in the city and one in unincorporated Pima County—and the rules for construction, permits, and short-term rentals can differ significantly. This matters especially in the Catalina Foothills, where many homes with guest houses are in unincorporated county territory. Pima County updated its accessory dwelling unit regulations in December 2025, allowing qualifying units to be used for long-term or short-term rentals, subject to applicable requirements. State law also permits local governments to require the owner to live on the property when a newer unit is used as a short-term rental. Renting a casita for six months and advertising it for weekend stays are treated differently, with vacation rentals carrying additional regulations.
Existing casitas are not automatically eligible under the new laws. Baker points out that older casitas were often built under different rules, and some were approved only for specific uses. Others may have permitting or construction issues that surface only upon investigation. Homeowners associations add another layer of complexity. Private deed restrictions and governing documents can limit rentals, modifications, parking, and how accessory structures are used, even when state law and local zoning allow the use. “I would much rather discover a potential problem before someone buys a home than have them discover it after closing,” Baker says.
Baker's approach begins with understanding the buyer's goal—whether it's long-term rental income, a vacation rental, housing for family, or flexible space—as each points toward different properties. The next steps involve confirming whether the home is in the City of Tucson or unincorporated Pima County, verifying that the casita was legally built and approved for its intended use, and reviewing rental requirements and HOA documents. If rental income is part of the financial plan, the numbers require scrutiny: realistic rental rates, vacancy, insurance, maintenance, utilities, and taxes. A legal rental is not automatically a profitable one. As more casitas appear in Tucson listings, the details behind each one will matter as much as the structure itself. “I don't want my clients discovering what they can't do with a property after they own it,” Baker says. “I want them to know before they write the offer.”
