AZ · City hub

Phoenix — modular, container,
and tiny homes in Arizona.

Phoenix is the country's fastest-growing ADU permit market. The 2023 Arizona statewide ADU legislation (HB 2720) preempted municipal bans, and Phoenix, Tempe, and Mesa have all rewritten their zoning to comply.

What the market looks like

Phoenix in 2026.

Arizona's HB 2720, effective January 2025, requires cities with populations over 75,000 to permit at least one ADU on all single-family lots. Phoenix has moved fastest — the city's 2024 zoning update allows detached ADUs up to 1,000 sq ft on lots of 5,000 sq ft or larger. Extreme summer heat drives builder specs: SEER-16+ split HVAC, high-albedo roofing, and R-30 wall assemblies are standard on modular sets. HUD Small-Area FMR covers all Maricopa County ZIPs. Modular and expandable-container products are the most common ADU form-factor here because factory-controlled envelopes handle the heat load more predictably than site-built.

Guides

Guides for Phoenix.

Find a builder

Verified builders in Arizona.

Financing

Financing paths in Arizona.

  • Arizona Industrial Development Authority (AzIDA) HOME+PLUS program offers down-payment assistance for owner-occupied ADUs and primary residences.
  • FHA 203(k) and Fannie Mae HomeStyle renovation loans are the most common path for financing detached ADUs on existing Phoenix single-family lots.
  • USDA Section 502 loans are available in Pinal and rural Maricopa tracts outside the Phoenix metro core.
  • Freddie Mac CHOICEHome and Fannie Mae MH Advantage products finance HUD-code manufactured and modular units on permanent foundations at conventional rates.
  • Solar-plus-storage add-ons are typically financed through separate PACE or Sunrun/Tesla financing structures to preserve loan-to-value on the primary mortgage.

Authoritative sources

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