You’ve seen the shows. You’ve scrolled past the dreamy tiny houses on Instagram. Now you’re wondering … could I actually put one in my backyard here in Phoenix? The answer? Yep — but there’s more to it than just picking out a cute model and plopping it down behind your house.
As a local Phoenix ADU builder (and fellow tiny-home enthusiast), we’re here to walk you through the must-knows — from zoning rules to permits to whether a tiny home or a full-blown ADU is right for you. Let’s get into it.
Is A Backyard Tiny Home Legal?
In many parts of the U.S., yes — but it depends on your local zoning laws. Some cities welcome backyard tiny homes and ADUs, while others still have restrictions on size, use, or rentals. Always check with your local planning department.
In Arizona, it’s a yes — and getting easier. Thanks to SB 1415, cities like Phoenix must now allow at least one ADU per lot without excessive restrictions. And with HB 2720 taking effect in 2025, Phoenix ADUs can legally be used as short-term rentals.
There are still some local rules to follow, but the road to building your tiny dream space in AZ just got a whole lot smoother.
Want the full legal scoop? See our Arizona ADU rules →
How To Get A Backyard Cottage Permit
Want your backyard tiny home to be official? You’ll need a permit — and yes, there’s paperwork involved (but don’t worry, we help with that!)
Here’s a simplified version of the process in Phoenix:
- Check your zoning – Not every neighborhood is ADU-friendly, but many are.
- Hire a pro – A licensed design-build team (like us!) can draft plans that meet code.
- Submit to the city – You’ll need permits for planning, building, plumbing, electrical—you name it.
- Pass inspections – After building, the city will inspect to make sure everything’s up to snuff.
Pro tip: Going through the proper channels might feel like a chore, but it protects your investment and keeps everything up to code (read: no awkward run-ins with code enforcement later).
Tiny Home vs ADU: The Differences
They’re both small, stylish, and backyard-friendly — but tiny homes and ADUs aren’t always the same thing. While they can be synonyms for each other, a “true” tiny home is often under 400 square feet in size, and they can be mobile: ADUs, however, are permanent.
Let’s quickly compare:
| Tiny Home | ADU (Accessory Dwelling Unit) |
| Typically under 400 sq ft | Usually 400–1,200+ sq ft |
| Can be built on wheels (mobile) | Must be permanently built on a foundation |
| Often off-grid or semi-permanent | Fully connected to city utilities |
| May not meet building codes | Must comply with local/state building codes |
| Not always legal for long-term use | Legal for long-term housing and rentals |
| More DIY or pre-fab focused | Typically permitted, professionally built |
If you’re dreaming of a minimalist retreat or creative flex space, a tiny home on wheels might sound appealing — but Phoenix zoning laws generally don’t allow mobile homes as permanent residences. So while you can park one temporarily, you likely can’t live in it full time.
On the other hand, an ADU-style tiny home is a code-compliant, fully legal structure that adds long-term value to your property. Whether you want a rental, guest suite, office, or future in-law unit, an ADU checks all the boxes — and won’t raise any red flags with the city.
You can build a tiny home that functions as an ADU — it just needs to meet local codes, be on a foundation, and get the right permits. That’s where we come in.
Why Build A Backyard Tiny Home?
So what’s the big deal about going small? Turns out, there are lots of smart reasons Phoenix homeowners are turning to backyard tiny homes — and it’s not just because they’re cute:
1. Passive Income Potential
Whether you rent it long-term or list it on Airbnb, a backyard tiny home can become a reliable income stream. With recent changes to Arizona laws, you can now use your ADU as a short-term rental — legally! It’s one of the simplest ways to turn your property into a money-maker without lifting more than a coffee mug.
2. Multi-Generational Living
Need space for aging parents, returning college kids, or long-term guests? A tiny home offers privacy and independence — without the need to buy a second house. It’s a flexible way to keep loved ones close while giving everyone their own space (and sanity).
3. Work-from-Home Upgrade
Sick of the kitchen table office? Build a tiny home as a detached office, art studio, or therapy space. With natural light, peace, and a door that actually closes, productivity tends to skyrocket.
4. A More Affordable Housing Option
Compared to buying or building a full-size house, a backyard ADU or tiny home is way more budget-friendly. Whether you’re downsizing, helping someone else start out, or just need a little more room to live, it’s a smart solution.
Build Your Tiny Dream House Today
Ready to turn your backyard into something amazing? DwellWell Tiny Homes is a Phoenix-based ADU builder that specializes in small, stylish spaces — and we’re just as excited about your tiny dream home as you are.
Whether you’ve got a Pinterest board full of ideas or no clue where to start, we’ll walk you through everything from design to permits to move-in day.
