Tiny Homes in Tempe: Everything You Need to Know
Tiny homes, also known as accessory dwelling units or ADUs, are growing in popularity. Tempe, AZ is even hosting a design competition this summer to encourage homeowners to learn more about accessory dwelling units and the benefits of additional housing.
If a tiny home is on your horizon, now is a great time to consider building! As a team of expert ADU specialists in Phoenix, Tempe, and other areas of Arizona, we can help you navigate the process. Here’s what you need to know before you get started.
Why Build a Tiny Home?
A tiny home is an excellent opportunity to increase the livable space on your property. There are a multitude of reasons why someone would choose to add an accessory dwelling unit to their property, but most commonly are to add space for family, create an office or workspace, supplement their income, or support aging loved ones.
Adding Space for Family
Adult children sometimes need a soft landing. Whether it’s a recent grad looking for some independence as they start their first job, a newly married couple starting to save for their first home, or someone who has been impacted by recent economic conditions, a tiny home offers privacy and a space to call their own — a much more attractive prospect than moving back into a childhood bedroom.
Create a Studio or Workshop
Remote workers in all disciplines need office space. Whether you are a freelance writer who values peace and quiet, a photographer in need of uncluttered studio space, or a small business owner that needs room to store and organize inventory — an accessory dwelling unit can serve as your personal space to chase your dreams.
Create Passive Income
An accessory dwelling unit can serve as a supplemental income source. Most areas allow ADUs to be rented out to long-term tenants. In Tempe, you can also use your tiny home as a short-term rental, like an Airbnb or vacation rental as long as you live on the property as well.
Supporting Aging-in-Place
Finally, one of the biggest benefits of an ADU is that it allows aging-in-place for elderly loved ones. An ADU provides privacy and a sense of independence while still ensuring you can care for an older adult who may need help. In addition, an ADU on your property is often more affordable over time than a live-in care facility.
Are ADUs Allowed in Tempe?
In Tempe, ADUs are not only allowed, they are encouraged. Recent legislation in early 2025 has made it easier for homeowners to build ADUs. Previously, rules and regulations could be a little restrictive — like requiring the design match the primary residence, and imposing an 800 square foot maximum size limit.
Now, ADU regulations are much more flexible.. The city of Tempe is even incentivizing new ADU builds through pre-approved designs and fee waivers that make permitting more efficient. However, that doesn’t mean there are no regulations or requirements. These are the main factors you’ll want to be aware of.
Tempe, AZ Tiny Home Zoning, Regulations, and Requirements
Eligibility
In Tempe, ADUs are now allowed on all single-family lots in municipalities with 75,000 residents. These properties can have up to two ADUs, one attached and one detached. However, if your lot is over one acre in size, there are options to build an additional ADU reserved as affordable housing for households earning less than 80% of the area median income. .
Size & Design
To be considered an ADU, the structure must have sleeping, sanitation, and cooking facilities. It also must have connections to utilities. While sleeping areas are required, you may only have up to three bedrooms in an ADU.
The size maximums have increased as well. Previously 800 square feet, the maximum is now 1,000 sq ft or 75% of the primary structure’s gross floor area, whichever is less. In addition, ADUs must have their own address placed near the primary entrance with contrasting colors for visibility. In addition, emergency access to the ADU is required.
Setbacks & Height
ADUs cannot be right on your property’s border. In Tempe, they must be at least 5 feet off the rear and side property lines. An ADU cannot be in the front yard setback, which is typically a minimum of 20 feet.
DIY Tiny Home vs Hiring a Professional
Tempe has started with an ADU project easily with pre-approved plans and a fast permitting process. However, the build itself can still be complicated.
If you are a weekend warrior who loves a DIY project, you still may be able to construct your own ADU. However, for most homeowners, engaging a professional team is worthwhile. Here’s what to consider, whether you plan to DIY or hire a pro.
Cost savings
A professional has access to materials at scale and can pass those cost-savings on to you. ADU builders typically have designs that they know will suit your local neighborhoods, with finishes and upgrades that complement the space. When you work with a specialist, you can be sure you’ll benefit from high-quality craftsmanship, tailored to your taste, at fair and competitive prices.
Network & relationships
Beyond the cost-savings on materials, ADU contractors have networks of reputable subcontractors and can assemble reliable teams that stand behind their work. When building by yourself, you’ll likely encounter parts of your project that you need to outsource — like electrical or plumbing. An ADU specialist will have a trusted team ready to go!
Knowledge & experience
Finally, your ADU builder has experience in all different scenarios, like handling the specific requirements in your township. You name a problem, we’ve solved it. That means we’re ready to pivot to ensure your project is a success, delivering results that align with your vision.
Learn More about ADUs in Tempe
Tempe has taken great strides forward to making ADUs accessible for all. Their fast-track permitting process, fee waivers, and pre-approved designs are an excellent fit for many homeowners.
In August, you’ll be able to vote for your favorite designs and get started with Tempe’s expedited process.
If you want an ADU that meets your needs sooner, we offer free consultations. We’ll take the time to learn about your goals and ensure a tiny home is the right fit for what you need.
Get in touch today to learn more about building an ADU with the DwellWell Tiny Homes team!
