Converting a shed into a house in Arizona is possible—but it must be done legally and safely. Arizona law does not allow you to live in a shed as-is. But if you convert it to a permitted structure meeting residential building codes (usually called an Accessory Dwelling Unit or ADU), it can become a livable tiny home. Read on to learn more!
✅ Step-by-Step Guide: Converting a Shed to a Legal House in Arizona
1. Check Local Zoning Laws
Before you start, check:
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🏡 Zoning: Does your property allow an ADU or guest house?
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📏 Size & Placement: Are there setback, height, or square footage limits?
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🧱 HOA Rules: If applicable, review what’s allowed in your subdivision.
💡 Tip: Arizona passed HB 2720 (effective 2025) requiring many cities to allow ADUs on single-family lots.
2. Choose a Shed That Can Be Converted
A typical Home Depot/Lowe’s shed is not ready for occupancy. You’ll either need:
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A high-quality shell you upgrade (e.g., Tuff Shed “Pro Studio” or “Premier Barn”);
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Or a prefab shed-to-house kit built for residential code (many local builders offer this now).
3. Hire a Licensed Contractor (Optional but Strongly Advised)
You can DIY, but you’ll likely need licensed trades for:
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Electrical wiring
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Plumbing connections
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HVAC installation
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Roofing and insulation
You’ll also need:
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Architectural plans (simple ones can cost $1,000–$3,000)
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Structural engineer (if modifying walls/roof)
4. Apply for Building Permits
Permits are required for:
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Electrical
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Plumbing
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Mechanical (heating/cooling)
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Structural work (framing, windows, roofing)
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Septic system (if no sewer connection)
Cities like Phoenix, Tucson, Mesa, and Flagstaff now have permit processes for ADUs.
5. Meet Arizona Residential Building Code
Your converted shed must include:
Requirement | Notes |
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💧 Water supply | Connected to municipal or well |
🚽 Sewage system | Sewer or septic tank |
⚡ Electrical system | Must meet NEC code |
🔥 Fire safety | Smoke detectors, escape egress windows |
🌡️ Insulation | R-13–R-19 (depending on area) |
❄️ Heating & cooling | Mini-split or ducted system |
🧱 Foundation | Must be anchored; slab, pier, or stem wall |
You must pass inspections at various stages (framing, rough-in, final).
6. Get a Certificate of Occupancy (C of O)
Once completed and inspected, the local building department will issue a C of O—this legally allows someone to live in the structure.
💰 Estimated Costs (as of 2025)
Item | Cost Range |
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Shed shell (200–400 sq ft) | $5,000 – $20,000 |
Foundation | $5,000 – $15,000 |
Electrical + panel upgrade | $3,000 – $7,500 |
Plumbing (incl. sewer/septic) | $4,000 – $12,000 |
Insulation & drywall | $3,000 – $7,000 |
Windows & doors | $2,000 – $5,000 |
Heating/cooling system | $2,000 – $6,000 |
Permits & inspections | $1,000 – $3,000 |
TOTAL (turnkey build) | $30,000 – $75,000+ |
Prefab companies like Tuff Shed, Studio Shed, or Tiny Home Builders may offer kits that include code-compliant plans.
📝 Arizona Cities That Support Shed-to-Home Projects
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Phoenix: ADUs up to 1,000 sq ft allowed (2025+)
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Tucson: ADUs allowed on most R-1/R-2 zoned properties
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Flagstaff: Prefab and modular ADUs permitted
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Mesa, Chandler, Tempe: Also adapting to statewide ADU law
🔍 What To Ask Your Local Planning Department
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Can I build a detached ADU on my property?
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What are the required setbacks, height, and square footage limits?
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What building codes are enforced in my area?
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Do you offer expedited permits for ADUs or tiny homes?
🛠️ Final Tip
Treat a shed-to-house conversion as a full construction project, not a hack. With the right permits and upgrades, it can become a legal, comfortable living space—or even a source of rental income.
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