The Arizona House of Representatives passed House Bill 2429 on March 11, 2026, allowing cities like Phoenix to impose new restrictions on short-term rentals near airports. The bill aimed to address concerns over overnight occupancy, parking, and safety by enabling stricter enforcement and limiting the number of guests per bedroom, according to legislative sources.
House Bill 2429, sponsored by Rep. Selina Bliss, was approved by the Arizona House of Representatives on March 11, 2026, with amendments that narrowed the bill’s original scope. These provisions aim to address local concerns related to parking, safety, and nuisance complaints, according to legislative sources.
The legislation allows cities such as Phoenix to impose new restrictions on short-term rentals (STRs), including limiting overnight guests to two per bedroom and enabling stricter enforcement measures.
Under the bill, cities may suspend STR licenses after three violations within a 24-month period, doubling the prior 12-month window for such suspensions. Additionally, the bill authorizes immediate suspension of licenses following a single serious health and safety violation. Cities are also permitted to deny permits to operators with unpaid fines and to conduct sex offender status checks on renters. These measures represent the first new limits on STRs since Arizona’s 2016 preemption law, A.R.S. § 9-500.39, which prohibits municipalities from banning or capping short-term rentals statewide, according to legislative records.
Despite passing the House, HB 2429 failed to advance in the Arizona Senate, missing key deadlines including the March 31 Appropriations Committee agenda. Sources confirmed that the bill did not receive a hearing in the Senate, effectively halting its progress for the 2026 legislative session. As of late March, no companion bill had been filed, despite advocacy from the League of Arizona Cities and Towns, which has pushed for municipal authority to cap STR licenses. The League continues to monitor the issue and plans to propose new legislation in the future, according to spokespersons.
Negotiations earlier in 2026 involved stakeholders such as the STR industry, Realtors, and city officials. These discussions led to amendments that removed initial proposals for caps on the number of STRs and minimum distance requirements between rentals. Rep. Bliss confirmed that the final version of the bill reflects a compromise aimed at balancing regulatory authority with industry concerns.
Phoenix, which transitioned from an STR registration system to a permitting process in September 2023, currently requires operators to pay a $250 non-refundable fee for initial and renewal permits. Operators must also hold a Transaction Privilege Tax (TPT) license issued by the Arizona Department of Revenue and update their status with the Maricopa County Assessor’s Office. Applications are submitted through the city’s SHAPE PHX Portal, with STR staff available for assistance via email at [email protected] or by phone at 602-534-9723, according to city records. However, Phoenix’s current regulations do not include specific restrictions based on proximity to airports.
State law classifies short-term rentals as lawful residential uses, with stays under 30 days subject to TPT under A.R.S. § 42-5070. Senate Bill 1168, enacted in 2022, authorized cities to create limited STR permit processes but maintained the 2016 preemption on outright bans or caps. Cities are allowed to regulate STRs through permits, licenses, and conduct rules but cannot impose limits based solely on classification or occupancy except as specified by state law.
Industry representatives have expressed concerns about potential impacts on tourism from related fee proposals, though these are separate from HB 2429. Rental hosts are advised to monitor changes in occupancy standards and enforcement periods, particularly the extension of violation tracking to 24 months.
With the failure of HB 2429 to secure Senate approval and no additional bills filed as of March 27, 2026, the legislative outlook for new STR restrictions in Arizona remains uncertain. The League of Arizona Cities and Towns continues to advocate for expanded municipal authority, while the 2016 state preemption remains a significant legal barrier to local bans or caps on short-term rentals.
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