HB 2429 Arizona House · 57th Legislature - Second Regular Session

vacation rentals; short-term rentals; occupancy

HB 2429 prevents Arizona cities and towns from banning short-term rentals but allows them to regulate these properties under specific conditions. It requires owners to obtain a local permit (with a $250 max fee), maintain $500,000 liability insurance, provide emergency contact information, and notify nearby neighbors before renting. Cities may also enforce occupancy limits (capping at two people per bedroom plus square footage allowances) and restrict rentals near sensitive uses like sex offender housing. The bill applies directly to vacation rental owners and local governments managing these regulations.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

House Passage

Mar 2026

Senate Passage

Governor

Introduced Jan 20, 2026 Last action Mar 18, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version (03/16/2026) · 6 edits · Mar 16, 2026

MODERATE

This bill updates Arizona's vacation rental laws to clarify that cities and counties cannot limit the number of rentals or set occupancy caps based on bedroom counts, but they can still enforce safety rules like fire codes. It introduces a new, stricter occupancy limit of two adults per sleeping area plus two additional persons, applies to overnight stays only, and sets a new effective date of December 31, 2026.

Scope change

The bill expands state preemption by removing local authority to cap the total number of vacation rentals or set occupancy limits based on bedroom size, while retaining local authority to enforce public health and safety regulations.

REQUIREMENT

Replaced local authority to set occupancy limits based on bedroom counts with a statewide standard of two adults per sleeping area plus two additional persons, excluding minors.

Clarified that occupancy limits apply only to guests staying overnight, removing restrictions on day-use occupancy.

Added a new requirement for sex offender background checks on guests, with a waiver if an online booking platform performs the check.

ENFORCEMENT

Updated building code violation language to require a 'serious and immediate threat' to public health or safety rather than a 'potential threat' for certain penalties.

TIMELINE

Established a new effective date of December 31, 2026, for the amended statutes.

DEFINITION

Corrected a definition error regarding property taxation classification for transient public lodging establishments.

Floor votes · House Mar 10, 2026

How they voted

36–19

Passed · 5 other

Total votes 60

Mar 10, 2026

D Democratic27

23 Yea 4

85% Yea

R Republican33

13 Yea 19 Nay 1

57% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 16, 2026

Lower · Passed

PASSED

lower

Mar 11, 2026

Lower · Passed

DPA

lower

Mar 11, 2026

Lower · Passed

PASSED

lower

Mar 10, 2026

Lower · Passed

PASSED

lower

Mar 4, 2026

Lower · Passed

DPA

lower

Feb 17, 2026

Lower · Passed

DPA/SE

lower

1 primary · 0 co-sponsors