Duplexes, Triplexes, and Fourplexes in Tucson: A New Path to Home Affordability?

Introduction: Why Affordability Is the Central Question in Tucson

If you’ve been watching home prices and monthly payments in Tucson, you already know the challenge isn’t just finding a house. For many buyers, it’s finding something that fits real-life budgets.

One way communities try to improve affordability is by adding more housing choices that sit between a single-family home and a large apartment complex. You’ll often hear this called “middle housing” or “missing middle.” In Tucson, that usually means duplexes, triplexes, and fourplexes.

This matters for buyers because middle housing can sometimes create two affordability benefits at once:

• A smaller, more attainable home option
  
  
• A chance to use rental income from additional unit(s) to help support the monthly payment, depending on the loan and lender rules
  
  

Tucson has been actively working on this topic, and beginning January 1, 2026, the city’s zoning framework shifts in a meaningful way.

What “Middle Housing” Means in Plain English

Middle housing is a simple idea: small-scale, neighborhood-sized buildings that create multiple homes on one residential lot.

In Tucson, the most discussed types are:

• Duplexes: two homes on one lot (side-by-side or one over the other)
  
  
• Triplexes: three homes on one lot
  
  
• Fourplexes: four homes on one lot
  
  

These are not high-rise apartment buildings. They are typically closer in size and feel to single-family homes.

In many Midwest cities, you’ll see these property types more commonly. Tucson has them as well, but they have not historically been allowed across many single-family zoning areas. That naturally limits supply.

Why Tucson Is Talking About This Now

Affordability pressures are real.

According to Arizona’s MapAZ Dashboard, a household earning the Tucson metro median income in 2024 would need to spend approximately 45.3% of their annual income to afford the median-priced home:

https://www.mapazdashboard.arizona.edu/economy/housing-affordability-0

At the state level, Arizona passed House Bill 2721, which requires many cities, including Tucson, to allow “middle housing” by January 1, 2026:

https://www.azleg.gov/legtext/56leg/2r/bills/hb2721h.htm

The City of Tucson’s Planning and Development Services Department confirmed that beginning January 1, 2026, property owners across most of Tucson will have new flexibility to develop duplexes, triplexes, fourplexes, townhomes, and cottage courts on many residential lots:

https://www.tucsonaz.gov/Departments/Planning-Development-Services/PDSD-News/Tucson-Expands-Housing-Options-with-Middle-Housing-Code-Amendment-Approval

The City also provides a Middle Housing information hub outlining the timeline and scope:

https://middle-housing-cotgis.hub.arcgis.com/

Local housing organizations have weighed in as well. The Tucson Association of REALTORS® submitted comments supporting a citywide middle housing approach:

https://www.tucsonrealtors.org/wp-content/uploads/TAR_Comments_MIssing-Middle_12.15.2025.pdf

The broader strategy is tied to Tucson’s Housing Affordability Strategy for Tucson (HAST):

https://housingaffordability.tucsonaz.gov/

So How Does This Connect to Buyer Affordability?

Affordability can improve in two different ways when more duplexes, triplexes, and fourplexes exist in the market.

More House-Scale Options That May Cost Less Than a Full Single-Family Home

When a property is designed as two to four units instead of one, the land cost and certain construction costs can be spread across multiple homes.

This does not guarantee lower prices. It does, however, create more variety.

Instead of choosing only between a detached single-family home and a large apartment complex, buyers may have more options such as:

• A unit within a duplex or fourplex
  
  
• A townhome-style property
  
  
• A cottage court unit
  
  

Over time, more variety can reduce the pressure that occurs when too many buyers compete for a limited number of similar homes.

Rental Income May Increase Purchasing Power (In the Right Situation)

If you buy a 2–4 unit property and live in one unit, you may be able to rent the remaining unit(s). In some cases, lenders may consider a portion of that rental income when evaluating your loan qualification.

That can matter because it may allow you to qualify for a home that would otherwise feel out of reach.

A few important real-world considerations:

• Not every loan program treats rental income the same way
  
  
• Rental income is typically not counted dollar-for-dollar
  
  
• Lenders often apply vacancy or expense factors
  
  
• Documentation and underwriting standards matter
  
  

For FHA loans, HUD’s FHA Single Family Housing Policy Handbook 4000.1 outlines how 1–4 unit owner-occupied properties are treated:

https://www.hud.gov/hud-partners/single-family-handbook-4000-1

HUD has also published guidance regarding documentation of rental income in certain scenarios:

https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-17hsgml.pdf

The key takeaway: rental income can sometimes be part of an affordability strategy, but it must be evaluated carefully and conservatively.

What Buyers Should Understand About Financing 2–4 Unit Properties

Owner-occupied rules matter. Most buyer-friendly loan options assume you will live in the property as your primary residence.

Down payments and reserves may differ. Multi-unit properties can carry different requirements than single-family homes.

Individual lender overlays matter. Even when federal guidelines exist, lenders may apply additional internal standards.

Early conversations with a qualified lender are important if rental income is part of your strategy.

Where Tucson Is in the Permitting Process

Tucson approved a middle housing code amendment that expands the ability to develop duplexes, triplexes, fourplexes, and related housing types across most of the city beginning January 1, 2026:

https://www.tucsonaz.gov/Departments/Planning-Development-Services/PDSD-News/Tucson-Expands-Housing-Options-with-Middle-Housing-Code-Amendment-Approval

The city’s Middle Housing hub provides additional context:

https://middle-housing-cotgis.hub.arcgis.com/

Local reporting has also discussed how builders may approach these changes:

https://www.tucsonsentinel.com/local/report/082925_middle_housing_zoning/city-weighs-how-increase-housing-density-central-tucson/

Policy changes create possibility. They do not instantly create supply. Builders still have to evaluate land costs, construction expenses, timelines, and neighborhood design constraints.

Supply typically grows gradually.

Practical Considerations for Buyers

If middle housing becomes more available, it will not be the right fit for everyone.

Questions worth thinking through:

• Are you comfortable living close to tenants or neighboring units?
  
  
• Are you prepared for landlord responsibilities?
  
  
• Does the property function well as your home first, and an income strategy second?
  
  
• Do you have a long-term plan?
  
  

Affordability strategies work best when they align with lifestyle and long-term goals.

Final Thoughts: A New Path, But Not a Simple One

Tucson’s move toward allowing more duplexes, triplexes, and fourplexes across much of the city is a meaningful shift. It creates the potential for more attainable housing options and gives buyers another approach to affordability, especially when rental income is part of the financial picture.

At the same time, this will not be an overnight transformation. Policy changes take time to translate into inventory, and builders still need projects to make economic sense.

If you would like help thinking through whether a multi-unit property could realistically fit your goals, I am happy to help you sort through your options in a clear and steady way.