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Homes with Casitas & Guest Houses in Payson, Utah
Payson sits at the south end of Utah County, tucked against the Nebo Loop and roughly 20 minutes south of Provo via I-15. It's a working agricultural town that's grown fast over the last decade, and lot sizes here tend to be more generous than what you'll see in Lehi or Saratoga Springs. That extra land is exactly why casitas and detached guest houses show up more often in Payson than in tighter Utah County markets — homes on quarter-acre to one-acre parcels (especially in the benches above Main Street and out toward Salem Hills) frequently have room for a detached unit, a converted shop, or a mother-in-law suite over the garage.
Buyers shopping Payson for a property with a second living space usually fall into a few camps: multigenerational families wanting separate quarters for aging parents, remote workers who need a fully detached office, or owners planning to rent the secondary unit for income. Payson allows accessory dwelling units under specific zoning conditions, so the legal status of any guest house matters — some are permitted ADUs with a kitchen and separate meter, others are technically "guest quarters" without a stove. Price ranges run from the mid $500s for older homes with a converted basement apartment up past $1M for newer builds on acreage with a true detached casita. Browse the active listings below to see what's currently on the market.
May 2026 · Payson market
Live from the Utah MLS — what's actually happening in Payson right now.
Median sale
$510,000
29 closed in May 2026
Median DOM
42 days
listing → contract
Sale-to-list
99.3%
of final list price
Unsold inventory
130
active + pending
3 matching · page 1 of 1
Active listings
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Common questions
About homes with casitas & guest houses in Payson.
What's the difference between a casita, a guest house, and an ADU in Payson? ▾
In Payson listings, 'casita' usually means an attached secondary suite with its own entrance, while 'guest house' typically refers to a fully detached structure. An ADU (accessory dwelling unit) is the legal city designation — it requires permits, a kitchen, and compliance with Payson's zoning code. Not every guest house on the MLS is a permitted ADU, so always verify with the city before counting on rental income.
Does Payson allow short-term rentals in a casita or guest house? ▾
Payson has been cautious about short-term rentals. Long-term rentals (30+ days) in a permitted ADU are generally allowed in residential zones, but nightly rentals like Airbnb are restricted in most neighborhoods. If income is part of your plan, confirm the zoning of the specific parcel with Payson City planning before writing an offer.
Which Payson neighborhoods are most likely to have homes with detached guest quarters? ▾
The older established areas near downtown along 100 South and 400 North sometimes have converted carriage houses or shop apartments. For newer builds with purpose-designed casitas, look at the benches east of Main, the Salem Hills border, and the larger-lot subdivisions out toward the Nebo Loop. Anything on a half acre or more is worth a closer look.
How much premium do homes with a guest house carry over comparable Payson homes? ▾
A permitted, livable secondary unit typically adds $75K to $150K over a similar single-family home, depending on size, finish level, and whether it has a full kitchen. Unpermitted spaces appraise lower because lenders can't always count the square footage or rental income.
Can I get a conventional loan on a Payson home with a casita? ▾
Yes. Conventional, FHA, and VA loans all finance single-family homes with an accessory unit, as long as the property is zoned for it and the unit meets safety standards. FHA actually lets you count a portion of projected rental income toward qualifying, which helps in Payson's price range.
Are guest houses in Payson usually heated and usable year-round? ▾
Most are. Payson winters are real — temperatures drop into the teens and snow sticks — so detached units built for actual living have their own furnace, insulated walls, and often a mini-split for summer cooling. Older converted outbuildings sometimes rely on baseboard electric, which gets expensive in January. Check the utility setup and ask for past power bills.