Arkansas Short-Term Rental Rules: A Comprehensive Guide

Quick Answer: Arkansas Short-Term Rental Rules Overview

For hosts on Airbnb, Vrbo, or other platforms in Arkansas, the state dictates tax obligations, while cities and counties govern most other aspects.

Arkansas has not enacted a comprehensive statewide framework governing short-term rental (STR) permits, registration, zoning, or occupancy limits. That authority rests with local governments. A host in Fayetteville operates under a completely different permit structure than one in Hot Springs or a rural county with no STR ordinance.

What the state controls:

• State sales tax applies to STR income (Arkansas Code § 26-52-301)
• A state tourism tax applies to lodging rentals (Arkansas Code § 26-52-302)
• You must register with the Arkansas DFA to collect and remit those taxes
• General business registration requirements may apply depending on how your rental is structured

What local governments control:

• Whether STRs are permitted in your zoning district
• Business license and STR-specific permit requirements
• Occupancy limits and parking requirements
• Safety inspection standards
• Local lodging and advertising and promotion (A&P) taxes

Start by contacting your city's planning or zoning department before listing. Do not assume that platform listing capability implies legal permission to operate.

State-Level Regulations for Short-Term Rentals in Arkansas

Arkansas has no dedicated statewide STR registration or licensing system. No state agency issues an "STR permit." The state does have general business and tax frameworks that apply to anyone earning rental income.

General Business Registration

If you operate an STR as a sole proprietor under your own name, Arkansas does not require a separate state business license for that activity alone. However, if you operate under a business name (DBA) or as an LLC, you must register with the Arkansas Secretary of State. Consult the Arkansas Secretary of State's office for current registration requirements and fees, which vary by entity type.

How State Landlord-Tenant Law Treats STRs

Arkansas Code Title 18, Subtitle 2, Chapter 17 governs residential landlord-tenant relationships. While this chapter applies to standard rental agreements, transient occupancy arrangements, defined as short-term stays where guests do not establish primary residence, typically fall outside its scope. This distinction is crucial.

When a guest books your property for a vacation stay, they are a transient occupant, not a tenant under Arkansas Code Title 18, Subtitle 2, Chapter 17. This means the statutory protections and procedures that apply to long-term tenants (notice requirements, formal eviction processes) do not govern your relationship with STR guests. Your agreement with a guest is a license to occupy, not a lease.

State Definition Context

Arkansas does not have a statutory definition of "short-term rental" at the state level that triggers a specific regulatory regime. The relevant distinction for tax purposes is whether a rental is for fewer than 30 consecutive days, which is the threshold that triggers state sales and tourism tax obligations on lodging. Consult the Arkansas DFA for the current definitional guidance applied to lodging transactions.

Local Ordinances: City and County Rules for STRs in Arkansas

Local governments in Arkansas have broad authority to regulate land use, and STRs are treated as a land use question in most jurisdictions.

Common Types of Local STR Regulations

Most Arkansas cities with active STR ordinances regulate some combination of the following:

• Zoning restrictions: STRs may only be permitted in certain zoning districts. Residential zones often distinguish between owner-occupied STRs (where the host lives on-site) and non-owner-occupied or investment STRs.
• Conditional use permits (CUPs): Some jurisdictions require a CUP in addition to a standard business license, which typically involves a public notice period and sometimes a hearing.
• Business licenses: Nearly every city that regulates STRs requires a local business license as a baseline.
• Occupancy limits: Many ordinances cap the number of guests per bedroom or per property.
• Safety requirements: Smoke detectors, carbon monoxide detectors, fire extinguishers, and posted emergency contact information are common requirements.
• Local contact requirements: Some cities require a local contact person who can respond to complaints within a defined window, often two hours.

City-Specific Examples

Little Rock: The City of Little Rock Planning and Development Department administers zoning rules affecting STR operations. Little Rock has zoning code provisions that treat STRs differently depending on the district and whether the host is owner-occupying the property. Contact the Little Rock Planning and Development Department directly for current permit requirements, as ordinance details have been subject to revision. The Little Rock Advertising and Promotion Commission also levies a local tourism tax on lodging that STR hosts must collect.

Fayetteville: The City of Fayetteville Planning Department has established STR regulations that include a permit requirement, zoning eligibility rules, and annual renewal. Fayetteville distinguishes between Type 1 STRs (owner-occupied) and Type 2 STRs (non-owner-occupied), with different rules and caps on the number of Type 2 permits issued in certain areas. Consult the Fayetteville Planning Department for current permit application requirements, fees, and any permit caps in effect.

Hot Springs: Hot Springs is a major tourism destination with STR ordinances administered through the city. Consult the City of Hot Springs Planning and Development office for current permit requirements. The Garland County area surrounding Hot Springs may have separate county-level rules for unincorporated properties.

Eureka Springs: As one of Arkansas's most active STR markets, Eureka Springs has local regulations governing STR operation. Consult the City of Eureka Springs City Clerk's office and Planning Department for current requirements.

HOA and Deed Restrictions

Even if your city permits STRs in your zone, your homeowners association (HOA) or deed restrictions may prohibit them entirely. HOA rules are private contractual obligations enforced separately from municipal ordinances. Review your CC&Rs before listing.

How to Research Your Jurisdiction

1. Identify whether your property is in an incorporated city, a city's extraterritorial jurisdiction, or unincorporated county land.
2. Contact the city planning or zoning department for incorporated areas.
3. Contact the county planning office or judge's office for unincorporated areas.
4. Ask specifically about STR permits, zoning eligibility, and any pending ordinance changes.

Arkansas Short-Term Rental Taxes and Fees

Tax compliance is the one area where every Arkansas STR host has state-level obligations, regardless of property location.

State Sales Tax

Arkansas imposes a state sales tax on gross receipts from short-term lodging rentals under Arkansas Code § 26-52-301. The current state sales tax rate is 6.5%. This applies to the rental amount charged to guests for stays of fewer than 30 consecutive days.

State Tourism Tax

Arkansas Code § 26-52-302 establishes a tourism tax on lodging. The current rate is 2%, applied to the same taxable lodging receipts. This is collected in addition to the state sales tax.

Local Taxes

Cities and counties in Arkansas levy their own sales taxes and, in many tourism-heavy areas, dedicated advertising and promotion (A&P) or lodging taxes. These vary by jurisdiction and can add several percentage points to the total tax burden on a guest's stay.

The Little Rock Advertising and Promotion Commission, for example, levies a local tax on lodging that STR hosts operating in Little Rock must collect and remit. Consult the specific city or county A&P Commission for the current rate and remittance process in your area.

Tax Summary Table