Arkansas Short-Term Rental Laws & Hotel Tax (2026)

State license required

Yes

Latest rule change

July 2026

The laws in brief

Who needs it

Hosts in cities that license rentals: Hot Springs, Fayetteville, Bella Vista and Little Rock. Eureka Springs requires a conditional use permit or legal non-conforming status for rentals in residential zones. Bentonville's business registry does not require short-term rentals to register.^{4,11,12,13,14,15,16,17,18,21}

Issued by

City governments, for example Hot Springs Planning and Development, Fayetteville Development Services, Bella Vista Planning and Little Rock Planning and Development

Valid for

Hot Springs licenses are valid for the calendar year, Fayetteville licenses expire each October 31, and Bella Vista permits renew annually.

Processing

Fayetteville: the application process could take up to four weeks.

On listings

The number must appear on every listing

Platform checks

No statewide platform check exists. Fayetteville and Little Rock bar advertising before the license is issued, and Fayetteville requires the license number in the listing.

Fees

Who qualifies

• Hot Springs: a separate license for each rental unit; new licenses in residential zones are closed at the 400 cap, while non-residential zones are open
• Fayetteville: Type 1 (primary residence, occupied 9 months of the year) or Type 2 (no permanent resident, capped at 475 and full); Type 2 in residential zones also needs a conditional use permit
• Bella Vista: a permit renewed annually; 600 permits for non-owner-occupied rentals and a waiting list once the cap is reached
• Little Rock: STR-1 for owner-occupied homes through a Planning Commission special use permit, STR-2 for non-owner-occupied homes through a Planned Zoning District approved by the Board of Directors

How to apply

1. 1 Check which city or unincorporated area the home is in and whether the city licenses short-term rentals.
2. 2 Hot Springs: confirm the zoning, obtain a Special Use Permit if the home is in a residential zone, pass the Certificate of Occupancy inspection and apply for the STR business license.
3. 3 Fayetteville: apply for the short-term rental business license, add a conditional use permit for a Type 2 rental in a residential zone, and pass the inspection.
4. 4 Bella Vista: obtain a Certificate of Compliance from Discover Bella Vista, then email the application to the Planning Department.
5. 5 Register with the Department of Finance and Administration for state sales tax if you book guests outside Airbnb.

Permit rules

No statewide license; cities issue permits

Arkansas has no statewide short-term rental license. Hot Springs, Fayetteville, Bella Vista and Little Rock each require their own license or permit, so a host applies to the city where the home stands.^{4,12,14,17,23}

Hot Springs: license for each rental, calendar-year term

Hot Springs requires a separate short-term rental business license for each rental unit, valid for the calendar year in which it is issued. The fee is $50 per person of maximum overnight occupancy, with a $200 minimum.^12,13 Applies to: Hot Springs

Fayetteville: license number in the listing

A Fayetteville rental may not be advertised before the business license is issued, and the license number must appear in the listing.¹⁵ Applies to: Fayetteville

Bella Vista: annual permit, posted at the home

Bella Vista requires a permit to operate a short-term rental, renewed annually and posted where guests can see it. An applicant first obtains a Certificate of Compliance from the Advertising and Promotion Commission (Discover Bella Vista).¹⁷ Applies to: Bella Vista · In force since July 12, 2023

Eureka Springs: license number in every booking and listing

Under Ordinance 2364, bookings, listings and advertisements of a conditional use permit property list the business license number, and the city may revoke the permit for a missing number or unpaid advertising and promotion taxes.³ Applies to: Eureka Springs · In force since December 9, 2024

Bentonville: no business registry sign-up for short-term rentals

Bentonville's business registry does not require short-term rental operators to register at this time. The city council set up a nine-member work group in February 2023 to study short-term rentals.^18,20 Applies to: Bentonville · In force since February 28, 2023

Hot Springs: 400-license cap in residential zones

Hot Springs caps licenses in residential zones at 400, and no new residential-zone licenses are issued once the cap is met in a year. Non-residential zones and condominiums recorded before January 18, 2022 are exempt from the cap.¹¹ Applies to: Hot Springs · In force since January 1, 2023

Hot Springs: special use permit in residential zones

A rental in a residential zone (RR, RS or RN-1 to RN-6) needs a Special Use Permit from the Planning and Development Director, and every new license needs a passed Certificate of Occupancy inspection.¹² Applies to: Hot Springs

Fayetteville: Type 1 and Type 2 rentals

Fayetteville licenses Type 1 rentals (the host's primary residence, occupied 9 months of the year) and Type 2 rentals (no permanent resident). Short-term rentals are allowed in any permanent residential dwelling, including an accessory dwelling unit.¹⁴ Applies to: Fayetteville · In force since May 21, 2021

Fayetteville: Type 2 licenses capped at 475

Fayetteville issues at most 475 Type 2 licenses city-wide and has reached that cap, so new applicants join a waitlist. A Type 2 rental in a residential zone also needs a conditional use permit.¹⁴ Applies to: Fayetteville

Bella Vista: 600-permit cap reached

Bella Vista caps active short-term rental permits at 600, not counting owner-occupied homes. The cap was reached in July 2026, and new complete applications go on a waiting list.¹⁷ Applies to: Bella Vista · In force since July 2026

Little Rock: owner-occupied STR-1 and non-owner-occupied STR-2

Little Rock allows an owner-occupied STR-1 (the owner lives on the property or within 1,500 feet) through a Planning Commission special use permit, and a non-owner-occupied STR-2 through a Planned Zoning District approved by the Board of Directors. Stays are limited to 29 consecutive days.^4,21,24 Applies to: Little Rock · In force since June 20, 2023

Little Rock: 500 rentals citywide

Little Rock allows no more than 500 short-term rentals at one time within the city limits, with up to nine bedrooms per rental.^4,23 Applies to: Little Rock · In force since June 20, 2023

Eureka Springs: no new bed-and-breakfast rentals in residential zones

Eureka Springs Ordinance 2364 (December 9, 2024) bars bed-and-breakfast rentals in the R-1, R-2 and R-3 residential zones, except existing legal non-conforming properties and conditional use permits. Violations are misdemeanors with fines up to $250, and each 24 hours is a separate offense.³ Applies to: Eureka Springs · In force since December 9, 2024

1. 1. Hot Springs

   Garland County

   Hot Springs licenses every short-term rental for the calendar year at $50 per person of maximum overnight occupancy, with a $200 minimum. Residential zones are capped at 400 licenses and new residential licenses are closed, while non-residential zones such as lakefront condominiums remain open.^{10,11,12,13,22}

   • Separate STR business license for each rental unit, valid for the calendar year; fee $50 per person of occupancy, minimum $200
   • Residential-zone cap of 400 licenses; none available once the cap is met; non-residential zones exempt
   • Special Use Permit in residential zones and a passed Certificate of Occupancy inspection
   • Fines $1,000, $2,000, then $4,000 per offense, plus $500 a day while it continues

2. 2. Eureka Springs

   Carroll County

   Eureka Springs Ordinance 2364, adopted December 9, 2024, bars bed-and-breakfast rentals in the R-1, R-2 and R-3 residential zones except existing legal non-conforming properties and conditional use permits. Permit holders must show the business license number in every listing, and Airbnb collects a 3% city advertising and promotion tax.^3,10,22

   • No new bed-and-breakfast rentals in R-1, R-2 and R-3 except grandfathered properties and conditional use permits
   • Fine up to $250 per offense; each 24 hours is a separate offense
   • License number required in every booking, listing and advertisement of a conditional use permit property
   • Ownership change of a grandfathered property requires the owner to live on the property

3. 3. Bentonville

   Benton County

   Bentonville's business registry FAQ says short-term rental operators do not need to register at this time, and the city council set up a work group in February 2023 to study short-term rentals. The 2% city advertising and promotion tax applies to short-term rental accommodations and Airbnb collects it.^{10,18,19,20,22}

   • Business registry: short-term rentals need not register "at this time"
   • Council work group formed February 28, 2023 to study short-term rentals
   • 2% advertising and promotion tax, collected by Airbnb
   • Local sales tax is 3% (city 2% + county 1%)

4. 4. Fayetteville

   Washington County

   Fayetteville has licensed short-term rentals since May 21, 2021, in two types: Type 1 in the host's primary residence and Type 2 with no permanent resident. Type 2 licenses are capped at 475, the cap has been reached, and a conditional use permit is needed in residential zones.^14,15,16

   • Business license $127 new, $35 renewal; expires October 31
   • Type 2 licenses capped at 475 and full; waitlist; conditional use permit in residential zones
   • Two people per bedroom; no special events; license number in the listing
   • Proof of rental insurance; operating without a license can cost city water, sewer and trash service

5. 5. Bella Vista

   Benton County

   Bella Vista requires an annual permit, with a cap of 600 active permits for non-owner-occupied rentals that was reached in July 2026. Fees are $50 for owner-occupied and $100 for non-owner-occupied rentals, and a public hearing on density and separation distances is set for November 9, 2026.^10,17,22

   • Annual permit posted at the home; Certificate of Compliance from Discover Bella Vista first
   • Cap of 600 active permits reached July 2026; waiting list; owner-occupied homes not counted
   • Fees: owner-occupied $50 once; non-owner-occupied $100, then $50 a year
   • Three guests per bedroom; two off-street parking spaces

6. 6. Little Rock

   Pulaski County

   Little Rock's ordinance of June 20, 2023 permits owner-occupied STR-1 rentals through a special use permit and non-owner-occupied STR-2 rentals through a Planned Zoning District, with a citywide cap of 500. Annual inspection fees run up to $500, and Airbnb collects a 4% city advertising and promotion tax.^{4,10,21,22,24}

   • STR-1 (owner lives on site or within 1,500 feet): Planning Commission special use permit
   • STR-2 (non-owner-occupied): Planned Zoning District approved by the Board of Directors
   • No more than 500 rentals citywide; stays limited to 29 days; no parties or events
   • Annual inspection fee: STR-1 $100 per bedroom up to $500; STR-2 $500

What the host still handles

• A sales tax permit with the Arkansas Department of Finance and Administration ($50) for bookings made outside Airbnb or any channel that does not collect
• The city short-term rental license where required (Hot Springs, Fayetteville, Bella Vista, Little Rock)
• A city lodging tax account for direct bookings: in Fayetteville the 2% hotel, motel and restaurant tax is reported monthly, and in Bella Vista a Certificate of Compliance comes from Discover Bella Vista
• In Eureka Springs, a current permit and tax payments with the City Advertising and Promotion Commission to keep a conditional use permit^{1,2,5,8,9,10,14,22}

Cities regulate like other property uses

Because state law is silent on short-term rentals, cities may regulate them as they would other property uses, as long as the rules are reasonable and not arbitrary or capricious.²³

2025 bills to limit local rules did not pass

House Bill 1790 of 2025, on the regulation of short-term rentals by a local government, failed on third reading on April 8, 2025 and died at adjournment. House Bill 1445 was withdrawn and sent to interim study on April 15, 2025.^6,7 In force since April 8, 2025

State sales tax permit for direct bookings

A host who collects lodging tax directly registers for a sales tax permit with the Department of Finance and Administration, which costs $50.00 and is paid online when the application is submitted.⁸

Rooms and rental houses are taxable

The state gross receipts tax applies to furnishing rooms, condominiums, rental houses and other accommodations to transient guests, defined as those who rent on less than a month-to-month basis.²

Hot Springs: local contact and floor plan

A Hot Springs application names a local contact person and includes a floor plan showing each room, bedroom square footage and the off-street parking spaces.¹² Applies to: Hot Springs

Fayetteville: two people per bedroom, no events

Fayetteville limits occupancy to two people per bedroom for the whole unit and does not allow special events such as weddings or private parties.¹⁵ Applies to: Fayetteville

Fayetteville: proof of rental insurance

A Fayetteville application includes proof of vacation rental or short-term rental insurance coverage listing the property address.¹⁴ Applies to: Fayetteville

Bella Vista: three guests per bedroom, two parking spaces

Bella Vista limits occupancy to three guests per bedroom, requires at least two off-street parking spaces and bans on-street parking for guests.¹⁷ Applies to: Bella Vista

Little Rock: $1 million liability coverage and a 24-hour contact

Little Rock requires liability coverage of at least $1,000,000 per occurrence and a responsible party who can respond to complaints within 60 minutes, 24 hours a day.⁴ Applies to: Little Rock · In force since June 20, 2023

• Hot Springs: $1,000 for a first offense, $2,000 for a second and $4,000 for each later one; a continuing violation adds $500 for each day it continues.¹³
• Bella Vista: $250 to $500 for a first offense, $500 to $1,000 for a second, and $1,000 up to the state maximum plus loss of the permit for a third; a revoked permit bars a new one for a year.¹⁷
• Eureka Springs: renting a bed and breakfast in a residential zone is a misdemeanor with a fine of up to $250 per offense, and each 24-hour period is a separate offense.³
• Fayetteville: a business that operates without a valid license one week after notice can have city water, sewer and solid waste service withheld.¹⁴
• Hot Springs: a revoked license bars a new application for two years, and continuing to advertise or operate without a license can forfeit the certificate of occupancy for that use.¹²

1. November 9, 2026 Proposed
   Bella Vista hearing on density limits

   The Bella Vista Planning Commission holds a public hearing at 4:30 p.m. on Monday, November 9 on proposed density maximums and separation distances for short-term rentals; public survey comments closed at noon on November 5.¹⁷

2. July 2026
   Bella Vista reaches its 600-permit cap

   As of July 2026 Bella Vista's cap of 600 active permits was reached, and complete applications now join a waiting list.¹⁷

3. April 15, 2025 Lapsed
   House Bill 1445 withdrawn

   A bill to prohibit certain restrictions on the regulation of short-term rentals was withdrawn by its author and recommended for interim study on April 15, 2025.⁷

4. April 8, 2025 Lapsed
   House Bill 1790 fails

   A bill on the regulation of short-term rentals by a local government failed on third reading in the Arkansas House on April 8, 2025 and died at adjournment.⁶

5. December 9, 2024
   Eureka Springs Ordinance 2364

   Eureka Springs adopted Ordinance 2364 on December 9, 2024, barring bed-and-breakfast rentals in its residential zones except grandfathered properties and requiring the license number in listings.³

6. July 12, 2023
   Bella Vista adopts its permit ordinance

   Bella Vista's council approved the short-term rental permit process at a special meeting on July 12, 2023.¹⁷

7. June 20, 2023
   Little Rock adopts its short-term rental ordinance

   The Little Rock Board of Directors approved the ordinance on June 20, 2023, creating STR-1 and STR-2 permits and a citywide cap of 500.^4,24

8. January 1, 2023
   Hot Springs residential-zone cap falls to 400

   Beginning January 1, 2023, Hot Springs capped licenses in residential zones at 400 instead of 500, after Ordinance 6435 of August 2, 2022.^11,12

9. May 21, 2021
   Fayetteville short-term rental licensing begins

   Fayetteville's council voted unanimously on April 20, 2021 to regulate short-term rentals, and the legislation took effect May 21, 2021.¹⁴

Estimate what a home could earn

1. 1. 26 CAR § 30-1403. Amount and nature of tax (tourism tax) · Code of Arkansas Rules
2. 2. 26 CAR § 30-501. Services subject to tax — Lodging · Code of Arkansas Rules
3. 3. Ordinance 2364, amending Title 14.08 of the Eureka Springs Municipal Code regarding zoning districts · City of Eureka Springs
4. 4. Ordinance on Bed and Breakfast House/Short-Term Rentals (Board of Directors agenda, June 20, 2023) · City of Little Rock
5. 5. Recent Changes in Local Taxes · Arkansas Department of Finance and Administration
6. 6. HB1790 Bill Information (2025 regular session) · Arkansas State Legislature
7. 7. HB1445 Bill Information (2025 regular session) · Arkansas State Legislature
8. 8. Register for a Tax Account · Arkansas Department of Finance and Administration
9. 9. State Sales & Use Tax Rates · Arkansas Department of Finance and Administration
10. 10. List of Cities and Counties with Local Sales and Use Tax, April - June 2026 · Arkansas Department of Finance and Administration
11. 11. Short-term Residential Rentals · City of Hot Springs, Planning & Development
12. 12. STR Business License Requirements · City of Hot Springs, Planning & Development
13. 13. STR Business License Fees & Penalties · City of Hot Springs, Planning & Development
14. 14. Short-Term Rentals · City of Fayetteville, Development Services
15. 15. Short-Term Rental Business License Requirements · City of Fayetteville, Development Services
16. 16. Fees · City of Fayetteville, Development Services
17. 17. Short Term Rentals · City of Bella Vista, Planning & Development
18. 18. Business Registry FAQs · City of Bentonville
19. 19. Business Resources · City of Bentonville
20. 20. Short-term Rental Work Group · City of Bentonville
21. 21. Z-10236 Staff Report, STR-1 Special Use Permit (Planning Commission, January 8, 2026) · City of Little Rock, Planning and Development
22. 22. Occupancy tax collection and remittance by Airbnb in Arkansas · Airbnb Help Center
23. 23. Arkansas Cities Are Regulating Short-Term Rentals Differently. That's a Problem for Some · Arkansas Business (June 15, 2026)
24. 24. Short-term rental ordinance gets the OK from Little Rock City Board · Arkansas Times (June 20, 2023)