Where to run a short-term rental in Hot Springs

In Hot Springs the first question is which rules cover the address, then whether guests want to stay there. This guide walks through the main areas with both in mind.

Start with the rules, not the view

Inside city limits, every short-term rental (any stay under 30 days) needs an annual city business license. The city caps licenses in residential zones at 400, and as of its July 1, 2025 update that cap is full with no waitlist.

Non-residential zones are not capped. Neither are HPR-zoned properties or condos recorded before January 18, 2022. So the same house can be a workable rental or a non-starter depending on its zoning.

A Hot Springs mailing address does not mean the property is inside city limits. Confirm the jurisdiction and zoning for the exact parcel with the city's Planning and Development Department (501-321-6905) before you make an offer.

The main areas

Downtown and Bathhouse Row

Walkable to the national park, Central Avenue and the two working bathhouses. Downtown commercial zoning (CBD) is outside the residential cap, which makes it one of the few places a new in-city license is still possible. Expect older buildings, limited parking, and the city's off-street parking requirement.

Lake Hamilton

Entergy Arkansas manages the shoreline. Docks need an Entergy permit, and lots platted after January 1, 2006 need 75 feet of frontage for one. Parts of the lake are in the city and parts are in unincorporated Garland County, so check which rules apply.

Lake Catherine

Also an Entergy lake, south of Lake Hamilton and home to Lake Catherine State Park. Quieter shoreline, same dock permit rules. Entergy has asked the county to limit boat rentals to its permitted marinas, so do not plan on renting a boat to guests yourself.

Hot Springs Village

A gated community run by a property owners association. The POA requires every rental, short or long term, to be registered for a $50 fee, renewed each year by June 30, and guests must follow POA rules on noise and parking. Read the current POA rules before you buy.

Oaklawn and Central Avenue south

Demand follows the racing season, which runs Nov. 27, 2026 to May 1, 2027 with live racing on weekends. Plan for a quieter summer and early fall.

North toward Jessieville and the Ouachitas

Cabins and acreage outside city limits, close to Ouachita National Forest trails. County and any subdivision rules apply instead of the city ordinance, and guests will drive to everything.

Questions to answer before you buy

Is it inside city limits?If yes, find the zoning and whether a license is available for that zone this year.
Is there an HOA or POA?Covenants can ban or limit rentals even where the city allows them. Get the documents, not a summary.
Can you meet the operating rules?The city requires a local contact on call at all times who can reach the property within 60 minutes, plus off-street parking. Occupancy is capped at two per bedroom plus two.
Who will guests be?Racing fans, bathhouse visitors, lake families and hikers want different things. Pick the area that fits the guest, then the house.

Common questions

Can I still get a short-term rental license for a house in a residential zone?

Not right now. The city says new licenses in residential zones are not available and there is no waitlist. Check the city's short-term rental page for updates.

Where can a new in-city rental still be licensed?

In the non-residential zones the city lists (C-TR, CN, CMU, CG, CBD, IL, IH, IMU), in HPR zoning, and in condos recorded before January 18, 2022. Confirm with the city for the specific property.

Does a license transfer when I buy a licensed rental?

Ask the city before closing. Licenses are issued for a calendar year per property, so do not assume an existing license carries over to you.

Which area earns the most?

We do not publish area revenue rankings because we cannot verify them. Pull current comps for the exact bedroom count and season, or use a paid data service, and talk to local managers about what similar homes book.

Ask about an area

Looking at a specific street or lake cove? Send us the details and we will point you to the right office and resources.

Sources

Questions about short-term rentals in Hot Springs?

Call or text 501.365.1001, or send a note and we will get back to you.

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