Short-term rental rules in Arkansas are still set city by city

The state picture

Arkansas has no statewide short-term rental license. In the 2025 session, HB1445, sponsored by Rep. Brit McKenzie of Rogers, would have barred local governments from limiting the number of short-term rentals. It cleared a House committee and was then sent to interim study. A compromise bill, HB1790, failed in the House.

That leaves each city to set its own rules, which is why requirements differ so much from one Arkansas town to the next. Arkansas Advocates for Children and Families expects the issue to come back in a future session.

How Hot Springs regulates short-term rentals

• Every STR inside city limits needs a Short-Term Residential Rental license, valid for the calendar year it is issued.
• Licenses in residential zones are capped at 400. As of the city's July 1, 2025 update, no new residential-zone licenses are available and there is no waitlist.
• Applications are still accepted in non-residential zones and for cap-exempt properties, including HPR zoning and condos recorded before January 18, 2022.
• Each STR needs a local contact who is reachable at all times and can be on site within 60 minutes.
• Occupancy is limited to two people per bedroom, plus two.
• Stays are subject to the city's 3% Advertising and Promotion tax on lodging.

What to do now

• Before buying a house to rent nightly, check its zoning with Hot Springs Planning & Development at (501) 321-6905. A residential-zone address cannot get a new license right now.
• If you already hold a license, renew it each year on time. Licenses are tied to the calendar year.
• Keep your A&P tax filings current and your local contact information up to date with the city.