Arkansas Cities Still Write Their Own Short-Term Rental Rules

Where state law stands

Arkansas law does not specifically address short-term rentals. The Arkansas Municipal League has said cities can regulate them like other property uses as long as the rules are reasonable, according to Arkansas Business.

That leaves each city to set its own approach. Hot Springs, Little Rock, Fayetteville, North Little Rock and Eureka Springs all have short-term rental rules, and they differ. Little Rock, for example, caps rentals at 500 citywide.

What happened in 2025

HB1445, sponsored by Rep. Brit McKenzie of Rogers, would have barred certain local restrictions on short-term rentals. The House City, County and Local Affairs Committee first voted it through in February 2025, then recommended it for interim study in April, and the sponsor withdrew it.

A compromise bill, HB1790, failed in the House. City officials, including representatives from Hot Springs, opposed limits on local authority, according to Arkansas Advocates for Children and Families.

What to watch

Interim study means the idea can come back. The next regular session of the Arkansas General Assembly begins in January 2027.

• Until state law changes, follow City of Hot Springs permit and tax rules inside city limits, and Garland County rules outside them.
• Keep copies of your permit, tax registrations and filings in one place so you can show your status quickly if rules change.
• Bill text and status are public on the Arkansas State Legislature website.