The state STR bill Hot Springs could accept, and what happened to it

What the bill was

The bill was HB1790, sponsored by Reps. Brit McKenzie and Josh Bryant during the 2025 regular session. It would have stopped cities and counties from banning short-term rentals outright or capping how many could operate.

Cities could still require permits, collect fees and taxes, gather owner contact details, and require posted safety information. The bill also would have classified short-term rentals as a residential use.

An earlier draft also barred local governments from regulating the online platforms where rentals are listed. Enough committee members objected that the final two lines were cut, and the bill moved to the House floor. The Sentinel-Record reported on April 7, 2025 that the city was agreeable to the bill as amended.

What happened next

HB1790 failed on third reading in the House on April 8, 2025. It died on the House calendar when the session adjourned on May 5, 2025.

With no state preemption in place, the city ordinance governs. Hot Springs caps STR licenses in residential zones at 400, and its STR page says new residential-zone licenses are not available and there is no waitlist.

Practical notes for Hot Springs hosts

• Non-residential zones have no cap, and the city is accepting applications there. Check a property's zoning before you buy with STR income in mind.
• Licenses are valid for the calendar year they are issued, so renew on time. A new license requires a certificate of occupancy inspection.
• Condominiums recorded before January 18, 2022 are exempt from the residential cap, according to the city's STR page.
• Questions go to Planning and Development at 501-321-6905.