Where to Run a Short-Term Rental in Hot Springs

Start with zoning

Inside city limits, short-term rentals in residential zones need a Special Use Permit and fall under a cap on the number of licenses. As of July 1, 2025, the city said no new residential-zone licenses were available.

Commercial, mixed-use and central business district zones are outside that cap, as are condos recorded before January 18, 2022. Ask the city's STR coordinator (501-321-6905) about a specific address before you make an offer.

Addresses outside city limits are not covered by the city ordinance, but Garland County rules, HOAs and POAs can still apply. See our rules guide for details.

Downtown and Bathhouse Row

Bathhouse Row and the historic downtown sit inside Hot Springs National Park, with Central Avenue's shops and restaurants alongside. Guests here want to walk to the bathhouses, dinner and the convention center.

Check the zoning of any downtown building, since properties in the central business district and commercial zones fall outside the residential cap. Older buildings can mean limited parking, so confirm you can meet the city's off-street parking requirement.

Lake Hamilton

Lake Hamilton wraps around the south side of town. Garvan Woodland Gardens, the University of Arkansas botanical garden, sits on a peninsula with about 4.5 miles of its shoreline.

Lake guests ask about docks, swimming access and parking for a boat trailer. Check whether a lake address is inside city limits and whether a subdivision or condo association restricts rentals.

Lake Catherine

Lake Catherine is downstream of Lake Hamilton. Lake Catherine State Park, about 8 miles southeast of Hot Springs, covers 2,180 acres with cabins, campsites, a marina and about 10 miles of hiking trails.

It is quieter and farther from downtown, which suits guests who want the lake and trails more than nightlife. Plan on clear directions and good photos, since fewer travelers know the area by name.

Hot Springs Village

Hot Springs Village, north of the city, is a gated community governed by its Property Owners' Association. Rentals must be registered with the POA, and the 2026 registration fee is $50.

Read the POA's residential rules on guest access to golf courses, lakes and other amenities before you count on them in a listing.

Questions to answer for any address

• Is it inside city limits, and what is the zoning?
• If residential, is a license available under the cap today?
• Do covenants, an HOA or a POA restrict rentals?
• Can it meet the occupancy limit of two per bedroom plus two, and the parking rule?
• What are comparable listings nearby actually booking? Check calendars and a data tool rather than seller projections.