Hot Springs short-term rental rules

What the City of Hot Springs requires before you rent a home for less than 30 days, what changed with the residential cap, and where Hot Springs Village fits in. Each rule links to its source.

Who needs a license

The city's ordinance covers rentals of residential units for periods of less than 30 days inside Hot Springs city limits. Each one needs a Short-Term Residential Rental Business License.

Licenses are valid for the calendar year they are issued in, and renewals are due January 1. Monthly rentals of 30 days or more fall outside the short-term rental ordinance.

Properties outside city limits (much of Lake Hamilton's shoreline, Hot Springs Village and rural Garland County) are not covered by the city license. Check with Garland County and, in the Village, with the property owners association.

The residential cap is full

As of the city's July 1, 2025 update, new STR licenses in residential zones are not available. The residential cap is 400 licenses, and there is no waitlist. Once the cap is met, residential-zone applications are rejected for that calendar year.

Some properties are exempt from the cap and can still apply:

Non-residential zones: C-TR, CN, CMU, CG, CBD, IL, IH and IMU
Property zoned HPR
Condominiums recorded before January 18, 2022

If you are buying a property to rent short-term, confirm its zoning and whether it already holds a license before you close. A residential-zone house without a current license cannot get one while the cap is full.

What the ordinance requires

Confirm zoningShort-term rentals in residential zones also need city land-use approval (a conditional or special use permit) on top of the business license.
Apply for the business licenseThe application asks for the owner's name, address and phone, a list of every STR the owner holds, and a local contact person. The city's ordinance page sets the fee at $50 per bed; confirm the current amount when you apply.
Pass the inspectionA Certificate of Occupancy inspection is required before a new license is approved. Later, a re-inspection is only needed if the maximum occupancy changes.
Name a local managerEvery STR must have a local property manager on call at all times who can be on site within 60 minutes.
Respect the occupancy limitMaximum occupancy is two guests per bedroom, plus two.
Provide off-street parkingParking must meet the city's off-street parking code (HSC 16-2-103 and 16-2-104).
Follow the neighborhood rulesOperators must follow the city's solid waste and noise ordinances.

Neighbors can report problems to a 24-hour STR complaint hotline at (501) 621-4665 or through the city's online complaint form, so a quiet, well-managed house matters.

Taxes in brief

Stays under 30 nights in the city carry about 14.5% in taxes: Arkansas gross receipts tax (6.5%), the state tourism tax (2%), Garland County sales tax (1.5%), Hot Springs city sales tax (1.5%) and the city's 3% Advertising and Promotion tax.

Airbnb and Vrbo both collect these for bookings made on their platforms. Direct bookings are on you. See our STR tax guide for details.

Hot Springs Village

Hot Springs Village is a private community governed by the Hot Springs Village Property Owners' Association (HSVPOA), with its own residential rules.

Every rental, long-term or short-term, must be registered with the HSVPOA.
The 2026 fee schedule lists the rental property registration fee at $50.
A registration runs through June 30 of the following year and does not transfer to a new owner.
Read the current Residential Rules and Regulations before you buy or list.

Common questions

Can I still get a new STR license for a house in a residential zone?

Not right now. The city reports the 400-license residential cap is met and there is no waitlist. Properties in exempt commercial zones, HPR, and condos recorded before January 18, 2022 can still apply.

How much is the license?

The city's ordinance page lists $50 per bed per year. Fees can change, so confirm with the city before applying.

Who do I call with questions?

The city's STR page lists (501) 321-6905 for general questions and renewal payments.

Do Airbnb and Vrbo handle the taxes?

For bookings made on their platforms, both collect the state, local sales and Hot Springs A&P taxes. You are responsible for taxes on bookings you take directly.

Does the city license apply in Hot Springs Village?

The city license applies inside Hot Springs city limits. In the Village, register the rental with the HSVPOA and follow its rules.

Questions about Hot Springs STR rules?

Send us your question about staying or hosting in Hot Springs and we will point you to the right local resource.

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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