Arkansas Short-Term Rental Laws (2026)

Arkansas short-term rental compliance has two layers. State tax rules apply to transient lodging, while cities and counties can impose their own licenses, zoning approvals, caps, safety standards, and local taxes. There is no single local checklist that works for every Arkansas address.

This 2026 guide uses current official materials from the Arkansas Department of Finance and Administration, Little Rock, and Fayetteville. Verify the property address with the responsible planning, licensing, and tax offices before advertising or accepting a reservation.

Arkansas Short-Term Rental Laws - Quick Answer

State tax: Qualifying transient accommodations are subject to Arkansas gross receipts tax. The state rate table lists a 6.5% state sales and use tax and a separate 2% Parks and Tourism Tax, plus applicable local sales taxes.
Local approval: Operational requirements are location-specific. Little Rock and Fayetteville each require a local business license and land-use compliance.
Do not confuse tax categories: Arkansas also lists a 1% “Short Term Rental Tax,” but the DFA rule applies that tax to short-term rentals of tangible personal property. It is not the lodging tax for a rental house or guest accommodation.
Booking channel matters: Confirm which taxes a platform remits and which remain the operator’s responsibility, especially for direct bookings.

Arkansas State Tax Rules for Short-Term Lodging

Arkansas DFA Rule GR-8 treats the furnishing of rooms and other accommodations to transient guests as taxable. The rule covers hotels, motels, lodging houses, tourist camps, property management companies, rental houses, and other accommodation providers. A transient guest generally rents an accommodation other than the guest’s regular abode on less than a month-to-month basis.

DFA’s current state rate table lists the general state sales and use tax at 6.5%. DFA Rule ET-8 and the same rate table impose a 2% Parks and Tourism Tax on qualifying accommodations furnished to transient guests. City and county sales taxes may also apply, so hosts should use DFA’s official tax-rate lookup or contact DFA for the exact property address.

Do not apply the separately listed 1% Short Term Rental Tax to lodging merely because the stay is short. DFA Rule ET-5 applies that tax to short-term rentals of tangible personal property and excludes transactions subject to the 2% tourism tax.

Marketplace facilitators and accommodation intermediaries may collect taxes on platform bookings, but that does not establish that every tax is covered for every booking channel. Review platform statements and DFA registration requirements, and account separately for direct reservations.

Little Rock Short-Term Rental Requirements

STR-1 and STR-2

Little Rock’s code separates short-term rentals into two categories for stays of no longer than 29 consecutive days:

STR-1: An owner-occupied dwelling. The ordinance allows the owner to reside at the property or within 1,500 feet, subject to the ordinance’s ownership and primary-residence documentation rules. A Planning Commission Special Use Permit is required before business licensing.
STR-2: A non-owner-occupied dwelling. Board approval of a Planned Zoning District or Planned Zone Development is required before business licensing.

The current codified development standards cap Little Rock at 500 short-term rentals citywide. Availability under that cap does not replace the property-specific entitlement process.

Licensing and fees

A Little Rock short-term rental may not be advertised or operated before the city issues the business license, and the license must be renewed annually. The city’s lodging-tax portal FAQ lists a $200 annual short-term rental license fee and says one license covers one dwelling unit. The zoning ordinance separately lists annual inspection fees - $100 per bedroom up to $500 for STR-1 and $500 for STR-2. Because the official materials describe separate charges, confirm the current total in the city application system before paying.

Safety and operating standards

Little Rock’s ordinance requires a parking plan and proof of homeowner’s, fire, hazard, and liability insurance. Liability coverage must be at least $1 million per occurrence. Required life-safety measures include compliant smoke alarms, carbon-monoxide detectors when directed for fuel-fired appliances or an attached garage, two means of egress from sleeping areas, and a five-pound ABC fire extinguisher.

A responsible party must be available 24 hours a day, seven days a week, and respond to city officials and qualifying complaints within 60 minutes. The city also prohibits private parties and special events at short-term rentals, does not allow simultaneous rental to more than one party under separate contracts, and determines maximum occupancy under the Arkansas Fire Prevention Code.

Little Rock lodging tax

The city’s official lodging-tax portal states that Little Rock’s lodging tax is 10% of gross short-term rent not already remitted by an intermediary. Gross rent includes mandatory fees such as cleaning, booking, pet, extra-person, and extra-bed charges. Returns and payments are due by the 20th day of the following month, including a zero return when there was no rental activity. Confirm intermediary remittance before taking a deduction.

Fayetteville Short-Term Rental Requirements

Type 1 and Type 2

Fayetteville defines a short-term rental as a furnished permanent residential dwelling rented for less than 30 days. Recreational vehicles, trailers, other vehicles, and structures not classified as permanent residential dwellings cannot be used as short-term rentals.

Type 1: The property’s principal use remains a full-time residence. The owner or occupant must occupy the residence for nine months of the year and provide proof of ownership or a qualifying long-term lease.
Type 2: The property is not occupied by a permanent resident and is listed full-time as a short-term rental.

Fayetteville caps Type 2 business licenses at 475 citywide. The city currently says the cap has been reached and directs applicants to apply for the waitlist. A Type 2 rental in a listed residential zoning district also needs a Conditional Use Permit before the city issues the business license. Density and spacing rules can affect the CUP even if a waitlist position becomes available.

Fees, renewal, and tax

Fayetteville’s current fee page lists $127 for a new STR business license, $35 for annual renewal, and a $30 late fee when the license is not renewed by October 31. A Conditional Use application is $600, and the planning fee table says an additional $67 public-notice sign fee is required. All business licenses expire October 31, with renewal opening September 1.

Fayetteville imposes a 2% Hotel, Motel, and Restaurant tax on short-term rentals. The city states that Airbnb and HomeAway/VRBO collect and remit this tax under voluntary collection agreements. Operators using other platforms or direct booking methods are responsible for collecting and remitting the tax monthly. Verify whether a platform agreement covers the specific reservation before treating the tax as paid.

Operating duties

Fayetteville requires every short-term rental property to register in the Landlord’s Representative Registry. The business-license number must appear in advertisements, and the license must be provided to guests and posted conspicuously in the rental.

Occupancy may not exceed the limit approved with the business license and is capped at two people per bedroom for the entire unit. Parking is limited by the underlying zoning district. Special events are prohibited. Owners must keep non-personally-identifying guest summary records for three years and report known or reasonably suspected guest criminal activity to the Fayetteville Police Department within 12 hours.

Arkansas Host Compliance Checklist

Identify the exact jurisdiction. Confirm city limits, county, zoning district, and any overlay or homeowners association rules.
Confirm land-use approval before advertising. Ask whether the property needs a special-use permit, conditional-use permit, rezoning, or another entitlement.
Obtain the local business or STR license. Do not assume a state tax account substitutes for local authorization.
Map every tax by booking channel. Separate state sales tax, the state tourism tax, local sales tax, and city lodging or HMR tax. Document what the platform remits.
Complete safety and insurance requirements. Use the local inspection checklist and obtain coverage that expressly permits short-term rental activity.
Post and advertise required information. Include license numbers, emergency contacts, occupancy, and exit information where the local program requires them.
Calendar renewals and returns. A platform remittance does not necessarily eliminate local license renewal, zero-return, or direct-booking obligations.
Recheck before a material change. Ownership changes, a move from owner-occupied to full-time rental, additional bedrooms, or a new booking channel can change the approval path.

Common Arkansas Compliance Mistakes

Calling Arkansas’s 1% tangible-personal-property short-term rental tax a lodging tax.
Assuming one city’s STR rules apply elsewhere in Arkansas.
Advertising before receiving the required local license or land-use approval.
Using the former Fayetteville Type 1 description instead of the current nine-month primary-residence standard.
Ignoring Little Rock’s separate zoning entitlement, business-license, and inspection-fee requirements.
Assuming a marketplace remits every state and local tax for direct and platform bookings alike.

Official Sources

Bottom Line

Arkansas hosts should treat tax registration and local operating approval as separate tasks. Confirm the state tax treatment with DFA, then verify licensing, zoning, safety, insurance, occupancy, and local tax rules with the city and county responsible for the property address. This guide is general information, not legal or tax advice.