Short-Term Rental Laws in Hot Springs, AR (2026)
Short-term rentals (stays under 30 days) are legal in Hot Springs, but every property needs an annual Short-Term Residential Rental Business License costing $50 per person of authorized maximum overnight occupancy ($200 minimum), due January 1 each year, plus a Special Use Permit ($475) in residential zones. The biggest restriction is a 400-license cap in residential zones, which has been met — per the city's July 2025 update, new residential-zone licenses are not available and there is no waitlist, though non-residential-zone and cap-exempt condo/HPR applications are still accepted. Always confirm current requirements with the city before operating.
Hot Springs STR rules at a glance
| Legal status | Restricted |
|---|---|
| Permit required | Yes |
| Permit name | Short-Term Residential Rental Business License |
| Permit fee | $200 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~14.5% of gross revenue |
| Insurance | None found. The STR ordinance (HSC Title 16, Ch. 10, full text reviewed) and the city's official STR Business License Requirements contain no STR-specific insurance mandate; commercial STR liability coverage is recommended by local industry guides but not required by the city. |
| Enforcement | The city runs a 24-hour STR complaint hotline (501-621-4665) and an online complaint portal, and maintains a public GIS map layer of licensed STRs. Violations are strict liability offenses regardless of intent. Every internet listing or advertisement must prominently display the city-issued license number, and it is unlawful to advertise or operate without a license. The city manager may deny, suspend, or revoke licenses, order forfeiture of the certificate of occupancy for unlicensed operation, and order disconnection of municipal water service for building/development code violations. A local contact person must be on-call 24/7 and able to be on-site within 60 minutes; failure to respond to two or more city calls is grounds for penalties. A revoked licensee is ineligible to reapply for two years. |
| Current rules effective | 2021-06-01 |
What will guests pay in taxes on a Hot Springs stay?
Itemized occupancy taxes for Hot Springs, AR — enter your nightly rate to see the real cost breakdown.
Hot Springs occupancy tax calculator
| Gross rent | $450.00 |
| Arkansas Gross Receipts (Sales) Tax (6.5%)· collection varies | $29.25 |
| Arkansas State Tourism Tax (2%)· collection varies | $9.00 |
| Garland County Sales Tax (1.5%)· collection varies | $6.75 |
| City of Hot Springs Sales Tax (1.5%)· collection varies | $6.75 |
| Hot Springs Advertising & Promotion (A&P) Tax (3%)· collection varies | $13.50 |
| Total tax (14.5%) | $65.25 |
| Guest pays | $515.25 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Hot Springs requires Short-Term Residential Rental Business License to operate a short-term rental — the fee is $200, renewed annual.
Annual license fee/occupation tax is $50 per person per year based on the maximum overnight occupancy authorized by the license (per the ordinance's example, an 8-person occupancy pays $400/yr); the minimum fee is $200 and fees are not prorated. permit_fee_cents reflects the $200 minimum. New licenses in residential zones (when available), in post-1/18/2022 Planned Developments, and in HPRs/condos established on or after 1/18/2022 also require a Special Use Permit carrying the same fee as a conditional use permit under HSC 16-1-7, currently $475. License transfer processing fee is $100. Late fees: 10% assessed March 1, 30% assessed April 1; licenses not renewed before May 1 lapse, and a lapsed license must reapply as an initial applicant. A Certificate of Occupancy inspection is required for new licenses; re-inspection is only required if maximum occupancy changes.
Zoning & location rules
STRs are licensed in both residential and non-residential zoning districts. Residential zones — currently designated RR, RS, and RN-1 through RN-6 (the codified STR chapter references the former R-1 through R-4 and R-L districts and Planned Developments established after 1/18/2022) — require a Special Use Permit from the Planning & Development Director and are subject to an aggregate cap of 400 licenses (effective Jan. 1, 2023 under Ordinance No. 6435). The cap has been met: per the city's 7/1/2025 update, new residential-zone licenses are not available and no waitlist exists; under the ordinance the application portal reopens the second Monday of July only if the count falls below 400 after May 1. Non-residential zones (C-TR, CN, CMU, CG, CBD, IL, IH, IMU) and HPRs/condos recorded before Jan. 18, 2022 are exempt from the cap and applications there are being accepted. Overnight occupancy is capped at 2 per bedroom plus 2; daytime presence at 150% of overnight occupancy; commercial functions/events are prohibited; off-street parking per residential requirements and a local contact person able to be on-site within 60 minutes are required.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Arkansas Gross Receipts (Sales) TaxAirbnb collects and remits on platform bookings ('6.5% of the listing price including any cleaning fee for reservations 29 nights and shorter'); hosts taking direct or other-channel bookings must register with and remit to the Arkansas Department of Finance and Administration. | 6.5% | varies |
| Arkansas State Tourism TaxApplies to stays of 29 nights or shorter; Airbnb collects on its bookings, otherwise host-remitted to Arkansas DFA. | 2% | varies |
| Garland County Sales TaxLocal sales/use tax; Airbnb collects local sales and use taxes on its bookings, otherwise host remits through the state DFA. | 1.5% | varies |
| City of Hot Springs Sales TaxLocal sales/use tax; combined state+local sales tax in Hot Springs is 9.5% (6.5% state + 1.5% county + 1.5% city). Airbnb collects on its bookings, otherwise host remits. | 1.5% | varies |
| Hot Springs Advertising & Promotion (A&P) Tax3% of the listing price including cleaning fees for stays of 29 nights or shorter. Airbnb has collected and remitted to the A&P Commission since June 2017 (first such agreement in Arkansas) and Vrbo since June 1, 2022 per local news reports; hosts must still register their STR property with the A&P Commission (hotsprings.org, which has a dedicated 'Short Term Rental Properties' registration system) and remit directly on bookings taken outside those platforms. STR tax filing questions: Emily Wilkerson, 501-620-5042. | 3% | varies |
Enforcement & penalties
The city runs a 24-hour STR complaint hotline (501-621-4665) and an online complaint portal, and maintains a public GIS map layer of licensed STRs. Violations are strict liability offenses regardless of intent. Every internet listing or advertisement must prominently display the city-issued license number, and it is unlawful to advertise or operate without a license. The city manager may deny, suspend, or revoke licenses, order forfeiture of the certificate of occupancy for unlicensed operation, and order disconnection of municipal water service for building/development code violations. A local contact person must be on-call 24/7 and able to be on-site within 60 minutes; failure to respond to two or more city calls is grounds for penalties. A revoked licensee is ineligible to reapply for two years.
Fines of $1,000 for the first offense, $2,000 for the second, and $4,000 for each subsequent offense, plus $500 per day for continuing violations. Additional consequences: license suspension or revocation (two-year reapplication bar after revocation), forfeiture of the certificate of occupancy, and disconnection of municipal water service.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Hot Springs: the playbook
Generated from this market's verified rules — each step traces to the sources at the bottom of this page.
- 1
Verify your zoning
Location rules apply: STRs are licensed in both residential and non-residential zoning districts. Residential zones — currently designated RR, RS, and RN-1 through RN-6 (the codified STR chapter references the former R-1 through R-4 and R-L districts and Planned Developments established after 1/18/2022) — require a Special Use Permit from the Planning & Development Director and are subject to an aggregate cap of 400 licenses (effective Jan. 1, 2023 under Ordinance No. 6435). The cap has been met: per the city's 7/1/2025 update, new residential-zone licenses are not available and no waitlist exists; under the ordinance the application portal reopens the second Monday of July only if the count falls below 400 after May 1. Non-residential zones (C-TR, CN, CMU, CG, CBD, IL, IH, IMU) and HPRs/condos recorded before Jan. 18, 2022 are exempt from the cap and applications there are being accepted. Overnight occupancy is capped at 2 per bedroom plus 2; daytime presence at 150% of overnight occupancy; commercial functions/events are prohibited; off-street parking per residential requirements and a local contact person able to be on-site within 60 minutes are required. Confirm your parcel's zoning with the city before applying.
- 2
Check the covenant layer
HOA/condo rules may prohibit STRs regardless of city law.
- 3
Apply for the Short-Term Residential Rental Business License
Budget $200 (annual renewal). Annual license fee/occupation tax is $50 per person per year based on the maximum overnight occupancy authorized by the license (per the ordinance's example, an 8-person occupancy pays $400/yr); the minimum fee is $200 and fees are not prorated. permit_fee_cents reflects the $200 minimum. New licenses in residential zones (when available), in post-1/18/2022 Planned Developments, and in HPRs/condos established on or after 1/18/2022 also require a Special Use Permit carrying the same fee as a conditional use permit under HSC 16-1-7, currently $475. License transfer processing fee is $100. Late fees: 10% assessed March 1, 30% assessed April 1; licenses not renewed before May 1 lapse, and a lapsed license must reapply as an initial applicant. A Certificate of Occupancy inspection is required for new licenses; re-inspection is only required if maximum occupancy changes. Apply through the city — the official application page is linked in the sources below.
- 4
Line up required insurance
None found. The STR ordinance (HSC Title 16, Ch. 10, full text reviewed) and the city's official STR Business License Requirements contain no STR-specific insurance mandate; commercial STR liability coverage is recommended by local industry guides but not required by the city.
- 5
Set up tax collection & remittance
Platforms don't collect everything here: Arkansas Gross Receipts (Sales) Tax (6.5%), Arkansas State Tourism Tax (2%), Garland County Sales Tax (1.5%), City of Hot Springs Sales Tax (1.5%), Hot Springs Advertising & Promotion (A&P) Tax (3%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.
- 6
Calendar the renewal before you forget it
This permit renews annual (budget $200 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.
- 7
Know the cost of getting it wrong
Fines of $1,000 for the first offense, $2,000 for the second, and $4,000 for each subsequent offense, plus $500 per day for continuing violations. Additional consequences: license suspension or revocation (two-year reapplication bar after revocation), forfeiture of the certificate of occupancy, and disconnection of municipal water service. The city runs a 24-hour STR complaint hotline (501-621-4665) and an online complaint portal, and maintains a public GIS map layer of licensed STRs. Violations are strict liability offenses regardless of intent. Every internet listing or advertisement must prominently display the city-issued license number, and it is unlawful to advertise or operate without a license. The city manager may deny, suspend, or revoke licenses, order forfeiture of the certificate of occupancy for unlicensed operation, and order disconnection of municipal water service for building/development code violations. A local contact person must be on-call 24/7 and able to be on-site within 60 minutes; failure to respond to two or more city calls is grounds for penalties. A revoked licensee is ineligible to reapply for two years.
Recent rule changes in Hot Springs
July 1, 2025material
City confirms residential-zone STR licenses unavailable (400-license cap full)
The city's official STR page (updated July 1, 2025) states in capital letters that 'NEW LICENSES IN RESIDENTIAL ZONES ARE NOT AVAILABLE.' Applications are still accepted for non-residential zones and cap-exempt condos/HPR properties.
Official source →July 1, 2025material
Residential-zone STR licenses unavailable — 400-license cap met
The city's official STR page (updated 7/1/2025) states 'NEW LICENSES IN RESIDENTIAL ZONES ARE NOT AVAILABLE' and that no waitlist exists; applications in non-residential zones and for cap-exempt condos/HPRs are still accepted. Under HSC 16-10-2(e), the application portal reopens on the second Monday of July only if the residential license count falls below 400 after May 1 of a given year.
Official source →May 5, 2025
Arkansas statewide STR preemption bills fail (HB 1445 and HB 1790)
HB 1445, which would have barred local bans/caps on STRs and capped permit fees at $50, was withdrawn for interim study on April 15, 2025; the compromise HB 1790 died on the House calendar at sine die adjournment on May 5, 2025. Hot Springs' cap and licensing regime therefore remain fully enforceable; similar preemption efforts are expected in the 2027 session.
Official source →May 5, 2025
Arkansas statewide STR preemption bills fail (HB 1445 / HB 1790)
HB 1445, which would have barred local STR bans and caps and limited permit fees, was sent to interim study on April 15, 2025; its successor HB 1790 failed on the House floor 33-49 on April 8, 2025 and died on the calendar at sine die adjournment May 5, 2025. Hot Springs' licensing regime and 400-license residential cap therefore remain fully enforceable.
Official source →January 1, 2023material
Residential-zone license cap of 400 takes effect (Ordinance No. 6435)
Ordinance No. 6435, adopted Aug. 2, 2022, amended the STR chapter's residential cap and appeal process; per the city, 'Beginning Jan. 1, 2023, the Residential Zone cap will be 400' licenses in zones RR, RS, and RN-1 through RN-6. The board reduced the cap from an initially discussed 500 after public input.
Official source →
Frequently asked questions
›Is Airbnb legal in Hot Springs?
Airbnb is legal in Hot Springs, AR, but with significant restrictions — check the zoning and eligibility rules on this page before listing. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Hot Springs?
Yes. Hot Springs requires a Short-Term Residential Rental Business License to operate a short-term rental, which costs $200 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Hot Springs short-term rental permit cost?
The Short-Term Residential Rental Business License costs $200 (annual renewal). Annual license fee/occupation tax is $50 per person per year based on the maximum overnight occupancy authorized by the license (per the ordinance's example, an 8-person occupancy pays $400/yr); the minimum fee is $200 and fees are not prorated. permit_fee_cents reflects the $200 minimum. New licenses in residential zones (when available), in post-1/18/2022 Planned Developments, and in HPRs/condos established on or after 1/18/2022 also require a Special Use Permit carrying the same fee as a conditional use permit under HSC 16-1-7, currently $475. License transfer processing fee is $100. Late fees: 10% assessed March 1, 30% assessed April 1; licenses not renewed before May 1 lapse, and a lapsed license must reapply as an initial applicant. A Certificate of Occupancy inspection is required for new licenses; re-inspection is only required if maximum occupancy changes.
›Can I Airbnb a non-primary residence in Hot Springs?
Yes — Hot Springs does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Hot Springs?
Hosts in Hot Springs are subject to: Arkansas Gross Receipts (Sales) Tax (6.5%), Arkansas State Tourism Tax (2%), Garland County Sales Tax (1.5%), City of Hot Springs Sales Tax (1.5%), Hot Springs Advertising & Promotion (A&P) Tax (3%) — roughly 14.5% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›What happens if I operate a short-term rental illegally in Hot Springs?
Fines of $1,000 for the first offense, $2,000 for the second, and $4,000 for each subsequent offense, plus $500 per day for continuing violations. Additional consequences: license suspension or revocation (two-year reapplication bar after revocation), forfeiture of the certificate of occupancy, and disconnection of municipal water service. The city runs a 24-hour STR complaint hotline (501-621-4665) and an online complaint portal, and maintains a public GIS map layer of licensed STRs. Violations are strict liability offenses regardless of intent. Every internet listing or advertisement must prominently display the city-issued license number, and it is unlawful to advertise or operate without a license. The city manager may deny, suspend, or revoke licenses, order forfeiture of the certificate of occupancy for unlicensed operation, and order disconnection of municipal water service for building/development code violations. A local contact person must be on-call 24/7 and able to be on-site within 60 minutes; failure to respond to two or more city calls is grounds for penalties. A revoked licensee is ineligible to reapply for two years.
Hot Springs's STR rules changed 4 times recently.
Get an email the moment Hot Springs changes its short-term rental rules — plus renewal reminders before your permit expires.
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Sources
- Short-term Residential Rentals — City of Hot Springs (official, updated 7/1/2025)retrieved July 11, 2026
- STR Business License Fees & Penalties — City of Hot Springs (official)retrieved July 11, 2026
- STR Business License Requirements — City of Hot Springs (official)retrieved July 11, 2026
- Hot Springs Code of Ordinances, Title 16, Chapter 10 — Short-Term Residential Rental Business (codified through Ord. No. 6545, 8-19-2025)retrieved July 11, 2026
- Hot Springs Code of Ordinances, HSC 16-1-7 — Application Fee Schedule (conditional/special use permit fee)retrieved July 11, 2026
- Advertising and Promotion Tax — Hot Springs A&P Commission / Visit Hot Springsretrieved July 11, 2026
- Occupancy tax collection and remittance by Airbnb in Arkansas — Airbnb Help Centerretrieved July 11, 2026
- HB1790 Bill Information (2025 Regular Session) — Arkansas State Legislatureretrieved July 11, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Hot Springs and a qualified professional before operating.