Are there rental limits in Fayetteville?

Type 2 unit cap: There is a hard limit of 475 non-owner occupied licenses citywide, which is currently met.

What zoning rules apply to STRs in Fayetteville?

Density limits: New Type 2 rentals in single-family zones must be 100ft from existing Type 2 units and cannot exceed 4% of total units within 500ft.

What should Fayetteville hosts know about service termination: fayetteville can and?

Service termination: Fayetteville can and does shut off water and trash services for properties operating as unpermitted STRs.

What should Fayetteville hosts know about no special events: weddings, large?

No special events: Weddings, large parties, and business seminars are strictly prohibited in STR units.

Fayetteville, AR Short-Term Rental Regulations: A Complete…

Summary

Fayetteville regulates short-term rentals through a mandatory business license system that distinguishes between owner-occupied (Type 1) and non-owner occupied (Type 2) units, with a strict citywide cap on the latter.

Restriction Level

⚠️

Moderate

Score: 8 (restrictive)

Why this classification:

•Permit required
•Reporting required
•No night cap
•No primary residence requirement
•Tenants can host

In Plain English

Fayetteville requires all short-term rental hosts to obtain a specific business license and pass a life-safety fire inspection. If you do not live on-site for at least nine months a year (Type 2), you are subject to a citywide limit of 475 total permits and may need a Conditional Use Permit (CUP) depending on your zoning. Currently, the cap for non-owner occupied units has been reached, and new applicants are placed on a waitlist.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$50

Processing Time

2-4 weeks

4 Things Hosts Often Miss

1.Type 2 unit cap: There is a hard limit of 475 non-owner occupied licenses citywide, which is currently met.
2.Density limits: New Type 2 rentals in single-family zones must be 100ft from existing Type 2 units and cannot exceed 4% of total units within 500ft.
3.Service termination: Fayetteville can and does shut off water and trash services for properties operating as unpermitted STRs.
4.No special events: Weddings, large parties, and business seminars are strictly prohibited in STR units.

Regulation Details

Eligibility(8)

•Fayetteville does NOT require the property to be a primary residence. Investment properties are allowed.
•Fayetteville allows tenants to host STRs. Requirements: Requires a long-term lease agreement explicitly stating the property can be used as a short-term rental.
•Fayetteville: No special events: Weddings, large parties, and business seminars are strictly prohibited in STR units.

Requirements(12)

•Fayetteville: Hosts must report their rental activity monthly to the city, even if platforms collect taxes.
•Fayetteville requires STR registration. The permit is called "Short-Term Rental Business License". Apply through Development Services Department. Processing time: 2-4 weeks. Renewal is required.

Application Process(9)

•Fayetteville STR permit - Step 1: Determine License Type and Zoning. Identify if the property is Type 1 (owner-occupied) or Type 2 (non-owner occupied). Check the city zoning map to see if a Conditional Use Permit (CUP) is required for Type 2 properties in residential districts. Time: 1 day.

Fees & Costs(1)

•Fayetteville charges a registration fee of $50 (annual). Extended/additional fee: $200 ($200 for Conditional Use Permit (CUP) application if required for Type 2 units).

Taxes(2)

•Fayetteville charges a Hotel, Motel, and Restaurant (HMR) Tax of 0.02%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO collect and remit the 2% HMR tax; other platforms require manual remittance by the host.
•Arkansas has a state sales tax of 0.065% that applies to STR rentals.

Limits & Restrictions(5)

•Fayetteville enforces quiet hours: 11pm-7am.
•Fayetteville: Type 2 unit cap: There is a hard limit of 475 non-owner occupied licenses citywide, which is currently met.
•Fayetteville occupancy calculation: 2 per bedroom plus 2 (max 12 total; proposal to remove '+2' is pending as of early 2026). Count your bedrooms to determine your max guest limit.
•Fayetteville limits stays to a maximum of 29 nights.

Safety Requirements(1)

•Fayetteville requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Egress windows in all sleeping areas, GFCI protected outlets in kitchens/bathrooms, Address clearly visible from street, Gas shutoff valves in place.

Penalties(2)

•Fayetteville enforces the following penalties for STR violations: First offense: Violation notice and potential service termination. Second offense: Suspension of city services (water/trash) for 1 month. Third offense: Suspension of services for up to 6 months; potential 2-year licensing ban. Permit may be revoked for violations.

Exemptions(2)

•Fayetteville: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Fayetteville exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Fayetteville

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(8)

Requirements(12)

Application Process(9)

Fees & Costs(1)

Taxes(2)

Limits & Restrictions(5)

Safety Requirements(1)

Penalties(2)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Fayetteville

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Fayetteville?

2What is the TOT tax rate in Fayetteville?

3Are there rental night limits in Fayetteville?

4What are the penalties for non-compliance in Fayetteville?

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Bentonville

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Eureka Springs