Short-term rentals in Fayetteville and Bentonville, Arkansas

Northwest Arkansas is really several markets in one metro area. Fayetteville lives by the University of Arkansas: Razorbacks football, graduations and parents' weekends fill the calendar, and Dickson Street supplies the nightlife. Bentonville draws business travelers visiting Walmart's headquarters and its supplier offices, art lovers heading to Crystal Bridges, and mountain bikers riding the trail network that has made the region a national cycling destination. Rogers, Springdale and Bella Vista sit between and around them. Rentals range from campus-area houses to modern homes near downtown Bentonville and cabins near the trails.

Fayetteville: capped for investors

Fayetteville's ordinance has been in force since May 2021 and separates two types:

• Type 1, a primary residence the owner occupies at least nine months a year, including accessory units, which is not capped;
• Type 2, investment properties with no permanent resident, limited to 475 business licenses citywide and requiring a conditional use permit in residential zones.

The Type 2 cap was reached at the end of 2023. New applicants join a waiting list through the business license application. Licenses expire on October 31 and renewal requires a notarized affidavit. The city's hotel, motel and restaurant tax applies, which the main platforms collect.

Bentonville and its neighbors

Bentonville, by contrast, has no ordinance specific to short-term rentals according to recent guides, only its advertising and promotion tax and the usual codes. The neighbors differ again: Bella Vista caps non-owner-occupied rentals and is close to its limit, Rogers requires registration for lodging tax purposes, and Springdale's zoning is reported to be restrictive in residential areas. None of this is harmonized, and it can change quickly as the region grows.

Taxes common to all

Arkansas charges its state sales tax and a 2% state tourism tax on lodging rented for less than a month, and each city adds local sales and advertising and promotion taxes. Registration with the state Department of Finance and Administration is needed unless every booking goes through a platform that collects for you.

Our advice

For a new investment property, look first where there is no cap, and confirm the city's current position in writing; Bentonville's openness is a policy choice, not a guarantee. In Fayetteville, a Type 1 setup with an accessory unit is the realistic path. Everywhere, check HOA covenants, which are common in the region's new subdivisions. We study every request and tell you honestly whether and how we can help.