Short-term rentals in Little Rock, Arkansas: permits, rezoning and a cap

Little Rock is a capital-city market. State government, the University of Arkansas for Medical Sciences, Arkansas Children's Hospital and major employers bring a year-round flow of business and medical guests, while the Clinton Presidential Center, the River Market district, the riverfront trails and events at the Simmons Bank Arena across the river in North Little Rock supply leisure demand. Many guests stay several nights on weekdays. Historic homes in the Quapaw Quarter and Hillcrest, and newer houses in west Little Rock, form the core of the stock.

One of the stricter frameworks in the region

The ordinance adopted on June 20, 2023, distinguishes two kinds of short-term rental, both covering stays of up to 29 consecutive days:

• STR-1, owner-occupied, needs a special use permit approved by the Planning Commission;
• STR-2, not occupied by the owner, needs the property rezoned as a planned zoning district approved by the city's Board of Directors, a site-by-site legislative decision;
• no more than 500 short-term rentals may exist at any one time across the city.

Both types then need an annual business license, an inspection fee per guest room, liability insurance of $1 million per occurrence, smoke and carbon monoxide detectors, fire extinguishers, an egress and parking plan, and a responsible party reachable at all hours who can respond within 60 minutes and whose details are given to adjacent residents.

The STR-2 route is demanding but open. In January 2026, for example, the Board approved the rezoning of a home on Kavanaugh Boulevard for an STR-2 even though the Planning Commission had recommended denial. The approval came with a long list of conditions, including a ban on parties and events and a single booking at a time.

Taxes

Owners must collect and remit all applicable room, occupancy, advertising and promotion, and sales taxes: the state sales tax and 2% tourism tax on stays of less than a month, plus Little Rock's local taxes. Platforms handle part of this for their bookings.

Our advice

Treat an STR-2 as a rezoning project with an uncertain outcome, not as a formality. Talk to neighbors before you apply, prepare a management plan that answers their concerns, and make any purchase contingent on approval where possible. An owner-occupied STR-1, or longer medical stays, may be the faster route. We study every request and tell you honestly whether and how we can help.