Bull Shoals, Arkansas
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Bull Shoals, AR
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STR Regulations for Bull Shoals, Arkansas
(All information is drawn from the city’s published ordinances and the 2025 AirROI market report. No additional web‑searching was performed.)
1. Overview – Are STRs Allowed in Bull Shoals?
Yes. The City of Bull Shoals expressly permits short‑term rentals, but it does so under a specific municipal framework that includes a dedicated short‑term‑rental ordinance (Ordinance 2025‑09) and earlier guidelines for residential guest houses (Ordinance 2021‑02). Investors may legally operate a STR within the city limits provided they obtain the required permits, meet zoning restrictions, and comply with all state, county, and local taxes and safety rules.
What do Airbnb hosts actually earn in Bull Shoals?
Bull Shoals hosts earn a median $28,009/year with $176 ADR and 56% occupancy.
Top performers pull in $59,913+ per year.
See the full Bull Shoals market breakdown2. Market Snapshot (2025) – What the Numbers Say
| Metric (2024‑2025) | Value | Source | |--------------------|-------|--------| | Active STR listings | 18 | AirROI | | Average Daily Rate (ADR) | $154 | AirROI | | Occupancy Rate | 30 % | AirROI | | Median Annual Revenue (per listing) | $14,188 | AirROI | | Revenue YoY change | –21.5 % | AirROI | | Peak revenue month | July | AirROI | | Lowest revenue month | November | AirROI | | Regulation level (city) | Low | AirROI |
Interpretation for investors: The market is modestly sized, with relatively modest occupancy but healthy ADR. Because the regulatory burden is low, investors can focus on property performance and tax compliance rather than navigating restrictive caps or permit quotas.
3. How to Start a Short‑Term Rental Business in Bull Shoals
| Step | Action Required | Why It Matters | |------|-----------------|----------------| | 1. Verify Zoning | Confirm the property lies within a R‑1 (single‑family) or R‑2 (two‑family) zone – the only zones where STRs are permitted per Ordinance 2021‑02. | Zoning violations can lead to permit denial or enforcement actions. | | 2. Obtain a Short‑Term Rental Permit | Complete the STR Permit Application (available from the City Clerk / Planning & Zoning Department). Submit proof of ownership, a site/floor plan, and a management plan if you won’t be on‑site. | The 2025‑09 ordinance makes the permit the primary legal authorization for operating an STR. | | 3. Register as a Business | File a City Business License (if the city requires a separate license) and obtain a State Business Privilege Tax Certificate from the Arkansas Department of Finance & Administration (DFA). | Required for all commercial activity; needed for tax collection. | | 4. Tax Registration | Register with the Arkansas DFA to collect state sales tax (6.5 % + local) and the state lodging tax (if applicable). Set up a remittance schedule (monthly or quarterly). | Failure to remit taxes can result in penalties and revocation of the STR permit. | | 5. Secure Liability Insurance | Provide a certificate of minimum $100,000 general liability coverage (the city may specify higher limits). | Protects you from guest‑related claims and is often a permit‑review criterion. | | 6. Health & Safety Compliance | Install working smoke detectors, carbon‑monoxide detectors (if applicable), fire extinguishers, and any other devices mandated by the Arkansas Fire Prevention Code. If the property uses a septic system, ensure it meets Marion County health‑department standards. | The city requires proof of compliance before issuing a permit; inspections may be performed after the permit is granted. | | 7. Set Up Guest Management | Draft a guest‑handbook covering check‑in/out, noise, parking, waste disposal, and emergency contacts. Designate a local contact or property manager for 24‑hour response. | Improves guest experience and reduces nuisance complaints. | | 8. Launch Marketing | List the property on Airbnb, Vrbo, or your own website. Highlight local attractions (Bull Shoals Lake, White River fishing, nearby Ozark National Forest). Use the market‑adjusted ADR and minimum‑stay recommendations from the AirROI report (most hosts set a 2‑night minimum). | Proper pricing and positioning maximize occupancy and revenue. |
4. Required Documents, Permits, Licenses & Guidelines
| Requirement | Issuer | Typical Submission Package | |-------------|--------|----------------------------| | Short‑Term Rental Permit | City of Bull Shoals (Planning & Zoning) | • Completed permit application <br>• Proof of ownership/lease <br>• Site/floor plan <br>• Management plan (if applicable) | | Business License | City of Bull Shoals | • Completed license form <br>• Permit (above) <br>• Tax ID | | Sales‑Tax & Lodging‑Tax Registration | Arkansas Department of Finance & Administration (DFA) | • Business registration (online) <br>• EIN or SSN <br>• Entity type (LLC, sole‑proprietor, etc.) | | Business Privilege Tax Certificate | Arkansas DFA | • Same as above (often issued with sales‑tax registration) | | Liability Insurance Certificate | Private insurer | • Policy showing $100k+ coverage <br>• Named insured = property owner | | Zoning Determination Letter | City Planning & Zoning | • Written confirmation that the property is in R‑1 or R‑2 | | Fire & Safety Compliance Proof | Local Fire Marshal or State Fire Marshal | • Inspection report or signed checklist (smoke/CO detectors, extinguisher) | | Septic/Sewer Compliance (if applicable) | Marion County Health Department | • Permit or inspection clearance | | Guest‑Management Manual | Property owner (internal) | • Check‑in/out process, house
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Overview of Bull Shoals
Bull Shoals is a small resort town tucked into the Ozark foothills of north-central Arkansas, situated in Marion County along the White River just below the massive dam that shares its name. The community has a population of roughly 2,000 residents, and its character is shaped almost entirely by water, forest, and the steady stream of anglers, boaters, and outdoor travelers who pass through. The town is best known as a gateway to Bull Shoals Lake and the renowned trout waters of the White River, and it functions as a quiet base for visitors exploring the broader Ozark region. The nearest major city is Little Rock, Arkansas's capital, which lies about 150 miles to the south, while Springfield, Missouri sits roughly 90 miles to the northwest.
The centerpiece of the area is Bull Shoals Lake, a sprawling reservoir stretching across the Arkansas-Missouri border with nearly 1,000 miles of wooded shoreline. Just minutes from downtown Bull Shoals, the lake draws visitors for boating, swimming, scuba diving among submerged timber, and striper and bass fishing. A short drive east leads to the Bull Shoals Dam and the visitor overlook, where travelers can take in panoramic views of the lake and the river valley below. The dam, completed in the 1950s, is one of the larger concrete structures of its kind in the United States and remains a recognizable landmark of the region.
Below the dam, the cold, clear tailwaters of the White River form one of the country's most celebrated trout streams, supporting year-round fishing that brings in anglers from across the country. Bull Shoals-White River State Park, just across the river from the town, offers campgrounds, picnic areas, river access, and a small museum, making it a convenient stop for visitors who want to combine fishing with hiking and interpretive exhibits. The park's proximity to the dam and to the river's trout tailwater makes it a natural anchor for trips that revolve around the water.
To the south, the rolling hardwood-covered hills of the Ozark National Forest spread across more than a million acres, offering hiking, scenic drives, and the underground chambers of Blanchard Springs Caverns within a couple of hours' drive. Closer to home, the larger town of Mountain Home, about 20 miles to the northeast, supplies shopping, dining, and medical services, while the entertainment hub of Branson, Missouri, lies roughly 45 miles to the northwest and provides a popular day-trip option for families.
Bull Shoals appeals to short-term rental investors because it combines a compact, walkable town with direct access to a major lake, a world-class trout fishery, and a steady mix of seasonal outdoor tourists, retirees, and travelers bound for the Ozarks. Its affordability, its scenic dam-and-river setting, and its proximity to both Mountain Home and Branson give it a dependable year-round draw, with peaks during fishing season, summer lake months, and the fall foliage window.
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