Overview: Are STRs Allowed in Little Rock, AR?

• Explicit answer: Yes. Short‑term rentals (STRs) are allowed in Little Rock, but only under a tightly regulated framework that differentiates owner‑occupied units (STR‑1) from non‑owner‑occupied units (STR‑2). STRs are a permitted “special use” (STR‑1) or planned zoning use (STR‑2) with required licensing, safety inspections, development standards, taxes, and compliance monitoring.

• Two STR types:

  • STR‑1 (owner‑occupied): Permitted via a Special Use Permit (SUP); must permanently reside on the property (or within 1,500 feet).
  • STR‑2 (non‑owner‑occupied): Permitted only via a Planned Zoning District (PZD); no operating without Board of Directors approval.

• Maximum stay: Guests may not occupy any STR for more than 29 consecutive days.

• Overall cap: The City limits the total number of active STRs to 500 citywide at any time.

How to Start a STR Business in Little Rock

Owner‑Occupied (STR‑1) pathway:

1. Confirm zoning: STR‑1 is a special use. Verify it is allowed in your district and that your property can meet parking, safety, and neighborhood compatibility standards.
2. Secure an SUP: Apply through the Planning Commission. You must demonstrate compliance with all development standards for STR‑1.
3. Obtain a Business License: After SUP approval, apply for the annual Business License (renewed yearly).
4. Safety inspection: Complete required inspections under the Arkansas Fire Prevention Code and City Building/Fire Marshal standards. Pay associated fees.
5. Taxes: Register for, collect, and remit all applicable state and local taxes (see tax section below).
6. Operate: Maintain compliance with all development and operational standards, post required notices, and ensure a Responsible Party is available 24/7.

Non‑Owner‑Occupied (STR‑2) pathway:

1. Secure entitlement: Pursue a Planned Zoning District (PZD) approved by the Board of Directors; obtain a SUP as part of the PZD if required.
2. Obtain a Business License: After PZD approval, apply for the annual Business License (renewed yearly).
3. Safety inspection: Complete inspections required by the Arkansas Fire Prevention Code and City Building/Fire Marshal; pay fees.
4. Taxes: Register for, collect, and remit all applicable taxes.
5. Operate: Maintain compliance with all development and operational standards; no advertising or operation is allowed without the PZD and Business License.

Pre‑existing (legacy) properties:

• Pre‑existing STR‑1: Within six months of the ordinance’s passage, apply for administrative approval; pay a $150 administrative review fee, then a $100 inspection fee, and obtain a Business License. Annual inspection thereafter applies.
• Pre‑existing STR‑2: Must apply for a PZD within six months. If not approved or if you do not apply, the property reverts to its former use status.

Required Documents, Permits, Licenses, and Inspections

• Special Use Permit (STR‑1): Planning Commission approval required; submit compliance with all development standards.
• Planned Zoning District (STR‑2): Board of Directors approval required prior to any advertising or operation.
• Business License: Required for both STR‑1 and STR‑2; renew annually.
• Safety and code compliance:
  • Annual Building Code and Fire Marshal inspections required before use.
  • Compliance with Arkansas Fire Prevention Code.
• Proof of insurance: Homeowner’s fire, hazard, and liability insurance with liability limits of at least $1,000,000 per occurrence.
• Required safety devices and equipment:
  • Certified smoke detectors in all sleeping areas, in every room on the path of egress from the sleeping area to an exit, and in each story with sleeping units (including basements).
  • Carbon monoxide detectors where fuel‑fired appliances exist or where the unit has an attached garage.
  • Five‑pound ABC‑type fire extinguisher mounted and readily accessible.
• Floor plan: Scaled plan showing all rentable rooms with windows, doors, and smoke detector locations clearly marked.
• Responsible Party documentation and posting: Provide 24/7 availability and post notices near the front door with address, emergency contacts (including Responsible Party contact), maximum occupancy, and a diagram of emergency exit routes approved by the Fire Department.
• Parking plan: Demonstrate compliance with off‑street parking standards or, if using on‑street parking within 330 feet, address neighborhood impact and provide a plan with the permit application.
• Owner‑occupancy proof (STR‑1): At least two documents demonstrating primary residence and matching the deed recorded with the Pulaski County Clerk. Acceptable documents include Arkansas driver’s license, state ID, voter registration card, IRS W‑2, utility bill (dated within 60 days), or bank statement (dated within 60 days).

Specific Regulations for Little Rock STRs

Eligibility and capacity:

• STR‑1 (owner‑occupied): Up to nine bedrooms/guest rooms, no more than one of which may be in an approved accessory dwelling; owner must permanently reside on the property or within 1,500 feet.
• STR‑2 (non‑owner‑occupied): Up to nine bedrooms/guest rooms; no limit on dwelling type beyond zoning conformity.
• Maximum stay: 29 consecutive days per guest.
• Overall cap: 500 STRs may be active citywide at any time.
• Principal renter: Must be at least 18 years old.
• Simultaneous rental: Not allowed to more than one party under separate contracts.

Development and operational standards:

• No private parties, receptions, tours for a fee, or similar gatherings.
• Meals: Only continental breakfast (e.g., coffee, juice, pastries) allowed; other meal service not permitted.
• Signage: As permitted by the Single‑Family Residential Standard.
• Parking: Off‑street parking per Chapter 36 zoning; on‑street alternatives allowed within 330 feet with a plan addressing neighborhood impact. Design Overlay Districts may have alternate parking requirements.
• Occupancy: Determined per the Arkansas Fire Prevention Code (final capacity assigned by the City during inspection).
• Rentals shorter than 24 hours: Prohibited.

Safety and compliance:

• Meet all Arkansas Fire Prevention Code and City Municipal Code (Chapter 12, Fire Prevention) requirements.
• Smoke and CO detectors installed per code; fire extinguisher installed and accessible.
• Maintain property conditions consistent with the International Property Maintenance Code.

Taxes:

• City Hotel/Motel/Lodging Tax: 4% levied on gross receipts from rentals of accommodations for fewer than 30 days (includes short‑term rentals).
• All STR permit holders must collect and remit applicable room/occupancy taxes, sales/gross receipts taxes, and the Advertising & Promotion (A&P) tax as required by state law and City code.

Enforcement and sanctions:

• It is unlawful to operate or advertise a STR without a valid Business License.
• Complaints are handled under existing state and city ordinances governing nuisances, traffic, health/safety, and public peace.
• Sanctions for violations:
  • Three or more confirmed violations in a calendar year may result in Business License revocation and denial of a new license for up to one year.
  • Revocation procedures include written notice, appeal rights, and hearings before the Board of Adjustment.

Fees (per final ordinance):

• STR‑1 Business License: Annual; inspection fee $100 per bedroom up to $500 total.
• STR‑2 Business License: Annual; inspection fee $500.
• Pre‑existing STR‑1: $150 administrative review fee plus $100 inspection fee before receiving the Business License; annual inspection thereafter at STR‑1 rates.

County and State Context (Arkansas)

• County (Pulaski): The provided materials do not contain county‑specific STR regulations. Verify any additional county requirements with the Pulaski County government as needed.
• State of Arkansas:
  • Tax obligations: State sales tax and state occupancy/lodging taxes apply to short‑term rentals. Operators must register with the Arkansas Department of Finance and Administration and comply with state filing requirements. Rates and filing frequency depend on revenue volume; consult the Arkansas DFA for current rates and schedules.
  • Licensing: No statewide STR licensing. Local municipalities, including Little Rock, set licensing and operational standards.
  • Safety and building codes: Properties must comply with applicable state fire and building code standards.

Contact Information for Little Rock STR Authorities

• City of Little Rock – Planning and Development (Permitting, SUP, PZD, inspections):
  • Phone: (501) 371‑4660
  • Website: littlerock.gov
• Business Licensing (Business License issuance and renewals):
  • City of Little Rock – Revenue Division
  • Website: littlerock.gov
• Fire Marshal’s Office (Fire and life‑safety inspections):
  • City of Little Rock – Fire Department
  • Website: littlerock.gov
• Arkansas Department of Finance and Administration (State tax registration and filings):
  • Phone: (501) 682‑1884
  • Website: dfa.arkansas.gov

Source Links

• www.littlerock.gov/media/7163/august_working_draft_str_ordinance.pdf
• www.littlerock.gov/city-administration/board-of-directors/meeting-agenda/AGENDA%20-%20WEB%20-%206-20-2023/O%20-%20Short-Term%20Rental.pdf

Compliance Checklist for Investors

• Verify zoning eligibility and choose the correct entitlement path (SUP for STR‑1; PZD for STR‑2).
• Secure all required permits and inspections before listing or operating.
• Maintain minimum $1M liability insurance and required safety equipment.
• Develop and submit a parking plan; confirm off‑street or compliant on‑street arrangements.
• Confirm citywide cap of 500 STRs and ensure your property’s location does not conflict with any density or buffer restrictions.
• Register for and collect all applicable taxes; set up a reliable process for monthly/quarterly filings.
• Post required notices and ensure 24/7 Responsible Party availability.
• Establish an internal compliance audit schedule and maintain records for inspections and renewals.