Siloam Springs, Arkansas
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Siloam Springs, AR
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STR Regulations for Siloam Springs, Arkansas
Overview: Are Short-Term Rentals Allowed in Siloam Springs, AR?
Yes, short-term rentals are allowed in Siloam Springs, Arkansas. However, the city is in a transitional period regarding specific regulations for short-term rentals. As of the most recent available information (December 2023), the city was in the process of developing comprehensive short-term rental ordinances but had tabled pending legislation. Currently, short-term rentals operate under general business licensing requirements with proposed regulatory frameworks under consideration.
What do Airbnb hosts actually earn in Siloam Springs?
Siloam Springs hosts earn a median $20,690/year with $142 ADR and 58% occupancy.
Top performers pull in $31,059+ per year.
See the full Siloam Springs market breakdownHow to Start a Short-Term Rental Business in Siloam Springs
Step 1: Business Licensing
To legally operate a short-term rental in Siloam Springs, you must obtain a business license from the city. The city offers a specific category for "Short-Term Rental (Small Hotel / BnB)" on their business license application.
Step 2: Compliance Planning
Given that comprehensive regulations were being developed as of December 2023, prospective operators should:
- Monitor city board meetings for updates on short-term rental ordinances
- Ensure compliance with all existing zoning and housing regulations
- Stay informed about any new requirements that may be adopted
Step 3: Property Preparation
Properties must meet standard housing and safety requirements, with potential future requirements including safety inspections and occupancy limits.
Required Documents, Permits, Licenses, and Guidelines
Current Requirements (As of December 2023):
Business License Application (Required)
- Complete application form provided by the city
- Check "Short-Term Rental (Small Hotel / BnB)" category
- Business owner information
- Property address and building details
- Local 24-hour emergency contact information
- Proof of building ownership or management rights
Home Occupation License (Potentially Applicable)
- If operating from a residential property as a home-based business
- Maximum 30% of floor area utilization
- No excessive noise, dust, or disturbances
- No additional parking beyond normal residential use
- No advertising signs permitted
- No non-residential structural alterations
- No commercial deliveries requiring non-passenger vehicles
- No exterior manifestations of business activity
Proposed Requirements (Under Consideration as of December 2023):
Operating Conditions (If adopted):
- Valid business license for each dwelling unit
- Proof of hotel/motel tax remittance to city
- Safety inspection by city staff
- Posting of noise ordinance and parking restrictions
- Prohibition of special events (parties, weddings, etc.)
- Two equally accessible off-street parking spaces per unit
- Maximum occupancy of three guests per bedroom
Specific Regulations for Short-Term Rentals
Current Regulatory Status
As of December 2023, Siloam Springs does not have finalized comprehensive short-term rental regulations. The city board was considering but had tabled Ordinance 23-31, which would have implemented the following framework:
Proposed Cap System (Under Consideration):
- Annual Permit Limit: Maximum of 30 short-term rental permits approved per year
- Individual Ownership Limit: Maximum of 4 short-term rentals per person
- Grandfathering: All existing short-term rentals operating as of the ordinance date would be grandfathered in
- Housing Stock Protection: Originally proposed 1% of total housing stock limit
Operational Requirements (Under Consideration):
- Safety Compliance: Access granted to city staff for safety inspections
- Tax Compliance: Proof of hotel/motel tax remittance required
- Occupancy Limits: Maximum three guests per bedroom
- Parking Requirements: Two off-street parking spaces per unit (garages/carports ineligible)
- Event Restrictions: No special events, parties, or gatherings permitted
- Information Posting: Required posting of noise ordinance and parking restrictions
Zoning Considerations
Short-term rentals must comply with existing zoning laws. The Home Occupation License provides guidance for residential-based operations, limiting business activity to 30% of floor area and prohibiting external manifestations of business activity.
State-Level Considerations
According to available information, Arkansas state sales tax applies to the rental of lodgings, and hosts are responsible for collecting and remitting this tax.
Contact Information for Local Authority
City Hall - Business Licensing
- Address: PO Box 80 / 410 N Broadway, Siloam Springs, AR 72761
- Phone: 479-238-0927
- Services: Business license applications, home occupation licenses
Planning Department
- Senior Planner: Ben Rhoads
- Contact: Through City Hall
- Services: Zoning compliance, ordinance development
City Board
- Location: Siloam Springs City Hall
- Meeting Schedule: Regular meetings (contact City Hall for specific dates)
- Function: Final approval of ordinances and regulations
Source Pages
-
Siloam Springs Planning Commission Approves Change on Short-Term Rentals - March 3, 2023
-
Siloam Springs Business License Application - February 15, 2023
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Board Tables Short-Term Rental Ordinance - December 13, 2023
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Summer Vacation Rental Management - Siloam Springs Overview - General market information
Important Disclaimers and Recommendations
Regulatory Monitoring Required: The short-term rental landscape in Siloam Springs is evolving. Prospective investors should regularly monitor city board meetings and communicate with the Planning Department to stay current on regulatory developments.
Legal Compliance: Ensure full compliance with all current and future regulations. The proposed cap system and operational requirements, if adopted, will significantly impact operations.
Professional Consultation: Consider consulting with local legal and business professionals familiar with Arkansas hospitality regulations and Siloam Springs municipal requirements.
Tax Obligations: Arkansas state sales tax on lodging applies and must be collected and remitted by operators.
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Siloam Springs
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Photos of Siloam Springs
Overview of Siloam Springs
Siloam Springs is a small, leafy city in Benton County, in the far northwest corner of Arkansas, just a few miles from the Oklahoma state line. With a population of roughly 17,000, it has the feel of a traditional Midwestern college town wrapped in the rolling, oak-covered hills of the Ozarks. The city takes its name from the mineral springs that once drew visitors to the area, and that sense of natural refreshment still defines its character, with eight named springs feeding into Sager Creek, which winds through the heart of town. Siloam Springs is best known as the home of John Brown University, a private Christian university that anchors much of the local economy and culture, and it serves as a quiet gateway to the broader Ozark region. The nearest major city is Fayetteville, home of the University of Arkansas, located about 30 miles to the east along Interstate 49.
A short walk through the historic downtown reveals one of the city's main draws: a compact, walkable district centered on the Benton County Courthouse square, where locally owned restaurants, antique shops, and a restored 1920s-era movie theater line the brick streets. Sager Creek, which threads through the downtown, has been transformed into a series of small parks and naturalized banks, including a boardwalk trail that lets visitors get close to the springs that gave the city its name. The area around the square also hosts the city's farmers market and seasonal festivals, making it a relaxed hub for guests who prefer strolling and small-town browsing over bigger-city sightseeing.
Just a short drive east of Siloam Springs, Devil's Den State Park offers some of the most scenic terrain in the Ozarks, with sandstone bluffs, caves, and a network of hiking and mountain biking trails roughly 20 miles from the city center. The park is a popular year-round destination for outdoor enthusiasts, and its Civilian Conservation Corps-era stone cabins and pavilions give it a distinctive historical character as well as a convenient base for longer explorations of the Ozark National Forest.
A little farther afield, the Crystal Bridges Museum of American Art in Bentonville, about 30 miles east, has become one of the most talked-about cultural attractions in the American South, with a collection that spans five centuries of American art set within a series of striking buildings designed by Moshe Safdie, all connected by wooded walking trails. Combining a day of museum-going in Bentonville with an evening back in quiet Siloam Springs has become a natural rhythm for visitors to the region.
Siloam Springs works well as a short-term-rental base because it offers a slower, more affordable alternative to the busier Northwest Arkansas corridor while still sitting within easy driving distance of Fayetteville, Bentonville, and the Ozark outdoor scene. Guests who book a stay here can spend their mornings hiking in a state park, their afternoons browsing a world-class art museum, and their evenings relaxing on a porch overlooking a creek in a small town that still feels distinctly its own.
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