Rental Rules by City / Arkansas / Fayetteville
Fayetteville short-term rental rules & tax calculator
📋 The Basics
- Can I rent my place short-term here?
- Yes, with a permit
- Do I need a permit?
- Yes. A City STR business license (Type 1 or Type 2).
- What taxes do I pay?
- Total about 13.75%. Check your Airbnb payout report to see which ones Airbnb collects; you pay the rest yourself.
Your 3 steps to be legal
- Pick your type (owner-occupied or not).
- Get a CUP for Type 2 in residential zones.
- Collect the 2% HMR tax.
⚠️ Biggest risk: Type 2 cap of 475 licenses.
Words confusing? See the glossary. Details and official sources are below.
Tax calculator
Rates used: Arkansas state sales tax 6.5% + Arkansas tourism tax 2% + Fayetteville + Washington County sales tax 3.25% + Fayetteville HMR tax 2% = 13.75%. Mandatory cleaning fees are included in the taxable total. 13.75% total: AR 6.5% + 2% tourism (DFA) + city 2% + county 1.25% (DFA Oct-Dec 2026) + 2% city HMR tax. Airbnb and Vrbo have voluntary HMR collection agreements with the City.
What Airbnb collects: Verify in payouts which taxes your platform remits.
Advanced details (laws, fees, sources)
Rules
| License | Each STR needs a City short-term rental business license. |
|---|---|
| Types | Type 1: owner or long-term tenant lives there 9+ months a year. Type 2: no permanent resident. |
| Cap | Max 475 Type 2 licenses citywide (Ord. 6672). A conditional use permit is needed for Type 2 in residential zones. |
| Enforcement | Unlicensed Type 2 rentals can have water, sewer and trash service withheld. |
Items marked "Verify with the city" could not be confirmed from an official source; call the office listed before relying on them.
Sources
Free tools
Free "Is my rental legal?" checklist · Free tourist tax calculator
Rules can change
Fayetteville's rules, its tax rates and platform policies can change through a council vote, a new state law or a court ruling, often with little notice to hosts. We re-check this page monthly; subscribers get notified. Stay Compliant for $4.99/mo.
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Get a personalized STR Compliance Check ($49) for your exact address in any US city: the permits, registrations and tax accounts you need, with official sources, delivered by email in 48 business hours. Not legal advice.
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Stay Compliant: $4.99/month
Rules, tax rates and Airbnb/Vrbo policies can change without warning, and hosts who miss a change can be fined. Get alerts when your city, county or state changes, deadline reminders, a pending-bill watch list and a monthly host brief (even in quiet months: "we checked on [date]; no changes"). Compare plans.
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Not legal or tax advice. Last verified Oct 24, 2026. Rules and rates change: confirm with the official sources linked before you rent or file.