NWA Stay Hub
Northwest Arkansas is one of the friendlier places in the country to run a short-term rental, but "friendly" doesn't mean "no rules." The state has its own taxes, each city sets its own licensing and lodging tax rules, and your HOA may have the final word. Here's what owners need to know before listing, written by a team that hosts homes here every week.
The short version
- Arkansas has no statewide short-term rental license. The state's role is tax collection.
- Every stay under 30 nights is taxed. Guests pay Arkansas gross receipts tax, the state tourism tax, local sales tax, and in most cities a local lodging tax.
- Cities set the real rules. Fayetteville requires a business license and caps whole-home rentals. Bentonville currently has no short-term rental permit. Other NWA cities fall in between, so check the address, not just the city name.
- Your HOA or POA can override all of it. Read the covenants before you buy or list.
Arkansas state taxes on short-term rentals
Arkansas treats furnishing rooms to transient guests as a taxable sale. For stays of 29 nights or fewer, guests pay:
| Tax | Rate | Applies to |
|---|---|---|
| Arkansas gross receipts (sales) tax | 6.5% | Nightly rate plus cleaning fee |
| Arkansas tourism tax | 2% | Nightly rate plus cleaning fee |
| Local city and county sales tax | Varies by address | Nightly rate plus cleaning fee |
| City lodging tax (A&P or HMR) | Varies by city | Set and collected locally |
Airbnb collects and remits the state gross receipts and tourism taxes and local sales tax for Arkansas listings, and it collects some city lodging taxes too. Vrbo collects in some cities. Direct bookings are on you. If you take bookings through your own website or repeat guests, you need an Arkansas sales tax permit from the Department of Finance and Administration and you must file and remit yourself.
Common mistake: assuming "Airbnb handles taxes" covers everything. It covers Airbnb stays, and only the taxes Airbnb has agreed to collect in that city. Direct and Vrbo bookings, and any city tax a platform doesn't collect, still need filing.
City by city
Bentonville
- No short-term rental permit or registration today. The city's own FAQ says short-term rental operators don't need to register with the Business Registry "at this time."
- 2% A&P tax. Bentonville's Advertising and Promotion tax applies to short-term rental stays and is paid to Visit Bentonville.
- Watch for change. The City Council created a Short-Term Rental Work Group in 2023 to study the issue. A lack of rules today doesn't guarantee a lack of rules tomorrow.
Fayetteville
- Business license required for every short-term rental inside city limits, renewed each year.
- Two types. Type 1 is a home where the owner or a long-term resident lives at least nine months a year. Type 2 is a whole home rented without a permanent resident.
- Type 2 is capped at 475 licenses citywide, with a waitlist once the cap is reached. If you're buying in Fayetteville to run a whole-home rental, confirm license availability before you close.
- 2% HMR tax (hotel, motel and restaurant), remitted monthly to the city, plus short-term rental insurance.
Rogers, Springdale, Bella Vista, Centerton, Farmington and Gravette
Each of these cities levies its own local sales tax and, in most cases, a local lodging or A&P tax, and each handles business licensing differently. Some homes near Centerton carry Gravette mailing addresses, and some Bella Vista homes sit under a property owners association. The rule that applies depends on the city limits, not the mailing address. When we onboard a home, we confirm the current license and tax requirements for that exact parcel before the first booking.
The rules that bite most often
HOA and POA covenants
Many newer NWA neighborhoods restrict rentals under 30 days, require registration with the association, or cap the number of rental homes. An HOA ban can shut down a rental even where the city allows it. Read the covenants and any recorded amendments before you buy.
Insurance
A standard homeowner's policy often excludes paid guests. You want a policy written for short-term rentals, with liability coverage, and Fayetteville requires proof of it for a license.
Lending
Some mortgages, especially owner-occupied and certain second-home loans, limit renting the home. Check your loan terms before you list.
How NWA Stay Hub handles compliance
For every home we manage, we confirm the city and HOA rules for the address, set up tax collection on each platform, and file the city lodging taxes platforms don't cover. Owners get it all in their monthly statement. Request a free revenue estimate and we'll flag any rules that affect your home.
Sources
- Airbnb: Occupancy tax collection in Arkansas
- City of Bentonville: Business Resources (A&P tax)
- City of Bentonville: Business Registry FAQ
- City of Bentonville: Short-Term Rental Work Group
- City of Fayetteville: HMR tax and short-term rental FAQ
Next: The short-term rental tax guide for NWA owners
This article is general information, not tax or legal advice, and reading it doesn't create a client relationship. Results depend on your specific facts and on law that can change. NWA Stay Hub and Prime & Ledger CPAs are affiliated companies under common ownership; we may refer clients between them. Last reviewed October 12, 2026.