Fort Smith's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Fort Smith, Arkansas, there are 6 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Permit Requirements

Fort Smith does not have a standalone short-term rental ordinance, and Arkansas Act 1023 of 2023 bars cities from prohibiting STRs outright. Hosts must comply with the Fort Smith business license requirement, zoning, and applicable health/safety/noise rules; the Code of Ordinances is hosted at library.municode.com/ar/fort_smith.

Key details: Standalone STR Ordinance: None as of 2026. State Preemption: AR Act 1023 of 2023 (no STR bans). Local License: Fort Smith business license required. Code Portal: library.municode.com/ar/fort_smith. Permitted Regulation: Health, safety, noise, insurance, parking.

Operating without a Fort Smith business license is a code violation prosecutable in Fort Smith District Court with citation fines under the Code of Ordinances. Zoning violations are enforced by the Development Services department and can lead to cease-and-desist orders and daily fines for continuing violations. Act 1023 of 2023 bars outright STR bans but does not protect hosts from enforcement of health, safety, noise, or licensing rules.

Parking Rules

Fort Smith does not impose STR-specific off-street parking minimums, but Arkansas Act 1023 of 2023 expressly allows cities to regulate parking at short-term rentals. STR hosts must satisfy the parking provisions of the Fort Smith Unified Development Ordinance for the underlying residential use and avoid parking on lawns, blocked sidewalks, or fire-lane violations.

Key details: STR-Specific Parking Rule: None separate from UDO. Governing Code: Fort Smith Unified Development Ordinance. State Preemption: Act 1023 preserves parking regulation. Lawn Parking: Prohibited (residential nuisance). Enforcement: Fort Smith Police + Code Enforcement.

On-street parking citations under the Fort Smith Code of Ordinances are filed in Fort Smith District Court. Parking on a lawn or unpaved residential surface is a separate nuisance violation enforced by Code Enforcement with daily fines for continuing violations. Vehicles blocking a fire lane, hydrant, or sidewalk may be towed at the owner's expense and ticketed under the Code.

Noise Rules

Short-term rental hosts in Fort Smith are responsible for guest noise under the city's general noise and nuisance provisions in the Code of Ordinances. Arkansas Act 1023 of 2023 expressly preserves municipal authority to regulate noise at STRs, so loud parties and amplified sound that disturb neighbors trigger citations regardless of guest status.

Key details: Local Rule: Fort Smith Code of Ordinances - noise chapter. State Backup: A.C.A. §5-71-207 disorderly conduct. State Preemption: Act 1023 preserves noise regulation. Enforcement: Fort Smith Police + Code Enforcement. Host Responsibility: Tied to property address.

Local noise citations under the Fort Smith Code of Ordinances are filed in Fort Smith District Court, with fines escalating with each repeat violation at a single address. A.C.A. §5-71-207 disorderly conduct is a Class C misdemeanor, carrying up to 30 days and a $500 fine. Documented repeat noise violations at an STR address can support enforcement action against the host's business license.

Occupancy Limits

Fort Smith has no STR-specific occupancy cap, but Arkansas Act 1023 of 2023 expressly authorizes cities to set health-and-safety-based occupancy limits at short-term rentals. Hosts must comply with the International Property Maintenance Code (IPMC) bedroom-occupancy standards adopted by the city and the underlying fire and building codes.

Key details: STR Occupancy Cap: None separate from IPMC. Governing Standard: IPMC Section 404 bedroom area. State Preemption: Act 1023 preserves occupancy regulation. Bedroom Minimum: 70 sq ft + 50 sq ft per extra occupant. Fire Code: IFC assembly occupancy applies.

Overcrowding a dwelling is a code violation under the Fort Smith IPMC adoption, enforceable through Code Enforcement citations with escalating fines and possible orders to vacate. Assembly-occupancy violations under the IFC are enforced by the Fort Smith Fire Marshal and can result in stop-use orders. Repeat overcrowding documented at an STR address can support city action against the host's business license.

Taxes & Fees

Short-term rental operators in Fort Smith collect stacked lodging taxes: the Arkansas 6.5% state sales tax (A.C.A. §26-52-301), the Sebastian County local sales tax, the Fort Smith local sales tax, and the 3% Fort Smith Advertising and Promotion (A&P) tax under A.C.A. §26-75-602 et seq. Stays of 30 consecutive days or more to the same guest are generally exempt from the A&P tax.

Key details: AR State Sales Tax: 6.5% (A.C.A. §26-52-301). Fort Smith A&P Tax: 3% (A.C.A. §26-75-602 et seq.). 30-Day Exemption: Same guest 30+ days exempt from A&P. Administrator: Fort Smith Advertising and Promotion Commission. State Filing: Arkansas DFA (sales tax).

Failure to register with or remit to the Fort Smith Advertising and Promotion Commission triggers penalties, interest, and possible suit by the Commission to collect under A.C.A. §26-75-602 et seq. Arkansas DFA assesses state and local sales-tax delinquencies under A.C.A. Title 26 with interest plus penalty up to 35% for willful failure to file. The City may also pursue revocation of the host's business license for sustained non-payment.

This is one of the stricter rules in Fort Smith's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Insurance Requirements

Fort Smith does not require a minimum STR liability insurance limit, but Arkansas Act 1023 of 2023 expressly authorizes cities to impose insurance requirements on short-term rentals. Hosts should carry commercial STR liability coverage (or rely on documented platform host-protection programs) because standard homeowners policies generally exclude business use.

Key details: Local Insurance Minimum: None as of 2026. State Preemption: Act 1023 allows insurance requirements. Homeowners Policy: Generally excludes STR business use. Airbnb AirCover: Up to $1M (excess coverage). VRBO Coverage: Up to $1M per occurrence.

No municipal sanction exists today for failing to carry STR insurance in Fort Smith, but a host without coverage is personally exposed to guest injury claims, fire damage, and liability suits without the homeowners-policy defense. The city retains the right to add minimum-limit requirements under Act 1023 of 2023 and to revoke the business license for non-compliance with any future insurance ordinance.

The Bottom Line

Fort Smith's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Fort Smith is broadly strict or permissive.

This guide is based on Fort Smith's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.