Little Rock's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Little Rock, Arkansas, there are 10 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.

Repeat Violator Strikes

Three or more confirmed violations of Little Rock's short-term rental rules in a calendar year lets the city revoke the business license and block reapplying for up to a year.

Key details: Strike threshold: 3+ confirmed violations per year. Consequence: Business license revocation. Reapplication bar: Up to 1 year. Appeal window: 10 days, written, to board of adjustment. Enforcing office: Planning and development director.

3+ confirmed violations/year triggers revocation; up to 1-year ban on new license for that property; 10 days to appeal in writing before revocation is final.

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

Host Presence Rule

Little Rock's STR-1 permit requires the owner to live at the rental or within 1,500 feet, proven by two documents matching the deed; non-owner-occupied rentals must instead pursue a planned zoning district as STR-2.

Key details: Residency requirement: Owner must live on-site or within 1,500 ft. Proof required: 2 documents matching deed record. Owner type: Must be a natural person, not an entity. Non-owner option: STR-2 requires PZD, no residency rule.

Renting as STR-1 without meeting the owner-occupancy proof requirement risks denial or revocation of the special use permit and business license needed to legally operate the short-term rental.

Primary-Residence-Only Rule

Little Rock will only issue an STR-1 bed-and-breakfast/short-term-rental special use permit if the owner actually lives at the property, or within fifteen hundred feet of it, as a natural person. Owner-occupied status must be proven with at least two documents whose address matches the deed on file with the Pulaski County clerk.

Key details: Residency test: Owner or within 1,500 ft of property. Owner type: Must be a natural person. Proof required: 2+ documents matching deed. Deed office: Pulaski County clerk. Business license fee: $100/bedroom, $500 max.

An applicant who cannot produce two qualifying documents matching the Pulaski County deed record cannot obtain an STR-1 special use permit, and a corporation, LLC or trust cannot qualify as owner-occupant no matter who lives on site. If owner-occupancy later proves false, the STR-1 no longer meets its entitlement basis and the business license is exposed to revocation, with a one-year bar on reapplying for that property.

Compared to other cities, Little Rock takes a harder line on primary-residence-only rule. The enforcement and penalty structure reflects that.

Extended Home Share

Little Rock lets a home-share guest pay to stay for up to twenty-nine consecutive days under both bed and breakfast house/short-term rental types. STR-1 covers an owner-occupied home with up to nine bedrooms; STR-2 covers a non-owner-occupied property approved through a planned zoning district. The city also caps the whole program at five hundred active short-term rentals at any one time.

Key details: Max guest stay: 29 consecutive days. STR-1 rooms: Up to 9 bedrooms/guest rooms. STR-2 basis: Non-owner-occupied, PZD approval. Citywide cap: 500 active STRs at once. Adopting ordinance: Ord. No. 22,274, 6-20-23.

Advertising or hosting a guest past the twenty-nine-day ceiling takes the unit outside the short-term rental definition and the protections of this article; the host is then operating what is legally a residential lease without a rental license. Operating STR-1 or STR-2 without the required special use permit or planned zoning district approval is a business-license violation, and once the citywide count of five hundred active permits is reached, no new short-term rental application can be approved until a permit lapses.

Insurance Requirements

Every Little Rock bed-and-breakfast/short-term-rental applicant, STR-1 or STR-2, must submit proof of homeowner's, fire, hazard and liability insurance as part of the development standards package. Liability coverage cannot be written below one million dollars per occurrence, and the proof must be on file before the special use permit or planned zoning district can be granted.

Key details: Liability minimum: $1,000,000 per occurrence. Coverage types required: Homeowner's, fire, hazard, liability. When required: With permit/PZD application. Applies to: Both STR-1 and STR-2. Citywide program cap: 500 active STRs.

An STR-1 or STR-2 application that lacks proof of the required homeowner's, fire, hazard and liability coverage, or that shows liability limits below one million dollars per occurrence, does not satisfy the Sec. 36-603 development standards and cannot be approved by the planning commission or board of directors. Letting the policy lapse after entitlement leaves the operator out of compliance with the standards the permit was granted under.

Short-Term Rental Permits

Little Rock requires every short-term rental operator to hold a city business license before listing or renting a property, renewed annually, with unlicensed operation barring new applications for a year.

Key details: Governing section: Sec. 36-604, Little Rock Code. License required before: listing or renting property online. Renewal: annual, with city collector. Unlicensed operation penalty: 1-year application ban. Revocation trigger: 3 confirmed violations per year.

Operating an STR without a business license is unlawful; the owner becomes ineligible to apply for a license for up to one year, and repeat violators risk license revocation and appeal to the board of adjustment.

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

Taxes & Fees

Little Rock STR operators must collect and remit the city's hotel/motel tax (also called the accommodation tax) on all short-term rental bookings. Arkansas also imposes a state sales tax and tourism tax on short-term accommodations.

Key details: City Tax: City accommodation tax applies. State Sales Tax: 6.5%. State Tourism Tax: 2%. Responsibility: Operator must ensure all taxes paid.

Failure to collect and remit required taxes may result in penalties, interest, back taxes, and potential loss of the STR license.

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

Occupancy Limits

Short-term rental occupancy in Little Rock is capped by the Arkansas Fire Prevention Code, posted at the door, and only one paying party may rent the unit at a time.

Key details: Occupancy standard: Set by Arkansas Fire Prevention Code. Posting required: Max occupancy posted near front door. Simultaneous rentals: One paying party at a time. Minimum stay: No rentals under one full day. Governing section: Sec. 36-603(b)(15)-(17), Little Rock Code.

Violating occupancy, posting, or single-party-only rules counts toward the 3-strikes-per-year threshold in Sec. 36-604 that lets the planning director revoke the STR business license and bar reapplication for up to a year.

Noise Rules

STR guests in Little Rock must observe quiet hours from 10 PM to 7 AM with no excessive noise audible from off the property at any time. Operators are responsible for informing guests of noise rules and maintaining neighborhood peace.

Key details: STR Quiet Hours: 10 PM – 7 AM. Standard: No noise audible off-property during quiet hours. Operator Duty: Must inform guests of rules. Penalty: License revocation for repeat violations.

Noise violations at STR properties are grounds for citation and can lead to license suspension or revocation after multiple offenses.

Short-Term Rental Parking Rules

Little Rock's short-term rental development standards at Rev. Code § 36-603(b)(5) require a parking plan with the permit application. The off-street standard is not written into the STR section itself; it is set by cross-reference to Chapter 36, § 36-54(e)(1). On-street parking may be proposed instead only if it is available for guest use within 330 feet of the rental and the plan addresses neighborhood impact.

Key details: Citation: Little Rock Rev. Code Ch. 36, Art. XIV, § 36-603(b)(5). Parking plan: Must be provided with permit application. Off-street standard: Per Chapter 36, § 36-54(e)(1). On-street alternative: Available for guest use within 330 feet. Plan must also: Address neighborhood impact.

Failure to provide required parking or repeated parking complaints can contribute to license revocation proceedings.

The Bottom Line

Little Rock is tougher than many cities when it comes to short-term rentals. Out of the 10 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Little Rock, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Little Rock's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.