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Fayetteville, AR Short-Term Rentals: Insurance Requirements (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified July 2026

Key Facts

Requirement
Homeowners insurance STR rider
Coverage
Must cover STR use fully
Must List
Rental property address
Code
Sec. 118.01(E)(3)(c)

Summary

Fayetteville requires every short-term rental owner to provide proof of a current homeowners insurance rider that fully covers the unit when used as an STR, as a condition of the business license under Sec. 118.01(E)(3).

The owner of the dwelling unit or operator of the short-term rental provides proof of a valid and current homeowners insurance rider policy which fully covers each unit when operated as short-term rental unit.

Source: Fayetteville Unified Development CodeView official code

Full Breakdown

Under Sec. 118.01(E)(3)(c), no dwelling may operate as a short-term rental unless the owner provides proof of a valid, current homeowners insurance rider policy that fully covers the unit when operated as a short-term rental. Standard homeowner policies exclude commercial rental activity, so hosts need an STR-specific rider or endorsement naming the rental address. The city's official STR page confirms the policy must list the property address and state that it covers the property when used as a short-term rental. Proof is submitted with the business license application.

Violations & Fines

Without the required insurance rider, the business license will not issue or renew, and operating anyway is an unlicensed STR subject to citation under Chapter 118.

Frequently Asked Questions

Does Fayetteville require STR insurance?
Yes. You must provide proof of a current homeowners insurance rider that fully covers the home when used as a short-term rental to obtain the business license.
Does my regular homeowners policy count?
Usually not. Standard policies exclude commercial rental activity. You need a rider or endorsement listing the STR address and confirming short-term-rental coverage.

Sources & Official References

Other rules in Fayetteville

All Fayetteville rules

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