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Short-Term Rental Regulations
in Eureka Springs, AR

Last verified: March 2026 · Report an update

Zoning & Conditions

Short-term rentals (bed and breakfasts) are prohibited in R-1, R-2, and R-3 residential zones, except for existing legal non-conforming (LNC) properties and those with active Conditional Use Permits (CUP). Operators must remain current on City Advertising and Promotion Commission (CAPC) taxes and must display their business license number in all online listings and advertisements.

How to Obtain a Permit

1. Obtain and maintain a current permit from the City Advertising and Promotion Commission (CAPC). 2. Ensure all CAPC taxes are paid in full. 3. For existing Conditional Use Permits (CUP), ensure the business license number is displayed on all advertisements to avoid revocation.

Regulatory Updates — Eureka Springs

Proposed and recent legislation

PassedMarch 2023

Eureka Springs STR Permit Program Active

Eureka Springs requires all vacation rental operators to obtain a city business license and STR permit. The permit requires a safety inspection (smoke detectors, fire extinguishers), a local contact designation, and registration for applicable state and county tax collection. Annual renewal is required.

PassedJanuary 2023

Arkansas Gross Receipts Tax on Rentals

Arkansas imposes gross receipts tax (sales tax) on short-term rental income. Airbnb and Vrbo collect and remit Arkansas state tax on behalf of hosts through the state's marketplace facilitator rules. Operators using direct booking must register with the Arkansas Department of Finance and Administration.

Official source
Under ReviewJuly 2024

Residential Neighborhood STR Review

Eureka Springs initiated a review of STR activity in primarily residential neighborhoods following concerns from some long-term residents about commercial activity converting the neighborhood character. No major restrictions have resulted from the review as of 2025.

Official Resources

Official Eureka Springs STR regulation source

Local Resources & Advocacy

Eureka Springs Chamber of CommerceLocal

Local tourism and business advocacy organization representing Eureka Springs' vacation rental operators and tracking city regulatory developments.

Arkansas Hospitality AssociationStatewide

Statewide trade association for hospitality businesses including vacation rental operators. Monitors Arkansas state and local lodging tax and licensing requirements.

Vacation Rental Management Association (VRMA)National

National trade association providing compliance resources and regulatory monitoring for vacation rental managers in Ozark region tourism markets.

Frequently Asked Questions

Are short-term rentals allowed in Eureka Springs, AR?
Short-term rentals (bed and breakfasts) are prohibited in R-1, R-2, and R-3 residential zones, except for existing legal non-conforming (LNC) properties and those with active Conditional Use Permits (CUP). Operators must remain current on City Advertising and Promotion Commission (CAPC) taxes and must display their business license number in all online listings and advertisements.
Is a permit required to operate a short-term rental in Eureka Springs?
Yes, a permit is required to operate a short-term rental in Eureka Springs. 1. Obtain and maintain a current permit from the City Advertising and Promotion Commission (CAPC). 2. Ensure all CAPC taxes are paid in full. 3. For existing Conditional Use Permits (CUP), ensure the business license number is displayed on all advertisements to avoid revocation.
How do I get a short-term rental permit in Eureka Springs?
1. Obtain and maintain a current permit from the City Advertising and Promotion Commission (CAPC). 2. Ensure all CAPC taxes are paid in full. 3. For existing Conditional Use Permits (CUP), ensure the business license number is displayed on all advertisements to avoid revocation.
What permits are needed to operate a vacation rental in Eureka Springs?
Operators need a City of Eureka Springs business license and STR permit (annual renewal with safety inspection and local contact designation), registration with the Arkansas Department of Finance and Administration for gross receipts tax (sales tax), and any applicable Carroll County lodging tax registration. Most Airbnb and Vrbo bookings have state taxes collected automatically, but operators should verify local tax coverage.
What makes Eureka Springs a strong vacation rental market?
Eureka Springs attracts a diverse visitor mix: weekend getaway travelers from the Midwest and South, wedding parties (Eureka Springs has a thriving wedding industry), arts and crafts enthusiasts, outdoor recreation visitors (Beaver Lake, Ozark hiking), and LGBTQ+ travelers for whom the tolerant Victorian town has long been a welcoming destination. The combination creates year-round demand with strong weekend and shoulder-season performance.
What taxes apply to Eureka Springs short-term rental income?
Arkansas imposes a 6.5% state gross receipts tax on short-term rental income. Carroll County and the City of Eureka Springs may impose additional lodging taxes. The combined effective tax rate on rental receipts is typically around 10–13%. Airbnb and Vrbo collect and remit Arkansas state tax on behalf of hosts. Operators booking directly must register with the Arkansas DFA and applicable local taxing authorities.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction