Eureka Springs Short-Term Rental Regulations

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Permit & Licensing

Conditional Use Permit

This permit type does not require primary residence.

Application Process

Conditional Use Permit applications go to the Planning Commission, which schedules a public hearing; the applicant must publish notice at least 15 days before the hearing, notify all property owners within 200 feet by certified mail at least 10 days prior, and post a conspicuous public-hearing sign on the property at least 10 days before the hearing.

Tax Obligations

Combined rate: 14.375% of gross rental income.

Collection: State sales and tourism tax collected/remitted through the Arkansas DFA; the city's 3% A&P (lodging) tax is collected and remitted separately to the Eureka Springs Advertising & Promotion Commission on forms it provides.

Rental Limits

Eureka Springs does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

New (non-grandfathered) tourist lodging is barred from starting up in the city's residential zones (R-1 Victorian Residential, R-2 Contemporary Residential, R-3 Multi-Family Residential) since Ordinance No. 2311 (Oct. 11, 2021); operating unpermitted tourist lodging in a residential zone is a misdemeanor. Tourist-lodging and bed & breakfast establishments operating before Sept. 30, 1986 continue as legal nonconforming (grandfathered) uses. Owner/manager-occupied bed & breakfasts (max 5 units) can still obtain a Conditional Use Permit in residential zones. Tourist lodging remains a listed permitted or conditional use in the city's commercial zoning districts.

Insurance & Safety

Insurance

Eureka Springs does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Penalties for Non-Compliance

• Unpermitted tourist lodging in a residential zone: misdemeanor, fine up to $250 per offense, each 24-hour period a separate offense
• A&P (lodging) tax violation - failure to obtain permit, file, or pay: Class A misdemeanor, fine up to $1,000 and/or up to 1 year in county jail, each day a separate offense

Compliance Checklist

Follow these steps to legally operate a short-term rental in Eureka Springs:

1. Apply for Conditional Use Permit. Submit application. Contact city for fee details.
2. Register for tax accounts. Set up lodging tax accounts with Eureka Springs Advertising & Promotion Commission (CAPC).
3. Collect and remit taxes. 14.375% on all bookings.
4. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Eureka Springs?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Eureka Springs requires a Conditional Use Permit.

Does Eureka Springs require a short-term rental to be your primary residence?

No. Eureka Springs allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Eureka Springs?

Eureka Springs does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Eureka Springs?

Short-term rental stays in Eureka Springs are subject to a combined 14.375% in lodging taxes. This combines 6.5% State Sales Tax + 2% State Tourism Tax (Parks and Tourism Tax) + 2.875% Carroll County + City of Eureka Springs Local Sales Tax + 3% City Advertising & Promotion (Lodging) Tax. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Eureka Springs?

Operating without a permit can cost up to $1,000 and/or 1 year jail per day.