Fayetteville defines a short-term rental as a furnished dwelling rented for fewer than 30 days and expressly includes an accessory dwelling unit when it is a permanent residential dwelling. A valid City business license is required before operation. The City’s rules regulate the short-stay use separately from whether a dwelling may be established.
Type 1 and Type 2
The City describes Type 1 as a rental where the property remains a full-time residence. The owner or occupant must occupy the residence for nine months of the year, and the City requires proof of ownership or a long-term lease. Type 2 has no permanent resident and is listed for short-term use full-time.
The City currently reports that its 475-license citywide Type 2 cap has been reached and applicants may join a waitlist. A Type 2 short-term rental in a residential zoning district also needs a conditional use permit before a business license. The City’s updated code sets an occupancy limit of two people per bedroom and allows short-term rentals in permanent dwellings, including ADUs.
Keep ADU permission separate
Arkansas Act 313 limits some local regulation of ADUs but expressly preserves municipal short-term-rental regulation. An ADU allowance therefore does not itself provide a short-term-rental license or resolve which Fayetteville approval route applies. Check the current City page and code before applying; Type 2 availability and local criteria can change.
The City’s short-term-rental page, current Code of Ordinances, and Act 313 describe these separate layers.
Key points
- The City includes permanent residential ADUs in its short-term-rental rules.
- Type 1 has a nine-month residence condition; Type 2 has a citywide cap and may require a conditional use permit.
- The City page says the Type 2 cap is currently reached; verify status before planning around a waitlist.