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Mountain Home

Arkansas · United States
Active
Last updated: 2026-07-29  ·  Last verified: 2026-07-29  ·  Region: US

At a Glance — Mountain Home Airbnb & STR Rules

RuleDetails
Regulatory StatusPermitted with registration
Permit / License RequiredYes
Tax Rate2% City Tourism/Advertising & Promotion tax (in addition to Arkansas state sales tax)
Permit FeeAnnual business license fee: $50; city code inspection required prior to operation
PenaltiesNot publicly specified beyond code enforcement authority; code enforcement officer empowered to write citations
Occupancy LimitNot specified in available ordinance text
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Mountain Home Airbnb & Vacation Rental Regulation Overview

Mountain Home Short-Term Rental Regulations Overview

Short-term rental operations in Mountain Home, Arkansas are permitted under an active regulatory framework as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes. The associated permit fees are Annual business license fee: $50; city code inspection required prior to operation.

Tax Requirements for Airbnb Hosts in Mountain Home

Short-term rental operators in Mountain Home should be aware of these tax obligations: 2% City Tourism/Advertising & Promotion tax (in addition to Arkansas state sales tax).

Hosting Rules and Restrictions in Mountain Home

Key operational rules for vacation rental hosts in Mountain Home include: Occupancy limit: Not specified in available ordinance text.

Zoning and Location Requirements in Mountain Home

Zoning considerations for short-term rentals in Mountain Home: STRs permitted across most zoning districts citywide; properties in platted R-zoned subdivisions may not display advertising signage. Earlier draft would have banned STRs in R-1 zones, but final adopt. Density rules: None identified in current ordinance.

Penalties for Non-Compliance in Mountain Home

Hosts who fail to comply with Mountain Home's short-term rental regulations may face enforcement action. Not publicly specified beyond code enforcement authority; code enforcement officer empowered to write citations.

Platform Obligations in Mountain Home

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Mountain Home: Operators must show compliance with state, county, municipal, and tax requirements; platforms such as Airbnb/VRBO are used but city ordinance does not impose direct platform obligations.

Full Regulatory Details

Regulatory Status
Active
License / Registration
Yes
Tax Registration
Yes
Permit Fee
Annual business license fee: $50; city code inspection required prior to operation
Occupancy Limit
Not specified in available ordinance text
Tax Rate
2% City Tourism/Advertising & Promotion tax (in addition to Arkansas state sales tax)
Zoning Restrictions
STRs permitted across most zoning districts citywide; properties in platted R-zoned subdivisions may not display advertising signage. Earlier draft would have banned STRs in R-1 zones, but final adopted ordinance (Chapter 14.28) allows them with conditions.
Density Rules
None identified in current ordinance
Platform Obligations
Operators must show compliance with state, county, municipal, and tax requirements; platforms such as Airbnb/VRBO are used but city ordinance does not impose direct platform obligations
Compliance Notes
STR operators must obtain and maintain a business license through the City of Mountain Home prior to operation. Properties must pass an inspection by the city code enforcement officer to meet safety requirements. Ordinance was unanimously adopted by Mountain Home City Council in October 2022.
Effective Date
October 2022
Key Notes
Mountain Home Municipal Code Chapter 14.28 governs STRs. The city explicitly chose NOT to ban STRs in residential zones, following city attorney guidance that such a ban could be legally challenged. Operators must also comply with Arkansas state and Baxter County tax obligations. Verify current fee schedule and inspection requirements directly with the City.
Penalties
Not publicly specified beyond code enforcement authority; code enforcement officer empowered to write citations
Additional Context
Beaver Lake is a U.S. Army Corps of Engineers reservoir located in Carroll and Benton Counties, AR. It is not a municipality and has no independent city government or STR ordinance. STR regulations for properties on or near Beaver Lake are governed by the individual county (Carroll or Benton County) in which the property is located, plus U.S. Army Corps of Engineers rules for any lands under federal jurisdiction. No standalone 'Beaver Lake, AR' municipal STR code exists. See Benton County and Carroll County for applicable county-level rules.
Sources
City of Mountain Home Official Ordinances Page: https://www.cityofmountainhome.com/ordinances (links to Short Term Rentals Ordinance PDF)
KY3 News report on passage: https://www.ky3.com/2022/10/26/city-leaders-mountain-home-ark-pass-ordinance-allowing-short-term-rentals/
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Frequently Asked Questions

Is Airbnb legal in Mountain Home?

Yes, Airbnb and short-term rentals are legal in Mountain Home with proper registration and permits. STR operators must obtain and maintain a business license through the City of Mountain Home prior to operation. Properties must pass an inspection by the city code enforcement officer to meet safety r

Do you need a permit for Airbnb in Mountain Home?

Yes. Mountain Home requires the following for short-term rental operation: Yes.

What taxes apply to short-term rentals in Mountain Home?

Short-term rental hosts in Mountain Home are subject to the following tax obligations: 2% City Tourism/Advertising & Promotion tax (in addition to Arkansas state sales tax).

What are the penalties for illegal Airbnb hosting in Mountain Home?

Hosts who operate without proper permits in Mountain Home may face enforcement. Not publicly specified beyond code enforcement authority; code enforcement officer empowered to write citations.

What are the key STR compliance requirements in Mountain Home?

Mountain Home Municipal Code Chapter 14.28 governs STRs. The city explicitly chose NOT to ban STRs in residential zones, following city attorney guidance that such a ban could be legally challenged. Operators must also comply with Arkansas state and Baxter County tax obligations. Verify current fee schedule and inspection requirements directly with the City.

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