(All information is drawn from the city’s published ordinances and the 2025 AirROI market report. No additional web‑searching was performed.)

1. Overview – Are STRs Allowed in Bull Shoals?

Yes. The City of Bull Shoals expressly permits short‑term rentals, but it does so under a specific municipal framework that includes a dedicated short‑term‑rental ordinance (Ordinance 2025‑09) and earlier guidelines for residential guest houses (Ordinance 2021‑02). Investors may legally operate a STR within the city limits provided they obtain the required permits, meet zoning restrictions, and comply with all state, county, and local taxes and safety rules.

2. Market Snapshot (2025) – What the Numbers Say

| Metric (2024‑2025) | Value | Source | |--------------------|-------|--------| | Active STR listings | 18 | AirROI | | Average Daily Rate (ADR) | $154 | AirROI | | Occupancy Rate | 30 % | AirROI | | Median Annual Revenue (per listing) | $14,188 | AirROI | | Revenue YoY change | –21.5 % | AirROI | | Peak revenue month | July | AirROI | | Lowest revenue month | November | AirROI | | Regulation level (city) | Low | AirROI |

Interpretation for investors: The market is modestly sized, with relatively modest occupancy but healthy ADR. Because the regulatory burden is low, investors can focus on property performance and tax compliance rather than navigating restrictive caps or permit quotas.

3. How to Start a Short‑Term Rental Business in Bull Shoals

| Step | Action Required | Why It Matters | |------|-----------------|----------------| | 1. Verify Zoning | Confirm the property lies within a R‑1 (single‑family) or R‑2 (two‑family) zone – the only zones where STRs are permitted per Ordinance 2021‑02. | Zoning violations can lead to permit denial or enforcement actions. | | 2. Obtain a Short‑Term Rental Permit | Complete the STR Permit Application (available from the City Clerk / Planning & Zoning Department). Submit proof of ownership, a site/floor plan, and a management plan if you won’t be on‑site. | The 2025‑09 ordinance makes the permit the primary legal authorization for operating an STR. | | 3. Register as a Business | File a City Business License (if the city requires a separate license) and obtain a State Business Privilege Tax Certificate from the Arkansas Department of Finance & Administration (DFA). | Required for all commercial activity; needed for tax collection. | | 4. Tax Registration | Register with the Arkansas DFA to collect state sales tax (6.5 % + local) and the state lodging tax (if applicable). Set up a remittance schedule (monthly or quarterly). | Failure to remit taxes can result in penalties and revocation of the STR permit. | | 5. Secure Liability Insurance | Provide a certificate of minimum $100,000 general liability coverage (the city may specify higher limits). | Protects you from guest‑related claims and is often a permit‑review criterion. | | 6. Health & Safety Compliance | Install working smoke detectors, carbon‑monoxide detectors (if applicable), fire extinguishers, and any other devices mandated by the Arkansas Fire Prevention Code. If the property uses a septic system, ensure it meets Marion County health‑department standards. | The city requires proof of compliance before issuing a permit; inspections may be performed after the permit is granted. | | 7. Set Up Guest Management | Draft a guest‑handbook covering check‑in/out, noise, parking, waste disposal, and emergency contacts. Designate a local contact or property manager for 24‑hour response. | Improves guest experience and reduces nuisance complaints. | | 8. Launch Marketing | List the property on Airbnb, Vrbo, or your own website. Highlight local attractions (Bull Shoals Lake, White River fishing, nearby Ozark National Forest). Use the market‑adjusted ADR and minimum‑stay recommendations from the AirROI report (most hosts set a 2‑night minimum). | Proper pricing and positioning maximize occupancy and revenue. |

4. Required Documents, Permits, Licenses & Guidelines

| Requirement | Issuer | Typical Submission Package | |-------------|--------|----------------------------| | Short‑Term Rental Permit | City of Bull Shoals (Planning & Zoning) | • Completed permit application <br>• Proof of ownership/lease <br>• Site/floor plan <br>• Management plan (if applicable) | | Business License | City of Bull Shoals | • Completed license form <br>• Permit (above) <br>• Tax ID | | Sales‑Tax & Lodging‑Tax Registration | Arkansas Department of Finance & Administration (DFA) | • Business registration (online) <br>• EIN or SSN <br>• Entity type (LLC, sole‑proprietor, etc.) | | Business Privilege Tax Certificate | Arkansas DFA | • Same as above (often issued with sales‑tax registration) | | Liability Insurance Certificate | Private insurer | • Policy showing $100k+ coverage <br>• Named insured = property owner | | Zoning Determination Letter | City Planning & Zoning | • Written confirmation that the property is in R‑1 or R‑2 | | Fire & Safety Compliance Proof | Local Fire Marshal or State Fire Marshal | • Inspection report or signed checklist (smoke/CO detectors, extinguisher) | | Septic/Sewer Compliance (if applicable) | Marion County Health Department | • Permit or inspection clearance | | Guest‑Management Manual | Property owner (internal) | • Check‑in/out process, house