Overview: Are Short-Term Rentals Allowed?

Explicit answer: No. The City of Arnold, Missouri, has prohibited short‑term residential rentals. Arnold’s City Council voted on September 15, 2022 to ban “Airbnb‑type” arrangements citywide, exempting only hotels or motels. Owners who list homes or rooms on Airbnb, VRBO, or similar platforms are in violation of an Arnold city ordinance and may be cited and prosecuted in Municipal Court. Source: MyLeaderPaper (Arnold bans short‑term residential rentals) [1].

Festus: The provided sources do not indicate that Festus has a specific STR ban, registration, or licensing regime. If you are evaluating Festus, confirm status with the city before proceeding.

Bottom line for investors: Do not pursue new STR assets in Arnold unless and until the ordinance changes. In Festus, treat as “proceed with caution” and verify municipal rules.

How to Start a Short‑Term Rental Business in This Market

Because Arnold prohibits STRs, there is no legal pathway to start an STR in Arnold. Any attempt to do so risks immediate code enforcement action.

For Festus (no city‑specific rules found in the provided sources):

1. Confirm municipal status with the City of Festus or Jefferson County before listing any property.
2. If STRs are permissible, secure proper zoning (residential vs. lodging).
3. Draft and post house rules, an occupancy policy, and safety procedures.
4. Align insurance with short‑term leasing exposure.
5. Set up tax collection and remittance for Missouri sales tax and any applicable local lodging tax.
6. Establish guest screening and incident response procedures.

Operational best practices still apply:

• Know your occupancy and quiet‑hour policies; screen guests and require security deposits where appropriate.
• Maintain the unit to professional standards; keep a local contact for maintenance emergencies.
• Prepare a fire safety plan and emergency contacts inside the unit.

Required Documents, Permits, Licenses, and Guidelines

Arnold (STR ban):

• No permits or licenses are available for residential STRs in Arnold. Hotels/motels must continue to meet any applicable lodging licensing requirements, but residential STRs are prohibited. Violations may result in Municipal Court citations and penalties.

Festus (city‑specific rules not provided):

• Unknown from the provided sources. Contact the City of Festus to confirm whether STRs require registration, licensing, zoning clearance, or safety inspections.
• State‑level guidance: Short‑term rentals are generally considered “transient accommodations” subject to Missouri sales tax. Missouri does not impose a uniform statewide lodging tax, but many municipalities levy a transient lodging tax. Whether Festus imposes such a tax is not specified in the provided sources; check with the city or a tax professional.

State‑level tax obligations (apply regardless of city status; confirm locally for lodging taxes):

• Sales tax: Missouri levies a state sales tax on accommodations; operators must register, collect, and remit applicable sales taxes.
• Local lodging taxes: Many cities/counties charge an additional transient lodging tax. If operating near or within St. Louis City or St. Louis County, you may be subject to those municipal lodging taxes; verify your exact obligations based on the property’s location.

Compliance reminders:

• Property insurance should be reviewed with your broker to ensure short‑term letting is not excluded.
• If hosting at scale, consider holding permits in neighboring jurisdictions where STRs are allowed (e.g., St. Louis City under its permitting rules) if an STR portfolio strategy is desired.

Specific Regulations: City, County, and State

City of Arnold (municipal):

• Complete ban on short‑term residential rentals (Airbnb/VRBO) in all residential properties.
• Hotels/motels remain allowed and are not covered by this ban.
• Enforcement: Violations are processed via Municipal Court. Enforcement is complaint‑driven; city staff may investigate if a property is suspected of being used for STR activity. Penalties may include fines and up to 90 days in jail. (Source: MyLeaderPaper) [1].
• The city encourages reporting suspected STR violations through its Community Development page or by phone.

Jefferson County (county‑level):

• No county‑wide STR ordinance is referenced in the provided sources. County rules may vary and are secondary to city prohibitions where applicable (e.g., Arnold).

State of Missouri:

• Missouri law treats short‑term rentals as taxable transient accommodations; state sales tax applies.
• Municipal lodging taxes: Many municipalities impose additional lodging taxes. If you operate within or near St. Louis City/County, ensure you follow those local lodging tax rules. (Source: FOX 2 reporting on St. Louis City STR ordinance) [2].
• St. Louis City: Ordinance 71729 caps non‑owner‑occupied STRs at four per owner and limits the share of units in small residential buildings designated as STRs. These are city‑specific restrictions and do not apply to Arnold. (Source: FOX 2) [2].

Practical note for investors: State rules are the floor, not the ceiling. City and county rules can be—and often are—stricter than state rules, as Arnold’s outright ban demonstrates.

Local Authority Contacts (ARNOLD)

City of Arnold – Community Development / Code Enforcement

• Phone: 636‑282‑6625
• Website: arnoldmo.org (Community Development page for reporting suspected code violations)

Festus

• City‑specific STR authority was not identified in the provided sources. Contact the City of Festus directly (city hall) for zoning, licensing, or tax questions.

Source Links

• [1] Arnold bans short‑term residential rentals (MyLeaderPaper) – www.myleaderpaper.com/news/arnold-bans-short-term-residential-rentals/article_53c68f76-5631-11ed-82a0-b30b99c43824.html
• [2] New St. Louis regulations affect short‑term rentals and owners (FOX 2) – fox2now.com/news/missouri/new-st-louis-regulations-affect-short-term-rentals-and-owners/

Recommended Next Steps for Investors

• Do not list or operate any residential STR in Arnold. The legal risk is immediate and material.
• For Festus or other Jefferson County communities, confirm municipal rules before any investment. If STRs are allowed:
  • Obtain the proper local permits (if any).
  • Register for Missouri sales tax and any applicable local lodging tax.
  • Upgrade insurance to cover short‑term letting.
  • Document standard operating procedures (SOPs) for guest screening, occupancy, and property maintenance.
• Consider alternative markets in St. Louis City (under its ordinance framework) if your strategy requires immediate STR operations.