Fayetteville reaches cap for Type 2 short-term rentals


FAYETTEVILLE — There are no more permits available for homes that operate year-round as short-term rentals.

The city has reached its cap for Type 2 rental licenses, according to a news release.

The cap was set at 475 in July when City Council members voted to reduce the number from about 900 when the city’s law first stated that no more than 2% of all residential units in Fayetteville could be year-round rentals.

The council in 2021 adopted regulations that categorize short-term rentals as either Type 1 or Type 2. Type 1 rentals are homes that the owners live in, but sometimes rent out rooms or the entire house to guests when they’re out of town. Type 2 rentals are rented all year, and have no owners living in them.

Anyone who has already submitted a Type 2 application will still have the opportunity to complete the review process and receive a license, according to the release.

There is no cap on Type 1 short-term rentals. Type 1 licenses require a long-term resident present at least nine months of the year and proof of Homestead Tax Credit or long-term lease agreement.

Those interested in operating a Type 2 rental can submit an application to be added to a waitlist for review on a first-come, first-served basis. As licenses become available, applicants will be contacted and offered 30 days to submit the required information before the available license is offered to the next applicant on the waitlist, the release stated.

Anyone who operates or advertises a short-term rental without a license is subject to penalties, including having their property’s water shut off.

A third-party consultant was hired to investigate how many short-term rentals are operating without a license. As of September, the company had discovered 183 non-compliant short-term rentals and 122 more with an unknown status.

For more information, contact the city’s business license clerk at 479-575-8352 or email [email protected].