Prairie Grove, Arkansas Short-Term Rental Market
Prairie Grove, AR's STR permit requirement is reported but unverified against the primary ordinance. June 2026 area ADR was $220.
Quick Answer: Prairie Grove, Arkansas is an active short-term rental market. average occupancy in the Fayetteville/Bentonville market area is 60%. average monthly revenue in the Fayetteville/Bentonville market area is $3,716. average daily rate in the Fayetteville/Bentonville market area is $220.
Market data reflects the Fayetteville/Bentonville regional market, which includes Prairie Grove. Regulations, taxes, and permit details below are specific to Prairie Grove.
Market Overview
Prairie Grove’s short-term rental rules carry a real verification gap worth flagging upfront: multiple industry and aggregator guides report that the city requires a local business license and a short-term rental permit, life-safety standards, and zoning compliance, but these specifics could not be confirmed against the primary ordinance text, since the city’s Municode code and website were inaccessible (HTTP 403) during research, and no Prairie Grove STR ordinance number was located. Investors should confirm permit, license, and zoning specifics directly with Prairie Grove City Hall or Planning and Zoning before operating, rather than relying on secondary sources.
Prairie Grove is a small Northwest Arkansas city about 15 miles southwest of Fayetteville, population 7,748, whose tourism is anchored by Prairie Grove Battlefield State Park, one of the nation’s most intact Civil War battlefields (Battle of Prairie Grove, December 7, 1862), drawing Civil War history enthusiasts, heritage tourists, hikers, birdwatchers, and regional day-trippers.
StaySTRA tracks Prairie Grove’s ADR, occupancy, and revenue at a shared regional level with Gentry, Lowell, Pea Ridge, West Fork, and Winslow, all Northwest Arkansas towns, so the figures below describe the Northwest Arkansas area STR market. In June 2026, that area STR market posted a blended ADR of $219.67 and 60.4% occupancy, with average monthly revenue of $3,716/listing. Occupancy is down 2.30 percentage points and revenue is down 2.63% year over year, while ADR is roughly flat (up 0.93%).
One note on the annual data below: the 2026 row is a January-through-June average, and this cluster’s revenue stays strong into October (fall visitation), so the partial-year figure likely understates the eventual full-year 2026 average. Bedroom mix, listing-type breakdown, and the top-property-manager list are tracked at the same shared regional level rather than uniquely for Prairie Grove, so this profile omits those breakdowns.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 35% |
| Feb | 44% |
| Mar | 55% |
| Apr | 49% |
| May | 54% |
| Jun | 61% |
| Jul | 60% |
| Aug | 53% |
| Sep | 51% |
| Oct | 55% |
| Nov | 47% |
| Dec | 41% |
Month-by-month nightly rates and revenue figures for Prairie Grove are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Prairie Grove — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Arkansas has no comprehensive statewide STR law; short-term rentals are regulated at the city and county level, so Prairie Grove’s local rules govern. Multiple industry and aggregator guides indicate that Prairie Grove requires STR operators to obtain a local business license and a short-term rental permit, meet basic life-safety standards (smoke detectors, carbon-monoxide detectors, fire extinguishers), and comply with city zoning. However, these specifics could not be verified against the primary ordinance text: the city’s Municode code and website were inaccessible (HTTP 403) during research, and no Prairie Grove STR ordinance number was located.
STRs are subject to city zoning standards under Municipal Code Title 14 and may be limited to specific districts; the Planning Commission handles conditional-use matters. No STR-specific district map or conditional-use requirement could be confirmed from the primary ordinance.
On taxes, Arkansas statewide levies apply to rentals of 29 nights or fewer: 6.5% state sales and use tax, 2% state tourism tax, and 1% short-term-rental tax, plus applicable Washington County and local sales taxes. No confirmed Prairie Grove-specific hotel or motel or Advertising and Promotion lodging tax or dedicated commission was found; one aggregator claimed a 2% local lodging tax paid quarterly, but this is unverified. No owner-occupancy or primary-residence requirement and no cap on nights per year were found. Enforcement is rated minimal for this small market. STRs are permitted and operate here, but an investor must confirm permit, license, zoning, and local-tax specifics directly with Prairie Grove City Hall or Planning and Zoning before operating.
Market Comparison
The Northwest Arkansas area STR market’s June 2026 occupancy of 60.4% runs above the commonly cited US STR median of roughly 55%, while its $219.67 blended ADR sits about level with the roughly $220 US median.
Top-property-manager data is not currently published uniquely for Prairie Grove in this snapshot (tracked at a shared regional level with Gentry, Lowell, Pea Ridge, West Fork, and Winslow instead), so this profile omits a named-operator comparison.
Frequently Asked Questions About Prairie Grove, Arkansas
Does Prairie Grove, AR require a short-term rental permit?
Does Prairie Grove have a local lodging tax?
What is the average daily rate for short-term rentals near Prairie Grove, AR?
What draws visitors to Prairie Grove, AR?
What confirmed taxes apply to short-term rentals in Prairie Grove?
When is the busiest season for short-term rentals in Northwest Arkansas?
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