Daily Regulatory Notes 03/04/2026

Fayetteville, AR

Fayetteville is defending an ordinance that caps short-term rentals at 2% of the city’s housing stock and imposes stricter requirements on out-of-state property owners, a policy now under review by the United States Court of Appeals for the Eighth Circuit.

City of Fayetteville, Arkansas

A short-term rental (STR) is the leasing out of a furnished residential dwelling on a short-term basis, less than 30 days. Fayetteville City Council voted, unanimously, on April 20, 2021 to enact legislation to regulate STRs throughout the city.

City of Fayetteville ArkansasGovernment Websites by CivicPlus®

The measure allows local residents to obtain STR permits more freely while requiring nonresidents to either secure long-term tenants for most of the year or seek conditional-use approval subject to additional restrictions. A Texas couple has challenged the ordinance, arguing it violates the Dormant Commerce Clause by discriminating against out-of-state owners.

Alpena, MI

Officials in Alpena are considering a 12-month moratorium on new short-term rentals as housing supply pressures intensify, with the proposal receiving its first reading before the Municipal Council this week.

The ordinance would freeze new STR registrations after March 1 while allowing existing registered units to continue operating, citing a recent housing study that found the city’s availability rate at just 0.4%, well below a healthy market range. A final vote is expected at a future council meeting, where penalties for violations including fines and possible jail time will also be considered.

Grand Rapids, MI

Michigan Secretary of State Jocelyn Benson is proposing a statewide system to track and tax short-term rentals as part of a broader housing affordability plan, arguing that better oversight could stabilize housing supply while generating revenue for local services and tourism.

Under the proposal, the state would count and tax STRs, though decisions about how many rentals are allowed in each community would remain with local governments.

Seattle, WA

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As Seattle prepares to host matches during the 2026 FIFA World Cup, city officials are reminding homeowners that short-term rentals require proper licensing despite surging demand and rising nightly rates.

In Seattle, operators must obtain both a business license and a short-term rental license to legally rent a home or room for fewer than 30 days, with fines exceeding $1,000 for noncompliance. While demand for STRs is climbing sharply ahead of the tournament, city data shows only a modest increase in new license applications so far.

Highland Park, IL

The City of Highland Park is exploring new enforcement measures for short-term rentals after officials said existing registration requirements have been difficult to police.

Community development staff proposed buying monthly listing data from brokers and tightening primary-residence documentation requirements to prevent investor-owned properties from operating as STRs. Enforcement concerns include online platforms blocking government contact attempts and repeat violations that have led to thousands of dollars in fines.

Kingston, NY

Lawmakers in Kingston are tabling a vote on a proposed 5% occupancy tax that would apply to hotel, motel, and short-term rental stays, keeping the public hearing open through March 11 as the measure advances through additional review.

The proposal, which must secure state approval through a home rule request before taking effect, would raise the tax from an earlier 3% concept and could generate hundreds of thousands of dollars annually. The measure is expected to return to committee before another council vote, with officials aiming for implementation later this year if approved.

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