Arkansas Just Changed the Rules for ADUs — Here's What It Means for You

On January 1, 2026, a new Arkansas law went into effect that fundamentally changed what cities can and can't do when it comes to accessory dwelling units (ADUs). For homeowners in Northwest Arkansas, this is one of the most significant changes to housing law in recent memory.

The law is called House Bill 1503. It's written in legal language, but the core idea is simple: if you own a single-family home in Arkansas, your city can no longer block you from building one ADU on your property. Full stop.

Here's everything you need to know — no legalese, just what actually changed and what it means for you.

What Changed — and Why It Matters

Before HB1503, whether you could build an ADU on your property depended almost entirely on your city. Some cities were ADU-friendly. Others had zoning codes that made it difficult, expensive, or practically impossible — requiring public hearings, special permits, or placing so many restrictions on size and design that the project wasn't worth pursuing.

HB1503 sets a statewide floor. Every city in Arkansas must now allow at least one ADU on any single-family lot — and must approve it through a straightforward permit process, not a discretionary hearing. Cities can still have their own rules, but those rules cannot be more restrictive than what the law allows.

This is a big deal. It removes the biggest source of uncertainty homeowners faced: "Will my city even approve this?" The answer is now yes — by law.

What "By Right" Actually Means

The law requires ADUs to be approved "by right." This is a specific legal term, and it matters a lot in practice.

Before this law, many cities required ADU applicants to go through a discretionary approval process — meaning a planning board or city council could say no based on neighbor objections, aesthetic concerns, or just because they felt like it. That process was unpredictable, time-consuming, and expensive.

By right means none of that. Under HB1503, your city cannot require:

• A public hearing
• A variance
• A conditional use permit
• A special permit or special exception
• Any other discretionary zoning action

Your city reviews your plans the same way they'd review any standard building permit — checking that it meets code — and approves it. No politics, no neighbor votes, no planning board lottery.

What Your City Can No Longer Do

This is the heart of the law. HB1503 has a specific list of things municipalities are now prohibited from requiring. Here's each one in plain language:

What Cities Can Still Regulate

HB1503 sets a floor — not a ceiling. Cities retain meaningful authority in a few areas:

• Short-term rentals (Airbnb, VRBO). The law explicitly allows cities to continue regulating short-term rentals. If you're planning to list your ADU on Airbnb, check your city's specific STR permit requirements — Fayetteville and Bentonville both have active STR regulations.
• Standard building codes. Your ADU still has to meet the Arkansas Fire Prevention Code and all locally adopted building, mechanical, electrical, and plumbing codes. This is just normal construction — nothing changes here.
• Setbacks and site plan review. Cities can still require that your ADU meets standard setback requirements (as long as they're no more restrictive than what applies to the primary home). They can review your site plan for code compliance.
• Utility will-serve letters. Cities can require confirmation from your water and sewer providers that they can service the ADU before issuing a permit.
• More permissive rules. Cities can always be more permissive than the state minimum. Fayetteville, for example, allows multiple ADUs per lot and up to 1,200 sq ft — both exceeding the state floor.

Size Limits and Fee Caps

How big can your ADU be?

Under HB1503, the maximum ADU size is 1,000 sq ft or 75% of your primary home's gross floor area — whichever is less.

In practical terms: if your home is 1,600 sq ft, 75% is 1,200 sq ft — so the 1,000 sq ft cap applies. If your home is 1,000 sq ft, 75% is 750 sq ft — so 750 sq ft is your max. The smaller of the two numbers always controls.

Remember that individual cities can allow larger ADUs if they choose. Fayetteville currently permits ADUs up to 1,200 sq ft, which exceeds the state cap.

What will it cost in fees?

Impact fees and permit review fees are each capped at $250 under HB1503. Standard building permit fees (based on construction value) still apply and vary by city — but the additional fees cities used to charge specifically for ADUs are now limited to $250 each.

This is a meaningful change. Some cities previously charged thousands of dollars in impact fees for ADU construction, making smaller projects financially unviable.

What This Means for Northwest Arkansas Specifically

For homeowners in Fayetteville, Bentonville, Rogers, Springdale, and the surrounding communities, HB1503 removes what used to be the most unpredictable part of building an ADU: whether your city would say yes.

Two NWA cities have already gone further than the state requires:

• Fayetteville allows more than one ADU per lot and permits ADUs up to 1,200 sq ft — 20% larger than the state maximum.
• Bentonville provides more favorable setbacks for ADUs under 720 sq ft, making smaller ADUs on tighter lots easier to place on your property than the standard zone setbacks would otherwise allow.

Every other NWA city is now bound by the state floor. If you've looked into building an ADU before and been told it was too complicated or that your city wouldn't approve it — the rules have changed. It's worth revisiting.

Common Questions

Does this apply to my HOA?

No — HB1503 governs municipalities (cities and towns), not homeowners associations. If your neighborhood has an HOA with covenants that restrict ADU construction, those private restrictions are still in effect. The law specifically preserves private covenants between property owners. Review your CC&Rs before moving forward if you're in an HOA community.

Do I still need a permit?

Yes. HB1503 makes it easier to get approved, but it doesn't eliminate the permitting process. You still submit plans, pay building permit fees, and go through inspections. The difference is that approval is now a code-compliance check, not a discretionary decision.

Can I build an ADU and then rent it on Airbnb?

Possibly — but short-term rental regulations are outside the scope of HB1503. Cities can still require STR permits, cap the number of STR licenses issued, or restrict STR operation in certain zones. Check with your specific city before planning a short-term rental strategy.

What if my city tries to deny my ADU anyway?

Any city policy, ordinance, or regulation that conflicts with HB1503 is invalid to the extent of that conflict, effective January 1, 2026. If your city attempts to deny a by-right ADU permit for reasons the law prohibits, you have legal standing to challenge that denial.

Where can I read the actual law?

The full text of HB1503 is publicly available: Read Arkansas HB1503 here →