A Big Win for Small Homes in Arkansas
Eureka Springs, Arkansas
Arkansas has stepped into national leadership by passing one of the strongest accessory dwelling unit (ADU) laws in the country. With the signing of Bill 1503—now Act 313—by Governor Sarah Huckabee Sanders, Arkansans will soon have the right to build small, self-contained homes like backyard cottages and garage apartments on their residential lots, without navigating a maze of red tape.
The law opens the door for every residential property to include at least one ADU by right on residential lots—meaning property owners won’t need to go through public hearings, special permits, or discretionary zoning approvals. Municipalities are now barred from imposing many of the barriers that have long stifled this kind of gentle infill: no extra parking mandates, no owner-occupancy restrictions, no strict rules governing design, and no excessive fees. Application fees are capped at $250, helping to keep the process affordable. While local governments can still regulate short-term rentals and enforce safety codes, they can no longer block these modest homes from being built outright.
This shift isn’t just legal—it’s cultural. It’s about valuing incremental growth, neighborhood resilience, and giving property owners the ability to respond to their families’ and communities’ changing needs. A backyard cottage might house an aging parent, a grown child, a caregiver, or a young worker priced out of traditional rentals. These are the real stories of ADUs, and they’re the stories of a healthier housing ecosystem.
→ You might want to read: How Accessory Dwelling Units Are Helping These People Thrive
Governor Sarah Huckabee Sanders holding up the new act that will make building backyard cottages much easier.
Even more noteworthy: Act 313 reflects a growing realization that housing policy doesn’t have to be a partisan issue. Rep. Nicole Clowney, a Democrat from Fayetteville, championed the bill in the House, while Sen. Bart Hester, a Republican, led the charge in the Senate. Their collaboration shows what’s possible when lawmakers set ideology aside and focus on practical solutions for real people.
The success of this legislation owes a great deal to the groundwork laid in Northwest Arkansas. Cities like Fayetteville have been leading the way for years, proving that ADUs aren’t theoretical—they work. Their local policies showed how small homes can quietly strengthen communities, offering affordable options without disrupting neighborhood character. The work of the Northwest Arkansas Council’s Groundwork NWA initiative also provided key policy expertise and momentum.
Rep. Clowney put it plainly: “ADUs enable landowners to make the most of their property while providing housing options for those priced out of the traditional market.” And thanks to leadership from both sides of the aisle, Arkansas now sets a high bar for housing reform across the country.
In an era when housing debates often get bogged down in political trench warfare, Arkansas offers a refreshing reminder that good ideas don’t need to come in blue or red packaging. And if this is a contest, red states like Arkansas are quietly taking the lead—adopting reforms that many progressive strongholds are still debating.
Progress like this doesn’t begin at the statehouse—it starts in neighborhoods, with residents and local leaders willing to think differently about what’s possible. If Arkansas can lead the way, so can your city. The Strong Towns Housing-Ready City Toolkit is designed to help communities do exactly that: navigate local obstacles, build broad support, and craft housing reforms that are practical, durable, and locally driven.
