Arkansas legislature imposes rent control preemption on local governments

On April 1, 2025, the Arkansas State Legislature introduced Senate Bill 91, a significant piece of legislation aimed at preempting local governments from regulating rental prices, application fees, and security deposits for residential and commercial properties. The bill seeks to establish a uniform standard across the state, preventing municipalities from enacting ordinances that would control these financial aspects of leasing.

The key provisions of Senate Bill 91 explicitly prohibit local governmental units—including counties, cities, and townships—from enacting or enforcing any regulations that would limit the amount of rent charged, as well as fees associated with rental applications and deposits. This preemption applies broadly to landlords, property owners, property managers, tenants, prospective tenants, and real estate companies operating within Arkansas.

During discussions surrounding the bill, proponents argued that it would foster a more predictable and stable rental market, potentially attracting more investment in real estate. They contend that local regulations can create confusion and inconsistency, which may deter landlords from entering the market or maintaining properties.

However, the bill has faced notable opposition from various advocacy groups and local officials who argue that it undermines the ability of communities to address housing affordability and tenant protections. Critics assert that local governments are better positioned to understand and respond to the unique housing challenges faced by their residents. They fear that the bill could exacerbate issues of housing insecurity and affordability, particularly in areas experiencing rapid growth or economic strain.

The implications of Senate Bill 91 extend beyond immediate rental market dynamics. Economically, it could lead to increased rents in areas where demand outstrips supply, as landlords may feel less pressure to keep prices in check without local regulations. Socially, the bill raises concerns about the potential displacement of low-income tenants and the erosion of community control over housing issues.

As the legislative process unfolds, experts suggest that the outcome of Senate Bill 91 could set a precedent for how housing markets are regulated in Arkansas. If passed, it may embolden similar legislative efforts in other states, potentially reshaping the landscape of tenant rights and housing affordability nationwide. The bill is currently under review, with further debates expected in the coming weeks as stakeholders continue to voice their opinions on its potential impact.