Is Arkadelphia, Arkansas Good for Airbnb Investment?

To start an Airbnb in Arkadelphia, Arkansas, begin by researching local regulations through the Arkadelphia City Hall and Clark County offices, as Arkansas generally allows short-term rentals but municipalities may have specific zoning requirements and occupancy limits. Contact the Arkadelphia Planning and Zoning Department to verify your property is in an appropriate zone and obtain any required business licenses or permits, which typically cost $25-100 annually. Find a suitable property by searching areas near Henderson State University or Ouachita Baptist University for higher demand, with average property prices ranging $80,000-150,000 for a 2-3 bedroom home. Furnish the space with essential amenities including Wi-Fi, cable TV, kitchen appliances, linens, and local touches highlighting Arkadelphia's proximity to DeGray Lake and Hot Springs, budgeting approximately $5,000-10,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-120 per night depending on size and location, emphasizing proximity to universities and outdoor recreation. Manage your listing by maintaining 24-hour response times, coordinating cleaning services between guests, implementing keyless entry systems, and ensuring compliance with Arkansas state tax requirements including collecting and remitting sales tax to the Arkansas Department of Finance and Administration, while potentially earning $15,000-35,000 annually depending on occupancy rates and seasonal demand from university events and lake tourism.

To identify profitable short-term rental properties in Arkadelphia, Arkansas, focus on locations within 2-3 miles of Henderson State University and Ouachita Baptist University, as these drive consistent demand from visiting families, prospective students, and university events. Target properties near the Ouachita River for recreational appeal and downtown areas for walkability to restaurants and local attractions. Seek 2-4 bedroom homes or condos with modern amenities, reliable Wi-Fi, parking, and outdoor spaces, as these features command higher nightly rates of $80-150 in the Arkadelphia market. Analyze comparable properties on Airbnb and VRBO to identify pricing gaps, with successful properties typically achieving 60-70% occupancy rates and $2,000-4,000 monthly revenue. Research competition by monitoring existing STR listings within a 5-mile radius, noting their pricing, amenities, and guest reviews to identify underserved niches. Utilize AirDNA for market analytics, STR Helper for revenue projections, and local tools like the Clark County Assessor's website for property values, while connecting with Arkadelphia real estate agents familiar with investment properties and checking local zoning regulations through the city planning department to ensure STR compliance.

To obtain an Airbnb/STR permit in Arkadelphia, Arkansas, contact the Arkadelphia City Clerk's office at City Hall located at 517 Clay Street or call (870) 246-5881 to begin the application process. You'll need to submit a completed business license application, property deed or lease agreement proving ownership/authorization, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and pay the required fees which typically include a $50-75 business license fee and $25-50 inspection fee. The city requires properties to meet fire safety codes, have working smoke and carbon monoxide detectors in each bedroom and common area, provide adequate parking (minimum 2 spaces), maintain the property according to residential standards, and display the permit number in all advertising. Submit your application to the City Clerk's office along with all required documents and fees, after which the city will schedule a safety inspection within 10-14 business days. Once the inspection is passed and all requirements are met, the permit is typically issued within 5-7 business days, with the entire process taking approximately 3-4 weeks from initial application to final approval, and permits must be renewed annually by December 31st each year.

Short-term rentals (STRs) are generally legal in Arkadelphia, Arkansas, as the city has not enacted specific prohibitive ordinances against vacation rentals as of 2024. However, STR operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in residential areas, and state tax obligations including sales and lodging taxes. The city follows Arkansas state regulations which allow STRs but require proper registration and tax collection through the Arkansas Department of Finance and Administration. While there are no city-wide bans, certain residential zoning districts may have restrictions on commercial activities, and operators should verify compliance with neighborhood covenants and homeowners association rules. Recent trends in Arkansas have seen some municipalities implementing registration requirements and occupancy limits, though Arkadelphia has maintained a relatively permissive approach compared to larger cities like Little Rock or Fayetteville which have enacted more comprehensive STR regulations.

The best areas for Airbnb investment in Arkadelphia, Arkansas are the Historic Downtown District near Main Street, which attracts visitors to local events, restaurants, and the Clark County Historical Museum, and the neighborhoods surrounding Henderson State University and Ouachita Baptist University campuses, particularly the areas along 6th Street and Henderson Street, which generate consistent demand from visiting families during graduation ceremonies, sporting events, and academic conferences. The DeGray Lake area on the eastern outskirts of town offers excellent potential for vacation rentals targeting outdoor enthusiasts visiting DeGray Lake Resort State Park for fishing, boating, and camping activities. Properties near the Arkadelphia Conference Center and along Caddo Street benefit from business travelers attending corporate events and conferences, while the residential areas close to Baptist Health Medical Center-Arkadelphia create opportunities for medical tourism and extended-stay guests visiting patients or attending medical procedures.

In Arkadelphia, Arkansas, Airbnb hosts are subject to Arkansas state sales tax of 6.5% on gross rental receipts, which applies to short-term rentals under 30 days. Additionally, Arkansas imposes a 2% state tourism tax on lodging accommodations. Clark County may impose a local sales tax of up to 2%, and Arkadelphia city sales tax is approximately 1%, bringing the total potential tax burden to around 11.5%. The Arkansas Department of Finance and Administration requires hosts to register for a sales tax permit and collect taxes from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month for most taxpayers. Airbnb may collect and remit these taxes automatically in some jurisdictions through voluntary collection agreements, but hosts remain ultimately responsible for compliance. Rentals of 30 days or longer are typically exempt from tourism taxes, and certain agricultural or educational exemptions may apply in specific circumstances, though these are rare for typical Airbnb operations.

To start an Airbnb in Arkadelphia, Arkansas, the total initial investment would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in the area. Furnishing a 2-3 bedroom property completely would cost $15,000-$25,000 including furniture, appliances, linens, and decor. Initial setup expenses including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$1,200. Insurance for short-term rental coverage runs $1,500-$2,500 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost around $800-$1,500. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), marketing ($150/month), and platform fees (3% of estimated $2,000 monthly revenue) total approximately $6,600-$8,000. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and vacancy periods during the initial launch phase.

Airbnb properties in Arkadelphia, Arkansas typically generate modest returns due to the city's small market size of approximately 10,500 residents and limited tourism infrastructure. Average nightly rates range from $65-85 for entire homes, with occupancy rates averaging 35-45% annually, resulting in gross revenues of $8,000-14,000 per year for typical 2-3 bedroom properties. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($150-200 monthly), insurance ($800-1,200 annually), property management (20-25% of revenue), and maintenance typically consume 60-70% of gross revenue. Properties near Henderson State University perform better during academic year with rates reaching $90-110 during graduation and move-in periods, while lake-adjacent properties near DeGray Lake benefit from summer tourism. Net profit margins generally range from 15-25% for well-managed properties, with successful hosts focusing on competitive pricing, quick response times, and targeting university visitors and lake recreation guests. A typical investment property purchased for $120,000-150,000 might generate $2,500-4,200 in annual net profit, representing returns of 2-3% before considering property appreciation, making Arkadelphia a marginal market compared to larger Arkansas cities like Fayetteville or Hot Springs.

Airbnb investments in Arkadelphia, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by Henderson State University student housing demand and regional business travelers. Properties near the university campus or downtown area can achieve occupancy rates of 65-75% annually, with average daily rates of $75-95 depending on property size and amenities. Initial profitability usually occurs within 18-24 months, factoring in property acquisition costs of $80,000-150,000 for suitable investment properties, renovation expenses of $15,000-25,000, and ongoing operational costs including cleaning, maintenance, and platform fees. The market benefits from limited hotel inventory and consistent demand from university events, regional conferences, and outdoor recreation visitors to nearby DeGray Lake, though seasonal fluctuations occur during summer months when student demand decreases.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Arkadelphia, Arkansas. Local real estate agents specializing in investment properties include Coldwell Banker Elite and Century 21 Arkansas Properties, both established in the region since the early 2000s. RE/MAX Professionals and Crye-Leike Realtors have dedicated investment divisions that focus on rental properties in the Arkadelphia area. National services like BiggerPockets connects investors with local professionals, while Mashvisor offers property analysis tools for the Arkansas market. Awning provides end-to-end Airbnb investment services including property identification and management setup. Local property management companies such as Arkansas Rental Management and Clark County Property Solutions offer turnkey services for short-term rental investors. RedAwning and Vacasa provide market analysis and property management specifically for vacation rentals in smaller Arkansas markets. Investment-focused real estate companies like HomeVestors and We Buy Ugly Houses occasionally work with investors seeking properties suitable for Airbnb conversion in the Arkadelphia region.