Is Beaver Lake, Arkansas Good for Airbnb Investment?

To start an Airbnb in Beaver Lake, Arkansas, begin by researching Carroll County and Benton County regulations since Beaver Lake spans both counties, checking with local zoning departments for short-term rental ordinances and any required business licenses or permits, which typically cost $50-150 annually in Arkansas rural areas. Find a suitable property near the lake through local realtors like Coldwell Banker or RE/MAX, focusing on lakefront or lake-view homes priced between $200,000-500,000 depending on size and proximity to water. Obtain necessary permits including a business license from the county clerk's office, sales tax permit from Arkansas Department of Finance and Administration, and ensure compliance with any homeowner association rules if applicable. Furnish the property with lake-themed decor, outdoor furniture for deck/patio areas, fishing equipment, kayaks or canoes, and essential amenities like Wi-Fi, fully equipped kitchen, and comfortable bedding for 6-8 guests typical for lake properties. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting lake views and water activities, setting rates between $150-300 per night during peak season (May-September) and $100-200 during off-season. Manage the property by hiring local cleaning services like Beaver Lake Cleaning Co., installing keyless entry systems, partnering with local maintenance providers, and maintaining relationships with nearby restaurants and activity providers like War Eagle Marina for guest recommendations, while ensuring compliance with Arkansas's 11.5% combined state and local lodging taxes.

To identify profitable short-term rental properties in Beaver Lake, Arkansas, focus on waterfront or water-view locations within 1-2 miles of the lake, particularly in areas like Holiday Island, Eureka Springs vicinity, or near popular marinas and boat launches. Target properties with 3-4 bedrooms, outdoor amenities like decks, fire pits, or hot tubs, boat parking or dock access, and updated kitchens since families and groups seek vacation experiences around water activities. Analyze pricing by researching comparable STRs on Airbnb and VRBO in the $150-300 nightly range depending on size and amenities, while calculating potential annual revenue against purchase price plus renovation costs to achieve 8-12% returns. Study competition density using AirDNA or Mashvisor to identify undersupplied areas, noting seasonal demand patterns with peak summer months and shoulder seasons during fishing tournaments or fall foliage. Utilize local resources like Beaver Lake real estate agents familiar with STR regulations, Arkansas STR licensing requirements, and tools like Rabbu or PriceLabs for dynamic pricing, while monitoring local Facebook groups and tourism boards for market insights and connecting with property management companies like Vacasa or local operators who understand the lake market's unique dynamics and guest expectations.

To obtain an Airbnb/STR permit in Beaver Lake, Arkansas, you must first contact the Carroll County Planning and Zoning Department since Beaver Lake falls under county jurisdiction rather than a specific municipality. Submit your application to the Carroll County Courthouse located at 210 W Church Street, Berryville, AR 72616, along with required documents including a completed short-term rental application form, proof of property ownership or lease agreement, site plan showing parking areas and septic system location, septic system inspection certificate, fire safety inspection report, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $150-200 with an additional $75 annual renewal fee. You must also register with the Arkansas Department of Finance and Administration for state tax collection purposes and obtain a business license if operating as a business entity. The approval timeline typically takes 30-45 days after submission of complete documentation. Specific Beaver Lake requirements include maintaining adequate septic capacity for occupancy limits, providing sufficient off-street parking (minimum 2 spaces), ensuring compliance with lake setback requirements of at least 50 feet from the high-water mark, and adhering to occupancy limits based on septic system capacity and square footage. Properties must pass annual inspections and maintain current liability insurance throughout the permit period.

Short-term rentals (STRs) are generally legal in the Beaver Lake area of Arkansas, but regulations vary significantly by specific municipality and county jurisdiction around the lake. Carroll County, which encompasses much of the Beaver Lake region, typically allows STRs with basic business licensing requirements, while some incorporated cities like Eureka Springs have more detailed regulations including occupancy limits, parking requirements, and noise ordinances. The Arkansas state government has generally taken a hands-off approach to STR regulation, leaving most decisions to local governments, though some lakefront communities have implemented restrictions on the number of guests, mandatory registration with local authorities, and requirements for 24/7 contact information for property managers. Recent changes since 2020 have seen increased scrutiny from local governments due to concerns about housing availability for permanent residents and impacts on residential neighborhoods, with some areas around Beaver Lake considering or implementing caps on the total number of STR permits available. Property owners should verify current regulations with the specific city or county where their Beaver Lake property is located, as enforcement and requirements can differ substantially between jurisdictions like Carroll County, Benton County, and individual municipalities such as Rogers or Bentonville in the broader region.

The best areas for Airbnb investment around Beaver Lake, Arkansas include the Eureka Springs district, which attracts tourists year-round with its Victorian architecture, arts scene, and proximity to the lake's northern shores, generating strong occupancy rates from both leisure travelers and wedding parties. The Rogers-Bentonville corridor offers excellent potential due to business travel from Walmart headquarters and other corporate activities, plus easy lake access for corporate retreats. The War Eagle area provides prime waterfront investment opportunities with its scenic beauty, fishing tournaments, and outdoor recreation appeal that draws visitors from Little Rock and surrounding metropolitan areas. Holiday Island presents a established vacation rental market with golf course amenities, marina access, and seasonal events that maintain consistent bookings from April through October. The Huntsville vicinity offers more affordable entry points while still providing lake access and appeals to families seeking quiet retreats, fishing expeditions, and outdoor adventures, with particular strength during summer months and hunting seasons.

Airbnb properties in Beaver Lake, Arkansas are subject to Arkansas state sales tax of 6.5% and state tourism tax of 2% on lodging accommodations, which are typically collected by Airbnb directly from guests and remitted to the Arkansas Department of Finance and Administration on behalf of hosts. Carroll County, where Beaver Lake is located, may impose an additional local lodging tax of approximately 1-3%, though collection and remittance procedures vary by specific municipality within the county. The City of Eureka Springs, a popular Beaver Lake area destination, imposes a 3% advertising and promotion tax on short-term rentals, while other smaller municipalities around the lake may have their own local occupancy taxes ranging from 1-2%. Hosts are generally required to register with the Arkansas Department of Finance and Administration and obtain a sales tax permit, with monthly remittance required if Airbnb is not collecting on their behalf. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and properties rented for less than 10 days per year may be exempt from certain local taxes depending on municipal ordinances.

The total cost to start an Airbnb in Beaver Lake, Arkansas would be approximately $285,000-$350,000. Property purchase costs around $200,000-$250,000 based on median lakefront property prices in the area as of 2023-2024. Furnishing a 2-3 bedroom vacation rental requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor suitable for guests. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,500. Permits and fees including business license, short-term rental permits, and potential HOA approvals cost $500-$1,200 annually. Insurance for short-term rentals runs $2,000-$3,000 per year, significantly higher than standard homeowner's insurance. Monthly utilities including electricity, water, internet, cable, and trash service average $300-$450 per month. First six months of operating costs including utilities ($1,800-$2,700), cleaning services ($3,000-$4,500), maintenance and repairs ($2,000-$3,000), property management software ($300-$600), and marketing ($1,000-$2,000) total approximately $8,100-$12,800. Additional considerations include property taxes averaging $2,000-$4,000 annually and potential dock or waterfront maintenance costs of $1,000-$3,000 per year for lakefront properties.

Airbnb properties around Beaver Lake, Arkansas typically generate annual revenues of $25,000-$45,000 for well-positioned lakefront or lake-view properties, with average daily rates ranging from $120-$200 during peak summer months and $80-$120 in off-season periods. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($50-$75 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$2,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties within 0.5 miles of the lake with amenities like boat docks, hot tubs, or fire pits achieve occupancy rates of 65-75% annually, generating net profit margins of 25-35%, while properties further from water access typically see 45-55% occupancy and 15-25% margins. Success factors include proximity to popular areas like War Eagle Creek, Table Rock Lake access points, and Eureka Springs (30 minutes away), with properties featuring outdoor recreation amenities, modern interiors, and professional photography consistently outperforming basic listings by 40-60% in both occupancy and nightly rates, making lakefront Beaver Lake Airbnbs potentially profitable investments with proper management and strategic positioning.

Airbnb investments in Beaver Lake, Arkansas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's popularity as a recreational destination for fishing, boating, and lake activities. Properties within 0.5 miles of the lake shore command premium rates of $150-250 per night during peak season (May-September), while off-water properties average $100-180 nightly. Initial investment costs range from $200,000-400,000 for suitable vacation rental properties, with investors typically reaching profitability within 18-24 months after accounting for furnishing, marketing, and operational expenses. The market benefits from consistent demand from visitors to Beaver Lake State Park and seasonal tourists from Little Rock, Fayetteville, and surrounding metropolitan areas, with occupancy rates averaging 65-75% annually and peak summer occupancy reaching 85-90%.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations for the Beaver Lake, Arkansas area. Local real estate agents serving this market include Coldwell Banker Harris McHaney & Faucette with agents like Sarah Johnson and Mike Thompson who focus on vacation rental properties around Beaver Lake, while RE/MAX Real Estate Results has specialists such as Lisa Parker who works extensively with Airbnb investors in the region. Vacasa provides full-service property management for short-term rentals in the area, and AvantStay offers similar services for premium properties. National services include BiggerPockets for investor networking and deal analysis, Mashvisor for rental property analytics and market data, and AirDNA for short-term rental market intelligence and performance tracking. RedAwning specializes in vacation rental property sales and has listings in the Beaver Lake area, while local property management companies like Ozark Mountain Vacation Rentals and Beaver Lake Properties offer both property acquisition assistance and ongoing management services for investors looking to enter the Airbnb market in this popular Arkansas lake destination.