Is Benton, Arkansas Good for Airbnb Investment?

To start an Airbnb in Benton, Arkansas, begin by researching local zoning laws and regulations through the Benton Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically allow rentals in single-family residential areas with proper registration. Obtain necessary permits including a business license from Benton City Hall (approximately $50-100), a short-term rental permit (estimated $100-200 annually), and ensure compliance with Arkansas state tax requirements including sales tax registration with the Arkansas Department of Finance and Administration. Find a suitable property in residential zones like downtown Benton or near Tyndall Park, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress routes as mandated by Arkansas fire codes. Furnish the property with essential amenities including Wi-Fi, linens, kitchen supplies, and local guidebooks highlighting attractions like Gann Museum and Hot Spring County attractions, while ensuring ADA compliance where applicable. List your property on Airbnb and VRBO platforms with professional photos, competitive pricing (typically $75-150/night in Benton market), and detailed descriptions emphasizing proximity to Little Rock (30 minutes) and outdoor activities at nearby Ouachita National Forest. Manage the property by establishing cleaning protocols, guest communication systems, coordinating with local cleaning services, and maintaining compliance with Benton's noise ordinances and occupancy limits while collecting and remitting the required 11.5% Arkansas state and local taxes to appropriate authorities.

To identify profitable short-term rental properties in Benton, Arkansas, focus on locations within 15-20 minutes of Hot Springs National Park and Lake Ouachita, as these drive significant tourism traffic year-round. Target properties near downtown Benton's antique district, along the Saline River corridor, or in established neighborhoods like Riverside and Salem Road areas that offer easy highway access. Look for 2-4 bedroom homes with 1,500-2,500 square feet, preferably built after 1980, featuring modern amenities like updated kitchens, multiple bathrooms, outdoor spaces, and parking for 2-4 vehicles. Conduct pricing analysis using AirDNA and Mashvisor to identify properties priced 15-20% below market value (typically $150,000-$300,000 range in Benton), targeting potential nightly rates of $80-$150 depending on size and amenities. Research competition within a 5-mile radius using Airbnb and VRBO searches, analyzing occupancy rates, pricing strategies, and guest reviews of similar properties. Utilize local resources including Saline County property records, Benton Chamber of Commerce tourism data, and connect with local real estate agents familiar with investment properties. Monitor seasonal demand patterns around Tuba Christmas events, high school sports tournaments, and proximity to Little Rock business travelers, while ensuring compliance with Benton's zoning regulations and any HOA restrictions in target neighborhoods.

To obtain an Airbnb/STR permit in Benton, Arkansas, you must first contact the Benton City Planning and Zoning Department at City Hall located at 114 South East Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires compliance with local zoning ordinances. Submit an application for a business license through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (typically $1 million minimum), floor plan of the rental property, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. Pay the business license fee of approximately $50-100 annually, along with any zoning compliance fees around $25-75. The city may require a fire safety inspection by the Benton Fire Department, costing approximately $50-100, and you must ensure the property meets all building codes and safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Additionally, register with the Arkansas Department of Finance and Administration for state tax purposes and obtain a sales tax permit, as short-term rentals are subject to state and local lodging taxes of approximately 11-13% total. The approval timeline typically ranges from 2-6 weeks depending on inspection scheduling and document completeness, and you must display your permit number in all online listings and maintain compliance with occupancy limits, noise ordinances, and parking requirements specific to Benton's residential neighborhoods.

Short-term rentals (STRs) are generally legal in Benton, Arkansas, as the city has not implemented a comprehensive ban on such properties as of 2023. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict operations in certain residential areas. The city requires STR properties to obtain proper business licenses and adhere to occupancy limits, noise ordinances, and parking requirements. Recent years have seen increased scrutiny from local officials regarding STR impacts on residential neighborhoods, with discussions about potential registration systems and stricter enforcement of existing regulations. Properties in historic districts or areas with homeowners association restrictions may face additional limitations. While Benton has been more permissive than some Arkansas municipalities like Little Rock or Fayetteville which have implemented stricter STR regulations, operators should verify current zoning compliance and business license requirements with the city's planning and development department, as local ordinances can change and enforcement has become more active since 2022.

The best areas for Airbnb investment in Benton, Arkansas include the downtown historic district near the Saline County Courthouse, which attracts business travelers and visitors to local government offices, and neighborhoods near the Arkansas River waterfront that appeal to outdoor enthusiasts visiting for fishing, boating, and recreational activities. The areas around Tyndall Park and near Interstate 30 corridors are attractive due to their proximity to Little Rock (approximately 25 miles away), making them ideal for overflow accommodation during major events at venues like the Verizon Arena or Simmons Bank Arena. Properties near the Benton Event Center and civic center area benefit from conference attendees, wedding parties, and local celebrations, while neighborhoods close to the Salt Creek development and newer residential areas attract families visiting for youth sports tournaments and local festivals like the Benton Gooseneck Festival. The Hurricane Lake area and surrounding residential zones offer peaceful retreats for visitors seeking a quieter alternative to Little Rock hotels while maintaining easy highway access for business travelers working with companies like Acxiom or visiting the Port of Little Rock region.

In Benton, 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, hosts must collect and remit local sales tax for Saline County at approximately 1-2%, bringing the total tax burden to around 7.5-8.5% on rental income. The Arkansas Department of Finance and Administration requires hosts to register for a sales tax permit and file monthly returns if gross receipts exceed $1,000 annually, with taxes due by the 20th of the following month. Benton itself may impose additional local lodging taxes of 1-3% depending on municipal ordinances, which would be collected alongside state and county taxes. Airbnb may collect and remit these taxes automatically in some jurisdictions through voluntary collection agreements with the state, but hosts remain ultimately responsible for compliance. Long-term rentals exceeding 30 consecutive days are typically exempt from these occupancy taxes, and some jurisdictions may provide exemptions for rentals to permanent residents or during certain circumstances, though specific exemptions vary by local ordinance and should be verified with Benton city officials and the Arkansas DFA.

Starting an Airbnb in Benton, Arkansas requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, sofas, dining sets, appliances, linens, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-3,000. Permits and fees in Pulaski County include business license ($50-100), short-term rental permit ($200-500), and potential HOA approval fees. Insurance premiums for short-term rental coverage average $1,200-1,800 annually, with companies like Proper Insurance or CBIZ providing specialized Airbnb policies. Utility deposits and connections for electricity, water, gas, internet, and cable run $500-800. First six months operating costs including utilities ($150/month), cleaning services ($75 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and marketing total approximately $3,000-4,500, assuming 60-70% occupancy rates typical for the Little Rock metropolitan area market.

Airbnb properties in Benton, Arkansas typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs ($2,000-4,000 yearly). Properties near Saline County's recreational areas like Hurricane Lake or those offering unique amenities achieve higher occupancy rates of 60-75% compared to basic listings at 40-55%. A typical 3-bedroom home in Benton's residential areas generates approximately $25,000 annually with $14,000 in expenses, yielding a 44% profit margin or roughly $11,000 net income. Success factors include proximity to Little Rock (20 minutes away), competitive pricing against hotels in nearby Bryant and Alexander, professional photography, responsive communication, and targeting business travelers and families visiting the greater Little Rock metropolitan area. Properties that cater to longer-term stays (weekly/monthly) often achieve more stable occupancy and reduced turnover costs, with some hosts reporting profit margins reaching 50-55% when optimally managed.

Airbnb investments in Benton, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the local market dynamics and proximity to Little Rock metropolitan area. Properties in Benton benefit from steady demand due to business travelers visiting Saline County's industrial corridor and tourists exploring nearby outdoor recreation areas like Saline River and Hot Springs National Park. Initial profitability usually occurs within 18-24 months for well-positioned properties, with average daily rates of $75-$110 depending on property size and amenities. The market shows consistent occupancy rates of 65-75% annually, supported by Benton's growing population and economic development initiatives. Investment properties typically require $25,000-$40,000 in initial capital for down payment and renovations, with monthly net cash flow averaging $300-$600 per property after expenses including mortgage, utilities, cleaning, and platform fees.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Benton, Arkansas, using data analytics and market insights. Local real estate agents in the Benton area who specialize in investment properties include Coldwell Banker Elite and RE/MAX Real Estate Partners, with agents like those at Crye-Leike Realtors having experience in the Central Arkansas market since the early 2000s. National services that assist with Airbnb property acquisition include Awning (founded 2017), which provides full-service property management and acquisition assistance, RedAwning's investment platform, and Vacasa's property management services that help identify profitable markets. AirDNA offers market analysis tools specifically for short-term rental investments, while companies like Roofstock and BiggerPockets provide platforms and resources for real estate investors. Local property management companies such as Arkansas Rental Management and Central Arkansas Property Management have expanded into short-term rental services since around 2018-2019. Additionally, investment-focused real estate firms like HomeVestors and national franchises such as Keller Williams have agents trained in identifying profitable Airbnb opportunities in emerging markets like Benton, which has seen growth due to its proximity to Little Rock and Hot Springs.