Is Bentonville, Arkansas Good for Airbnb Investment?

To start an Airbnb in Bentonville, Arkansas, begin by researching local regulations as Bentonville requires short-term rental operators to obtain a business license from the City Clerk's office and comply with zoning ordinances that typically allow STRs in residential areas with some restrictions. Contact Bentonville's Planning Department at 479-271-3119 to verify your property's zoning compliance and obtain necessary permits, which may include a conditional use permit depending on your location. Find a suitable property in desirable areas like downtown near the Crystal Bridges Museum, the Razorback Greenway trail system, or neighborhoods close to Walmart's headquarters, with average property prices ranging from $200,000-$400,000 for suitable homes. Furnish your property with quality, durable furniture focusing on modern amenities that appeal to business travelers and outdoor enthusiasts, budgeting approximately $15,000-$25,000 for a complete setup including WiFi, smart TV, and bike storage given Bentonville's mountain biking culture. List your property on Airbnb and VRBO with professional photography highlighting proximity to attractions like the Momentary arts center and Slaughter Pen Hollow trails, setting competitive rates around $100-$200 per night based on local market analysis. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like Vacasa or RedAwning if you prefer hands-off management, while maintaining compliance with Arkansas's 11.5% combined state and local lodging taxes that must be collected and remitted monthly.

To identify profitable short-term rental properties in Bentonville, Arkansas, focus on locations within 2-3 miles of downtown Bentonville and the Walmart headquarters, near the Razorback Greenway trail system, and close to Crystal Bridges Museum of American Art, as these areas attract the highest concentration of business travelers and tourists. Target 2-4 bedroom properties built after 1990 with modern amenities, dedicated workspace areas for corporate guests, outdoor spaces like patios or decks, and parking for multiple vehicles, as Walmart vendors and mountain biking enthusiasts represent your primary guest demographics. Analyze comparable properties using AirDNA and Mashvisor to identify the $150-250 nightly rate sweet spot, while monitoring occupancy rates that typically range 65-75% annually in Bentonville's market. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, focusing on properties near major employers like Walmart, Tyson Foods, and J.B. Hunt, and identify gaps in amenities or locations that competitors aren't serving. Utilize Bentonville-specific resources including the Bentonville Convention and Visitors Bureau data, local real estate agents familiar with STR regulations, and tools like Rabbu or Pricelabs for dynamic pricing optimization, while staying informed about Visit Bentonville's event calendar and corporate travel patterns that drive consistent demand throughout the year.

To obtain an Airbnb/STR permit in Bentonville, Arkansas, you must first contact the Bentonville Planning Department at City Hall located at 117 W Central Avenue to determine if short-term rentals are permitted in your specific zoning district, as the city implemented regulations around 2019-2020. Submit an application through the Planning Department which typically requires a completed STR permit application form, proof of property ownership or lease agreement, a site plan showing parking arrangements, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're not local, and a floor plan indicating maximum occupancy. The application fee is estimated at $150-300 with potential additional inspection fees of $75-150. You must also register for a business license through the City Clerk's office (approximately $25-50 annually) and collect and remit local lodging taxes to the Bentonville Advertising and Promotion Commission. The property must meet fire safety requirements including smoke detectors in each bedroom and common area, carbon monoxide detectors if gas appliances are present, and fire extinguishers on each floor. Parking requirements typically mandate one space per bedroom plus one additional space, and occupancy limits are usually set at two persons per bedroom plus two additional guests. The approval timeline is generally 30-45 days after submitting a complete application, pending inspections and neighbor notification periods, and permits must be renewed annually with continued compliance monitoring.

Short-term rentals (STRs) are legal in Bentonville, Arkansas, but operate under specific regulations established by the city. As of 2023, Bentonville requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods to preserve residential character. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR properties must follow, with violations subject to fines and potential license revocation. Properties must meet safety standards including smoke detectors and emergency exits, and operators are required to provide local contact information for guests and neighbors. Recent changes have included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental versus traditional lodging, with the city working to balance the growing tourism industry driven by attractions like Crystal Bridges Museum of American Art and the mountain biking trails, while protecting residential neighborhoods from over-commercialization.

The best Airbnb investment areas in Bentonville, Arkansas include Downtown Bentonville near the Walmart Museum and Crystal Bridges Museum of American Art, which attracts significant cultural tourism and business travelers visiting Walmart's headquarters. The Coler Mountain Bike Preserve area is highly attractive due to the growing mountain biking tourism and outdoor recreation visitors. The neighborhoods around Crystal Bridges and the Momentary art venue offer strong potential given the consistent flow of art enthusiasts and cultural tourists year-round. Areas near the Bentonville Municipal Airport capture business travelers and corporate visitors to major companies like Walmart, Tyson Foods, and J.B. Hunt. The historic downtown square district benefits from local events, festivals, and the growing food and entertainment scene. Properties near the Razorback Greenway trail system appeal to cycling tourists and outdoor enthusiasts visiting for events like the Oz Trails Off-Road series and various cycling competitions that bring thousands of visitors annually.

In Bentonville, Arkansas, Airbnb hosts are subject to both state and local lodging taxes. The Arkansas state tourism tax is 2% on gross receipts from short-term rentals, while Benton County imposes an additional 2% lodging tax, bringing the total occupancy tax to approximately 4%. Bentonville itself may impose a city lodging tax of around 2-3%, potentially making the combined rate 6-7%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for Arkansas properties. Airbnb then remits these taxes monthly to the appropriate state and local tax authorities on behalf of hosts. However, hosts remain responsible for registering with the Arkansas Department of Finance and Administration and obtaining any required local business licenses. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and some jurisdictions may provide exemptions for rentals to permanent residents or government employees. Hosts should verify current rates and requirements with local tax authorities as rates and collection procedures can change, and some smaller municipalities may have different arrangements or may not participate in Airbnb's automated collection program.

To start an Airbnb in Bentonville, Arkansas, expect total costs around $285,000-$315,000. Property purchase averages $275,000 for a median 3-bedroom home suitable for short-term rental. Furnishing costs range $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs $3,000-$5,000 covering professional photography, listing creation, smart locks, security cameras, and welcome amenities. Permits and fees total $500-$1,200 including business license ($50-$200), short-term rental permit ($200-$500), and potential HOA approval fees. Insurance runs $1,500-$2,500 annually for specialized short-term rental coverage beyond standard homeowner's insurance. Utilities average $200-$300 monthly including electricity, water, gas, internet, and cable. First six months operating costs total $8,000-$12,000 covering utilities ($1,200-$1,800), cleaning services ($2,400-$3,600), supplies and maintenance ($1,500-$2,500), platform fees to Airbnb and VRBO ($1,200-$2,000), marketing ($500-$1,000), and emergency repairs fund ($1,200-$2,100). Additional considerations include property management software subscriptions ($50-$100 monthly) and potential property management fees if outsourcing operations.

Airbnb properties in Bentonville, Arkansas show strong profitability potential, with average nightly rates ranging from $80-150 depending on proximity to Crystal Bridges Museum and downtown areas, generating monthly revenues of $2,400-4,500 for well-positioned properties with 60-70% occupancy rates. Operating expenses typically run 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($100-150 monthly), and maintenance costs, resulting in net profit margins of 25-35% for successful operators. Properties within 2 miles of Crystal Bridges Museum and the downtown square command premium rates, with some hosts like those operating renovated historic homes reporting annual profits of $15,000-25,000 on properties generating $40,000-60,000 in gross revenue. Success factors include professional photography, rapid response times, local experience guidance, and targeting the growing business travel market from Walmart corporate visitors and mountain biking tourists, with the most profitable properties being 2-3 bedroom homes that can accommodate families and small groups visiting for corporate events or outdoor recreation activities.

Airbnb investments in Bentonville, Arkansas typically generate annual ROI of 12-18% due to the city's proximity to Walmart headquarters and growing tourism from Crystal Bridges Museum. Cash-on-cash returns generally range from 8-14% annually, with properties near downtown and the museum district performing at the higher end. Initial profitability usually occurs within 6-12 months for well-positioned properties, with full investment recovery expected in 5-7 years. The market benefits from consistent corporate travel demand from Walmart vendors and suppliers, plus leisure travelers visiting Crystal Bridges and the expanding arts district. Properties within 2 miles of downtown Bentonville or the museum typically achieve occupancy rates of 65-75% with average daily rates of $120-180, while those further out see 50-65% occupancy at $80-130 nightly rates. The recent development of mountain biking trails and increased corporate events have strengthened demand, with many investors seeing 15-20% year-over-year revenue growth in 2022-2023.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Bentonville, Arkansas, offering market analysis and property recommendations. Local real estate agents specializing in Airbnb investments include Coldwell Banker Harris McHaney & Faucette, RE/MAX Real Estate Results, and Crye-Leike Realtors who have experience with investment properties in the Bentonville market since around 2018-2020. National services like Awning (founded 2017), RedAwning, and Mashvisor provide comprehensive Airbnb investment analysis tools and property management services for the Northwest Arkansas region. Local property management companies such as NWA Short Term Rentals and Ozark Mountain Vacation Rentals offer turnkey solutions for investors looking to enter the Bentonville market, particularly given the area's proximity to Walmart headquarters and growing tourism industry. AirDNA and Rabbu also provide market data and investment analysis specifically for short-term rental properties in Bentonville, helping investors make data-driven decisions in this emerging market that has seen significant growth since 2019.