Is Bentonville, Arkansas Good for Airbnb Investment?

To start an Airbnb in Bentonville, Arkansas, begin by researching local regulations as the city requires short-term rental permits and compliance with zoning ordinances, particularly in residential areas near downtown and the Crystal Bridges Museum area. Contact Bentonville's Planning Department to obtain a Conditional Use Permit (approximately $200-400) and ensure your property meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Find a suitable property within 1-3 miles of downtown Bentonville or near popular attractions like the Razorback Greenway trail system, with average property costs ranging $150,000-$400,000 depending on proximity to Walmart headquarters and Crystal Bridges. Furnish the space with mountain biking and outdoor recreation themes popular in the area, budgeting $8,000-$15,000 for a 2-bedroom property, and include amenities like bike storage since Bentonville is known as a premier mountain biking destination. List your property on Airbnb with competitive pricing of $80-$200 per night depending on size and location, highlighting proximity to Walmart, Crystal Bridges Museum, and the extensive trail network. Manage the property by establishing relationships with local cleaning services (typically $40-$80 per turnover), maintenance contractors familiar with Bentonville's climate conditions, and consider hiring a local property management company if you're not residing in the area, as many successful Airbnb hosts in Bentonville charge 15-25% management fees for full-service management.

To identify profitable short-term rental properties in Bentonville, Arkansas, focus on locations within 2-3 miles of Crystal Bridges Museum of American Art and downtown square, as well as properties near the extensive mountain biking trails and Walmart corporate headquarters which drives consistent business travel demand. Target 2-4 bedroom homes or condos built after 2000 with modern amenities, outdoor spaces, bike storage, and parking, as Bentonville attracts outdoor enthusiasts and corporate visitors who value convenience and comfort. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates of $150-250 depending on size and location, with occupancy rates typically ranging 60-75% annually. Research competition by studying existing Airbnb and VRBO listings within your target areas, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Arkansas Regional MLS, while connecting with Bentonville-area real estate agents familiar with STR regulations and the tourism market driven by Crystal Bridges, the Momentary arts venue, and the growing culinary scene that attracts visitors year-round.

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 your property is in a zone that allows short-term rentals, as the city implemented regulations around 2019-2020. Submit an application to the Planning Department including a completed STR permit application form, proof of property ownership or lease agreement with landlord consent, a site plan showing parking areas and property layout, proof of liability insurance (typically $1 million minimum), contact information for a local property manager if you live more than 50 miles away, and a floor plan indicating maximum occupancy. The application fee is approximately $100-200 with an annual renewal fee of around $50-100. You must also register for a business license with the city clerk's office (additional $25-50 fee) and collect and remit local lodging taxes. Bentonville requires STR properties to maintain adequate off-street parking (typically 1 space per bedroom), limit occupancy to 2 people per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertisements. The approval process typically takes 30-45 days after submitting a complete application, and permits must be renewed annually with the city conducting periodic compliance inspections.

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 primarily allow STRs in residential areas with certain limitations on density and operational standards. The city prohibits STRs in some historic districts and requires properties to meet safety standards including smoke detectors, carbon monoxide detectors, and adequate parking. Operators must also collect and remit local lodging taxes, maintain guest registries, and ensure properties don't create nuisance issues for neighbors. Recent changes around 2022-2023 included stricter enforcement of existing regulations and enhanced requirements for property inspections, reflecting the city's effort to balance tourism growth with residential neighborhood preservation as Bentonville has become a major destination due to attractions like Crystal Bridges Museum and mountain biking trails.

The best areas for Airbnb investment in Bentonville, Arkansas are downtown Bentonville near the Walmart Museum and Crystal Bridges Museum of American Art, which attracts significant 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 Lawrence Plaza and the Momentary arts venue offer strong potential due to cultural tourism and events. 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 weekend tourists, food festivals, and the First Friday events that draw visitors year-round. Properties within walking distance of the Razorback Greenway trail system appeal to cycling tourists and outdoor enthusiasts, while areas near the 21c Museum Hotel compete for overflow accommodation needs during peak business and tourism seasons.

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% total. 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 or permits. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than short-term lodging, and some jurisdictions may exempt rentals in the host's primary residence under certain conditions. Hosts should verify current rates and requirements with local tax authorities as rates and collection procedures can change.

To start an Airbnb in Bentonville, Arkansas, expect total costs of approximately $285,000-$315,000. Property purchase costs around $250,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic marketing materials average $2,000-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance including landlord coverage and short-term rental protection costs approximately $2,000-$3,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable total around $1,000-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($100 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses ($100/month) total approximately $8,100. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and initial vacancy periods.

Airbnb properties in Bentonville, Arkansas show strong profitability potential, with average nightly rates ranging from $85-150 for typical 2-3 bedroom homes, generating monthly revenues of $2,500-4,500 during peak seasons when Walmart corporate visitors and Crystal Bridges Museum tourists drive demand. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% for utilities and supplies, and 15-20% for property management if outsourced, resulting in net profit margins of 35-45% for well-managed properties. Success factors include proximity to Walmart headquarters (properties within 5 miles command 20-30% premium rates), modern amenities targeting business travelers, and strategic pricing during major events like the Bentonville Film Festival and mountain biking competitions. A case study of a renovated 3-bedroom home near downtown Bentonville purchased for $280,000 in 2021 generated $52,000 annual revenue with $31,000 in expenses, achieving a 40% profit margin and 7.5% return on investment, while properties near the Razorback Greenway trail system consistently outperform the market by 15-25% due to outdoor recreation demand.

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. Most investors achieve profitability within 18-24 months, particularly for 2-3 bedroom properties priced between $150,000-$250,000 that can command $80-120 per night. The market benefits from consistent business travel demand from Walmart vendors and suppliers, plus leisure travelers visiting Crystal Bridges and the Razorback Greenway trail system. Properties within 3 miles of downtown Bentonville or the museum typically see occupancy rates of 65-75% annually, with peak seasons during spring and fall generating $2,500-$4,000 monthly revenue, while slower winter months still maintain $1,500-$2,200 monthly income for well-positioned properties.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Bentonville, Arkansas. Local real estate agents like Keller Williams Market Pro Realty and Coldwell Banker Harris McHaney & Faucette have agents experienced in investment properties and vacation rentals in the Bentonville area. RE/MAX Real Estate Results and Crye-Leike Realtors also serve the Northwest Arkansas market with investment-focused services. National companies like Awning, RedAwning, and Vacasa provide market analysis and property management services for Airbnb investors. BiggerPockets connects investors with local professionals, while companies like AirDNA and Mashvisor offer data analytics for short-term rental investments in the Bentonville market. Local property management companies such as NWA Property Management and Ozark Mountain Property Management can assist with ongoing operations, and investment firms like HomeUnion and Roofstock occasionally feature properties in the Northwest Arkansas region suitable for short-term rental conversion.