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 Razorback Greenway. Contact Bentonville's Planning Department to obtain a Conditional Use Permit (approximately $200-400) and ensure your property meets fire safety and occupancy standards. Find a suitable property within 2-3 miles of downtown Bentonville or near Crystal Bridges Museum and the mountain biking trails, as these areas command higher nightly rates ($80-150). Purchase liability insurance specifically covering short-term rentals and register for Arkansas state sales tax collection (6.5% plus local taxes). Furnish the space with quality basics including fast WiFi, comfortable bedding, and local touches like Arkansas-made products or mountain biking gear storage. Create listings on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to Walmart headquarters, Crystal Bridges, and outdoor recreation. Set competitive pricing based on Bentonville's seasonal demand (higher during mountain biking season April-October and corporate travel periods). Implement a management system using tools like Hospitable or hire local property management companies like NWA Short Term Rentals, ensure 24/7 guest communication, coordinate cleaning between stays, and maintain compliance with the city's noise ordinances and parking requirements in residential neighborhoods.

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 both business travelers and tourists year-round. Target 2-4 bedroom properties built after 1990 with modern amenities, outdoor spaces, bike storage, and parking, as Bentonville's mountain biking culture and corporate visitors value these features. Analyze pricing using AirDNA and Mashvisor to benchmark against the $80-150 average daily rates in the market, while researching occupancy rates that typically range 60-75% annually with peaks during mountain biking season (spring/fall) and Walmart supplier meetings. Study competition through Airbnb and VRBO searches within your target radius, noting that properties near the Momentary arts venue and downtown square command premium rates of $120-200 nightly. Utilize local resources including the Bentonville Convention and Visitors Bureau data, Connect with the Visit Bentonville tourism reports, and partner with local property management companies like NWA STR Management who understand seasonal demand patterns driven by Walmart corporate events, cycling tournaments, and cultural attractions that generate consistent booking 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 your property is in a zone that allows short-term rentals, as the city implemented regulations around 2019-2020. Submit an application through 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), and a floor plan indicating maximum occupancy. Required documents also include a business license from the City Clerk's office, contact information for a local property manager if you live more than 50 miles away, and acknowledgment of noise and nuisance ordinances. The application fee is approximately $200-300 with an annual renewal fee of around $150-200, and the process typically takes 30-45 days for approval. Bentonville-specific requirements include maintaining no more than two STR permits per person, ensuring adequate off-street parking (usually 2 spaces minimum), posting the permit number and emergency contact information visibly on the property, and adhering to occupancy limits of 2 people per bedroom plus 2 additional guests with a maximum of 10 people total, while also complying with the city's 10% cap on STRs in residential neighborhoods.

Short-term rentals (STRs) are legal in Bentonville, Arkansas, but operate under specific city regulations that were updated around 2020-2021. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally allow STRs in residential areas with certain limitations on the number of guests and parking requirements. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide contact information for a responsible party available 24/7 for noise or disturbance complaints. Bentonville prohibits STRs in certain historic districts and requires a minimum separation distance between STR properties in some neighborhoods to prevent over-concentration. The city has implemented occupancy limits based on bedroom count and requires adequate off-street parking, typically two spaces per unit. Recent changes have included stricter enforcement of noise ordinances and enhanced penalties for violations, with the city conducting periodic inspections to ensure compliance with health and safety standards.

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 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 events that draw visitors year-round. The neighborhoods around Lawrence Plaza and the Bentonville Square offer proximity to restaurants, shops, and cultural attractions while maintaining walkability for guests. Areas near the Razorback Regional Greenway trail system appeal to cycling enthusiasts and families visiting for outdoor activities. The Museum Way corridor, connecting Crystal Bridges to downtown, represents prime real estate for short-term rentals due to its central location between major attractions. Properties near the Momentary arts venue capture visitors attending contemporary art exhibitions and performances. The emerging areas around the planned downtown developments and mixed-use projects offer growth potential as Bentonville continues expanding its tourism infrastructure, particularly targeting visitors coming for the combination of corporate travel to Walmart, world-class art museums, and outdoor recreation activities that have transformed this Northwest Arkansas city into a significant destination.

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 1-2%, making the combined rate potentially 5-6%. 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 may need to file returns even when Airbnb collects taxes. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging. Some jurisdictions may exempt certain types of accommodations or provide reduced rates for extended stays, but standard short-term vacation rentals under 30 days are subject to full occupancy tax rates.

To start an Airbnb in Bentonville, Arkansas, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at $250,000-$280,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run approximately $1,500-$2,500. Permits and fees vary but budget $500-$1,200 for business licenses, short-term rental permits, and any required inspections depending on Bentonville's current regulations. Insurance costs including landlord and short-term rental coverage average $2,000-$3,000 annually, so factor $1,000-$1,500 for six months. Utility setup and deposits for electricity, water, gas, internet, and cable typically cost $800-$1,200 initially. First six months operating costs including utilities ($600-$900 monthly), cleaning services ($100-$150 per turnover), maintenance reserves, and platform fees total approximately $8,000-$12,000, assuming moderate occupancy rates during the initial period.

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 $65,000 annual revenue with $28,000 in expenses, achieving a 13% return on investment while benefiting from the city's growing reputation as a cultural and outdoor recreation destination, though success heavily depends on maintaining high guest ratings and adapting to seasonal demand fluctuations between corporate travel periods and tourist seasons.

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 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 3 miles of downtown Bentonville command premium nightly rates of $120-180, while those near the museum can achieve $150-220 per night during peak seasons. The combination of limited hotel inventory and increasing business travel creates favorable conditions for short-term rental investments, with occupancy rates typically running 65-75% annually.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Bentonville, Arkansas. Local real estate agents like Lindsey & Associates Realty and Coldwell Banker Harris McHaney & Faucette have extensive knowledge of the Bentonville market and can help identify properties near attractions like Crystal Bridges Museum and the Razorback Greenway trail system. National services include Mashvisor, which provides Airbnb analytics and investment property search tools, and BiggerPockets, which offers market analysis and connects investors with local professionals. AirDNA provides short-term rental data and market insights specific to the Bentonville area, while companies like Awning and RedAwning offer full-service Airbnb investment solutions including property acquisition and management. Local property management companies such as NWA Short Term Rentals and Ozark Mountain Property Management can assist with both finding investment properties and managing them post-purchase. RE/MAX Real Estate Results and Crye-Leike Realtors have agents experienced in investment properties in the Northwest Arkansas region, and national platforms like Roofstock and HomeUnion also serve the Bentonville market for turnkey rental property investments.