Is Bentonville, Arkansas Good for Airbnb Investment?

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Bentonville, Arkansas market research

Bentonville, Arkansas Airbnb Investment Overview

$1,200–$3,500Typical monthly host earnings
8–15%Typical annual ROI
65–70%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Bentonville, Arkansas?

Potentially. Bentonville, Arkansas combines visitor demand with long-term real estate upside.

  • Presents a promising outlook, largely driven by the city's unique economic and cultural landscape.
  • Bentonville's strong job market, anchored by Walmart's headquarters and a growing tech sector, draws a steady stream of business travelers.
  • Furthermore, the city has become a significant tourist destination, especially for art enthusiasts visiting Crystal Bridges Museum of American Art and outdoor adventurers exploring the extensive mountain biking trails.
  • These factors contribute to high occupancy rates and consistent rental demand.
  • Property values in Bentonville have seen appreciation, reflecting its desirability, but remain relatively affordable compared to larger metropolitan areas.
  • The investment potential is further enhanced by ongoing urban development and community initiatives that continue to attract visitors and residents.
Earnings

How Much Does an Average Airbnb Earn in Bentonville?

$1,200–$3,500 per month based on location, season, and property quality.

  • Based on available market data and rental analytics, Airbnb hosts in Bentonville, Arkansas typically earn between $1,200 to $3,500 per month.
  • Seasonal variations show peak earnings during spring and fall months when mountain biking tourism surges due to the extensive trail systems.
  • Key factors affecting earnings include proximity to downtown Bentonville and the crystal bridges museum area, property size and amenities, professional photography and listing optimization.
  • Properties within walking distance of trails or downtown command premium rates of $150-250 per night, while suburban locations typically range $80-140 nightly.
  • The market benefits from consistent corporate travel demand and weekend leisure visitors, though hosts report lower occupancy during winter months when outdoor activities decline.
  • Revenue optimization strategies include targeting cycling events, providing bike storage and maintenance areas.
ROI Analysis

Airbnb Return on Investment in Bentonville

Potentially strong, with a typical annual ROI of 8–15%.

  • Typically generate ROI between 8-15% annually, with higher-end properties near downtown and Crystal Bridges Museum achieving returns closer to 12-18% due to strong corporate and tourist demand from Walmart headquarters and cultural attractions.
  • The average payback period ranges from 6-10 years depending on initial investment and property type, with furnished 2-3 bedroom homes performing best at average nightly rates of $85-140.
  • Compared to traditional long-term rentals yielding 6-9% annually in Bentonville, short-term rentals generally outperform by 3-6 percentage points.
  • Properties within 3 miles of downtown Bentonville command premium rates and achieve occupancy rates of 65-75% annually.
Occupancy Rate

Average Airbnb Occupancy Rate in Bentonville

Bentonville, Arkansas averages 65–70% annual occupancy, with seasonal variation.

  • Airbnb occupancy rates in Bentonville, Arkansas average approximately 65-70% annually, with peak seasons occurring during spring and fall months (March-May and September-November) when occupancy rates can reach 75-85% due to favorable weather and increased business travel to Walmart's headquarters and vendor meetings.
  • Summer months typically see moderate occupancy around 60-65%, while winter months drop to 45-55% as tourism and business travel decline.
  • The city experiences significant spikes during major events like the Walmart shareholders meeting in June and cycling events at the Razorback Greenway.
  • Bentonville's occupancy rates exceed both Arkansas state averages of approximately 55-60% and national Airbnb averages of 48-52%, primarily due to consistent corporate demand from Walmart suppliers and vendors.
  • Weekend occupancy rates typically outperform weekdays by 15-20 percentage points, reflecting the city's appeal as a regional destination for outdoor recreation and cultural attractions.
Best Neighborhoods

Best Neighborhoods for Airbnb in Bentonville

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The downtown Bentonville area stands out as the premier Airbnb investment location due to its walkability to Crystal Bridges Museum, the Momentary arts venue, and numerous restaurants.
  • The Coler Mountain Bike Preserve vicinity offers excellent potential for outdoor enthusiasts visiting the world-class trail system.
  • Neighborhoods near the Razorback Greenway trail system provide strong investment opportunities as they attract both recreational visitors and business travelers.
  • The areas surrounding Lawrence Plaza and the town square benefit from proximity to farmers markets, festivals, and corporate headquarters.
  • Residential neighborhoods within a 10-minute drive of downtown, such as those near Bentonville High School, offer lower acquisition costs while still maintaining access to major attractions.
  • The Tiger Boulevard corridor provides strategic positioning between downtown attractions and the airport.
  • Properties near the Walmart corporate campus and surrounding business districts capture consistent demand from corporate visitors and consultants.
Regulations

Short-term Rental Regulations in Bentonville

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Bentonville, Arkansas requires short-term rental operators to obtain a business license and register their properties with the city.
  • Occupancy limits are generally restricted to two guests per bedroom plus two additional guests, with a maximum of 10-12 occupants total depending on the property size and parking availability.
  • The city does not currently require owner-occupancy for short-term rentals, allowing both hosted and non-hosted rentals to operate.
  • Zoning restrictions permit short-term rentals in most residential districts but may require conditional use permits in certain zones.
  • The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and paying applicable fees.
  • Recent regulatory changes have focused on strengthening noise ordinances, implementing stricter parking requirements (typically one space per bedroom), and enhancing complaint response procedures.
Fees and Taxes

Short-term Rental Fees and Taxes in Bentonville

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Bentonville, Arkansas are subject to several fees and taxes including Arkansas state sales tax of 6.5%, Benton County sales tax of approximately 1.5%, and Bentonville city sales tax of 2%.
  • The city requires a business license costing approximately $50-75 annually, and operators must collect and remit a lodging tax of 2% to the Arkansas Department of Finance and Administration.
  • Property owners may need to pay additional tourism or advertising promotion taxes of 1-2% depending on the rental's location and classification.
  • Registration fees for short-term rental permits typically range from $100-200 annually, with some properties requiring zoning compliance fees of $25-50.
  • Fire safety inspections may cost $75-150 per year, and operators should budget for potential homeowner association fees if applicable.
Common questions

Bentonville, Arkansas Airbnb investment FAQs

How to start an Airbnb in Bentonville, Arkansas?

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.

Launch checklist

  • Contact Bentonville's Planning Department at 479 to 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 to $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 to $25,000 for a complete setup including WiFi, smart TV.
  • 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 to $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.
What's the best way to identify good STR properties in Bentonville, Arkansas?

To identify profitable short term rental properties in Bentonville, Arkansas, focus on locations within 2 to 3 miles of downtown Bentonville and the Walmart headquarters, near the Razorback Greenway trail system, and close to Crystal Bridges Museum of American Art.

What to prioritize

  • Target 2 to 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.
  • Analyze comparable properties using AirDNA and Mashvisor to identify the $150 to 250 nightly rate sweet spot, while monitoring occupancy rates that typically range 65 to 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.
How to get an Airbnb permit in Bentonville, Arkansas?

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 to 2020.

Documents and approvals

  • 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).
  • The application fee is estimated at $150 to 300 with potential additional inspection fees of $75 to 150.
  • You must also register for a business license through the City Clerk's office (approximately $25 to 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 to 45 days after submitting a complete application, pending inspections and neighbor notification periods, and permits must be renewed annually with continued compliance monitoring.
Is it legal to operate a short-term rental in Bentonville, Arkansas?

Short term rentals (STRs) are legal in Bentonville, Arkansas, but operate under specific regulations established by the city.

Core operating requirements

  • 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.
What are the best places to invest in Airbnb in Bentonville, Arkansas?

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.

Areas to research

  • 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.
Airbnb and lodging taxes in Bentonville, Arkansas

In Bentonville, Arkansas, Airbnb hosts are subject to both state and local lodging taxes.

Taxes and filing responsibilities

  • 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 to 3%, potentially making the combined rate 6 to 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 to 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.
Total cost to purchase, furnish and operate an Airbnb in Bentonville, Arkansas

To start an Airbnb in Bentonville, Arkansas, expect total costs around $285,000 to $315,000.

Cost breakdown

  • Property purchase averages $275,000 for a median 3 bedroom home suitable for short term rental.
  • Furnishing costs range $15,000 to $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 to $5,000 covering professional photography, listing creation, smart locks, security cameras, and welcome amenities.
  • Permits and fees total $500 to $1,200 including business license ($50 to $200), short term rental permit ($200 to $500), and potential HOA approval fees.
  • Insurance runs $1,500 to $2,500 annually for specialized short term rental coverage beyond standard homeowner's insurance.
  • Utilities average $200 to $300 monthly including electricity, water, gas, internet, and cable.
  • First six months operating costs total $8,000 to $12,000 covering utilities ($1,200 to $1,800), cleaning services ($2,400 to $3,600), supplies and maintenance ($1,500 to $2,500), platform fees to Airbnb and VRBO ($1,200 to $2,000), marketing ($500 to $1,000).
  • Additional considerations include property management software subscriptions ($50 to $100 monthly) and potential property management fees if outsourcing operations.
Are Airbnb properties in Bentonville, Arkansas profitable?

Airbnb properties in Bentonville, Arkansas show strong profitability potential, with average nightly rates ranging from $80 to 150 depending on proximity to Crystal Bridges Museum and downtown areas, generating monthly revenues of $2,400 to 4,500 for well positioned properties with 60 to 70% occupancy rates. Operating expenses typically run 40 to 50% of gross revenue, including cleaning fees ($40 to 60 per turnover), property management (15 to 25%), utilities ($150 to 200 monthly), insurance ($100 to 150 monthly), and maintenance costs, resulting in net profit margins of 25 to 35% for successful operators.

Profitability indicators

  • 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 to 25,000 on properties generating $40,000 to 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.
What is the expected return on investment for an Airbnb in Bentonville, Arkansas?

Airbnb investments in Bentonville, Arkansas typically generate annual ROI of 12 to 18% due to the city's proximity to Walmart headquarters and growing tourism from Crystal Bridges Museum.

Return planning figures

  • Cash on cash returns generally range from 8 to 14% annually, with properties near downtown and the museum district performing at the higher end.
  • Initial profitability usually occurs within 6 to 12 months for well positioned properties, with full investment recovery expected in 5 to 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 to 75% with average daily rates of $120 to 180, while those further out see 50 to 65% occupancy at $80 to 130 nightly rates.
  • The recent development of mountain biking trails and increased corporate events have strengthened demand, with many investors seeing 15 to 20% year over year revenue growth in 2022 to 2023.
What company can help me find and buy a profitable Airbnb in Bentonville, Arkansas?

STRSearch is a leading national platform that helps investors identify profitable short term rental properties in Bentonville, Arkansas, offering market analysis and property recommendations.

Companies and resources

  • 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 to 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.
  • 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.