Is Broken Arrow, Oklahoma Good for Airbnb Investment?

To start an Airbnb in Broken Arrow, Oklahoma, begin by researching local zoning laws and regulations through the City of Broken Arrow Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact the Broken Arrow Business License Division at City Hall (220 S 1st Street) to obtain the necessary business license, which typically costs around $25-50 annually, and verify your property meets fire safety codes and building requirements through the Building Inspection Department. Find a suitable property by searching areas like the Rose District or neighborhoods near Nienhuis Park that attract visitors, ensuring the property allows short-term rentals according to HOA rules or lease agreements if not owner-occupied. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local touches highlighting Broken Arrow's proximity to Tulsa attractions and outdoor activities at places like Ray Harral Nature Park. Create your Airbnb listing with professional photos showcasing the property's proximity to Tulsa (20 minutes), local attractions like the Broken Arrow Performing Arts Center, and nearby shopping at Woodland Hills Mall. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, coordinate key exchanges or install smart locks, maintain competitive pricing for the Tulsa metro market (typically $60-120 per night depending on size and amenities), and ensure compliance with Oklahoma's 5.5% state sales tax plus Broken Arrow's local hotel/motel tax requirements by registering with the Oklahoma Tax Commission.

To identify profitable short-term rental properties in Broken Arrow, Oklahoma, focus on locations within 15-20 minutes of downtown Tulsa, near attractions like the Rose District, Broken Arrow Events Park, or close to major employers like FlightSafety International. Target 3-4 bedroom single-family homes or condos built after 1990 with modern amenities, outdoor spaces, and parking, as these appeal to families visiting for youth sports tournaments and business travelers. Analyze pricing by researching comparable STRs on Airbnb and VRBO, aiming for properties under $200,000 that can command $80-150 nightly rates with 60-70% occupancy. Study competition using AirDNA and Mashvisor to identify gaps in the market, particularly around event venues and corporate housing needs. Leverage local resources like the Broken Arrow Chamber of Commerce for event calendars, partner with Tulsa-area property management companies like RedAwning or Vacasa, and monitor the Rose District development plans since 2018 for emerging opportunities. Consider proximity to medical facilities like Saint Francis Hospital system and seasonal demand from Gathering Place visitors, while ensuring compliance with Broken Arrow's STR regulations established in recent years.

To obtain an Airbnb/STR permit in Broken Arrow, Oklahoma, you must first contact the City of Broken Arrow Planning Department at 220 S 1st Street or call (918) 259-2400 to determine if short-term rentals are permitted in your specific zoning district, as the city has been developing regulations since 2019. You'll need to submit an application through the Planning Department along with required documents including a completed STR application form, proof of property ownership or lease agreement, site plan showing parking areas, floor plan of the rental unit, proof of liability insurance (typically $1 million minimum), Oklahoma tax permit number, and contact information for a local property manager if you live more than 50 miles away. The application fee is estimated at $150-300 with an annual renewal fee of approximately $100-200. You must also register with the Oklahoma Tax Commission for state and local tax collection, obtain a business license from Broken Arrow (approximately $25-50), and ensure compliance with fire safety codes which may require inspection by the Fire Marshal. The approval timeline typically takes 30-60 days depending on completeness of application and any required inspections. Broken Arrow requires STR properties to maintain adequate off-street parking (minimum 2 spaces), limit occupancy based on bedroom count plus two additional guests, maintain quiet hours from 10 PM to 7 AM, post emergency contact information prominently, and allow no more than two vehicles per rental unit, with some neighborhoods having additional restrictions on the percentage of STR properties allowed per block.

Short-term rentals (STRs) are legal in Broken Arrow, Oklahoma, but operate under specific regulations established by the city. As of 2023, Broken Arrow requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential areas while prohibiting them in some neighborhoods to preserve residential character. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR operators 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 contact information for a responsible party available 24/7 to address any issues. Recent changes have included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental, with the city requiring annual license renewals and periodic inspections to ensure compliance with health and safety codes.

The best areas for Airbnb investment in Broken Arrow, Oklahoma include the Rose District downtown area, which attracts visitors for its antique shops, restaurants, and annual Rose Festival events, plus business travelers visiting nearby corporate offices. The neighborhoods around Nienhuis Park and Ray Harral Nature Park are ideal for families and outdoor enthusiasts visiting the extensive trail systems and recreational facilities. Areas near the Broken Arrow Performing Arts Center draw guests attending concerts and theatrical performances throughout the year. The historic Main Street corridor benefits from proximity to local festivals, farmers markets, and cultural events. Neighborhoods close to Bass Pro Shops and other major retail centers along the 71st Street corridor attract shopping tourists and business travelers. The residential areas near Broken Arrow Senior High School and surrounding sports complexes see demand during athletic tournaments and school events. Properties within a 10-15 minute drive of Tulsa's central business district capitalize on overflow demand from Tulsa's corporate travel market while offering more affordable and spacious accommodations than downtown Tulsa hotels.

In Broken Arrow, Oklahoma, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The Oklahoma state lodging tax is 5.5% on gross rental receipts, while Broken Arrow imposes an additional local hotel/motel tax of approximately 6%, bringing the total lodging tax rate to around 11.5% for short-term rentals under 30 days. These taxes are collected by the host at the time of booking or check-in and must be remitted monthly to the Oklahoma Tax Commission for state taxes and to the City of Broken Arrow for local taxes, with returns typically due by the 20th of the following month. Airbnb may collect and remit these taxes automatically in some jurisdictions through their platform, but hosts should verify this arrangement and register with both state and local tax authorities to ensure compliance. Properties rented for 30 days or longer are generally exempt from lodging taxes and may instead be subject to regular sales tax, while certain exemptions may apply for government employees, long-term medical patients, or other qualifying circumstances as defined by Oklahoma state law and Broken Arrow municipal ordinances.

The total cost to start an Airbnb in Broken Arrow, Oklahoma is approximately $285,000-$315,000. Property purchase costs around $180,000-$200,000 based on median home prices in the area as of 2023-2024. Furnishing a 3-bedroom property typically runs $15,000-$25,000 including beds, living room furniture, kitchen essentials, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,500 depending on local regulations. Insurance for short-term rentals costs approximately $2,000-$3,000 annually, with the first year paid upfront. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning services ($150 per turnover), maintenance, supplies, platform fees (3% of bookings), and marketing total approximately $8,000-$12,000 assuming 60-70% occupancy rates and average nightly rates of $120-$150 in the Tulsa metro area market.

Airbnb properties in Broken Arrow, Oklahoma typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Broken Arrow's Rose District and those offering 3+ bedrooms with modern amenities achieve the highest occupancy rates of 60-75%, while basic 1-2 bedroom units typically see 45-60% occupancy. Net profit margins for successful operators range from 15-35%, with properties purchased specifically for short-term rental investment showing stronger returns than converted primary residences. Success factors include proximity to Tulsa (20 minutes), competitive pricing against hotels like Hampton Inn and Holiday Inn Express, professional photography, responsive guest communication, and targeting business travelers and families visiting the area's attractions like the Broken Arrow Historical Museum and nearby Hard Rock Casino. Properties that maintain 4.8+ star ratings and offer amenities like high-speed internet, full kitchens, and parking consistently outperform the market average, with some hosts reporting monthly profits of $800-$2,200 after all expenses on properties valued between $150,000-$300,000.

Airbnb investments in Broken Arrow, Oklahoma typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near attractions like the Rose District or Broken Arrow Events Park can achieve higher returns of 12-15% annually. Initial profitability usually occurs within 18-24 months, with break-even on cash investment typically reached in 24-36 months depending on property acquisition costs and renovation expenses. The market benefits from proximity to Tulsa's corporate presence including companies like QuikTrip and ONEOK, driving consistent business traveler demand, while recreational visitors support weekend bookings. Average daily rates range from $85-120 for well-appointed 2-3 bedroom properties, with occupancy rates of 65-75% achievable for professionally managed listings, resulting in gross rental yields of 10-14% before expenses.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Broken Arrow, Oklahoma. Local real estate agents who focus on investment properties in the Broken Arrow area include Keller Williams Realty agents specializing in rental properties, Coldwell Banker Select agents with STR experience, and RE/MAX professionals who understand the Tulsa metro vacation rental market. National services that can help locate Airbnb investments in Broken Arrow include Mashvisor for property analytics, AirDNA for market data and revenue projections, Awning for turnkey Airbnb investments, RedAwning for vacation rental property sourcing, and Vacasa which offers property management and acquisition services. Local property management companies like Tulsa Airbnb Management and Oklahoma Short Term Rentals can provide insights into profitable areas within Broken Arrow, while investment-focused real estate firms such as BiggerPockets-affiliated agents and local REIA (Real Estate Investment Association) members often have expertise in identifying cash-flowing vacation rental properties in the Broken Arrow and greater Tulsa metropolitan area.