Is Cabot, Arkansas Good for Airbnb Investment?

To start an Airbnb in Cabot, Arkansas, begin by researching local zoning laws and regulations through the Cabot Planning Department, as the city may require short-term rental permits or business licenses, and check with Lonoke County for any additional requirements since Cabot operates under county jurisdiction for some regulations. Contact the Arkansas Department of Finance and Administration to obtain a state sales tax permit, as you'll need to collect and remit state and local taxes on rental income. Find a suitable property by searching residential areas that allow short-term rentals, focusing on neighborhoods near Cabot's downtown area or properties with easy access to Little Rock (about 25 miles away), and ensure the property meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture, linens, kitchen essentials, and amenities like WiFi, cable TV, and basic toiletries, while ensuring compliance with Arkansas fire safety codes. Create your Airbnb listing with professional photos, detailed descriptions highlighting proximity to Little Rock attractions, Cabot Panther athletics, and local amenities like Cabot Commons shopping center. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries and reviews, maintain the property regularly, keep detailed records for tax purposes, and consider hiring a local property management company if you live out of area, while staying current with any changes to Cabot's short-term rental ordinances as the city continues to develop its regulations in this growing market.

To identify profitable short-term rental properties in Cabot, Arkansas, focus on locations within 15-20 minutes of Little Rock's downtown area, near Cabot High School sports facilities, and close to outdoor recreation areas like Brewer Lake or the Arkansas River, as these attract business travelers, sports families, and weekend tourists. Target 3-4 bedroom single-family homes built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces like decks or patios, as families and groups prefer these features over cramped apartments. Analyze comparable properties using AirDNA and Mashvisor to determine that average daily rates in Cabot range from $80-120, with occupancy rates around 60-70%, making properties under $200,000 potentially profitable with gross yields of 12-18%. Research competition by monitoring existing Airbnb and VRBO listings within a 5-mile radius, noting that Cabot has limited STR inventory compared to Little Rock, creating opportunity for well-positioned properties. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with local property management companies like Arkansas Short Term Rentals or Little Rock-based STR managers, while ensuring compliance with Cabot's zoning regulations and obtaining proper business licenses through the city clerk's office.

To obtain an Airbnb/STR permit in Cabot, Arkansas, you must first contact the Cabot City Planning and Zoning Department at City Hall located at 2 South Second Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires compliance with local zoning ordinances. Submit an application for a business license through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental property, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. You'll need to pay the annual business license fee of approximately $50-75 and potentially additional zoning compliance fees of $25-50. The property must pass a safety inspection conducted by the Cabot Fire Department, which includes verification of smoke detectors, carbon monoxide detectors, fire extinguishers, and proper egress windows in sleeping areas. The approval timeline typically takes 2-4 weeks after submitting complete documentation and passing inspections. Cabot requires STR operators to maintain a guest registry, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking (minimum 1 space per bedroom), and ensure quiet hours from 10 PM to 7 AM, with the property owner or designated local contact available 24/7 for neighbor complaints or emergencies.

Short-term rentals (STRs) are generally legal in Cabot, Arkansas, as the city has not enacted specific prohibitions against vacation rentals or short-term accommodations. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict commercial activities in certain residential areas. The city requires business licenses for rental operations and properties must meet health and safety standards. Cabot follows Arkansas state law which generally permits short-term rentals unless specifically prohibited by local ordinance. As of 2023-2024, there have been no major recent changes to STR regulations in Cabot, though operators should verify current zoning compliance in their specific neighborhoods as some residential zones may have restrictions on commercial activities. The city has not implemented the more restrictive STR regulations seen in larger Arkansas cities like Little Rock or Fayetteville, maintaining a relatively permissive approach while ensuring basic business compliance and neighborhood compatibility.

The best areas for Airbnb investment in Cabot, Arkansas include the downtown historic district near Main Street, which attracts visitors interested in small-town charm and local events like the annual Cabot Strawberry Festival, and neighborhoods near Cabot High School and athletic facilities that draw sports-related travelers during football season and tournaments. Properties near the Cabot Community Center and municipal complex benefit from government and business travelers, while areas close to Greystone Golf & Country Club appeal to golf enthusiasts and corporate retreat attendees. The residential neighborhoods along Highway 5 and near Walmart distribution facilities capture business travelers and logistics professionals, and properties within walking distance of local restaurants and the farmers market area provide authentic Arkansas experiences that tourists seek when exploring central Arkansas attractions.

Airbnb properties in Cabot, Arkansas are subject to Arkansas state sales tax of 6.5% and state tourism tax of 2% on lodging stays under 30 days, totaling 8.5% in state-level taxes. Pulaski County imposes an additional 2% lodging tax, bringing the combined rate to approximately 10.5%. The City of Cabot may impose local sales tax of up to 3% on short-term rentals, though specific municipal lodging taxes vary by local ordinance. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties enrolled in their tax collection service, which began around 2018-2019 for Arkansas. For hosts not using Airbnb's collection service, they must register with the Arkansas Department of Finance and Administration and remit taxes monthly if collections exceed $200 or quarterly if less, with returns due by the 20th of the following month. Stays of 30 days or longer are generally exempt from tourism taxes but may still be subject to sales tax. Property owners must obtain a sales tax permit and may need additional local business licenses depending on Cabot's specific requirements for short-term rental operations.

Starting an Airbnb in Cabot, Arkansas requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-3,000. Permits and fees in Arkansas generally cost $300-800 covering business licenses and short-term rental permits. Insurance premiums for short-term rentals run $1,200-2,000 annually, with the first year paid upfront. Utility deposits and initial connections cost approximately $500-800. First six months of operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total around $3,600. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-4,000 to the initial investment.

Airbnb properties in Cabot, Arkansas typically generate modest profitability with average daily rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,600 for well-managed properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-15%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs ($200-400/month). Properties near Cabot's downtown area or those offering unique amenities like hot tubs or game rooms achieve higher occupancy rates and can maintain profit margins of 25-35% after expenses. A typical 3-bedroom home purchased for $180,000 and generating $2,400 monthly revenue with $1,200 in total expenses would yield approximately $14,400 annual profit, representing an 8% return on investment. Success factors in this market include proximity to Little Rock (20 minutes away), competitive pricing against local hotels, professional photography, responsive guest communication, and targeting business travelers and families visiting the region, though the market remains relatively small compared to major tourist destinations, requiring realistic expectations for scaling operations.

Airbnb investments in Cabot, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to Little Rock and growing suburban appeal. Properties in Cabot, particularly 3-4 bedroom homes near the downtown area or close to Highway 67/167 corridor, can achieve occupancy rates of 65-75% annually with average daily rates of $85-120. Initial investment recovery and profitability typically occurs within 18-24 months, assuming a 20-25% down payment on properties valued between $180,000-280,000. The market benefits from Cabot's family-friendly reputation, local events, and business travelers visiting nearby Conway and Little Rock, with seasonal peaks during spring and fall months driving higher returns. Cash-on-cash returns tend to be stronger in the first 2-3 years as property appreciation in Cabot has averaged 4-6% annually since 2020, while rental demand remains steady due to the city's population growth and limited hotel inventory.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Cabot, Arkansas, using data analytics to evaluate potential returns. Local real estate agents in the Cabot area who specialize in investment properties include Realty Executives Arkansas Properties and Crye-Leike Real Estate Services, both of which have agents familiar with the Central Arkansas market and short-term rental regulations. RE/MAX Real Estate Partners and Coldwell Banker Heritage also serve the Cabot market with investment-focused agents. National services that assist Airbnb investors include Awning (formerly RedAwning), which provides market analysis and property management services, AirDNA for market data and analytics, Mashvisor for investment property analysis, and Roofstock for turnkey rental properties. BiggerPockets connects investors with local professionals and provides educational resources, while Vacasa offers property management services for short-term rentals in the Arkansas market. Local property management companies that handle Airbnb properties in the Cabot area include Arkansas Property Management Group and Central Arkansas Property Management, which can assist with the operational aspects of short-term rental investments in this growing suburb of Little Rock.