Is Camden, Arkansas Good for Airbnb Investment?

To start an Airbnb in Camden, Arkansas, begin by researching local zoning laws and regulations through the Camden City Hall and Ouachita County offices, as short-term rentals may require special permits or have restrictions in certain residential zones. 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 working with local real estate agents familiar with Camden's market, focusing on areas near attractions like the Camden Expedition sites or downtown, with properties typically ranging from $80,000-$150,000 for suitable homes. Obtain necessary permits including a business license from Camden City Hall (approximately $50-100), fire safety inspection if required, and ensure compliance with Arkansas landlord-tenant laws. Furnish the property with quality furniture, linens, and amenities sourced from retailers in nearby Monroe, Louisiana or Little Rock, budgeting $8,000-15,000 for a complete setup. Create your Airbnb listing with professional photos highlighting Camden's historic charm and proximity to outdoor activities along the Ouachita River, setting competitive rates around $75-125 per night based on local market analysis. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies in the Camden area if you're not local, while maintaining responsive communication with guests and ensuring compliance with Arkansas short-term rental tax requirements through quarterly filings.

To identify profitable short-term rental properties in Camden, Arkansas, focus on locations near Ouachita River waterfront areas, downtown historic districts within walking distance of restaurants and attractions, and properties close to Southern Arkansas University events or White Oak Lake recreational areas. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces like decks or patios, reliable WiFi capability, and parking for 2+ vehicles, as these features appeal to families and fishing enthusiasts visiting the area. Conduct pricing analysis by researching comparable Airbnb listings within 10 miles, aiming for properties under $150,000 that can generate $80-120 nightly rates during peak seasons (spring/summer fishing and hunting seasons), with occupancy rates of 40-60% being realistic for this smaller market. Research competition using AirDNA, Mashvisor, and direct Airbnb searches to identify gaps in the market, noting that Camden has limited STR inventory compared to larger Arkansas cities, creating opportunities for well-positioned properties. Utilize tools like Zillow and Realtor.com for property searches, STR-specific platforms like AirDNA for market analysis, connect with local real estate agents familiar with investment properties, and monitor Camden's tourism patterns through the Camden Area Chamber of Commerce and Arkansas tourism data to understand seasonal demand fluctuations.

To obtain an Airbnb/STR permit in Camden, Arkansas, contact the Camden City Clerk's office at City Hall located at 314 Adams Avenue SW or call (870) 836-5731 to begin the application process. You'll need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and pay the annual business license fee of approximately $50-75 plus a short-term rental permit fee of around $100-150. The property must comply with Camden's zoning ordinances, pass a fire safety inspection conducted by the Camden Fire Department, and meet all building code requirements including smoke detectors in each bedroom and common areas, carbon monoxide detectors if applicable, and proper egress windows. Submit your application with all required documents and fees to the City Clerk, schedule the mandatory property inspection within 10-14 days, and once approved, you'll receive your permit within 2-3 weeks of successful inspection. The permit must be renewed annually, and you're required to maintain a local contact person available 24/7, display the permit number in your listing, and collect and remit the 2% city lodging tax monthly to the Camden Finance Department.

Short-term rentals (STRs) are generally legal in Camden, Arkansas, as the city has not enacted specific prohibitive ordinances against vacation rentals as of 2023. However, STR operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in residential areas, and state tax obligations including sales and lodging taxes. The city follows Arkansas state guidelines which allow municipalities to regulate STRs through zoning and business permit processes. Camden's zoning ordinances may limit STRs in certain residential districts, particularly R-1 single-family zones, while allowing them more freely in commercial and mixed-use areas. Property owners should obtain proper business licenses from the city and register with the Arkansas Department of Finance and Administration for tax collection purposes. Recent trends in Arkansas show increasing local regulation of STRs, with some cities implementing registration requirements, occupancy limits, and parking restrictions, though Camden has maintained a relatively permissive approach compared to larger Arkansas cities like Little Rock or Fayetteville which have implemented more comprehensive STR regulations.

The best areas for Airbnb investment in Camden, Arkansas are the Historic Downtown District near the courthouse square, which attracts visitors interested in the city's antebellum architecture and Civil War history, and the Ouachita River waterfront area, popular with fishing enthusiasts and outdoor recreation tourists visiting for bass fishing tournaments and water activities. The area near Southern Arkansas University Tech campus offers potential for visiting families, prospective students, and business travelers, while properties near the Camden Country Club attract golf tourism and upscale visitors. The neighborhoods around White Oak Lake State Park, approximately 20 minutes from downtown, provide opportunities for nature-based tourism and weekend getaways, particularly during hunting and fishing seasons. Additionally, areas near major employers like Lockheed Martin and International Paper can capture business travel demand, though this market may be more limited compared to leisure tourism focused on Camden's outdoor recreation and historical attractions.

Airbnb properties in Camden, Arkansas are subject to Arkansas state sales tax of 6.5% on lodging accommodations, which applies to short-term rentals under 30 days. The Arkansas Department of Finance and Administration requires hosts to register for a sales tax permit and collect taxes from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month for properties generating over $200 in monthly tax liability. Ouachita County may impose an additional local sales tax of up to 2%, bringing the total potential tax rate to approximately 8.5%, though specific county lodging taxes vary by jurisdiction. Camden city may also levy municipal occupancy taxes, typically ranging from 1-3% for short-term rentals, collected similarly through the state system or directly by the municipality. Airbnb Inc. has agreements with Arkansas since 2018 to automatically collect and remit state and applicable local taxes on behalf of hosts in participating jurisdictions, though hosts remain responsible for registration and compliance verification. Exemptions typically include rentals exceeding 30 consecutive days, which are considered long-term leases rather than transient lodging, and properties rented for less than 10 days per year in some cases, though hosts should verify current thresholds with local tax authorities.

To start an Airbnb in Camden, Arkansas, the total initial investment would be approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on Camden's median home prices, while furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees vary but typically run $500-$1,500 for business licenses and short-term rental permits. Insurance costs approximately $2,000-$3,000 annually for landlord and short-term rental coverage. Utility setup and deposits require $500-$800, with monthly utilities averaging $200-$300. First six months of operating costs including utilities, cleaning supplies, maintenance, platform fees, and marketing total $8,000-$12,000. Additional considerations include property taxes of roughly $1,200-$2,000 annually and potential HOA fees if applicable, bringing the comprehensive startup investment to the estimated range.

Airbnb properties in Camden, Arkansas typically generate modest returns with average daily rates ranging from $65-85 for entire homes and $35-50 for private rooms, resulting in monthly revenues of $800-1,500 for well-managed properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($80-120 monthly), property management (15-25% if outsourced), insurance ($800-1,200 annually), and maintenance costs averaging $100-200 monthly. Properties near Ouachita River or downtown Camden command premium rates, with a renovated 3-bedroom Victorian home earning approximately $1,200 monthly gross revenue against $600 in expenses, yielding 50% profit margins. Success factors include proximity to White Oak Lake State Park, competitive pricing 10-15% below Little Rock rates, professional photography, and targeting fishing/hunting tourists during peak seasons (spring and fall) when occupancy can reach 80-85%. Most Camden Airbnb operators achieve annual net profits of $3,000-8,000 per property, with break-even typically occurring within 18-24 months for properties requiring minimal renovation, though the limited tourism infrastructure and seasonal demand patterns present challenges compared to larger Arkansas markets.

Based on Camden, Arkansas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Ouachita River or downtown Camden tend to perform better, with average daily rates of $75-$95 and occupancy rates around 45-60% annually. Initial investment recovery and profitability usually occurs within 18-24 months for well-positioned properties, though this can extend to 30-36 months for higher-end renovations. The market benefits from outdoor recreation tourism, business travelers to companies like Lockheed Martin, and visitors to Southern Arkansas University, with peak seasons during spring and fall generating 15-25% higher returns than winter months.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Camden, Arkansas by providing data analytics and market insights. Local real estate agents in Camden who specialize in investment properties include Coldwell Banker Elite and Century 21 Parker & Associates, both of which have experience with vacation rental investments in the Ouachita County area. National services like Awning (formerly RedAwning) and Mashvisor offer comprehensive Airbnb investment analysis tools and property search capabilities for the Camden market. AirDNA provides detailed short-term rental market data and revenue projections for Camden properties, while BiggerPockets connects investors with local real estate professionals familiar with the Arkansas vacation rental market. Local property management companies such as Camden Property Management and South Arkansas Property Services can assist with both acquisition and ongoing management of Airbnb investments. Real estate investment firms like HomeVestors and We Buy Ugly Houses also operate in the Camden area and can help investors find distressed properties suitable for Airbnb conversion. Additionally, platforms like Roofstock and Fundrise offer turnkey investment opportunities that may include properties suitable for short-term rental conversion in the Camden region.