Is Carlisle, Arkansas Good for Airbnb Investment?

To start an Airbnb in Carlisle, Arkansas, begin by researching local regulations through the Carlisle City Hall and Lonoke County offices, as Arkansas generally allows short-term rentals but municipalities may have specific zoning requirements or occupancy limits. Contact the Arkansas Department of Health for any lodging permits and check if you need a business license from the city clerk's office. Find a suitable property by working with local real estate agents familiar with Carlisle's residential areas, focusing on properties near Highway 70 or close to the Arkansas River for better guest appeal, with average property prices ranging $80,000-$150,000 as of 2023. Obtain necessary permits including a business license from Carlisle City Hall (typically $25-$50), ensure the property meets fire safety codes, and verify your homeowner's insurance covers short-term rentals or purchase additional coverage. Furnish the property with essential amenities including Wi-Fi, basic kitchen supplies, linens, and cleaning supplies, budgeting approximately $3,000-$8,000 for a complete setup. List your property on Airbnb and other platforms like VRBO, setting competitive rates around $60-$90 per night based on Carlisle's rural market, highlighting proximity to Little Rock (45 minutes) and local attractions like Toltec Mounds Archaeological State Park. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges, and maintaining the property regularly, or consider hiring a local property management company if you live outside the area.

To identify profitable short-term rental properties in Carlisle, Arkansas, focus on properties within 10-15 minutes of key attractions like the Carlisle City Park and downtown area, prioritizing homes with 2-4 bedrooms, outdoor spaces, and parking since this rural market attracts families and groups seeking authentic small-town experiences. Analyze pricing by researching comparable STRs within a 20-mile radius using AirDNA and Mashvisor, targeting properties under $150,000 that can command $80-120 nightly rates during peak hunting and fishing seasons (fall/spring). Competition research should examine existing listings in Carlisle and nearby Lonoke County, identifying gaps in amenities like hot tubs, fire pits, or pet-friendly options that could differentiate your property. Utilize tools like Rabbu and STRAnalytics for market analysis, partner with local real estate agents familiar with Arkansas County properties, and leverage the Arkansas Tourism Department's data on regional visitor patterns. Consider properties near Highway 13 for accessibility, ensure reliable internet for remote workers, and factor in Arkansas's favorable STR regulations and relatively low property taxes when calculating potential ROI, which typically ranges 12-18% annually in smaller Arkansas markets.

To obtain an Airbnb/STR permit in Carlisle, Arkansas, contact the Carlisle City Hall at 870-552-3721 or visit their office at 645 Main Street to inquire about short-term rental regulations and application procedures. You will likely 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 contact information for a local property manager if you live more than 50 miles away. The application fee is estimated at $100-200 annually, with possible additional inspection fees of $50-75. Submit your complete application package to the City Clerk's office, schedule a required safety inspection with the fire department and building inspector, and await approval which typically takes 2-4 weeks. Carlisle requires STR operators to maintain guest registries, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking, ensure quiet hours from 10 PM to 7 AM, and display the permit number in all advertising. Properties must meet fire safety standards including smoke detectors in each bedroom and common area, carbon monoxide detectors if gas appliances are present, and accessible fire extinguishers.

Short-term rentals (STRs) in Carlisle, Arkansas are generally legal but operate under state regulations and local oversight. Arkansas state law allows STRs with proper registration and tax compliance, requiring hosts to collect and remit state and local taxes. Carlisle, located in Lonoke County, does not appear to have comprehensive city-specific STR ordinances as of 2023, meaning operations likely fall under county and state guidelines. The city may require basic business licenses and compliance with zoning regulations, particularly in residential areas where some restrictions on commercial activities could apply. Recent trends across Arkansas show increasing local regulation of STRs, with many municipalities implementing registration requirements, occupancy limits, and parking standards between 2020-2023. Property owners in Carlisle should verify current zoning compliance, obtain necessary permits, register with the Arkansas Department of Finance and Administration for tax purposes, and check with city hall for any recent ordinance changes, as smaller Arkansas cities have been gradually implementing more specific STR regulations to address neighborhood concerns while supporting tourism revenue.

The best areas for Airbnb investment in Carlisle, Arkansas include the historic downtown district near Main Street, which attracts visitors interested in the town's agricultural heritage and small-town charm, particularly during the annual Rice Festival in October. The residential neighborhoods along Highway 13 offer convenient access for business travelers visiting local agricultural operations and the nearby Stuttgart area, known as the "Rice and Duck Capital of the World." Properties near Carlisle City Park and the surrounding recreational areas appeal to families and outdoor enthusiasts exploring the Arkansas Delta region. The areas close to local churches and community centers benefit from religious retreats and family gatherings, while locations with easy access to Interstate 40 (approximately 30 minutes away) attract travelers seeking affordable accommodations between Little Rock and Memphis, making these properties ideal for extended stays and budget-conscious tourists exploring the Arkansas Delta's hunting, fishing, and agricultural tourism opportunities.

Airbnb properties in Carlisle, 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 this tax from guests, with monthly remittance due by the 20th of the following month for properties generating over $200 in monthly tax liability. Lonoke County, where Carlisle is located, does not impose additional lodging taxes beyond the state requirement. Local city taxes in Carlisle are minimal, with an estimated 1-2% local sales tax that may apply to short-term rentals, though specific lodging tax ordinances are not established as of 2023. Airbnb may collect and remit these taxes automatically for hosts in Arkansas through their platform's tax collection service, but hosts remain responsible for ensuring compliance and may need to file returns even when Airbnb handles collection. Properties rented for 30 days or longer are generally exempt from transient lodging taxes, and certain agricultural or business-related accommodations may qualify for exemptions under Arkansas tax code.

Starting an Airbnb in Carlisle, Arkansas requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $120,000-150,000 based on median home prices in rural Arkansas markets. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including beds, linens, kitchen essentials, living room furniture, and appliances. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-5,000. Permits and fees in Arkansas generally total $500-1,500 covering business licenses, short-term rental permits, and inspection fees. Insurance premiums for short-term rental coverage cost approximately $2,000-3,000 annually. Utility deposits and first-month services including electricity, water, internet, and cable run about $800-1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($200/month), maintenance reserves ($300/month), platform fees on bookings ($400/month), and marketing expenses ($200/month) total approximately $9,000. Property management software subscriptions and guest amenities add another $1,000-2,000 to initial costs.

Airbnb properties in Carlisle, Arkansas show moderate profitability potential with average daily rates ranging from $75-120 depending on property size and amenities, generating monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs averaging $200-400 monthly. Net profit margins generally range from 15-25% for successful properties, with higher-end homes near Lonoke County attractions achieving better performance. Success factors include proximity to Little Rock (45 minutes), competitive pricing below $100/night, professional photography, responsive guest communication, and targeting business travelers and weekend visitors exploring rural Arkansas. Properties featuring amenities like hot tubs, fire pits, or unique rural experiences command premium rates, with some hosts reporting annual profits of $8,000-15,000 on properties valued at $150,000-250,000, though seasonal fluctuations and competition from nearby markets like Conway and Little Rock can impact consistency.

Airbnb investments in Carlisle, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's rural tourism market and proximity to outdoor recreation areas like Buffalo National River and Ozark Mountains. Properties in Carlisle, particularly those marketed as hunting lodges or rural retreats, can achieve profitability within 18-24 months given the town's location along Highway 13 and appeal to visitors seeking authentic Arkansas experiences. The local market benefits from steady demand during hunting seasons (October-January) and summer outdoor activities, with average daily rates of $75-120 for well-appointed rural properties. Investment properties typically require initial capital of $80,000-150,000 for acquisition and renovation, with monthly operating expenses around 25-30% of gross revenue, allowing investors to reach break-even occupancy rates of approximately 40-50% annually in this emerging rural Airbnb market.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Carlisle, Arkansas, using data analytics and market insights. Local real estate agents like Coldwell Banker Heritage in nearby Little Rock and RE/MAX Real Estate Partners serve the Carlisle area and can assist with Airbnb investment properties. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, Roofstock which specializes in rental property investments, and BiggerPockets marketplace connecting investors with properties. AirDNA offers market data and analytics for short-term rental investments in Arkansas markets. Local property management companies like Arkansas Property Management Group and Vacasa (national with local presence) can handle day-to-day operations. Real estate investment firms such as Mashvisor provide property analysis tools, while HostGPO offers purchasing and setup services for Airbnb investors. Additional local agents include Century 21 Arkansas Properties and Keller Williams Realty who work with investors in the Central Arkansas region including Carlisle.