Is Clarendon, Arkansas Good for Airbnb Investment?

To start an Airbnb in Clarendon, Arkansas, begin by researching Monroe County and city regulations, as Arkansas generally allows short-term rentals but local ordinances may apply - contact Clarendon City Hall at (870) 747-3434 to verify zoning compliance and permit requirements. Obtain necessary business licenses through the Arkansas Secretary of State and register for state and local taxes, including Arkansas's 6.5% sales tax plus Monroe County's additional tax. Find a suitable property by searching local real estate listings, considering proximity to the White River for fishing tourism and the Delta Cultural Center area, with average property prices ranging $40,000-$80,000 for modest homes. Furnish the space with essential amenities including reliable internet, air conditioning (crucial for Arkansas summers), comfortable bedding, kitchen basics, and local guidebooks highlighting nearby attractions like the Louisiana Purchase Historical State Park. Create your Airbnb listing with professional photos, competitive pricing around $60-$90 per night based on regional rates, and detailed descriptions emphasizing outdoor recreation access and Delta region culture. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services in the Clarendon area, and potentially partnering with property management companies in nearby Little Rock if you're not local, while ensuring compliance with Arkansas innkeeper laws and maintaining proper insurance coverage for short-term rental operations.

To identify profitable short-term rental properties in Clarendon, Arkansas, focus on properties within 2-3 miles of the White River and Arkansas River confluence, as this area attracts fishing and hunting enthusiasts year-round. Target 2-4 bedroom homes built after 1980 with updated kitchens, reliable HVAC systems, and outdoor spaces like decks or fire pits that appeal to outdoor recreation visitors. Analyze comparable properties using AirDNA and Mashvisor to identify optimal pricing between $75-150 per night, with seasonal adjustments for peak hunting seasons (October-January) and fishing periods (March-June, September-October). Research competition within a 15-mile radius including properties in Stuttgart and DeWitt, noting that Clarendon's limited inventory of 5-10 active STRs creates opportunity for well-positioned properties. Utilize tools like Rabbu and PriceLabs for dynamic pricing, partner with local hunting guides and fishing outfitters for referrals, and leverage Facebook groups focused on Arkansas hunting and fishing to understand guest preferences. Properties near Dagmar Wildlife Management Area or with easy boat launch access command premium rates, while those offering amenities like fish cleaning stations, freezer space, and gear storage see higher occupancy rates averaging 60-75% annually with gross revenues of $25,000-45,000 for well-managed properties.

To obtain an Airbnb/STR permit in Clarendon, Arkansas, contact the Clarendon City Hall at 870-747-3434 or visit their office at 17 North First 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, contact information for a local property manager if you live more than 50 miles away, and pay applicable fees which typically range from $50-200 annually for the business license plus any inspection fees of approximately $75-150. The timeline for approval is generally 2-4 weeks after submitting a complete application, though initial inspections by the fire marshal and building inspector may be required before final approval. Clarendon may require compliance with occupancy limits based on square footage and bedrooms, installation of smoke and carbon monoxide detectors in all sleeping areas, provision of emergency contact information to neighbors, maintenance of guest registry records, and adherence to noise ordinances and parking restrictions that limit the number of vehicles per rental unit.

Short-term rentals (STRs) in Clarendon, Arkansas are generally legal as the city does not have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Arkansas state regulations which require STR hosts to collect and remit state and local taxes, including the 6.5% state sales tax and applicable local taxes. Properties must meet basic safety standards and zoning requirements, with most residential areas allowing STRs unless specifically restricted by homeowners associations or deed restrictions. Clarendon, being a small city in Monroe County with a population under 2,000, has not implemented the comprehensive STR regulations seen in larger Arkansas cities like Little Rock or Fayetteville, though operators should verify current zoning compliance with city hall and ensure proper business licensing. The city follows standard residential property use guidelines, and there have been no recent significant legal changes specifically targeting short-term rentals, making Clarendon relatively permissive compared to other Arkansas municipalities that have enacted stricter STR ordinances in recent years.

The best areas for Airbnb investment in Clarendon, Arkansas are the Historic Downtown District near the courthouse square, which attracts visitors interested in the town's railroad heritage and antique shopping, and properties along the White River corridor, particularly near Clarendon Marina and boat launches, which draw fishing enthusiasts and waterfowl hunters year-round. The area near Highway 79 and Interstate 40 interchange offers potential for business travelers and those passing through this major transportation corridor. Properties within walking distance of the Monroe County Courthouse can capture legal professionals and government-related visitors, while homes near Clarendon City Park and the community center appeal to families attending local events and sports tournaments. The residential areas along North Louisiana Street and West Monroe Street provide quiet, family-friendly accommodations for visitors attending weddings, family reunions, or exploring the Arkansas Delta region's agricultural heritage and outdoor recreation opportunities.

Airbnb properties in Clarendon, Arkansas are subject to Arkansas state sales tax of 6.5% on lodging accommodations, which applies to short-term rentals under 30 days. Monroe County, where Clarendon is located, may impose an additional local sales tax of approximately 1-2%, bringing the total tax rate to around 7.5-8.5%. The City of Clarendon does not appear to have a specific lodging or occupancy tax beyond standard sales tax requirements. Airbnb typically collects and remits Arkansas state sales tax automatically for hosts through their platform as of 2018, but hosts remain responsible for ensuring compliance with any additional local taxes that may not be collected by the platform. Hosts must register with the Arkansas Department of Finance and Administration if collecting taxes independently, file monthly returns, and remit taxes by the 20th of the following month. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than taxable short-term accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

To start an Airbnb in Clarendon, Arkansas, the total estimated costs would be approximately $95,000-$115,000. Property purchase costs around $65,000-$80,000 based on median home prices in rural Arkansas markets. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, short-term rental permits, and tax registration would cost $300-$800. Insurance including landlord and short-term rental coverage would be $1,200-$1,800 annually. Utilities setup and deposits for electricity, water, internet, and cable would cost $500-$800. First six months operating costs including utilities ($600-$900), cleaning supplies and services ($1,200-$1,800), maintenance ($800-$1,200), marketing ($300-$600), and platform fees would total approximately $15,000-$20,000, assuming moderate occupancy rates typical for smaller Arkansas markets.

Based on market analysis, Airbnb properties in Clarendon, Arkansas show moderate profitability potential with average daily rates ranging from $75-120 depending on property size and amenities. Properties typically achieve 40-60% occupancy rates annually, generating gross revenues of $15,000-35,000 per year for 2-3 bedroom homes. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($800-1,200 annually), and maintenance ($2,000-4,000 yearly) typically consume 45-65% of gross revenue. Net profit margins generally range from 20-35% for well-managed properties, with successful hosts focusing on competitive pricing, professional photography, responsive guest communication, and maintaining 4.8+ star ratings. Properties near outdoor recreation areas like the White River or those offering unique amenities like hot tubs or game rooms command premium rates and higher occupancy. The rural Arkansas market benefits from lower property acquisition costs ($80,000-150,000 for investment properties) but faces challenges with seasonal demand fluctuations and limited local tourism infrastructure, making location selection and property differentiation critical success factors for achieving sustainable profitability in this emerging short-term rental market.

Based on Clarendon, 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 outdoor recreation areas like the White River or historic downtown districts tend to perform at the higher end of this range, while standard residential properties average closer to 8-9% annual returns. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even on cash investment typically achieved in 10-12 years. The market benefits from fishing tourism, hunting seasons, and visitors to nearby state parks, with occupancy rates averaging 45-60% annually and average daily rates between $75-120 depending on property size and amenities. Properties requiring minimal renovation work show faster paths to profitability, often reaching positive cash flow within 12-15 months of operation.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations in Clarendon, Arkansas. Local real estate agents like Clarendon Realty Group and Arkansas River Valley Properties have experience with investment properties in the area, while regional firms such as Coldwell Banker Heritage and RE/MAX Real Estate Partners provide investor-focused services throughout Arkansas. National services including Awning, RedAwning, and AirDNA offer market analysis and property management solutions for Airbnb investors in smaller Arkansas markets like Clarendon. Local property management companies such as Arkansas Vacation Rentals and Delta Property Management can assist with ongoing operations, while investment-focused real estate platforms like BiggerPockets and Roofstock occasionally feature properties in rural Arkansas markets. Regional investment groups like Arkansas Real Estate Investors Association provide networking and educational resources, and companies such as Vacasa and AvantStay offer full-service property management for short-term rentals in emerging markets throughout the state.