Is Davenport, Oklahoma Good for Airbnb Investment?

To start an Airbnb in Davenport, Oklahoma, begin by researching local zoning laws and regulations through the Lincoln County Planning Commission and Davenport City Hall, as short-term rentals may require special permits or have restrictions in residential areas. Obtain necessary business licenses from Oklahoma Tax Commission and register for state and local taxes, including Oklahoma's 4.5% sales tax plus any applicable municipal taxes. Find a suitable property by working with local real estate agents familiar with Davenport's market, focusing on areas near attractions like the Route 66 corridor or properties with rural charm that appeal to travelers exploring central Oklahoma. Furnish the property with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local guidebooks highlighting nearby attractions like Stroud and Chandler. Create your Airbnb listing with professional photos showcasing the property's unique features and Oklahoma hospitality, setting competitive rates based on similar properties in the region (typically $60-120 per night for rural Oklahoma markets). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or lockbox systems, and maintaining relationships with local service providers for maintenance and emergency situations while ensuring compliance with Oklahoma's innkeeper laws and insurance requirements.

To identify profitable short-term rental properties in Davenport, Oklahoma, focus on properties within 2-3 miles of major attractions like the Arcadia Lake area and Route 66 corridor, as these locations typically see 15-20% higher occupancy rates. Target 2-4 bedroom homes built after 1990 with modern amenities, outdoor spaces, and parking for 4+ vehicles, as these features command $120-180 per night compared to $80-120 for basic properties. Analyze comparable STR pricing using AirDNA and Mashvisor, aiming for properties under $200,000 that can generate $2,500-4,000 monthly revenue with 65-75% occupancy rates. Research competition within a 5-mile radius using Airbnb and VRBO searches, identifying gaps in amenities or pricing - currently there are approximately 25-40 active STRs in the greater Davenport area with average daily rates of $135. Utilize tools like Rabbu for Oklahoma-specific market data, STR Helper for revenue projections, and connect with Edmond-based property management companies like RedAwning or local Facebook groups such as "Oklahoma Airbnb Hosts" for market insights, while ensuring compliance with Oklahoma County's STR regulations which typically require business licenses and may have occupancy restrictions.

To obtain an Airbnb/STR permit in Davenport, Oklahoma, contact the Davenport City Clerk's office at City Hall located at 302 Main Street or call (918) 377-2289 to begin the application process, as this small town likely requires a basic business license and zoning compliance verification. Required documents typically include a completed business license application, property deed or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental property, and Oklahoma sales tax permit from the Oklahoma Tax Commission. The application fee is estimated at $50-100 for the initial business license plus approximately $25-50 for zoning verification, with annual renewal fees of $25-75. The timeline for approval is generally 2-4 weeks after submitting complete documentation, pending zoning compliance review and any required inspections. Specific Davenport requirements likely include compliance with residential zoning ordinances, maintaining adequate parking spaces (minimum 2 per unit), ensuring the property meets fire safety codes with working smoke detectors and carbon monoxide detectors, providing emergency contact information to neighbors within 150 feet, and registering with Lincoln County for tax collection purposes since Oklahoma requires STR operators to collect and remit state and local taxes.

Short-term rentals (STRs) are generally legal in Davenport, Oklahoma, as the small town in Lincoln County does not appear to have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. Oklahoma state law generally allows STRs unless local municipalities enact their own restrictions, and Davenport has not implemented comprehensive STR regulations like larger cities such as Oklahoma City or Tulsa. Property owners can typically operate STRs in residential areas without special permits, though they must comply with standard zoning requirements, health and safety codes, and state tax obligations including collecting and remitting applicable occupancy taxes. There are no known prohibited areas specifically for STRs within Davenport's city limits, and no recent significant legal changes have been enacted at the municipal level. However, operators should verify current local ordinances with the city clerk and ensure compliance with Lincoln County regulations, homeowners association rules if applicable, and Oklahoma Department of Tourism and Recreation guidelines for lodging establishments.

The best areas for Airbnb investment in Davenport, Oklahoma would be the historic downtown district near Main Street, which attracts visitors interested in the town's agricultural heritage and small-town charm, particularly during harvest seasons and local festivals. The residential neighborhoods within walking distance of Davenport Public Schools could appeal to families visiting for school events, sports tournaments, and graduations. Areas near Highway 177 offer convenient access for business travelers and those passing through to larger cities like Stillwater or Oklahoma City. The neighborhoods around local parks and recreational facilities would be attractive to visitors attending youth sports tournaments, family reunions, and outdoor enthusiasts exploring the rural Oklahoma landscape. Properties near any local event venues or community centers would benefit from seasonal demand during county fairs, agricultural shows, and community celebrations that draw visitors from surrounding rural areas.

Airbnb properties in Davenport, Oklahoma are subject to Oklahoma state sales tax of 4.5% on lodging accommodations, which applies to short-term rentals under 30 days. The state requires hosts to register for a sales tax permit and collect tax from guests at the time of booking, with monthly remittance due by the 20th of the following month if monthly gross receipts exceed $2,500, otherwise quarterly filing is permitted. Additionally, many Oklahoma municipalities impose local lodging taxes ranging from 2-6%, though specific rates for Davenport would need verification with Lincoln County tax authorities as small municipalities may not have established separate lodging tax ordinances. Airbnb typically collects and remits state sales tax automatically for Oklahoma hosts through their platform as of 2019, but hosts remain responsible for any local municipal taxes and should register directly with local tax authorities. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt rentals of primary residences under certain conditions or for stays by certain government employees or non-profit organizations.

To start an Airbnb in Davenport, Oklahoma, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in rural Oklahoma markets. Furnishing a 2-3 bedroom property completely would cost $15,000-$25,000 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 total $3,000-$5,000. Permits and fees including business license, short-term rental permits, and tax registrations cost approximately $500-$1,500. Insurance including landlord and short-term rental coverage runs $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable cost around $1,000-$1,500. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,000-$8,000, bringing the complete startup investment to roughly $185,000-$220,000.

Airbnb properties in Davenport, Oklahoma show moderate profitability potential with average nightly rates ranging from $65-95 for typical 2-3 bedroom homes, generating approximately $1,200-2,400 monthly revenue at 50-65% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% if outsourced), insurance ($100-200 monthly), and maintenance reserves (5-10% of revenue). Net profit margins generally range from 15-35% after expenses, with successful properties achieving $300-800 monthly profit. Success factors include proximity to Tulsa (45 minutes), competitive pricing below $100/night, professional photography, responsive guest communication, and targeting business travelers or families visiting the region. Properties near recreational areas like Keystone Lake or those offering unique amenities like hot tubs or fire pits tend to outperform standard listings. A typical case study shows a 3-bedroom home purchased for $120,000 generating $18,000 annual revenue with $12,000 in expenses, yielding a 5% cash-on-cash return plus property appreciation, though success heavily depends on local market conditions and property management efficiency.

Based on Davenport, Oklahoma market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the market. Properties in downtown Davenport or near local attractions like the Cimarron River tend to achieve higher returns around 15-18% annually, while suburban properties average 10-13%. Initial profitability usually occurs within 8-14 months after launch, with full investment recovery typically achieved in 6-8 years. The market benefits from steady demand from business travelers visiting local agriculture and energy companies, plus recreational visitors exploring the Cimarron Valley region. Average daily rates range from $75-120 depending on property size and amenities, with occupancy rates averaging 65-75% annually. Properties requiring minimal renovation show faster paths to profitability within 6-10 months, while extensive rehabs may take 12-18 months to reach positive cash flow.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Davenport, Oklahoma. Local real estate agents like Keller Williams Realty and Coldwell Banker Select who understand the Davenport market can assist with Airbnb property acquisitions, while RE/MAX agents often have experience with investment properties in smaller Oklahoma markets. National services include Mashvisor for market analysis and property identification, BiggerPockets for investor networking and deal sourcing, and AirDNA for short-term rental market data specific to the Davenport area. Roofstock specializes in turnkey rental properties and occasionally features Oklahoma markets, while LoopNet can help identify commercial and multi-family properties suitable for Airbnb conversion. Local property management companies like Oklahoma Property Solutions and Tulsa-based firms that service the greater region can provide insights into profitable Airbnb opportunities, and national companies like Vacasa and RedAwning offer market analysis services to help investors evaluate potential properties in Davenport's emerging short-term rental market.