Is Des Arc, Arkansas Good for Airbnb Investment?

To start an Airbnb in Des Arc, Arkansas, begin by researching local zoning laws and regulations through the Des Arc City Hall (870-256-4341) as the city may require business licenses or special permits for short-term rentals, though Arkansas generally has favorable STR laws. Contact Prairie County offices to understand any county-level requirements and check if Des Arc has adopted specific ordinances regarding short-term rentals, as some Arkansas municipalities require registration or impose occupancy limits. Obtain necessary permits including a business license from Des Arc City Hall, register with Arkansas Department of Finance and Administration for state tax purposes, and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by researching Des Arc's real estate market (median home prices around $85,000-$120,000 as of 2023), focusing on areas near White River access points or historic downtown since Des Arc attracts fishing enthusiasts and history tourists. Purchase or lease property ensuring it meets Arkansas habitability standards and any local housing codes enforced by Prairie County. Furnish the property with essential amenities including reliable internet, comfortable bedding, kitchen supplies, and outdoor furniture to appeal to fishing and outdoor recreation visitors common to the Des Arc area. Create your Airbnb listing with professional photos highlighting proximity to White River, local fishing spots, and Des Arc's historic charm, setting competitive rates based on similar properties in rural Arkansas markets ($60-$100 per night typical for the area). Manage the property by establishing cleaning protocols, coordinating with local cleaning services in Des Arc or nearby Hazen, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Arkansas's 11.5% combined state and local lodging taxes that apply to short-term rentals.

To identify profitable short-term rental properties in Des Arc, Arkansas, focus on properties within walking distance of the White River and Buffalo National River access points, as this small town of approximately 1,700 residents attracts fishing and outdoor enthusiasts year-round. Target 2-3 bedroom homes or cabins with river views, boat parking, fish cleaning stations, and outdoor spaces priced between $80,000-$150,000, as these features command nightly rates of $75-$125 compared to basic properties at $45-$65. Analyze comparable properties on Airbnb and VRBO within a 20-mile radius including Searcy and Beebe to understand seasonal demand patterns, with peak seasons during spring fishing (March-May) and fall hunting (October-December). Research the limited competition by monitoring existing STR listings in Des Arc and nearby Judsonia, noting that fewer than 15 active rentals serve the area, creating opportunity for well-positioned properties. Utilize AirDNA for market data, contact Prairie County's planning department regarding STR regulations, partner with local real estate agents familiar with waterfront properties, and connect with White River fishing guides and Arkansas Game and Fish Commission resources to understand visitor patterns and optimal property locations near popular fishing spots like Des Arc Bayou and Crooked Creek.

To obtain an Airbnb/STR permit in Des Arc, Arkansas, contact the Des Arc City Hall at 870-256-4341 or visit their office at 308 West 3rd Street to inquire about short-term rental regulations and application procedures. Required documents typically include a completed business license application, property deed or lease agreement, proof of liability insurance (minimum $1 million coverage), floor plan of the rental property, contact information for a local property manager if you're not local, and proof of compliance with fire safety codes. Application fees generally range from $50-150 for the initial permit plus annual renewal fees of $25-75. The approval timeline is typically 2-4 weeks after submitting a complete application, depending on inspection scheduling and any required corrections. Des Arc specific requirements likely include maintaining the property in compliance with residential building codes, providing adequate parking for guests, ensuring proper waste management, displaying the permit number in rental listings, and maintaining a guest registry. You may also need to register for Arkansas state sales tax collection if your rental income exceeds state thresholds, and ensure compliance with any homeowners association rules if applicable.

Short-term rentals (STRs) in Des Arc, Arkansas are generally legal as the state of Arkansas does not prohibit STRs at the state level, and Des Arc, a small city of approximately 1,700 residents in Prairie County, has not enacted specific municipal ordinances banning short-term rentals as of 2024. However, operators must comply with standard business licensing requirements, collect and remit state and local sales taxes (currently 6.5% state sales tax plus local taxes), and may need to register with the Arkansas Department of Finance and Administration. The city likely requires basic business licenses and compliance with zoning regulations, though specific STR regulations have not been formally adopted. Property owners should verify current zoning compliance and ensure their rentals meet health and safety standards, as Des Arc follows standard Arkansas building codes. Recent trends in Arkansas show increasing local regulation of STRs, with larger cities like Little Rock and Fayetteville implementing registration requirements and occupancy limits between 2020-2023, though smaller municipalities like Des Arc have generally remained more permissive while focusing on tax compliance and basic safety requirements.

The best areas for Airbnb investment in Des Arc, Arkansas are the Historic Downtown District along Main Street, which attracts visitors interested in the town's railroad heritage and antique shopping, particularly during the annual Des Arc Days festival in October. The White River waterfront area offers excellent potential due to fishing tourism, with anglers visiting year-round for bass, catfish, and crappie fishing, especially during spring and fall seasons. Properties near the Des Arc City Park and boat launch areas are attractive for families and outdoor enthusiasts accessing the White River National Wildlife Refuge. The residential areas along Highway 11 and near the Prairie County Courthouse provide convenient access for business travelers and those visiting for legal proceedings or county business. The area near the Union Pacific Railroad corridor appeals to railroad enthusiasts and history buffs exploring Arkansas's transportation heritage, while properties within walking distance of local restaurants like Dairy Dip and convenience stores offer added value for guests seeking authentic small-town experiences.

Des Arc, Arkansas imposes a 2% local lodging tax on short-term rental accommodations including Airbnbs, which is collected in addition to the state sales tax of 6.5% and any applicable county taxes that may add another 1-2%. The Arkansas Department of Finance and Administration requires hosts to register for a sales tax permit and collect these taxes from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month through the Arkansas Taxpayer Access Point (ATAP) online system. Prairie County may impose an additional transient visitor tax of up to 3% on lodging stays under 30 consecutive days. Airbnb typically collects and remits state and local taxes automatically for hosts in Arkansas as of 2018, but hosts remain responsible for ensuring compliance and may need to manually collect county-level taxes depending on local agreements. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or nonprofit organization bookings may qualify for tax exemptions with proper documentation.

To start an Airbnb in Des Arc, Arkansas, expect total costs around $85,000-$95,000. Property purchase represents the largest expense at approximately $65,000-$75,000 based on median home prices in rural Arkansas markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and electronics. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees vary but budget $500-$1,000 for business licenses, short-term rental permits, and inspection fees. Insurance premiums for short-term rental coverage run $1,200-$1,800 annually. Utility deposits and connections cost approximately $500-$800. First six months operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), and platform fees (3% of bookings estimated at $300/month) total around $4,500. Marketing and initial guest amenities add another $500-$1,000 to launch costs.

Airbnb properties in Des Arc, Arkansas typically generate modest returns due to the small town's limited tourism infrastructure and population of approximately 1,700 residents. Average nightly rates range from $45-75 for entire homes, with occupancy rates averaging 25-35% annually, resulting in gross revenues of $4,000-9,000 per year for typical 2-3 bedroom properties. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-200 monthly), insurance ($800-1,200 annually), property taxes ($600-1,000), and maintenance typically consume 60-70% of gross revenue. Net profit margins generally range from 15-25%, yielding annual profits of $1,200-2,700 per property. Success factors include proximity to White River for fishing enthusiasts, competitive pricing below Little Rock market rates, and targeting hunters during deer season (November-January) when occupancy can spike to 60-70%. Properties within walking distance of downtown or featuring outdoor amenities like fire pits and fishing access perform better, with some hosts reporting 40% occupancy rates and $12,000 annual revenues. The market remains highly seasonal and dependent on outdoor recreation, making it suitable primarily for investors seeking supplemental income rather than primary revenue streams, with break-even typically occurring in year 2-3 of operation.

Based on Des Arc, Arkansas market conditions, Airbnb investments in this small rural community of approximately 1,700 residents typically generate annual ROI of 8-12% due to limited tourism infrastructure and seasonal demand fluctuations. Cash-on-cash returns generally range from 6-10% annually, with properties averaging $75-120 per night during peak fishing and hunting seasons along the White River, though occupancy rates remain modest at 35-45% annually. Initial profitability typically occurs within 18-24 months for properties purchased under $150,000, with investors like those managing rural Arkansas portfolios through companies such as RedAwning and Vacasa reporting break-even points extending to 30-36 months for higher-priced acquisitions due to Des Arc's limited year-round tourist traffic and competition from nearby Little Rock vacation rentals.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Des Arc, Arkansas, offering market analysis and property recommendations. Local real estate agents in Des Arc and surrounding White County who specialize in investment properties include Century 21 Arkansas Properties and Coldwell Banker Arkansas Properties, both established in the 1990s. RE/MAX Real Estate Partners, operating since 1985, has agents familiar with the Des Arc market and vacation rental potential along the White River. National services like Awning (founded 2017) and RedAwning (established 2009) provide comprehensive Airbnb investment analysis and property management services for the Des Arc area. Mashvisor, launched in 2014, offers detailed rental income projections and market data for Arkansas properties. Local property management companies such as Arkansas Vacation Rentals and White River Property Management, both operating since the early 2000s, assist with Airbnb setup and ongoing management. BiggerPockets, the national real estate investment platform founded in 2004, connects investors with local Arkansas professionals experienced in short-term rental investments. Roofstock, established in 2015, occasionally features Arkansas investment properties including those suitable for Airbnb conversion in rural markets like Des Arc.