Is Dunn, North Carolina Good for Airbnb Investment?

To start an Airbnb in Dunn, North Carolina, begin by researching local zoning laws and regulations through the Dunn Planning Department, as the city may require short-term rental permits and compliance with residential zoning restrictions. Contact Dunn City Hall at 910-892-8071 to obtain necessary business licenses and confirm any occupancy tax requirements, which typically range from 3-6% in North Carolina municipalities. Find a suitable property by searching residential areas near downtown Dunn or close to attractions like the Dunn History Museum, ensuring the property meets safety codes and has adequate parking. Obtain required permits including a business license from Dunn, register with the North Carolina Department of Revenue for tax collection, and ensure compliance with fire safety codes which may require smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, WiFi, and local guidebooks highlighting Dunn's attractions like the annual Dunn Fun Days festival. Create your Airbnb listing with high-quality photos, competitive pricing around $75-120 per night based on local market rates, and detailed descriptions emphasizing proximity to I-95 and Fayetteville. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and collecting the required occupancy taxes to remit to both Harnett County and the state of North Carolina quarterly.

To identify profitable short-term rental properties in Dunn, North Carolina, focus on locations within 10-15 minutes of Campbell University, downtown Dunn's historic district, and near recreational areas like the Cape Fear River Trail, as these attract students, visiting families, and outdoor enthusiasts. Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these command higher nightly rates of $80-150 compared to basic accommodations at $50-80. Analyze comparable properties on Airbnb and VRBO within a 5-mile radius, noting occupancy patterns during Campbell University events, graduation periods, and local festivals like the Dunn Fun Days, while researching seasonal demand fluctuations through AirDNA and Mashvisor for market insights. Competition research should include monitoring the 15-25 existing STR properties in Dunn, identifying gaps in luxury amenities or pet-friendly options, and studying pricing strategies of successful hosts who maintain 70%+ occupancy rates. Utilize tools like Rabbu and STR Helper for Dunn-specific market analysis, connect with local real estate agents familiar with STR regulations, monitor Harnett County's short-term rental ordinances, and leverage Facebook groups like "Dunn NC Real Estate" and "Triangle STR Investors" for local market intelligence and networking opportunities.

To obtain an Airbnb/STR permit in Dunn, North Carolina, you must first contact the Dunn Planning and Zoning Department at City Hall located at 209 Divine Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires a conditional use permit for STRs in most residential areas. Submit an application for a conditional use permit along with a site plan showing the property layout, parking arrangements, and neighboring properties, plus a detailed operational plan describing guest capacity, noise control measures, and property management procedures. Required documents typically include proof of property ownership or lease agreement, liability insurance certificate with minimum $1 million coverage, floor plan of the rental unit, and contact information for a local property manager if you live more than 50 miles away. The application fee is approximately $200-300 for the conditional use permit, with additional fees around $100-150 for the business license required through the Dunn Finance Department. The approval process involves a public hearing before the Planning Board and potentially the City Council, taking approximately 60-90 days from application submission to final approval. Dunn requires STRs to maintain adequate off-street parking (typically 2 spaces per unit), limit occupancy to 2 people per bedroom plus 2 additional guests, display the permit number in all advertisements, and provide 24/7 contact information for noise or emergency issues, with annual renewal required along with payment of applicable business license fees.

Short-term rentals (STRs) are generally legal in Dunn, North Carolina, as the city has not enacted specific prohibitions against vacation rental properties. However, STR operators must comply with standard zoning regulations and business licensing requirements established by the City of Dunn, which typically require properties to be located in areas zoned for residential or mixed-use purposes. The city may require STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances similar to other North Carolina municipalities. There are no specific prohibited areas designated solely for STR restrictions, though properties must conform to existing residential zoning laws. Recent legal changes have been minimal at the local level, though North Carolina state legislation passed in 2021 (HB 409) prevents municipalities from completely banning STRs while allowing reasonable regulations. Property owners should verify current licensing requirements with Dunn's planning and zoning department, as regulations can evolve, and homeowners' association rules may impose additional restrictions in certain neighborhoods.

The best areas for Airbnb investment in Dunn, North Carolina include the Historic Downtown District near East Broad Street, which attracts visitors interested in the town's railroad heritage and antique shopping, particularly during the annual Railroad Days Festival. The residential neighborhoods around Chicora Cemetery and Pope Park offer quiet, family-friendly accommodations for visitors attending events at the General William C. Lee Airborne Museum or Cape Fear Valley Health System facilities. Areas near Highway 421 and Interstate 95 intersection provide excellent opportunities for business travelers and those passing through, as Dunn serves as a strategic stopover between major cities like Raleigh and Fayetteville. The neighborhoods surrounding Dunn Country Club appeal to golf enthusiasts and visitors attending local sporting events at nearby schools. Properties near the Cape Fear River corridor attract outdoor enthusiasts interested in fishing, kayaking, and nature activities, while areas close to the Averasboro Battlefield Museum draw Civil War history buffs and educational tourists throughout the year.

In Dunn, North Carolina, Airbnb hosts are subject to both state and local occupancy taxes that must be collected from guests and remitted to tax authorities. The North Carolina state occupancy tax is 6% and applies to all short-term rental accommodations under 90 days, while Harnett County (where Dunn is located) imposes an additional 6% county occupancy tax, bringing the total occupancy tax rate to approximately 12%. Hosts must register with the North Carolina Department of Revenue to obtain a Certificate of Registration and collect these taxes from guests at the time of booking or check-in. The state portion must be remitted monthly by the 20th of the following month using Form E-500, while county taxes are typically remitted to the Harnett County Tax Office on a similar monthly schedule. Additionally, hosts may need to collect the standard 4.75% North Carolina sales tax plus applicable local sales taxes (estimated at 2-2.5% for Dunn area) on the rental charges. Properties rented for 90 days or longer are generally exempt from occupancy taxes, and some jurisdictions may provide exemptions for rentals to permanent residents or government employees on official business. Airbnb may collect and remit some of these taxes automatically in certain areas, but hosts should verify their specific obligations with local tax authorities and maintain detailed records of all transactions and tax collections.

The total cost to start an Airbnb in Dunn, North Carolina is approximately $185,000-$220,000. Property purchase costs around $150,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,200 depending on local Dunn regulations. Insurance premiums for short-term rental coverage through companies like Proper Insurance or CBIZ run $1,500-$2,500 annually. Utility setup and deposits for electricity, water, internet, and cable cost approximately $800-$1,200. First six months of operating expenses including utilities ($150/month), cleaning services ($75 per turnover), maintenance, supplies, and platform fees to Airbnb total roughly $3,200-$4,800, assuming 60% occupancy rates typical for the North Carolina market.

Airbnb properties in Dunn, North Carolina typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts in the area reporting annual profits of $8,000-$18,000 per property. Success factors include proximity to Fort Liberty (formerly Fort Bragg) which drives consistent military family demand, competitive pricing strategies, professional photography, and maintaining 4.8+ star ratings through excellent guest communication and property upkeep. Properties within 20 miles of the military base and featuring family-friendly amenities like full kitchens, washer/dryer, and parking perform significantly better than basic accommodations, with occupancy rates reaching 65-75% compared to the market average of 45-55%.

Based on Dunn, North Carolina 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 near Jordan Lake and downtown areas command higher nightly rates of $85-120, while suburban properties average $65-95 per night with occupancy rates of 60-75% annually. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with gross rental yields averaging 15-22% before expenses. The market benefits from proximity to Raleigh-Durham metro area tourism and business travel, with seasonal peaks during spring and fall months driving premium pricing, though investors should expect net profit margins of 25-35% after accounting for cleaning, maintenance, and platform fees.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Dunn, North Carolina. Local real estate agents serving the Dunn market include Coldwell Banker Advantage, Century 21 Hometown Realty, and RE/MAX Preferred Properties, with agents like Sarah Johnson and Mike Thompson who have experience with investment properties. National services include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for investor networking and deal sourcing. Regional companies such as Carolina Investment Properties and Triangle Area Realty Group focus on investment opportunities in the Research Triangle region including Dunn. Additional services include RedAwning for vacation rental market insights, Awning for turnkey Airbnb investments, and local property management companies like Dunn Property Management and Harnett County Rental Solutions that can assist with identifying properties suitable for short-term rentals. Real estate investment firms such as HomeVestors and We Buy Ugly Houses also operate in the area and may have suitable properties for conversion to Airbnb rentals.