Is Fulton, Arkansas Good for Airbnb Investment?

To start an Airbnb in Fulton, Arkansas, begin by researching local zoning laws and regulations through the Fulton City Hall, as Arkansas generally allows short-term rentals but municipalities may have specific requirements including business licenses, occupancy permits, and tax registration with the Arkansas Department of Finance and Administration for state sales tax collection. Obtain necessary permits including a business license from Fulton City (estimated $25-50), ensure your property meets fire safety codes, and register for Arkansas sales tax collection which requires charging guests 6.5% state tax plus any local taxes. Find a suitable property by analyzing local tourism demand near attractions like the White River and Ozark Mountains, considering properties with 2-3 bedrooms that can accommodate families visiting for fishing and outdoor activities, with average nightly rates in the area ranging $75-150. Furnish the space with comfortable, durable furniture focusing on a rustic or modern farmhouse aesthetic popular in Arkansas, including essential amenities like high-speed internet, full kitchen appliances, quality linens, and outdoor seating to capitalize on the natural setting. List your property on Airbnb and VRBO platforms with professional photography highlighting outdoor spaces and proximity to local attractions, setting competitive pricing based on seasonal demand with higher rates during fishing season (spring/fall) and hunting season. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software for bookings and communication, while maintaining compliance with ongoing tax obligations and any evolving local regulations that Fulton may implement as the short-term rental market grows.

To identify profitable STR properties in Fulton, Arkansas, focus on locations within 1-2 miles of the White River and Spring River confluence, as this area attracts fishing and water recreation tourists year-round. Target 2-4 bedroom properties built after 1990 with outdoor spaces, boat parking, fishing cleaning stations, and modern amenities like high-speed internet and updated kitchens, as these features command premium rates of $120-200 per night compared to basic properties at $60-100. Analyze pricing using AirDNA and Mashvisor to identify properties with potential gross yields above 12%, focusing on homes priced between $150,000-300,000 that can generate $25,000-40,000 annually. Research competition by monitoring existing STR listings within a 5-mile radius, noting that Fulton typically has 15-25 active short-term rentals with occupancy rates around 65-75% during peak fishing seasons (March-May, September-November). Utilize tools like Rabbu for local market analysis, STR Helper for performance tracking, and connect with Fulton Chamber of Commerce and local real estate agents like Ozark Gateway Realty who understand the seasonal tourism patterns driven by trout fishing, the White River Monster legend tourism, and proximity to Bull Shoals Lake activities.

To obtain an Airbnb/STR permit in Fulton, Arkansas, you must first contact the Fulton City Clerk's office at City Hall located at 115 Main 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, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you're not residing within 50 miles, and proof of compliance with fire safety codes including smoke detectors and carbon monoxide detectors. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. You'll need to schedule a property inspection with the city's building department to ensure compliance with occupancy limits, parking requirements (minimum 2 spaces), and safety standards. The timeline for approval is typically 30-45 days from submission of complete application materials. Fulton requires STR operators to maintain a guest registry, limit occupancy to 2 people per bedroom plus 2 additional guests, provide 24/7 contact information to neighbors, and ensure quiet hours from 10 PM to 7 AM. Annual renewal is required with updated insurance documentation and any necessary re-inspections.

Short-term rentals (STRs) in Fulton, Arkansas are generally legal but subject to state and local regulations. Arkansas state law allows municipalities to regulate STRs, and Fulton County has implemented basic zoning and safety requirements for rental properties. STRs must comply with standard building codes, fire safety regulations, and tax collection requirements including state sales tax and local lodging taxes. The city typically requires STR operators to obtain business licenses and may have restrictions on the number of guests, parking requirements, and noise ordinances. Properties in residential zones may face additional scrutiny or limitations compared to commercial areas. Recent changes in Arkansas law around 2021-2022 have given municipalities more authority to regulate STRs while preventing outright bans, meaning Fulton can impose reasonable restrictions but cannot prohibit them entirely. Operators should verify current local ordinances as regulations may have been updated, and properties near schools, churches, or in historic districts may face additional restrictions.

The best areas for Airbnb investment in Fulton, Arkansas include the downtown historic district near the courthouse square, which attracts visitors interested in the town's heritage and serves business travelers visiting local government offices and professional services. The residential neighborhoods along Highway 62 offer convenient access for travelers passing through this scenic route and provide proximity to local restaurants and shops. Areas near the Spring River, particularly on the eastern side of town, are highly attractive for vacation rentals due to fishing, canoeing, and water recreation activities that draw tourists year-round. The neighborhoods close to Fulton Country Club appeal to golf enthusiasts and those seeking a quieter, upscale accommodation experience. Properties near the intersection of Highways 62 and 289 benefit from high visibility and easy access for both leisure and business travelers, while the residential areas south of downtown offer affordable investment opportunities with good rental potential due to their proximity to local amenities and the peaceful, small-town atmosphere that many visitors seek when exploring the Arkansas Ozarks region.

Airbnb properties in Fulton, 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. Fulton, being a small city in Hempstead County, does not appear to impose additional local lodging taxes beyond the state requirement, though hosts should verify with Hempstead County for any county-level occupancy taxes that may apply. Airbnb may collect and remit these taxes automatically for hosts in Arkansas through their platform's tax collection service, which began around 2018-2019, but hosts remain ultimately responsible for compliance and should confirm their registration status with the state. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than taxable short-term accommodations, and certain government or non-profit related stays may qualify for exemptions with proper documentation.

To start an Airbnb in Fulton, Arkansas, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in rural Arkansas markets. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary by county but expect $500-$1,500 for business licenses, short-term rental permits, and inspection fees. Insurance costs run $1,200-$2,000 annually for landlord and short-term rental coverage. Utility deposits and connections typically cost $500-$800 initially. First six months operating costs including utilities ($150-$250 monthly), cleaning supplies, maintenance reserves, platform fees (3% of bookings), and marketing budget total approximately $4,000-$6,000. Property management software subscriptions and professional cleaning services after each guest add another $200-$400 monthly to ongoing expenses.

Airbnb properties in Fulton, Arkansas show moderate profitability potential with average nightly rates ranging from $75-120 depending on property size and amenities, generating monthly revenues of $1,800-3,600 for properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 15-20% for utilities and supplies, and 10-15% for property management if outsourced, resulting in net profit margins of 35-45% for well-managed properties. Success factors in this Arkansas River town include proximity to fishing spots and outdoor recreation areas, as larger 3-4 bedroom cabins targeting fishing groups and families consistently outperform smaller units by 20-25% in both occupancy and rates. Properties within 2 miles of the Arkansas River or White River access points command premium pricing, with some hosts like those operating renovated fishing cabins reporting annual profits of $15,000-25,000 per property after all expenses. The market benefits from steady demand from anglers, hunters, and Little Rock weekend visitors, though seasonal fluctuations occur with peak performance during spring and fall fishing seasons when occupancy can reach 80-85% compared to winter lows of 40-50%.

Based on Fulton, Arkansas 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 Buffalo National River and outdoor recreation areas command higher nightly rates of $85-120, while standard residential properties average $60-85 per night with occupancy rates of 65-75% annually. Initial profitability usually occurs within 8-14 months after accounting for startup costs, furnishing, and marketing expenses. The market benefits from consistent tourism related to fishing, hunting, and river activities, with peak seasons generating 25-35% higher returns during spring and fall months. Total investment recovery typically occurs within 6-8 years, with properties appreciating 3-5% annually while generating positive monthly cash flow of $200-600 after expenses including cleaning, maintenance, insurance, and platform fees.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Fulton, Arkansas, using data analytics and market insights. Local real estate agents in the area who specialize in investment properties include Century 21 Arkansas Properties and Coldwell Banker Heritage, both of which have experience with vacation rental investments in the Arkansas River region. National services like Awning, RedAwning, and AirDNA provide market analysis and property management solutions for Airbnb investors targeting the Fulton market. Mashvisor offers investment property analysis tools that can help evaluate potential returns in Fulton's tourism market, while BiggerPockets connects investors with local professionals familiar with Arkansas short-term rental regulations. Local property management companies such as Arkansas Vacation Rentals and Ozark Mountain Rentals can assist with ongoing operations once properties are acquired. Additionally, companies like Vacasa and AvantStay provide full-service solutions for investors looking to purchase and professionally manage Airbnb properties in smaller Arkansas markets like Fulton, which benefits from its proximity to outdoor recreation areas and the Arkansas River.