Is Gillham, Arkansas Good for Airbnb Investment?

To start an Airbnb in Gillham, Arkansas, begin by researching local zoning laws and regulations through Sevier County's planning department, as Gillham typically falls under county jurisdiction rather than having its own municipal short-term rental ordinances. Contact Sevier County Courthouse at (870) 642-2852 to verify if short-term rentals are permitted in your specific zone and obtain any required business licenses or permits, which may include a general business license and potentially a lodging permit. Find a suitable property by searching local real estate listings through agents familiar with Sevier County or online platforms like Zillow, focusing on properties near outdoor attractions like the Little Missouri River or Gillham Lake that appeal to tourists. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, heating/cooling systems, and outdoor furniture if applicable, sourcing items from nearby retailers in De Queen or Hot Springs. Create your Airbnb listing with high-quality photos, detailed descriptions highlighting local attractions like fishing, hiking, and proximity to the Ouachita National Forest, and competitive pricing based on similar properties in rural Arkansas (typically $60-120 per night). Manage your property by establishing cleaning protocols between guests, maintaining responsive communication through the Airbnb app, coordinating with local cleaning services in the De Queen area, and ensuring compliance with Arkansas state tax requirements including collecting and remitting appropriate lodging taxes to the Arkansas Department of Finance and Administration.

To identify profitable short-term rental properties in Gillham, Arkansas, focus on properties within 1-2 miles of DeGray Lake and DeGray Lake Resort State Park, as this area attracts tourists year-round for fishing, boating, and outdoor recreation. Target 2-4 bedroom cabins or lake houses with waterfront access, boat docks, outdoor amenities like fire pits or hot tubs, and modern kitchens since guests prefer self-catering options for extended stays. Analyze comparable properties on Airbnb and VRBO in the $80-150 per night range, with seasonal pricing adjustments for peak summer and fall months when occupancy rates typically reach 60-75%. Research competition by monitoring existing STR listings within a 10-mile radius, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize tools like AirDNA for market analytics, STR Helper for revenue projections, and local resources including the Sevier County Assessor's office for property values, Arkansas State Parks website for tourism data, and the Hot Springs National Park visitor statistics since many guests combine trips to both locations. Consider properties near Caddo River access points as well, since river activities provide additional guest appeal beyond lake recreation.

To obtain an Airbnb/STR permit in Gillham, Arkansas, you will need to contact the Sevier County Planning and Zoning Department since Gillham is an unincorporated community in Sevier County. Start by calling the county courthouse at (870) 642-2852 to inquire about short-term rental regulations and permit requirements. You will likely need to submit an application form along with a property survey, proof of property ownership or lease agreement, liability insurance documentation showing minimum $1 million coverage, a floor plan of the rental property, and contact information for a local property manager if you live more than 50 miles away. The application fee is estimated to be between $100-300, with annual renewal fees of approximately $50-150. Required documents should include a completed STR permit application, current property tax records, septic system inspection certificate (if applicable), fire safety inspection report, and neighbor notification forms signed by adjacent property owners within 200 feet. The approval timeline typically takes 30-45 days from submission of a complete application. Specific Gillham/Sevier County requirements may include maximum occupancy limits based on bedrooms and septic capacity, mandatory posting of emergency contact information and house rules, compliance with Arkansas Department of Health regulations for water and sewage systems, and adherence to noise ordinances with quiet hours typically from 10 PM to 7 AM.

Short-term rentals (STRs) in Gillham, Arkansas are generally legal as the state of Arkansas does not prohibit STRs at the state level, leaving regulation primarily to local municipalities. Gillham, a small town in Sevier County with a population under 200, does not appear to have specific STR ordinances or regulations in place as of 2024. The town operates under basic zoning and building codes but lacks comprehensive short-term rental restrictions, licensing requirements, or prohibited areas that larger Arkansas cities like Fayetteville or Little Rock have implemented. Property owners in Gillham can typically operate STRs in residential areas without specific municipal permits, though they must still comply with general property maintenance standards, fire safety codes, and collect applicable state and local taxes. Recent legal changes have been minimal at the local level, with most Arkansas STR regulatory activity occurring in larger metropolitan areas rather than small rural communities like Gillham, where enforcement capacity and regulatory infrastructure remain limited.

The best areas for Airbnb investment in Gillham, Arkansas would be properties near DeGray Lake Resort State Park, which attracts tourists year-round for fishing, boating, and outdoor recreation activities. The lakefront and near-lakefront neighborhoods offer the highest potential due to their proximity to DeGray Lake's recreational opportunities and the state park's lodge and conference facilities that draw both leisure travelers and corporate retreats. Areas within 2-3 miles of the lake, particularly those with water views or easy lake access, command premium rates during peak seasons from April through October. The downtown Gillham area, while smaller, could serve business travelers visiting local industries and government facilities, though demand would be more limited. Properties near Highway 70 corridor provide convenient access for travelers exploring the Ouachita Mountains region and could capture overflow demand from nearby Hot Springs, located about 45 minutes away. The combination of lake recreation, state park amenities, and scenic mountain location makes waterfront and lake-adjacent properties the most promising investment opportunities, with potential for both weekend getaways and extended vacation stays.

Airbnb properties in Gillham, 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. Polk County may impose an additional local sales tax of up to 2%, bringing the potential total to 8.5%, though specific county rates vary and should be verified with Polk County officials. As a small unincorporated community, Gillham itself likely does not impose separate municipal lodging taxes, but hosts should confirm with local authorities. Arkansas exempts stays of 30 days or longer from sales tax, and properties renting fewer than 10 days per year may qualify for casual sale exemptions. Airbnb may collect and remit these taxes automatically in some Arkansas locations through voluntary collection agreements, but hosts remain ultimately responsible for compliance and should verify their specific obligations with the Arkansas Department of Finance and Administration.

To start an Airbnb in Gillham, Arkansas, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in rural Arkansas markets. Furnishing a 2-3 bedroom property would require $15,000-$25,000 for furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials would be $1,500-$3,000. Permits and fees vary by county but typically range $500-$1,500 for business licenses and short-term rental permits. Insurance specifically for short-term rentals costs approximately $2,000-$3,500 annually. Utility setup and deposits for electricity, water, internet, and cable would be $500-$1,000. First six months of operating costs including utilities ($300/month), cleaning supplies and services ($200/month), maintenance reserves ($150/month), property management software ($50/month), and marketing ($100/month) would total approximately $4,800. Additional considerations include property taxes, HOA fees if applicable, and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Gillham, Arkansas show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs ($2,000-3,500 yearly). Net profit margins generally range from 25-35% for well-managed properties, translating to $4,500-9,800 annual profit per unit. Success factors in this rural Arkansas market include proximity to DeGray Lake recreational activities, competitive pricing against Little Rock properties (45 minutes away), professional photography, and targeting fishing/hunting enthusiasts visiting the Ouachita National Forest region. Properties with lake access or scenic views command premium rates of $130-180 nightly, while basic homes without amenities struggle below $65 nightly rates. The limited local competition and growing interest in rural retreats post-2020 have benefited early adopters, though seasonal demand fluctuations require careful cash flow management during slower winter months when occupancy can drop to 30-40%.

Based on Gillham, 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 area. Properties near outdoor recreation areas like Buffalo National River achieve higher returns around 15-18% annually, while standard residential properties average 10-13% ROI. Initial profitability usually occurs within 8-14 months of operation, with full investment recovery expected in 6-8 years. The rural Arkansas market benefits from lower property acquisition costs ($80,000-$150,000 average) and growing demand for nature-based tourism, though occupancy rates fluctuate seasonally between 45-65% annually. Cash-on-cash returns improve significantly after the second year as operators optimize pricing strategies and build guest reviews, with experienced hosts achieving 12-16% cash-on-cash returns by year three of operation.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Gillham, Arkansas. Local real estate agents specializing in investment properties include Coldwell Banker Harris McHaney & Faucette in nearby Hot Springs (2019-present), RE/MAX Advantage Arkansas with agents focusing on Lake Ouachita area properties, and Century 21 Parker & Associates serving the Polk County region. National services include Mashvisor for property analysis and market insights, BiggerPockets for investor networking and deal sourcing, Awning for short-term rental market analysis, and RedfinNow for quick property acquisitions. Local property management companies that assist investors include Vacasa, which expanded into Arkansas markets in 2020, and regional firms like Arkansas Vacation Rentals and Lake Country Property Management. Investment-focused real estate companies serving the area include HomeVestors (We Buy Ugly Houses), iBuyers like Opendoor (though limited in rural Arkansas), and local investment groups such as Arkansas Real Estate Investors Association members who specialize in vacation rental properties near DeGray Lake and the Ouachita Mountains region.