Is Gurdon, Arkansas Good for Airbnb Investment?

To start an Airbnb in Gurdon, Arkansas, begin by researching local regulations through Clark County and the City of Gurdon offices, as Arkansas generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and zoning compliance. Contact Gurdon City Hall at (870) 353-6623 to obtain necessary permits, which typically include a business license ($25-50 annually) and may require a rental inspection certificate. Find suitable property by searching local real estate listings through Century 21 or Coldwell Banker offices in nearby Arkadelphia, focusing on properties near Gurdon's historic downtown or along Highway 67 with good access to Little Rock (45 minutes away). Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-5,000 for a 2-bedroom setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting Gurdon's small-town charm and proximity to DeGray Lake State Park and Hot Springs National Park. Manage bookings through automated messaging systems, coordinate cleaning between guests using local services like Gurdon area housekeepers, maintain competitive pricing around $60-80 per night based on regional market rates, and ensure compliance with Arkansas's 11.5% combined state and local lodging taxes that must be collected and remitted quarterly to the Arkansas Department of Finance and Administration.

To identify profitable short-term rental properties in Gurdon, Arkansas, focus on properties within 2-3 miles of the Ouachita River and near Highway 67 for accessibility, as these locations attract fishing enthusiasts and travelers passing through southwestern Arkansas. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as these features appeal to families and groups visiting the area for outdoor recreation or business at nearby timber operations like Weyerhaeuser. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties in Camden and Arkadelphia, aiming for nightly rates between $75-120 depending on size and amenities, with occupancy rates typically ranging 40-60% annually in this rural market. Research competition by analyzing existing STRs within a 15-mile radius on Airbnb and VRBO, noting that limited inventory in Gurdon creates opportunities but also indicates smaller demand compared to tourist destinations. Utilize tools like Rabbu and STR Helper for market analysis, partner with local real estate agents familiar with Clark County properties, and leverage the Arkansas Tourism Department's data on outdoor recreation trends, while considering proximity to Crater of Diamonds State Park (45 minutes away) and DeGray Lake Resort State Park as demand drivers for weekend and seasonal bookings.

To obtain an Airbnb/STR permit in Gurdon, Arkansas, you will need to contact the Gurdon City Hall at 870-353-2511 or visit them at 107 West Main Street to inquire about short-term rental regulations, as this small city may not have established formal STR permitting processes yet. You will likely need to provide a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and contact information for a local property manager if you live more than 50 miles away. Expected fees range from $50-150 for the initial permit plus $25-75 for annual renewals, though you should also budget for a $100-200 business license fee. The approval timeline is typically 2-4 weeks after submitting complete documentation. Gurdon will likely require compliance with all residential building codes, maximum occupancy limits based on bedrooms and square footage, adequate parking spaces (usually 1-2 per unit), proper waste management arrangements, and maintenance of the property in good condition. You must also register with the Arkansas Department of Finance and Administration for state tax purposes and collect applicable local and state taxes on all bookings.

Short-term rentals (STRs) are generally legal in Gurdon, Arkansas, as the city does not appear to have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. Arkansas state law allows STRs, and many smaller municipalities like Gurdon (population approximately 2,000) have not enacted restrictive local regulations. Property owners can typically operate STRs in residential areas without special permits, though they must comply with standard property maintenance codes, fire safety requirements, and collect applicable state and local taxes including Arkansas's 6.5% state sales tax and any local hotel/motel taxes. There are no known prohibited zones specifically for STRs in Gurdon, and recent legal changes have been minimal at the municipal level, with most regulatory activity occurring in larger Arkansas cities like Fayetteville and Little Rock rather than small towns like Gurdon.

The best areas for Airbnb investment in Gurdon, Arkansas would be the historic downtown district near the railroad heritage sites, as Gurdon is famous for the mysterious "Gurdon Light" phenomenon which attracts paranormal tourists and curiosity seekers year-round. The residential areas closest to Highway 67 and Interstate 30 access points offer strong potential due to business travelers and visitors passing through this transportation corridor between Little Rock and Texarkana. Properties near Degray Lake State Park (approximately 30 minutes away) can capture outdoor recreation tourists seeking fishing, boating, and camping activities, while the neighborhoods around the Clark County Fairgrounds benefit from seasonal events and agricultural tourism. The area near White Oak Lake also presents opportunities for weekend getaway rentals targeting visitors from Little Rock and Hot Springs seeking lakefront recreation, and properties within walking distance of local restaurants and the historic Gurdon depot can appeal to railroad enthusiasts and history buffs exploring Arkansas's transportation heritage.

Airbnb properties in Gurdon, Arkansas are subject to Arkansas state sales tax of 6.5% on lodging accommodations, which applies to short-term rentals under 30 days. Clark County, where Gurdon is located, may impose an additional local sales tax of up to 3%, bringing the potential combined rate to approximately 9.5%. The Arkansas Tourism Development Act also requires a 2% state tourism tax on lodging facilities, though this primarily applies to hotels and may have exemptions for smaller operators. Airbnb typically collects and remits state taxes automatically for hosts in Arkansas as of 2019, but hosts remain responsible for any local county or municipal taxes that may apply. Tax collection occurs at the time of booking through the platform, and hosts must register with the Arkansas Department of Finance and Administration if they exceed $1,000 in annual gross receipts. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging. Local municipal taxes specific to Gurdon may apply but would require verification with Clark County tax authorities, as small municipalities often rely on county-level tax collection systems.

Starting an Airbnb in Gurdon, Arkansas requires an estimated total investment of $85,000-$95,000. Property purchase costs approximately $65,000-$75,000 based on median home prices in rural Arkansas markets. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor runs $8,000-$12,000. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees total $500-$800. Insurance for short-term rental coverage adds $1,200-$1,800 annually. Utilities including electricity, water, internet, and cable average $200-$300 monthly. First six months operating costs including utilities ($1,200-$1,800), cleaning supplies and services ($600-$900), maintenance reserves ($500-$800), platform fees on bookings ($400-$600), and marketing expenses ($300-$500) total approximately $3,000-$4,600. Property taxes and ongoing insurance should also be factored at roughly $1,500-$2,200 for the initial six-month period.

Airbnb properties in Gurdon, Arkansas, a small town of approximately 2,100 residents in Clark County, face challenging profitability conditions due to limited tourism demand and low market rates. Properties in this rural market typically generate $200-400 monthly revenue with average daily rates of $45-65, significantly below state averages, while expenses including mortgage payments, utilities, cleaning fees, and maintenance often range $300-600 monthly, resulting in negative or marginal profit margins of -10% to 5% for most operators. Success factors in Gurdon include targeting niche markets such as hunters during deer season (November-January), railroad enthusiasts visiting the Gurdon Light phenomenon, or workers on temporary assignments at nearby timber operations, with the most profitable properties being those owned outright without mortgage payments and positioned near Highway 67 for accessibility. Case studies from similar Arkansas rural markets suggest that properties achieving 40%+ occupancy rates and maintaining expenses below $350 monthly can achieve 8-15% profit margins, but Gurdon's limited attractions and distance from major cities like Little Rock (90 miles) make sustained profitability difficult compared to properties in Hot Springs or Fayetteville markets that consistently outperform with 20-35% margins.

Based on Gurdon, Arkansas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and occupancy rates. Properties in Gurdon generally reach profitability within 18-24 months, with average nightly rates of $75-$95 for well-maintained 2-3 bedroom properties. The market benefits from proximity to outdoor recreation areas and business travelers, though seasonal fluctuations can impact returns by 15-20% during slower winter months. Initial investment recovery periods average 8-10 years for properties purchased at $80,000-$120,000 price points, with annual gross revenues typically ranging from $12,000-$18,000 after accounting for Gurdon's moderate tourism demand and competition from traditional lodging options.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Gurdon, Arkansas, offering market analysis and property recommendations. Local real estate agents in the area include Century 21 Parker & Associates and Coldwell Banker Harris McHaney & Faucette, both serving Clark County and surrounding regions. National services like Awning, RedAwning, and Mashvisor provide Airbnb investment analysis and property management solutions for the Gurdon market. AirDNA offers comprehensive short-term rental data and market insights for Arkansas properties, while BiggerPockets connects investors with local professionals and resources. Local property management companies such as Arkansas Vacation Rentals and Southern Hospitality Management can assist with ongoing operations. Real estate investment firms like Roofstock and Arrived Homes occasionally feature Arkansas properties, though availability in smaller markets like Gurdon may be limited. Regional brokerages including RE/MAX and Keller Williams have agents familiar with investment properties in Clark County, and platforms like VRBO and Airbnb themselves provide market data to help investors evaluate potential returns in the Gurdon area.