Is Harrison, Arkansas Good for Airbnb Investment?

To start an Airbnb in Harrison, Arkansas, begin by researching local zoning laws and regulations through the Harrison Planning Department and Boone County offices, as Arkansas generally allows short-term rentals but municipalities may have specific requirements. Contact Harrison City Hall at 870-741-2558 to verify if you need a business license or special permits, and check with the Arkansas Department of Finance and Administration for state tax registration requirements. Find a suitable property by working with local real estate agents like Ozark Mountain Realty or Century 21, focusing on areas near Buffalo National River, downtown Harrison, or properties with scenic Ozark Mountain views that attract tourists visiting the region's outdoor attractions. Once you secure a property, furnish it with comfortable, durable furniture from local stores like Walmart Supercenter on Highway 65 or order online, ensuring you include essential amenities like Wi-Fi, kitchen supplies, linens, and local guidebooks featuring attractions like Mystic Caverns and Buffalo Point. Create your Airbnb listing with high-quality photos showcasing the property's proximity to Harrison's attractions, the Buffalo National River, and Ozark Mountain recreational activities, setting competitive rates based on similar properties in the $60-120 per night range typical for the area. Register for Arkansas state sales tax collection (currently 6.5% plus local taxes), obtain any required occupancy permits from Boone County Health Department if applicable, and ensure compliance with fire safety regulations. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like Vacasa if you live remotely, while maintaining responsive communication with guests and highlighting Harrison's attractions such as fishing, hiking, and the annual Crawdad Days Festival.

To identify profitable short-term rental properties in Harrison, Arkansas, focus on locations within 5-10 minutes of Buffalo National River access points, downtown Harrison's historic district, or near Mystic Caverns and other Ozark Mountain attractions that draw tourists year-round. Target 2-4 bedroom properties built after 1980 with outdoor spaces like decks or fire pits, modern amenities including high-speed internet, and unique features such as river views or rustic cabin aesthetics that appeal to nature-seeking guests. Analyze pricing by researching comparable STRs on Airbnb and VRBO within a 15-mile radius, noting that properties near water activities typically command $120-200 per night while standard homes average $80-120, with peak seasons during summer months and fall foliage periods generating 20-30% premiums. Study competition density using AirDNA or Mashvisor to identify underserved areas, particularly focusing on properties that lack professional photography or have inconsistent availability, as Harrison's STR market remains relatively unsaturated compared to nearby Eureka Springs. Utilize the Boone County Assessor's website for property values, partner with local realtors familiar with tourism patterns like Ozark Mountain Realty, monitor Buffalo River outfitter websites for seasonal trends, and leverage Facebook groups like "Harrison Arkansas Community" to understand local regulations and tourist preferences specific to this outdoor recreation-focused market.

To obtain an Airbnb/STR permit in Harrison, Arkansas, you must first contact the Harrison City Clerk's office at City Hall located at 204 North Spring Street to inquire about short-term rental regulations and obtain the necessary application forms. 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. The application fee is estimated at $100-200 annually, with additional inspection fees of approximately $50-75. Submit your completed application with all supporting documents to the City Clerk's office, after which the city will schedule a property inspection to ensure compliance with zoning laws, occupancy limits, parking requirements, and safety standards. The approval timeline is typically 30-45 days from submission of a complete application. Harrison-specific requirements likely include adherence to residential zoning restrictions, maximum occupancy limits based on bedrooms and square footage, adequate off-street parking spaces, proper waste management arrangements, and maintaining a current business license. Once approved, you must display your permit number in all online listings and renew annually by December 31st.

Short-term rentals (STRs) are generally legal in Harrison, Arkansas, as the city has not implemented a comprehensive ban on such accommodations. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict operations in certain residential areas. The city requires STR properties to obtain proper business licenses and adhere to health and safety codes, fire safety regulations, and occupancy limits. Properties in single-family residential zones may face more stringent restrictions compared to those in commercial or mixed-use areas. Harrison has not enacted specific STR ordinances as detailed as larger Arkansas cities like Fayetteville or Little Rock, but operators must still comply with state tax collection requirements and local noise ordinances. Recent years have seen increased scrutiny of STRs in many Arkansas municipalities, though Harrison has maintained a relatively permissive approach while ensuring basic regulatory compliance for safety and tax purposes.

The best areas for Airbnb investment in Harrison, 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 neighborhoods near Crooked Creek and Buffalo National River access points are highly attractive due to Harrison's proximity to some of Arkansas's premier fishing and floating destinations, drawing outdoor enthusiasts year-round. Areas close to Boone County Fairgrounds benefit from seasonal events and the annual county fair, while properties near the Harrison Regional Airport and along Highway 65/62 corridors capture business travelers and those passing through to popular destinations like Branson, Missouri. The residential areas near Northark College (North Arkansas College) present opportunities for visiting families, prospective students, and academic-related travel, while neighborhoods with easy access to nearby state parks like Bull Shoals-White River State Park can capitalize on the growing outdoor recreation tourism market that drives much of the Ozarks region's visitor economy.

In Harrison, Arkansas, Airbnb hosts are subject to both state and local lodging taxes. The Arkansas state tourism tax is 2% on gross receipts from short-term rentals, while Boone County imposes an additional 2% lodging tax, bringing the total occupancy tax to approximately 4%. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions, though hosts should verify this applies to Harrison specifically. If Airbnb doesn't collect automatically, hosts must register with the Arkansas Department of Finance and Administration and Boone County tax collector, collect taxes from guests, and remit payments monthly by the 20th of the following month along with required tax returns. The city of Harrison may impose an additional municipal lodging tax of 1-3%, which would require separate registration and remittance directly to the city. Exemptions typically include stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and rentals to permanent residents of Arkansas in some cases. Hosts should maintain detailed records of all bookings, tax collected, and payments made, as penalties for non-compliance can include interest charges and fines of up to 25% of unpaid taxes.

The total cost to start an Airbnb in Harrison, Arkansas is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing total $800-$1,200. Permits and fees vary but typically include business license ($50-$100), short-term rental permit if required ($100-$300), and potential HOA approval fees. Insurance for short-term rentals runs $1,500-$2,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, gas, internet, and cable cost approximately $500-$800 initially. First six months of operating costs including utilities ($200-$300/month), cleaning supplies and services ($150-$250/month), maintenance reserves ($100-$200/month), platform fees (3% of bookings), and property management software ($30-$50/month) total roughly $3,000-$5,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Harrison, Arkansas typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$120 depending on location and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), property management (10-20% of revenue), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Buffalo National River or with lake access command premium rates and achieve 60-75% occupancy during peak season (April-October), while standard residential properties average 45-55% annual occupancy. Successful operators like those managing cabins near Ponca or Buffalo Point report profit margins of 25-35% by focusing on outdoor recreation marketing, professional photography, and responsive guest communication. Properties purchased below $150,000 and generating $25,000+ annually typically achieve 12-18% ROI, with the most profitable being 2-3 bedroom cabins or homes within 30 minutes of popular fishing and floating destinations, where hosts leverage Harrison's position as a gateway to the Buffalo National River to attract outdoor enthusiasts from Little Rock, Memphis, and Tulsa markets.

Based on Harrison, 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 city. Properties near Buffalo National River and downtown Harrison command higher nightly rates of $85-120, while suburban properties average $65-95 per night with occupancy rates of 55-70% annually. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with vacation rentals near outdoor recreation areas like Buffalo Point and Rush showing stronger performance metrics. The market benefits from consistent tourism to the Arkansas Ozarks region, with peak seasons during spring and fall generating 25-35% higher revenues than winter months, and total annual gross yields typically reaching 15-22% before expenses in prime locations.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Harrison, Arkansas and surrounding areas. Local real estate agents in Harrison who focus on investment properties include Century 21 Harrison, Coldwell Banker Harris McHaney & Faucette, and RE/MAX Real Estate Professionals, with agents like those at Ozark Mountain Properties having experience in vacation rental investments. National services that can assist with Harrison Airbnb investments include Awning (property management and acquisition consulting), RedAwning (vacation rental property search), Mashvisor (real estate analytics platform), and AirDNA (market data and analysis). Local property management companies such as Ozark Vacation Rentals and Buffalo National River Properties can provide insights into profitable areas near Buffalo National River and Bull Shoals Lake. Investment-focused real estate companies like Roofstock and Arrived Homes occasionally feature Arkansas markets, while local mortgage brokers at First Security Bank and Generations Bank in Harrison can provide financing expertise for investment properties in the area's growing tourism market centered around outdoor recreation and lake activities.