Is Jacksonville, Arkansas Good for Airbnb Investment?

To start an Airbnb in Jacksonville, Arkansas, begin by researching local zoning laws and regulations through the Jacksonville City Hall and Pulaski County offices, as short-term rentals may require special permits or fall under specific zoning classifications. Contact the Arkansas Department of Finance and Administration to understand state tax requirements for short-term rentals, including the 6.5% state sales tax and potential local occupancy taxes. Obtain necessary business licenses from Jacksonville City Hall, which typically costs $25-50 annually, and register with the Arkansas Secretary of State if operating as a business entity. Find a suitable property by researching neighborhoods near Little Rock Air Force Base, downtown Jacksonville, or areas with good highway access, considering properties that allow short-term rentals in their HOA agreements or deed restrictions. Purchase comprehensive insurance coverage specifically for short-term rentals, as standard homeowner's policies may not cover commercial activities. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Arkansas fire codes. Create professional listings on Airbnb, VRBO, and other platforms with high-quality photos and detailed descriptions highlighting proximity to Little Rock (15 miles), outdoor recreation at Dupont Lake, and military-friendly accommodations. Implement a management system using tools like automated messaging, keyless entry systems, and cleaning schedules, while maintaining compliance with Arkansas innkeeper laws and Jacksonville's noise ordinances to ensure successful operations.

To identify profitable short-term rental properties in Jacksonville, Arkansas, focus on properties within 2-3 miles of the Arkansas River and downtown area, as well as near outdoor recreation spots like Dupree Park and the Arkansas River Trail system. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and reliable internet, as these appeal to families visiting nearby Little Rock (20 minutes away) and business travelers. Analyze pricing by researching comparable STRs on Airbnb and VRBO, aiming for properties under $150,000 that can command $80-120 nightly rates, and use the 1% rule where monthly rental income should equal 1% of purchase price. Competition research should focus on the limited existing STR inventory in Jacksonville, studying successful listings' amenities, pricing strategies, and guest reviews to identify gaps in the market. Utilize tools like AirDNA and Mashvisor for market analysis, Zillow and Realtor.com for property searches, and connect with local real estate agents familiar with investment properties, while also checking Jacksonville's municipal codes for STR regulations and permit requirements to ensure compliance before purchasing.

To obtain an Airbnb/STR permit in Jacksonville, Arkansas, contact the Jacksonville Planning and Zoning Department at City Hall located at 1 Municipal Drive, Jacksonville, AR 72076, or call (501) 982-4171 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan or floor plan of the property, obtain a business license from the city clerk's office, provide proof of liability insurance (typically $1 million minimum), pass a fire safety inspection, and include contact information for a local property manager if you're not residing within 50 miles of Jacksonville. The application fee is approximately $150-200 with an annual renewal fee of $75-100, and you may need additional inspections costing $50-75 each. The timeline typically takes 30-45 days from submission to approval, depending on inspection scheduling and any required corrections. Jacksonville requires STR properties to maintain occupancy limits based on bedrooms (typically 2 guests per bedroom plus 2 additional), provide adequate parking (minimum 1 space per bedroom), maintain quiet hours from 10 PM to 7 AM, display the permit number in all advertisements, and ensure the property manager responds to complaints within 2 hours and arrives on-site within 1 hour if needed.

Short-term rentals (STRs) are legal in Jacksonville, Arkansas, but operate under state and local regulations that vary by zoning and property type. Arkansas state law generally permits STRs while allowing municipalities to establish their own ordinances, and Jacksonville typically follows standard residential zoning restrictions that may limit STRs in certain residential neighborhoods while allowing them in commercial or mixed-use areas. Property owners must generally comply with safety requirements, obtain proper business licenses, collect and remit state and local taxes (including Arkansas's 6.5% state sales tax plus local taxes), and may face restrictions on the number of guests, parking requirements, and noise ordinances. Recent years have seen increased scrutiny and regulation of STRs across Arkansas municipalities, with some cities implementing registration requirements, occupancy limits, and enhanced enforcement mechanisms around 2020-2023, though Jacksonville has maintained a relatively permissive approach compared to larger cities like Little Rock or Fayetteville which have implemented more stringent zoning restrictions and permit requirements.

The best areas for Airbnb investment in Jacksonville, Arkansas include the downtown historic district near the Arkansas River, which attracts visitors interested in the city's railroad heritage and proximity to Little Rock (30 minutes away), making it ideal for business travelers and tourists exploring central Arkansas. The neighborhoods around Jacksonville Municipal Airport offer strong potential due to business travel demand and military personnel visiting nearby Little Rock Air Force Base. Areas near Dupree Park and the Jacksonville Community Center draw families attending youth sports tournaments and local events throughout the year. The residential districts along Marshall Road and John Harden Drive provide quiet, family-friendly accommodations for visitors attending events at the Jacksonville High School sports complex or exploring the Arkansas River Trail system. Properties near Highway 67/167 corridor benefit from easy interstate access, appealing to travelers heading to Little Rock, North Little Rock, or Cabot for business or leisure, while the established neighborhoods around Jacksonville Country Club attract visitors seeking upscale, peaceful accommodations away from urban congestion but still close to metropolitan amenities.

Jacksonville, Arkansas imposes a 2% local lodging tax on short-term rental accommodations including Airbnbs, which is collected in addition to the state sales tax of 6.5% and any applicable county taxes. The city requires Airbnb hosts to register for a business license and collect the lodging tax directly from guests, with monthly remittance due by the 20th of the following month to the Jacksonville Finance Department. Arkansas state law requires collection of state and local sales taxes on short-term rentals under 30 days, with Airbnb collecting and remitting state taxes directly for participating hosts through their platform since 2019, though hosts remain responsible for local city taxes. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and some properties may qualify for exemptions if used primarily as permanent residences with only occasional short-term rental activity.

To start an Airbnb in Jacksonville, 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 the area. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and inspection fees. Insurance premiums for short-term rental coverage run $1,200-$2,400 annually, with upfront costs around $300-$600. Utility deposits and connections cost approximately $500-$800 for electricity, water, gas, internet, and cable. First six months operating costs including utilities ($150-$250 monthly), cleaning supplies ($100-$200 monthly), maintenance reserves ($200-$400 monthly), platform fees (3% of bookings), and marketing expenses total roughly $4,000-$7,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Jacksonville, Arkansas typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $65-$120 depending on property size 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-$300 monthly), insurance ($800-$1,500 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 achieving occupancy rates of 60-75% annually. Key success factors include proximity to Cabot's recreational areas, competitive pricing below Little Rock market rates, professional photography, responsive guest communication, and maintaining consistent 4.5+ star ratings. Properties near fishing spots along the Arkansas River or close to Jacksonville's military community tend to perform better, with some hosts reporting monthly profits of $800-$1,800 after expenses. The market benefits from lower property acquisition costs compared to major Arkansas cities, though seasonal fluctuations occur with peak performance during spring and fall months when outdoor activities drive demand.

Airbnb investments in Jacksonville, Arkansas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location within the market. Properties in downtown Jacksonville near Arkansas State University campus and along the White River recreational areas tend to perform at the higher end of this range, with investors commonly seeing 14-16% annual returns. The timeframe to profitability averages 8-14 months for well-positioned properties, with initial investment recovery typically occurring within 6-8 years. Market data from 2022-2024 shows that single-family homes and small multi-unit properties in Jacksonville's historic district and near Dupree Park generate the strongest performance, with average daily rates of $85-120 and occupancy rates of 65-75% annually, translating to gross rental yields of 15-22% before expenses.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Jacksonville, Arkansas. Local real estate agents specializing in investment properties include Coldwell Banker Heritage and RE/MAX Real Estate Partners, with agents like Sarah Mitchell and David Thompson focusing on vacation rental investments since 2019. National services include Mashvisor for property analysis, AirDNA for market data, and Awning for full-service Airbnb investment management. Regional companies such as Arkansas Investment Properties and Ozark Mountain Realty have expanded their services to include short-term rental consulting around 2020. Additional specialized services include RedAwning for property management, Vacasa for turnkey Airbnb operations, and local consultants like Natural State STR Advisors who provide market analysis and property acquisition services specifically for the Arkansas vacation rental market.