Is Jonesboro, Arkansas Good for Airbnb Investment?

To start an Airbnb in Jonesboro, Arkansas, begin by researching local regulations through the Jonesboro Planning Department and Craighead County offices, as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow STRs in residential areas with proper permits. Contact the Jonesboro Building Safety Department at (870) 933-4623 to obtain necessary permits including a Certificate of Occupancy and ensure compliance with fire safety codes, while also registering for Arkansas state sales tax through the Department of Finance and Administration since you'll need to collect and remit lodging taxes. Find a suitable property by working with local real estate agents familiar with investment properties in desirable areas like near Arkansas State University campus or downtown Jonesboro, ensuring the property meets minimum square footage and parking requirements typically mandated by city ordinances. Furnish the space with quality furniture, linens, and amenities while ensuring compliance with Arkansas landlord-tenant laws and ADA accessibility requirements where applicable. Create your Airbnb listing with professional photos highlighting proximity to ASU, Craighead Forest Park, and local attractions, setting competitive rates based on the local market average of $75-120 per night for typical properties. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like RedAwning or Vacasa that operate in the Arkansas market, while maintaining proper insurance coverage through providers familiar with short-term rental policies in Arkansas, and staying current with Jonesboro's evolving STR regulations which may require annual renewals and inspections.

To identify profitable short-term rental properties in Jonesboro, Arkansas, focus on locations within 2-3 miles of Arkansas State University campus, near downtown entertainment districts, and close to major employers like NEA Baptist Memorial Hospital and Nestle. Target 2-4 bedroom single-family homes or duplexes built after 1990 with modern amenities, parking, and outdoor spaces that appeal to visiting families, business travelers, and university guests. Analyze pricing by researching comparable Airbnb listings in the $75-150 nightly range, calculating potential monthly revenue against mortgage and operating costs to achieve 15-20% cash-on-cash returns. Study competition using AirDNA and Mashvisor to identify supply gaps, seasonal demand patterns driven by university events and regional business travel, and optimal pricing strategies. Leverage local resources including Jonesboro Regional Chamber of Commerce market data, Arkansas State University event calendars for demand forecasting, and local property management companies like Red Door Property Management for operational insights, while ensuring compliance with city zoning regulations and HOA restrictions in target neighborhoods.

To obtain an Airbnb/STR permit in Jonesboro, Arkansas, you must first contact the Jonesboro Planning Department at City Hall located at 300 S Church Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires compliance with local zoning ordinances. Submit an application for a business license through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental property, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. Pay the business license fee of approximately $50-75 annually, along with any applicable zoning compliance fees of around $100-200. The application process typically takes 2-4 weeks for review and approval, during which city staff will conduct a zoning compliance review and may require a site inspection. Jonesboro-specific requirements include maintaining the property as a single-family residence appearance, providing adequate parking spaces (typically 2 spaces minimum), ensuring the property meets all building and fire safety codes, displaying the business license number in all advertising, and maintaining a guest registry. You must also comply with Arkansas state tax requirements by registering for sales tax collection with the Arkansas Department of Finance and Administration, and remit applicable local and state taxes on rental income.

Short-term rentals (STRs) are legal in Jonesboro, Arkansas, as the city has not enacted specific prohibitions against them, though they must comply with general business licensing requirements and zoning regulations. The city requires STR operators to obtain a business license and ensure compliance with residential zoning laws, which may limit operations in certain single-family residential areas depending on homeowner association restrictions. Jonesboro follows Arkansas state law, which generally permits STRs unless specifically restricted by local ordinances, and the city has not implemented the comprehensive regulatory frameworks seen in larger Arkansas cities like Little Rock or Fayetteville. Recent years have seen increased scrutiny from city officials regarding noise complaints and parking issues in residential neighborhoods, leading to discussions about potential future regulations, but as of 2024, no major legal changes have been implemented that would significantly restrict STR operations beyond standard business compliance requirements.

The best areas for Airbnb investment in Jonesboro, Arkansas include the downtown historic district near Main Street, which attracts visitors to local events, restaurants, and the historic courthouse square. The area around Arkansas State University campus is highly attractive due to consistent demand from visiting families, prospective students, and university events throughout the academic year. The Craighead Forest Park vicinity offers appeal to outdoor enthusiasts and families visiting the lake and recreational facilities. The medical district near St. Bernards Medical Center and NEA Baptist Memorial Hospital generates steady business travel and medical tourism demand. Properties near the Jonesboro Municipal Airport area capture business travelers and those attending conferences at the convention center. The Turtle Creek Mall and surrounding commercial district provides convenience for shopping-focused visitors and business travelers preferring proximity to retail and dining options.

In Jonesboro, Arkansas, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The Arkansas state sales tax of 6.5% applies to short-term rental accommodations, along with an additional state tourism tax of 2% on lodging, bringing the base state obligation to 8.5%. Jonesboro imposes a local hotel/motel tax of approximately 2-3% on short-term rentals, and hosts must also collect the local sales tax of around 2.5%, resulting in a combined tax rate of roughly 13-14% that guests pay on top of their accommodation fees. These taxes are typically collected by Airbnb directly from guests in many cases and remitted to the Arkansas Department of Finance and Administration for state portions, while local taxes may require separate registration and monthly or quarterly remittance to the Jonesboro city tax collector depending on revenue thresholds. Hosts must register for an Arkansas sales tax permit and may need a separate local business license, with exemptions generally limited to stays exceeding 30 consecutive days which are considered long-term rentals rather than transient lodging, and properties rented fewer than 7 days per year may qualify for certain exemptions under state law.

The total cost to start an Airbnb in Jonesboro, Arkansas is approximately $185,000-$220,000. Property purchase costs around $140,000-$160,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and decor 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 in Jonesboro include business license ($50-$100), short-term rental permit ($200-$500), and potential HOA approvals totaling around $500-$1,000. Insurance for short-term rentals costs approximately $1,500-$2,500 annually, with many hosts requiring specialized STR coverage. Utility setup and deposits for electricity, water, gas, internet, and cable run about $500-$800 initially. First six months of operating costs including utilities ($200-$300/month), cleaning services ($75-$100 per turnover), property management software ($30-$50/month), maintenance reserves ($200-$400/month), and marketing expenses total approximately $4,500-$7,500, bringing the complete startup investment to the $185,000-$220,000 range.

Airbnb properties in Jonesboro, Arkansas typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, 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), utilities ($150-$300 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved by hosts who self-manage and maintain high occupancy rates of 60-75%. Success factors in the Jonesboro market include proximity to Arkansas State University (driving consistent demand from visiting families and university events), competitive pricing during football season and graduation periods, professional photography, rapid guest communication, and properties featuring modern amenities like high-speed internet and updated kitchens. Properties within 3 miles of the ASU campus consistently outperform those in outlying areas, with some hosts reporting annual profits of $8,000-$15,000 on properties purchased specifically for short-term rental investment, though success heavily depends on initial property acquisition costs and financing terms.

Airbnb investments in Jonesboro, Arkansas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, based on average property acquisition costs of $120,000-180,000 and monthly rental income of $1,800-2,800 for well-positioned 2-3 bedroom properties near Arkansas State University and downtown areas. Properties generally reach profitability within 18-24 months, with occupancy rates averaging 65-75% annually due to consistent demand from university visitors, business travelers, and tourists exploring the Arkansas Delta region. The market benefits from relatively low property taxes, moderate renovation costs averaging $15,000-25,000 for investor-ready units, and strong rental demand during football season and graduation periods, with peak monthly revenues reaching $3,500-4,200 for premium listings, while the growing local economy and university expansion continue to support sustainable long-term returns in the 15-20% range for experienced operators who maintain high guest satisfaction ratings.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Jonesboro, Arkansas. Local real estate agents specializing in investment properties include Realty Executives of Jonesboro, Century 21 Wright Real Estate, and Coldwell Banker United Realtors, with agents like those at RE/MAX Real Estate Partners focusing on rental property investments since 2018. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and investment guidance, Mashvisor for property analysis and market data, and AirDNA for short-term rental analytics. Local property management companies such as NEA Property Management and Jonesboro Property Solutions have expanded into Airbnb management services around 2020, while national platforms like AvantStay and Vacasa provide turnkey investment and management solutions. Additional services include BiggerPockets for investor networking, Roofstock for online real estate investing, and local mortgage brokers like First National Bank of Eastern Arkansas who have developed specialized loan products for short-term rental investments.