Is Lockesburg, Arkansas Good for Airbnb Investment?

To start an Airbnb in Lockesburg, Arkansas, begin by researching local regulations through the Sevier County Planning and Zoning Department and Lockesburg City Hall, as Arkansas generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and zoning compliance. Obtain necessary permits including a business license from Sevier County (approximately $25-50), ensure your property meets fire safety codes, and verify zoning allows short-term rentals in your area. Find a suitable property by researching Lockesburg's tourism attractions like nearby Millwood Lake and outdoor recreation areas, with properties typically ranging $40,000-120,000 for modest homes suitable for vacation rentals. Furnish the space with essential amenities including Wi-Fi, basic kitchen supplies, linens, and outdoor furniture to appeal to fishing and hunting tourists common to the area, budgeting approximately $3,000-8,000 for initial furnishing. List your property on Airbnb and VRBO platforms with competitive pricing around $60-120 per night based on local market rates, highlighting proximity to Millwood Lake, Little River, and outdoor activities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or lockbox systems, and maintaining relationships with local cleaning services and maintenance contractors, while ensuring compliance with Arkansas's 11% combined state and local lodging taxes that must be collected and remitted to the Arkansas Department of Finance and Administration.

To identify profitable short-term rental properties in Lockesburg, Arkansas, focus on properties within 10-15 minutes of Millwood Lake and De Gray Lake State Park, as these outdoor recreation areas drive tourism demand year-round. Target 2-4 bedroom homes with lake views, boat parking, fishing amenities, and outdoor spaces like decks or fire pits that appeal to fishing and hunting enthusiasts. Analyze comparable STR pricing on Airbnb and VRBO, where lakefront properties typically command $100-200 per night while standard homes rent for $60-120 nightly, ensuring your acquisition costs allow for 15-20% annual returns after expenses. Research competition by monitoring occupancy rates of existing rentals within a 20-mile radius, noting that properties near Millwood Lake generally maintain 60-70% occupancy during peak seasons (spring through fall). Utilize AirDNA for market analytics, STRAnalytics for revenue projections, and local resources like the Sevier County Chamber of Commerce and Arkansas State Parks website to understand seasonal tourism patterns, while connecting with local property managers familiar with the lake recreation market to identify off-market opportunities and understand regulatory requirements specific to Sevier County's short-term rental ordinances.

To obtain an Airbnb/STR permit in Lockesburg, Arkansas, contact the Sevier County Planning and Zoning Department at (870) 642-2852 or visit their office at 115 North 3rd Street in De Queen, as Lockesburg falls under county jurisdiction for zoning matters. Required documents typically include a completed short-term rental application, property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), septic system inspection certificate, and Arkansas sales tax permit from the Department of Finance and Administration. Application fees generally range from $150-300 initially with annual renewal fees of $75-150. The approval timeline is typically 30-45 days after submitting a complete application. Specific Lockesburg/Sevier County requirements include maintaining a local contact person within 30 miles, posting maximum occupancy limits, providing adequate parking (minimum 2 spaces), ensuring septic system compliance for rural properties, registering with Arkansas Department of Finance for tax collection, and adhering to noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also meet fire safety codes and may require inspection by the county health department depending on the number of bedrooms.

Short-term rentals (STRs) in Lockesburg, Arkansas are generally legal as the state of Arkansas does not prohibit STRs at the state level, and Lockesburg, a small town in Sevier County with approximately 700 residents, does not appear to have enacted specific municipal ordinances restricting or regulating short-term rentals as of 2024. The town operates under basic zoning regulations that typically allow residential properties to be used for rental purposes, though property owners should verify compliance with any residential zoning requirements and ensure proper business licensing through the city clerk's office. Sevier County itself has not implemented county-wide STR restrictions, and Arkansas state law generally favors property rights and rental freedoms. However, STR operators must still comply with standard business requirements such as collecting and remitting state sales tax (currently 6.5%) and local taxes if applicable, obtaining proper insurance coverage, and following health and safety codes. Given Lockesburg's small size and rural nature, there have been no significant recent legal changes specifically targeting STRs, though operators should monitor potential future regulations as the industry continues to grow statewide and some Arkansas municipalities have begun implementing registration requirements and occupancy limits in more tourist-heavy areas.

The best areas for Airbnb investment in Lockesburg, Arkansas would be properties near the Little River and Millwood Lake region, approximately 15-20 miles southeast, which attracts fishing enthusiasts and water sports visitors year-round. The downtown historic district of Lockesburg offers potential for guests interested in small-town charm and antique shopping, particularly during local festivals and events. Properties along Highway 70 corridor provide convenient access for business travelers working with local timber and agricultural companies like Weyerhaeuser and Tyson Foods operations in the broader Sevier County area. The residential areas near Lockesburg School District attract families visiting for school events and reunions. Additionally, properties within a 30-mile radius of De Queen benefit from overflow visitors attending the annual De Queen-Sevier County Lumberjack Festival and those accessing the nearby Ouachita National Forest for hunting, hiking, and outdoor recreation activities.

Airbnb properties in Lockesburg, Arkansas are subject to Arkansas state sales tax of 6.5% on lodging accommodations, which applies to short-term rentals under 30 days. The state requires hosts to register for a sales tax permit and collect taxes from guests, with monthly remittance due by the 20th of the following month for properties generating over $200 in monthly tax liability. Sevier County may impose an additional local lodging tax of approximately 2-3%, though specific rates vary by municipality and should be verified with county authorities. The City of Lockesburg may also levy a local occupancy tax, typically ranging from 1-2%, collected alongside state taxes. Airbnb may collect and remit these taxes automatically in some Arkansas jurisdictions through their tax collection service, but hosts should verify coverage and register independently if needed. Properties rented for 30 days or longer are generally exempt from transient lodging taxes, and some jurisdictions may exempt rentals under certain dollar thresholds or provide exemptions for permanent residents, though these vary by local ordinance and should be confirmed with Arkansas Department of Finance and Administration and local tax authorities.

To start an Airbnb in Lockesburg, Arkansas, the total estimated costs would be approximately $95,000-$115,000. Property purchase costs around $75,000-$85,000 based on median home prices in rural Arkansas communities. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees would total $300-$800. Insurance including landlord and short-term rental coverage would cost $1,200-$1,800 annually. Utilities setup and deposits for electricity, water, internet, and cable would be $400-$600. First six months operating costs including utilities ($600-$900), cleaning supplies and services ($800-$1,200), maintenance reserves ($1,000), marketing ($300-$500), and platform fees would total approximately $3,500-$5,000.

Airbnb properties in Lockesburg, Arkansas typically generate modest returns due to the town's small population of approximately 700 residents and limited tourism infrastructure. Properties in this rural Sevier County location generally earn $15,000-$25,000 annually in gross revenue, with average daily rates ranging from $45-$75 depending on property size and amenities. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$200 monthly), property management (15-20% if outsourced), insurance ($800-$1,200 annually), and maintenance costs. Net profit margins generally range from 15-25%, translating to $3,000-$6,000 annual profit for typical properties. Success factors include proximity to outdoor recreation areas like the nearby Cossatot River for fishing and kayaking, competitive pricing below Little Rock market rates, and targeting guests seeking rural retreats or visiting family in the region. Properties with unique features like historic charm, large outdoor spaces, or hunting lodge aesthetics tend to achieve higher occupancy rates of 35-45% compared to basic rentals at 20-30%. The market remains relatively small with limited competition, but growth potential is constrained by the area's remote location and lack of major attractions or business travel demand.

Airbnb investments in Lockesburg, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the rural market dynamics and limited tourism infrastructure in this small Sevier County town of approximately 700 residents. Properties averaging $80,000-120,000 purchase price can expect monthly rental income of $800-1,200 during peak hunting and fishing seasons, with occupancy rates around 35-45% annually due to the area's proximity to DeGray Lake and Ouachita National Forest. Investors should anticipate 18-24 months to reach profitability after accounting for initial renovation costs of $15,000-25,000 to meet short-term rental standards, property management expenses, and seasonal demand fluctuations. The market benefits from limited competition with fewer than 15 active Airbnb listings in the immediate area, though growth potential remains constrained by the town's remote location and limited amenities, making this suitable primarily for investors seeking steady but modest returns in Arkansas's rural vacation rental market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering market analysis and property recommendations in Lockesburg, Arkansas. Local real estate agents in the area include Coldwell Banker Harris McHaney & Faucette serving the Sevier County region, and RE/MAX Real Estate Professionals with agents familiar with investment properties in southwest Arkansas. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and BiggerPockets for connecting with local investors and agents. RedAwning offers vacation rental property management and acquisition services, while local property management companies like Arkansas Vacation Rentals can assist with both finding and managing Airbnb properties. Additional national platforms include Awning for turnkey Airbnb investments, Vacasa for property management and acquisition guidance, and local Arkansas-based investment groups that focus on short-term rental opportunities in rural markets like Lockesburg.