Is Manila, Arkansas Good for Airbnb Investment?

To start an Airbnb in Manila, Arkansas, begin by researching local zoning laws and regulations through the Manila City Hall and Mississippi County offices, as Arkansas generally allows short-term rentals but municipalities may have specific requirements including business licenses and occupancy permits. Contact the Manila Building Department to obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a conditional use permit if operating in residential zones. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX, focusing on properties near Crowley's Ridge State Park or downtown Manila that attract visitors, with average property costs ranging $80,000-150,000. Furnish the property with essential amenities including quality bedding, kitchen appliances, Wi-Fi, and local guidebooks, budgeting approximately $5,000-10,000 for complete furnishing. Create your Airbnb listing with professional photos highlighting nearby attractions like the Big Lake Wildlife Management Area and Crowley's Ridge Parkway, setting competitive rates around $60-90 per night based on local market analysis. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, and considering property management services if needed, while ensuring compliance with Arkansas state tax requirements including collecting and remitting sales tax on short-term rental income.

To identify profitable short-term rental properties in Manila, Arkansas, focus on locations near Crowley's Ridge State Park, Big Lake National Wildlife Refuge, and along the Mississippi River corridor where outdoor recreation drives tourism demand. Target 2-4 bedroom single-family homes or cabins built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to fishing and hunting groups visiting the area. Conduct pricing analysis by researching comparable Airbnb listings within 20 miles, aiming for properties under $150,000 that can generate $100-150 per night during peak seasons (spring fishing, fall hunting). Competition research should focus on the limited existing STR inventory in this rural market, with most properties concentrated near recreational areas and typically booked by repeat visitors. Utilize tools like AirDNA for market data, Zillow and Realtor.com for property searches, the Arkansas Department of Parks and Tourism website for visitor statistics, and local Facebook groups like "Manila Arkansas Community" for market insights, while ensuring compliance with Mississippi County zoning regulations and Arkansas STR tax requirements.

To obtain an Airbnb/STR permit in Manila, Arkansas, contact the Manila City Hall at 870-561-2288 or visit their office at 318 N 4th Street to inquire about short-term rental regulations and application procedures. You will likely need to submit 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, contact information for a local property manager if you live more than 50 miles away, and pay applicable fees which typically range from $50-150 annually. The city may require a fire safety inspection, compliance with zoning ordinances (ensuring the property is in an area that permits short-term rentals), and adherence to occupancy limits based on square footage and bedroom count. Submit all documents to the City Clerk's office along with the application fee, and allow 2-4 weeks for processing and approval. Once approved, you must display your permit number in all online listings and maintain compliance with noise ordinances, parking requirements (typically 1-2 spaces per unit), and guest registration requirements where visitors may need to provide identification upon check-in.

Short-term rentals (STRs) in Manila, Arkansas are generally legal but operate under state and local regulations that vary by specific location within the city. Arkansas state law allows municipalities to regulate STRs, and Manila typically requires STR operators to obtain business licenses and comply with zoning ordinances that may restrict operations in certain residential areas. The city generally permits STRs in commercial zones and some residential districts, but may prohibit them in areas zoned exclusively for single-family homes or near schools and churches. Operators must typically register their properties, collect and remit local taxes, maintain liability insurance, and ensure compliance with fire safety and building codes. Recent changes in Arkansas since 2019-2021 have given municipalities more authority to regulate STRs while preventing outright bans, meaning Manila can impose reasonable restrictions on density, parking, noise, and occupancy limits. Property owners should verify current zoning compliance and obtain proper permits before operating STRs, as violations can result in fines and cease-and-desist orders from the city.

The best Airbnb investment areas in Manila, Arkansas include the downtown historic district near the Manila City Park and community center, which attracts visitors for local events, family gatherings, and those exploring the Mississippi County region's agricultural heritage. The residential neighborhoods along Highway 18 and near the Manila High School area offer good potential due to their proximity to local businesses and the fact that Manila serves as a hub for agricultural workers and contractors who need temporary housing during planting and harvest seasons. Areas near the Manila Municipal Airport and industrial zones attract business travelers and workers in the agricultural processing industry. The neighborhoods close to Big Lake Wildlife Management Area, about 15 minutes away, can capitalize on hunting and fishing tourism, particularly during duck hunting season from November through January, as Manila provides convenient access to some of Arkansas's premier waterfowl hunting grounds in the Mississippi River delta region.

Manila, 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% that applies to lodging services. The local lodging tax is typically collected by the host at the time of booking or check-in and must be remitted monthly to the Manila City Clerk's office by the 20th of the following month, with payments accompanied by a completed tax return form showing gross receipts and tax collected. Arkansas state sales tax on lodging is collected through the same process but remitted to the Arkansas Department of Finance and Administration. Hosts must register for both local and state tax collection permits before operating, and failure to collect and remit these taxes can result in penalties and interest charges. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Manila, Arkansas would be approximately $85,000-$95,000. Property purchase costs around $65,000-$75,000 based on median home prices in rural Arkansas communities. 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 permits, 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 or $1,200-$1,800 for six months. First six months operating costs including cleaning services, supplies, maintenance, marketing, and platform fees range $3,000-$4,500. Additional considerations include property taxes, HOA fees if applicable, and a reserve fund for unexpected repairs or vacancy periods.

Airbnb properties in Manila, Arkansas show moderate profitability potential with average nightly rates ranging from $65-95 for typical 2-3 bedroom homes, generating approximately $1,200-2,400 monthly revenue at 50-65% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-200 monthly), insurance ($100-150 monthly), and platform fees (3% host fee plus 14-16% guest service fees). Property owners near Crowley's Ridge State Park and Lake Frierson achieve higher occupancy rates of 60-70% due to outdoor recreation demand, while downtown Manila properties average 45-55% occupancy. Net profit margins typically range from 15-25% after all expenses, with successful hosts like those operating converted historic homes near the St. Francis River reporting annual profits of $8,000-15,000 per property. Key success factors include professional photography, competitive pricing 10-15% below Little Rock rates, rapid guest communication, and targeting fishing/hunting seasons when demand peaks 40-50% above baseline, though the limited population of 3,500 residents constrains overall market size compared to larger Arkansas cities.

Airbnb investments in Manila, Arkansas are expected to generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the limited tourism infrastructure and rural market conditions in this small town of approximately 3,400 residents. Properties typically achieve profitability within 18-24 months, with average nightly rates of $75-$120 for whole properties and occupancy rates around 45-60% annually due to seasonal hunting, fishing, and outdoor recreation demand along the Mississippi River corridor. Initial investment costs are relatively low at $80,000-$150,000 for suitable properties, but investors should expect longer booking gaps compared to major metropolitan markets, with peak seasons during spring and fall outdoor activities driving the majority of rental income between March-May and September-November.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Manila, Arkansas. Locally, Arkansas-based real estate agents like those at Coldwell Banker Harris McHaney & Faucette and RE/MAX Real Estate Results have experience with investment properties in the Manila area and can assist with Airbnb acquisitions. National services include BiggerPockets for networking and deal analysis, Mashvisor for rental property analytics and market data, AirDNA for short-term rental performance metrics, and Awning for Airbnb-focused investment guidance. Regional companies like Arkansas Investment Properties and Delta Real Estate Group understand the local Manila market dynamics. Additional national platforms such as Roofstock, which expanded into short-term rental investments around 2021, and RedfinNow provide investor-focused services. Local property management companies like Blytheville Property Management and Northeast Arkansas Property Services can also provide insights into profitable rental opportunities in the Manila area, while national firms like Vacasa and AvantStay offer comprehensive Airbnb management services that include acquisition consulting.