Is Marked Tree, Arkansas Good for Airbnb Investment?

To start an Airbnb in Marked Tree, Arkansas, begin by researching local zoning laws and regulations through the Marked Tree City Hall and Poinsett County offices, as Arkansas generally allows short-term rentals but municipalities may have specific requirements. Contact the city clerk at (870) 358-2266 to inquire about business licenses, occupancy permits, and any short-term rental ordinances that may require registration or limit rental days. Obtain necessary permits including a business license from the city (estimated $25-50), ensure your property meets fire safety codes, and verify compliance with the Arkansas Department of Health regulations for lodging facilities. Find a suitable property by searching local real estate listings, considering proximity to attractions like the St. Francis River or agricultural tourism sites, with properties typically ranging $40,000-80,000 for modest homes in the area. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, air conditioning (crucial for Arkansas summers), and local guidebooks highlighting nearby attractions like Crowley's Ridge State Park. Create your listing on Airbnb and VRBO platforms with professional photos, competitive pricing around $60-90 per night based on regional comparables, and descriptions emphasizing rural charm and outdoor activities. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services (likely $40-60 per turnover), and ensuring compliance with Arkansas's 11.5% 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 Marked Tree, Arkansas, focus on properties within 2-3 miles of the St. Francis River and Lake Poinsett for fishing and boating access, as these natural attractions drive tourism in this small Delta town of approximately 2,500 residents. Target 2-4 bedroom homes or cabins with outdoor amenities like fire pits, boat parking, fishing cleaning stations, and screened porches that appeal to hunting and fishing groups, particularly during duck season (November-January) and fishing season (March-October). Analyze comparable properties using AirDNA and Mashvisor to identify the $75-150 nightly rate range typical for rural Arkansas markets, while researching existing competition through Airbnb and VRBO searches within a 15-mile radius including nearby Jonesboro properties. Purchase properties under $150,000 to maintain healthy profit margins, focusing on homes built after 1980 with updated HVAC systems crucial for Arkansas humidity, and utilize local resources like Poinsett County property records, Arkansas Game and Fish Commission data for hunting/fishing seasons, and connect with Marked Tree Chamber of Commerce and local real estate agents like Crye-Leike or Century 21 who understand seasonal tourism patterns and can identify properties near boat launches, hunting clubs, and agricultural tourism opportunities that drive consistent bookings in this rural market.

To obtain an Airbnb/STR permit in Marked Tree, Arkansas, contact the Marked Tree City Hall at 870-358-2266 or visit their office at 201 Frisco Street to inquire about short-term rental regulations and application procedures. 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. Application fees generally range from $50-150 for the initial permit plus annual renewal fees of $25-75, though you should verify current rates with the city clerk. The approval timeline is typically 2-4 weeks after submitting a complete application, depending on inspection scheduling and any required corrections. Marked Tree specific requirements likely include maintaining the property according to residential building codes, providing adequate parking for guests, ensuring proper waste management, displaying the permit number in rental listings, and potentially limiting the number of overnight guests based on property size and parking availability.

Short-term rentals (STRs) are generally legal in Marked Tree, Arkansas, as the city does not appear to have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with Arkansas state regulations including obtaining proper business licenses, collecting and remitting state and local taxes through the Arkansas Department of Finance and Administration, and meeting basic safety requirements. The city likely requires standard business licensing and may have zoning restrictions that limit STRs to certain residential or commercial areas, though specific prohibited zones are not clearly defined in available municipal codes. Poinsett County, where Marked Tree is located, does not impose additional county-level STR restrictions beyond state requirements. Recent legal changes at the state level have focused on tax collection streamlining and registration requirements, but Marked Tree has not implemented significant new local STR regulations in recent years, leaving the market relatively open compared to larger Arkansas cities like Little Rock or Fayetteville that have enacted more restrictive frameworks.

The best areas for Airbnb investment in Marked Tree, Arkansas are primarily concentrated around the downtown historic district near Main Street and the areas adjacent to the St. Francis River waterfront. The downtown area attracts visitors interested in the town's railroad heritage and historic architecture, while properties near the river appeal to fishing enthusiasts and outdoor recreation tourists who come for bass fishing, duck hunting, and boating activities. The residential neighborhoods along Highway 63 and near the Marked Tree School District offer good investment potential due to their proximity to agricultural business travelers and contractors working in the region's farming operations. Areas close to the Marked Tree Community Center and municipal facilities tend to perform well for short-term rentals serving visitors attending local events, family reunions, and small conferences. Properties within walking distance of local restaurants and the few retail establishments in town center provide convenience for guests, while homes near the city's recreational facilities attract families visiting for youth sports tournaments and community events throughout the year.

Airbnb properties in Marked Tree, 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 through the Arkansas Taxpayer Access Point (ATAP) system. Poinsett County imposes an additional 2% local sales tax, bringing the total tax rate to approximately 8.5% on gross rental receipts. Marked Tree itself does not currently impose a separate municipal lodging tax, though hosts should verify with the city clerk as local ordinances can change. Properties rented for 30 days or longer are generally exempt from these transient lodging taxes. Airbnb may collect and remit these taxes automatically in some jurisdictions through voluntary collection agreements, but hosts remain ultimately responsible for ensuring compliance and should maintain detailed records of all bookings and tax collections for audit purposes.

To start an Airbnb in Marked Tree, Arkansas, the total estimated costs would be approximately $95,000-$115,000. Property purchase represents the largest expense at $65,000-$75,000 based on median home prices in rural Arkansas markets. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees vary but generally total $500-$1,200 including business licenses, short-term rental permits, and potential HOA approvals. Insurance costs run $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections typically cost $300-$600 for electricity, water, gas, internet, and cable services. First six months of operating costs including utilities ($150-200/month), cleaning supplies ($50-75/month), maintenance reserves ($100-150/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-$4,500, assuming moderate occupancy rates during the initial launch period.

Airbnb properties in Marked Tree, Arkansas show modest profitability potential with average nightly rates ranging from $45-75 for typical 2-3 bedroom homes, generating approximately $8,000-15,000 in annual revenue assuming 40-50% occupancy rates. Operating expenses typically consume 60-70% of gross revenue, including property management fees (15-25%), cleaning costs ($30-50 per turnover), utilities ($150-200 monthly), insurance ($800-1,200 annually), and maintenance reserves (5-8% of revenue). Net profit margins generally range from 15-25% for well-managed properties, with successful hosts like those operating renovated historic homes near Crowley's Ridge State Park achieving higher margins by targeting outdoor enthusiasts and hunters during peak seasons. Key success factors include competitive pricing below Little Rock market rates, maintaining 4.5+ star ratings through consistent cleanliness and local amenities knowledge, and capitalizing on seasonal demand from fishing tournaments on the St. Francis River and fall hunting seasons. Properties within 10 miles of recreational areas typically outperform urban listings by 20-30% in both occupancy and nightly rates, with some hosts reporting annual net profits of $3,000-6,000 per property after all expenses in this rural Arkansas market.

Airbnb investments in Marked Tree, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the town's proximity to outdoor recreation areas along the St. Francis River and seasonal hunting tourism. Properties in the $80,000-$120,000 range can expect average daily rates of $75-$95 with occupancy rates around 45-55% annually, translating to gross rental income of $12,000-$18,000 per year. After accounting for operating expenses including property management (20-25%), maintenance, insurance, and utilities, net cash flow typically ranges from $4,800-$9,600 annually. Most investors achieve profitability within 18-24 months, with break-even occurring faster for properties purchased below market value or those targeting the duck hunting season when rates can reach $150-$200 per night. The limited supply of short-term rentals in this rural Mississippi County market creates opportunities for higher occupancy rates, though investors should factor in seasonal fluctuations with peak performance during fall hunting season and summer fishing periods.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Marked Tree, Arkansas. Local real estate agents in the area include Crye-Leike Realtors with offices serving northeast Arkansas, and Coldwell Banker United Realtors who have experience with investment properties in the region. National services that can assist include BiggerPockets for networking and deal analysis, Mashvisor for market analysis and property evaluation, AirDNA for short-term rental data and market insights, and Roofstock which focuses on turnkey rental properties. Regional companies such as Arkansas Investment Properties and Delta Real Estate Group have knowledge of the local market dynamics. Additional services include STR Helper for property management consultation, RedAwning for vacation rental marketing, and local property management companies like Ozark Mountain Property Management who can assist with the operational aspects of running an Airbnb in the Marked Tree area.