Is Mena, Arkansas Good for Airbnb Investment?

To start an Airbnb in Mena, Arkansas, begin by researching local regulations through the Mena City Hall and Polk County offices, as Arkansas generally allows short-term rentals but municipalities may have specific zoning requirements or occupancy limits. Contact the Mena Planning and Zoning Department to confirm your property is in an appropriate zone and obtain any required business licenses or permits, which typically cost $25-100 annually. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX in the Mena area, focusing on properties near Ouachita National Forest attractions since Mena is popular for outdoor recreation. Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and outdoor furniture to appeal to hikers and nature enthusiasts visiting the region. Create your Airbnb listing with professional photos highlighting proximity to Talimena Scenic Drive and local hiking trails, set competitive pricing around $75-125 per night based on Mena market rates, and ensure compliance with Arkansas sales tax requirements by registering with the Department of Finance and Administration. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like Vacasa or RedAwning if you're not local, while maintaining responsive communication with guests and monitoring reviews to optimize your listing performance in this smaller Arkansas market.

To identify profitable short-term rental properties in Mena, Arkansas, focus on locations within 10-15 minutes of Ouachita National Forest, Lake Ouachita, and the Caddo River, as outdoor recreation drives tourism demand in this area. Target 2-4 bedroom cabins or homes with rustic charm, outdoor amenities like fire pits, hot tubs, or large decks, and modern conveniences including reliable WiFi and updated kitchens, as guests seek authentic Arkansas experiences with comfort. Analyze pricing by researching comparable STRs on Airbnb and VRBO within a 20-mile radius, aiming for properties that can command $100-200 per night during peak seasons (spring through fall) while maintaining 60-70% occupancy rates. Study competition by examining successful listings in nearby areas like Hot Springs (45 minutes away) and Mountain Pine, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize AirDNA for market data analysis, STR Helper for performance tracking, and local resources like the Mena-Polk County Chamber of Commerce for tourism trends, while partnering with local property management companies familiar with Arkansas STR regulations and seasonal demand patterns driven by hunting, fishing, and hiking activities.

To obtain an Airbnb/STR permit in Mena, Arkansas, contact the Mena City Hall at 123 Janssen Avenue or call (479) 394-2386 to inquire about short-term rental regulations and permit requirements. 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 for the initial permit plus annual renewal fees of $25-75. Required documents may also include a safety inspection certificate, parking plan showing adequate off-street parking, and neighbor notification forms. The application process generally takes 2-4 weeks for approval once all documents are submitted, though initial inspections may add 1-2 weeks to the timeline. Specific Mena requirements likely include maintaining the property in residential character, limiting occupancy to 2 people per bedroom plus 2 additional guests, providing trash collection arrangements, displaying the permit number in all advertisements, and ensuring 24/7 contact availability for noise or disturbance complaints from neighbors.

Short-term rentals (STRs) are generally legal in Mena, Arkansas, as the city does not have specific ordinances prohibiting them as of 2023. Arkansas state law allows municipalities to regulate STRs but does not ban them outright, and Mena has not enacted comprehensive STR regulations like larger cities such as Little Rock or Fayetteville have done. Property owners in Mena can typically operate STRs in residential areas, though they must comply with general zoning requirements and may need basic business licenses. There are no specific prohibited areas within Mena city limits for STRs, and the city has not implemented occupancy limits, parking requirements, or noise ordinances specifically targeting short-term rentals. However, operators must still follow standard property maintenance codes, fire safety regulations, and collect applicable state and local taxes including Arkansas's 6.5% state sales tax and any local hotel/motel taxes that may apply to short-term accommodations.

The best areas for Airbnb investment in Mena, Arkansas include the downtown historic district near Janssen Park and the Mena Depot, which attracts visitors interested in the town's railroad heritage and serves as a hub for business travelers visiting local industries. The neighborhoods surrounding Rich Mountain and the Ouachita National Forest boundaries are highly attractive due to proximity to outdoor recreation activities like hiking, hunting, and ATV riding, drawing tourists year-round especially during fall foliage season. Areas near the Mena Regional Airport offer potential for business travelers and those accessing remote outdoor locations. The residential districts along Highway 71 and near Queen Wilhelmina State Park (approximately 13 miles away) benefit from overflow tourism, particularly during peak seasons when state park accommodations are full. Properties near the annual Lum and Abner Festival grounds and close to local event venues like the Mena Civic Center can capitalize on seasonal tourism spikes, while neighborhoods with easy access to the Talimena Scenic Drive starting point attract leaf-peepers and scenic drive enthusiasts, making these areas particularly profitable during autumn months when tourism peaks.

In Mena, Arkansas, Airbnb hosts are subject to Arkansas state sales tax of 6.5% on gross rental receipts, plus Polk County sales tax of approximately 1-2%, totaling around 7.5-8.5% in combined sales tax that applies to short-term rental accommodations. The state requires hosts earning over $1,000 annually to register for a sales tax permit and collect taxes from guests, with monthly remittance due by the 20th of the following month for most businesses. Arkansas implemented legislation around 2019-2020 requiring marketplace facilitators like Airbnb to collect and remit these taxes directly in many cases, though individual hosts may still need to register depending on their booking platform and revenue thresholds. Additionally, there may be local occupancy or tourism taxes imposed by Mena city government, typically ranging from 1-3%, though specific rates vary by municipality. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and some jurisdictions exempt rentals of primary residences for limited periods per year, though hosts should verify current local ordinances as regulations have evolved significantly since 2020.

To start an Airbnb in Mena, Arkansas, expect total costs around $95,000-$125,000. Property purchase represents the largest expense at approximately $75,000-$95,000 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, bedding, kitchen essentials, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees in Arkansas generally total $300-$800 covering business licenses, short-term rental permits, and local registration requirements. Insurance costs approximately $1,200-$1,800 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections for electricity, water, internet, and cable typically cost $400-$600. First six months operating costs including utilities ($150/month), cleaning supplies ($75/month), maintenance reserves ($100/month), platform fees (3% of bookings), and marketing budget total approximately $3,000-$4,500 assuming moderate occupancy rates of 40-60% in the Mena market.

Airbnb properties in Mena, Arkansas, typically generate annual revenues ranging from $15,000-$35,000 for modest 2-3 bedroom homes, with higher-end properties near Ouachita National Forest commanding $40,000-$55,000 annually due to outdoor recreation demand. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $3,000-$6,000 yearly. Properties within 10 miles of popular fishing spots on the Caddo River or hiking trails achieve occupancy rates of 65-75% with average daily rates of $85-$140, while standard residential properties average 45-55% occupancy at $65-$95 nightly. Success factors include proximity to outdoor attractions, professional photography showcasing natural surroundings, responsive guest communication, and seasonal pricing strategies that capitalize on peak hunting and fishing seasons from March-November. A typical 3-bedroom cabin purchased for $180,000 and generating $42,000 annually with $23,000 in expenses yields approximately 10.5% net return on investment, though properties requiring significant renovations or lacking outdoor appeal often struggle to achieve profitability above 3-5% margins due to Mena's limited year-round tourism infrastructure compared to larger Arkansas destinations.

Airbnb investments in Mena, Arkansas can expect annual ROI of 8-12% based on the area's proximity to Ouachita National Forest and outdoor recreation attractions that drive seasonal tourism demand. Cash-on-cash returns typically range from 6-10% annually, with properties averaging $80-120 per night during peak seasons (spring through fall) and occupancy rates of 45-65%. Initial profitability usually occurs within 18-24 months for well-positioned properties near Lake Ouachita or forest access points, with total investment recovery timeframes of 7-10 years. Properties in the $150,000-250,000 range generate approximately $18,000-35,000 in annual gross rental income, with net returns after expenses (cleaning, maintenance, property management, utilities) settling around $12,000-22,000 annually. The market benefits from consistent demand from outdoor enthusiasts, hunters, and families seeking mountain cabin experiences, though seasonal fluctuations require careful cash flow management during slower winter months.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Mena, Arkansas. Local real estate agents in the area include Coldwell Banker Advantage in nearby Hot Springs (established 1906), RE/MAX Professionals serving the Ouachita Mountains region, and Century 21 agents who have been active in Polk County since the 1980s. National services that can assist with Mena Airbnb investments include Mashvisor (founded 2014) for property analytics, AirDNA (launched 2015) for market data analysis, and Awning (established 2017) which provides end-to-end Airbnb investment services. Regional companies like Arkansas Real Estate Collective and Ozark Mountain Realty have been helping investors identify vacation rental opportunities in the Ouachita National Forest area since approximately 2010. Additional services include BiggerPockets (founded 2004) for investor networking, Roofstock (established 2015) for turnkey rental properties, and local property management companies like Scenic 7 Property Management and Lake Ouachita Vacation Rentals that have been operating in the region since the early 2000s to help investors maximize their short-term rental returns in this popular outdoor recreation destination.