Is Mountain Pine, Arkansas Good for Airbnb Investment?

To start an Airbnb in Mountain Pine, Arkansas, begin by researching local zoning laws and regulations through the Garland County Planning Department and Mountain Pine City Hall, as the city may require business licenses or special permits for short-term rentals. Contact the Arkansas Department of Finance and Administration to obtain a state sales tax permit since you'll need to collect and remit state and local taxes on rental income. Find a suitable property by working with local real estate agents familiar with Mountain Pine's market, focusing on areas near Lake Ouachita or Hot Springs National Park for tourist appeal, with properties typically ranging from $80,000-$200,000 depending on size and location. Furnish the property with essential amenities including quality bedding, kitchen supplies, Wi-Fi, and outdoor furniture to capitalize on the area's natural attractions, budgeting approximately $10,000-$15,000 for a complete furnishing package. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting lake views or proximity to outdoor activities, setting competitive rates around $75-$150 per night based on local market analysis. For ongoing management, establish relationships with local cleaning services, maintenance contractors, and consider property management companies like Vacasa or RedAwning if you're not local, while maintaining responsive communication with guests and monitoring reviews to ensure consistent bookings in this seasonal market that peaks during summer months and hunting seasons.

To identify profitable short-term rental properties in Mountain Pine, Arkansas, focus on locations within 1-2 miles of Lake Ouachita and Hot Springs National Park, as proximity to these water recreation areas and tourist attractions drives demand year-round. Target 2-4 bedroom cabins or lake houses with features like waterfront access, boat docks, hot tubs, fire pits, and scenic views, as these command premium rates of $150-300 per night compared to standard properties at $80-150. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Hot Springs and Lake Hamilton areas, aiming for properties under $200,000 that can generate 15-20% annual returns. Research competition by studying occupancy rates and guest reviews of existing STRs within a 5-mile radius, identifying gaps in amenities or service quality you can exploit. Utilize tools like Rabbu and STRData for market analysis, partner with local property management companies like Vacasa or RedAwning for operational insights, and consult with Mountain Pine's city planning department regarding STR regulations and permit requirements, while networking with local real estate agents familiar with investment properties near recreational areas.

To obtain an Airbnb/STR permit in Mountain Pine, Arkansas, you must first contact the Mountain Pine City Hall at 870-767-2323 or visit their office at 117 Central Avenue to inquire about short-term rental regulations, as this small city may have recently implemented or be developing STR ordinances. You'll 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, and contact information for a local property manager if you're not residing within 50 miles of Mountain Pine. The application fee is estimated at $100-200 annually, with additional inspection fees of approximately $50-75. Required documents should include a completed STR permit application, Arkansas sales tax permit, fire safety inspection certificate, and signed affidavit acknowledging compliance with occupancy limits and noise ordinances. The approval timeline typically ranges from 30-60 days after submitting a complete application, depending on inspection scheduling and any required corrections. Mountain Pine specific requirements likely include maximum occupancy limits based on bedrooms and septic capacity, designated parking spaces for guests, posted emergency contact information, and compliance with residential zoning restrictions that may limit the number of STR properties per neighborhood or require minimum distances between short-term rentals.

Short-term rentals (STRs) are generally legal in Mountain Pine, 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, and meeting basic safety requirements. The city follows Garland County's broader regulatory framework, which typically requires STR operators to register their properties, maintain liability insurance, and ensure compliance with zoning restrictions that may limit STRs in certain residential areas. Recent trends in Arkansas have seen increased local regulation of STRs, with some municipalities implementing registration requirements, occupancy limits, and noise ordinances, though Mountain Pine has remained relatively permissive compared to larger cities like Little Rock or Fayetteville. Property owners should verify current zoning compliance and may need to obtain a business license from the city, while also ensuring they meet any homeowners association restrictions and maintain proper tax documentation for rental income reporting.

The best areas for Airbnb investment in Mountain Pine, Arkansas are primarily concentrated around Lake Ouachita and the Hot Springs National Park vicinity, as Mountain Pine sits strategically between these major attractions. The Lake Ouachita area offers excellent potential due to year-round water recreation activities, fishing tournaments, and family vacations, with properties near the shoreline commanding premium rates during peak summer months. The neighborhoods closest to Hot Springs National Park benefit from overflow tourism when accommodations in Hot Springs proper are full, particularly during the annual Hot Springs Music Festival and various spa tourism seasons. The residential areas along Highway 270 provide good investment opportunities due to their accessibility to both lake activities and the historic Hot Springs district, attracting visitors seeking quieter accommodations while remaining close to attractions. Properties near Garland County Airport area can capture business travelers and those flying in for lake vacations, while the wooded residential sections appeal to nature enthusiasts visiting for hiking, hunting, and outdoor recreation in the Ouachita National Forest, with companies like Weyerhaeuser having historical presence in the region driving some business travel.

Mountain Pine, 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% and state tourism tax of 2%. 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 Mountain Pine city clerk's office by the 20th of the following month, with payments accompanied by a completed occupancy tax return form. Arkansas requires all short-term rental operators to register with the state Department of Finance and Administration and obtain a sales tax permit, while also registering locally with Mountain Pine city hall. The state tourism tax is collected through platforms like Airbnb automatically in many cases, but hosts remain responsible for ensuring compliance and may need to remit directly if not collected by the platform. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and to certain government and nonprofit organization bookings with proper documentation. Failure to collect and remit these taxes can result in penalties of 10% of the unpaid tax amount plus interest charges of 1% per month.

To start an Airbnb in Mountain Pine, Arkansas, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and décor 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 vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections. Insurance costs approximately $1,200-$2,000 annually for landlord and short-term rental coverage. 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, maintenance, supplies, platform fees, and marketing total approximately $4,000-$8,000. Additional considerations include property taxes, potential HOA fees, and a reserve fund for unexpected repairs, which could add another $2,000-$5,000 to initial costs.

Airbnb properties in Mountain Pine, Arkansas typically generate annual revenues of $15,000-$25,000 for modest 2-3 bedroom cabins and homes, with higher-end lakefront properties near Lake Ouachita earning $30,000-$45,000 annually. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($200-$400 monthly), insurance ($1,500-$2,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Net profit margins typically range from 25-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% during peak seasons (spring through fall) when outdoor recreation at Hot Springs National Park and Lake Ouachita drives demand. Properties within 10 miles of the lake or featuring amenities like hot tubs, fire pits, and boat access command premium rates of $120-$200 per night versus $80-$120 for standard homes. Success factors include professional photography, responsive communication, local activity guides, and partnerships with area outfitters, with top-performing properties often owned by hosts who live within 30 minutes and can provide personalized service while maintaining consistent 4.8+ star ratings on the platform.

Based on Mountain Pine, Arkansas market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the area. Properties near Lake Ouachita and outdoor recreation areas tend to perform at the higher end of this range, with vacation rentals averaging $85-120 per night during peak seasons (spring through fall) and 60-75% occupancy rates annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with full investment recovery typically achieved in 6-8 years. The market benefits from consistent tourism to Hot Springs National Park (30 minutes away) and lake activities, though seasonal fluctuations mean winter months may see 40-50% lower occupancy rates, requiring investors to account for approximately 3-4 months of reduced income when calculating annual returns.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Mountain Pine, Arkansas. Local real estate agents in the Hot Springs area such as Century 21 Arkansas Properties and Coldwell Banker Arkansas Properties have experience with vacation rental investments near Lake Ouachita. National services like AirDNA provide market analysis and revenue projections for the Mountain Pine market, while Mashvisor offers investment property analysis tools for Arkansas markets. RedAwning and Vacasa provide property management services for Airbnb investors in the region. Local property management companies such as Hot Springs Vacation Rentals and Lake Ouachita Properties specialize in managing short-term rentals in the Mountain Pine area. Real estate investment firms like Roofstock and BiggerPockets connect investors with Arkansas rental properties, while local agents from RE/MAX and Keller Williams in Hot Springs often work with investors seeking lake-area vacation rental properties near Mountain Pine.