Is Ozan, Arkansas Good for Airbnb Investment?

To start an Airbnb in Ozan, Arkansas, begin by researching local regulations through Hempstead County and the City of Ozan (if incorporated) to determine zoning restrictions, business license requirements, and any short-term rental ordinances, as Arkansas generally allows short-term rentals but local municipalities may have specific rules. Obtain necessary permits including a business license from the county clerk's office, register for Arkansas state tax ID for collecting and remitting state sales tax (currently 6.5% plus local taxes), and ensure compliance with fire safety codes and building inspections. Find a suitable property by researching the local real estate market in Ozan, considering proximity to attractions like the Little Missouri River or Crater of Diamonds State Park (about 30 miles away), and evaluate properties for their rental potential based on size, condition, and neighborhood appeal. Furnish the property with quality, durable furniture, essential amenities like Wi-Fi, kitchen appliances, linens, and local touches that reflect Arkansas charm, while ensuring all safety equipment like smoke detectors and fire extinguishers are installed. List your property on Airbnb and other platforms like VRBO with professional photos, detailed descriptions highlighting nearby outdoor activities and small-town atmosphere, competitive pricing based on similar properties in southwest Arkansas, and clear house rules. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication with visitors, coordinating key exchanges or lockbox systems, and keeping detailed records for tax purposes while monitoring local competition and adjusting rates seasonally to maximize occupancy in this rural Arkansas community.

To identify profitable short-term rental properties in Ozan, Arkansas, focus on properties within 15-20 minutes of Millwood Lake and the Little River, as these water recreation areas drive seasonal demand from fishing and boating enthusiasts. Target 2-4 bedroom homes with outdoor amenities like fire pits, boat parking, or fishing access, built after 1980 to minimize maintenance issues. Analyze comparable nightly rates in nearby De Queen and Ashdown ($75-150/night) while factoring in Ozan's smaller market size, aiming for properties under $150,000 to maintain healthy cash flow ratios. Research existing competition through Airbnb and VRBO searches within a 25-mile radius, noting that limited inventory in rural Sevier County creates opportunities for well-positioned properties. Utilize AirDNA for market data, contact local real estate agents familiar with recreational properties, monitor the Sevier County Assessor's website for property values, and connect with the De Queen-Sevier County Chamber of Commerce for tourism insights, while considering that success depends heavily on marketing to Arkansas and Texas outdoor recreation markets within a 3-hour drive.

To obtain an Airbnb/STR permit in Ozan, Arkansas, you will need to contact the Hempstead County Planning and Zoning Department or the Ozan City Hall directly, as this small town likely operates under county jurisdiction for permitting. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and a business license application. The estimated fees range from $150-$300 for the initial permit plus approximately $50-$100 for the business license, with annual renewal fees of $75-$150. The timeline for approval is generally 30-45 days from submission of complete application materials. Specific Ozan requirements likely include compliance with county zoning ordinances, maximum occupancy limits based on square footage and bedrooms, adequate parking provisions (typically 2 spaces minimum), smoke and carbon monoxide detectors in all sleeping areas, fire extinguisher on each floor, and maintaining a local contact person available 24/7 for emergencies. You must also register with the Arkansas Department of Finance and Administration for state tax collection purposes and may need to comply with additional county health department regulations for septic and water systems if applicable.

Short-term rentals (STRs) are generally legal in Ozan, Arkansas, as the state does not prohibit STRs at the state level and allows local municipalities to regulate them. Ozan, being a small unincorporated community in Hempstead County with a population of approximately 75 people, likely operates under county jurisdiction rather than having its own municipal STR ordinances. Hempstead County does not appear to have specific STR restrictions or licensing requirements as of 2023, meaning STRs would typically be permitted as long as they comply with basic zoning laws and health/safety codes. Property owners should ensure compliance with state tax requirements, including collecting and remitting sales tax and tourism tax on STR bookings. There are no known prohibited areas specifically for STRs in Ozan, though standard residential zoning restrictions may apply. Recent legal changes in Arkansas have generally favored STR operations, with the state legislature passing laws in 2021 and 2022 that limit local governments' ability to ban STRs outright, though municipalities can still impose reasonable regulations regarding safety, taxation, and nuisance issues.

The best areas for Airbnb investment in Ozan, Arkansas are primarily concentrated around the Little River corridor and the historic downtown district near Highway 41, which attract visitors for fishing, hunting, and outdoor recreation activities along the Little River bottoms. The residential areas near Ozan School and along County Road 21 offer potential for business travelers visiting nearby timber operations and agricultural facilities, particularly during harvest seasons from companies like Weyerhaeuser and local farming cooperatives. Properties near the Ozan Community Center and along Old Military Road benefit from family reunions, church events, and visitors to the historic Ozan Cemetery, especially during Memorial Day and homecoming events. The rural properties with river access or hunting land proximity perform well during deer season (November-January) and turkey season (April-May), attracting hunters from Texas, Louisiana, and Oklahoma. Areas near the intersection of Highways 41 and 355 provide convenient access for travelers heading to nearby Texarkana or visiting the Red River region, making them suitable for overnight stays and weekend getaways seeking rural Arkansas experiences.

Airbnb properties in Ozan, Arkansas are subject to Arkansas state sales tax of 6.5% on lodging accommodations, which applies to short-term rentals under 30 days. The Arkansas Department of Finance and Administration requires hosts to register for a sales tax permit and collect taxes from guests at the time of booking or check-in, with monthly remittance due by the 20th of the following month for properties generating over $200 in monthly tax liability. Franklin County, where Ozan is located, may impose an additional local sales tax of up to 3%, bringing the total potential tax rate to approximately 9.5%. Airbnb Inc. has entered into voluntary collection agreements with Arkansas since 2018, automatically collecting and remitting state taxes on behalf of hosts for bookings made through their platform, though hosts remain responsible for any additional local taxes not covered by this agreement. Properties rented for 30 days or longer are generally exempt from these transient lodging taxes, and certain agricultural or educational exemptions may apply in specific circumstances, though these are rare for typical Airbnb operations.

Starting an Airbnb in Ozan, Arkansas requires approximately $85,000-$95,000 in total initial investment. 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 typically costs $8,000-$12,000. Initial setup including professional photography, listing creation, and basic renovations runs $1,500-$2,500. Permits and fees including business license, short-term rental permit, and inspection fees total approximately $300-$800. Insurance for short-term rental coverage costs $1,200-$1,800 annually. Utilities setup and deposits for electricity, water, internet, and cable require $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), and marketing expenses ($150/month) total approximately $6,300. Additional considerations include property taxes, HOA fees if applicable, and a 10% contingency fund for unexpected expenses.

Airbnb properties in Ozan, Arkansas face significant profitability challenges due to the town's small population of approximately 75 residents and limited tourist infrastructure. Properties in this rural area typically generate $200-400 monthly revenue with occupancy rates around 15-25%, while expenses including mortgage payments ($800-1,200), utilities ($150-200), cleaning fees ($50-75 per turnover), and maintenance ($100-150 monthly) often exceed income by $500-800 per month, resulting in negative profit margins of -60% to -80%. Success factors for the few profitable properties include targeting fishing enthusiasts visiting nearby Caddo River, hunters during deer season (November-January), and workers from timber or agricultural operations, with properties featuring outdoor amenities, boat storage, or hunting access commanding premium rates of $75-100 per night versus the typical $35-50. The most successful Airbnb operators in similar rural Arkansas markets like Nashville (Howard County) or Murfreesboro (Pike County) focus on unique experiences such as restored farmhouses, hunting lodges, or riverfront cabins, often requiring 3-5 years to achieve break-even through strategic marketing to Little Rock and Hot Springs visitors seeking rural retreats.

Airbnb investments in Ozan, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative estimates given Ozan's small rural market of approximately 95 residents and limited tourism infrastructure. Properties in this area, primarily single-family homes priced between $80,000-$150,000, may achieve profitability within 18-24 months due to low acquisition costs, but occupancy rates are likely to be sporadic at 25-40% annually given the town's remote location in Hempstead County and lack of major attractions or business centers. Investors should expect average daily rates of $75-$120 depending on property size and amenities, with seasonal variations tied to hunting seasons and nearby Millwood Lake activities, while operational expenses including property management, utilities, and maintenance typically consume 35-45% of gross rental income in this rural Arkansas market.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Ozan, Arkansas, using data analytics and market insights. Local real estate agents in the area include Century 21 Arkansas Properties and Coldwell Banker Arkansas Properties, who have experience with investment properties in Clark County. National services like Awning, RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management services for the Arkansas market. AirDNA offers market data and analytics specifically for short-term rental investments in smaller Arkansas markets like Ozan. Local property management companies such as Arkansas Vacation Rentals and Ouachita Mountain Properties can assist with both acquisition and ongoing management of Airbnb investments in the region. BiggerPockets marketplace and Roofstock also feature investment properties in Arkansas, including rural areas near Ozan. Real estate investment firms like HomeVestors and We Buy Ugly Houses occasionally have properties suitable for Airbnb conversion in Clark County, while local investors can also work with Arkansas-based companies like Rock City Real Estate and Diamond State Properties for market-specific expertise in the Ozan area.