Is Paragould, Arkansas Good for Airbnb Investment?

To start an Airbnb in Paragould, Arkansas, begin by researching local zoning laws and regulations through the Paragould Planning Department, as the city may require short-term rental permits or business licenses, and contact the Arkansas Department of Finance and Administration for state tax requirements including the 6.5% state sales tax and potential local hotel/motel taxes. Find a suitable property in residential areas that allow short-term rentals, considering proximity to attractions like Crowley's Ridge State Park or downtown Paragould, then secure financing and purchase or lease the property. Obtain necessary permits including a business license from Paragould City Hall, register for Arkansas sales tax collection, and ensure compliance with fire safety codes and building inspections. Furnish the property with quality furniture, linens, kitchen essentials, and amenities like WiFi, focusing on comfort and local touches that reflect Arkansas charm. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting unique features and proximity to local attractions like the Paragould Community Center or historic downtown area. Implement a management system including guest communication protocols, cleaning schedules between stays, key exchange methods, and consider hiring local cleaning services or property management companies if needed. Set competitive pricing based on comparable properties in Northeast Arkansas, typically ranging from $60-120 per night depending on size and amenities, and maintain high standards for cleanliness and guest experience to earn positive reviews and repeat bookings.

To identify profitable short-term rental properties in Paragould, Arkansas, focus on locations near Arkansas State University (15 miles away), downtown areas with historic charm, and properties within walking distance of Crowley's Ridge State Park attractions. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, reliable WiFi, and outdoor spaces like patios or decks that appeal to both business travelers and families visiting the university or exploring the region's natural attractions. Conduct pricing analysis using AirDNA and STR data platforms, aiming for nightly rates between $75-125 based on seasonal demand from university events, hunting seasons, and summer tourism, while maintaining 65-75% occupancy rates. Research competition by analyzing existing Airbnb and VRBO listings within a 10-mile radius, identifying gaps in amenities or property types, and studying successful hosts' pricing strategies and guest reviews. Utilize tools like Mashvisor, BiggerPockets calculators, and local MLS data through Northeast Arkansas Board of Realtors, while connecting with local property management companies like Jonesboro-based STR managers who service the Paragould market, and consider properties under $150,000 that can generate $1,200-1,800 monthly revenue after expenses.

To obtain an Airbnb/STR permit in Paragould, Arkansas, you must first contact the Paragould City Clerk's office at City Hall located at 300 West Court Street to inquire about short-term rental regulations and obtain the necessary application forms. Required documents typically include 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're not local, and payment of applicable fees. The estimated fees range from $50-150 for the initial business license plus approximately $25-75 for permit processing, with annual renewal fees of $25-100. You'll need to ensure the property meets all building codes, fire safety requirements, and zoning regulations for short-term rentals in residential areas. The application process typically takes 2-4 weeks for approval once all documents are submitted, though initial inspections may extend this timeline. Paragould requires STR operators to maintain guest registries, limit occupancy based on property size, provide adequate parking, ensure quiet hours compliance, and display permit numbers in rental listings. Contact the Planning and Zoning Department at (870) 239-2595 for specific zoning compliance and the Fire Department for safety inspections before beginning operations.

Short-term rentals (STRs) are generally legal in Paragould, Arkansas, as the city has not enacted specific prohibitions against vacation rental properties. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict commercial activities in certain residential areas. The city typically requires STR properties to obtain proper business licenses and adhere to health and safety codes, fire safety regulations, and occupancy limits. While there are no city-wide bans on STRs, properties in certain residential zoning districts may face restrictions on commercial use, and operators should verify compliance with neighborhood covenants or homeowners association rules. As of recent years, Paragould has not implemented the comprehensive STR regulations seen in larger Arkansas cities like Little Rock or Fayetteville, but property owners should check with the city's planning and zoning department for current requirements and any potential regulatory changes, as many Arkansas municipalities have been updating their STR policies since 2020-2023 to address growing concerns about housing availability and neighborhood impacts.

The best areas for Airbnb investment in Paragould, Arkansas include the Historic Downtown District near Pruett Street and Court Square, which attracts visitors to local festivals, antique shopping, and the historic courthouse area. The neighborhoods surrounding Arkansas State University's Paragould campus on West Kingshighway offer strong potential for visiting families, prospective students, and university-related events. Areas near Crowley's Ridge State Park and the Greene County Fairgrounds provide opportunities for outdoor recreation tourists and event attendees during the annual county fair and other seasonal activities. The residential districts along Highway 412 corridor benefit from business travelers visiting local manufacturing facilities including Cargill and other industrial employers. Properties near the Paragould Regional Airport area cater to aviation-related business travel, while neighborhoods close to the Arkansas State University Museum and the Collins Theatre downtown appeal to cultural tourists and visitors attending community events and performances throughout the year.

Airbnb properties in Paragould, Arkansas are subject to Arkansas state sales tax of 6.5% on lodging accommodations, which applies to short-term rentals under 30 days. The City of Paragould imposes an additional local sales tax of 2% on lodging, bringing the total tax rate to approximately 8.5% on gross rental receipts. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Arkansas around 2018. Airbnb remits the collected taxes directly to the Arkansas Department of Finance and Administration on a monthly basis, though individual hosts may still need to register for tax permits and file returns if they have additional tax obligations or if Airbnb's collection doesn't cover all applicable taxes. Greene County may impose additional occupancy taxes of 1-2%, though collection and remittance procedures vary by jurisdiction. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Paragould, Arkansas requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $140,000-160,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including furniture, appliances, linens, 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 licensing fees in Arkansas are relatively minimal at $200-500, though you should verify local Paragould requirements. Insurance for short-term rentals costs approximately $1,500-2,500 annually, with many hosts using companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, internet, and cable run about $500-800 initially. First six months of operating costs including utilities ($150-200/month), cleaning supplies and services ($100-150/month), maintenance reserves ($200/month), and platform fees to Airbnb (3% of bookings) total approximately $3,000-4,500, assuming moderate occupancy rates of 50-60% typical for smaller Arkansas markets.

Airbnb properties in Paragould, Arkansas typically generate modest returns with average daily rates ranging from $65-85 for entire homes and $35-50 for private rooms, resulting in monthly revenues of $800-1,500 for well-managed properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($80-120 monthly), property management (15-25% if outsourced), insurance ($800-1,200 annually), and maintenance costs averaging $100-200 monthly. Properties near Arkansas State University campus or downtown areas perform better, with some hosts reporting annual profits of $8,000-15,000 on properties valued at $80,000-120,000, yielding returns of 8-12%. Success factors include competitive pricing during university events, maintaining 4.8+ star ratings, offering amenities like WiFi and parking, and targeting business travelers and visiting families. A typical case involves a 3-bedroom home purchased for $95,000 generating $1,200 monthly revenue with $600 in expenses, netting $7,200 annually for a 7.6% return, though seasonal fluctuations during summer months can reduce occupancy to 40-50%, making consistent marketing and pricing adjustments crucial for profitability in this smaller Arkansas market.

Based on Paragould, Arkansas market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties in desirable neighborhoods near Arkansas State University or downtown areas command nightly rates of $75-120, with occupancy rates averaging 65-75% annually. Initial investment costs for suitable properties range from $80,000-150,000, with renovation expenses of $15,000-25,000 to meet short-term rental standards. Monthly operating expenses including utilities, cleaning, maintenance, and platform fees typically consume 35-45% of gross rental income. Most investors achieve profitability within 8-14 months, with full ROI realization occurring in 5-7 years. The market benefits from steady demand from university visitors, medical tourism to local healthcare facilities, and business travelers, though seasonal fluctuations occur during summer months when university activity decreases.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking to enter the Airbnb market in Paragould, Arkansas. Local real estate agents in the area who focus on investment properties include Coldwell Banker Legacy Group, Century 21 Wright Real Estate, and RE/MAX Real Estate Partners, with agents like those at Jonesboro-based firms often serving the Paragould market due to proximity. National services that help investors find Airbnb properties include Mashvisor, which provides rental property analytics, AirDNA for market data and revenue projections, and Awning for full-service Airbnb property management. BiggerPockets marketplace connects investors with local wholesalers and agents specializing in rental properties, while Roofstock focuses on turnkey rental properties that can be converted to short-term rentals. Local property management companies like Northeast Arkansas Property Management and regional firms such as Vacasa and RedAwning provide ongoing Airbnb management services once properties are acquired, helping investors maximize their returns in the Paragould market.