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 Greene County Clerk's office for any county-specific requirements. Obtain necessary permits including a business license from Paragould City Hall (estimated cost $25-50), ensure your property meets fire safety codes, and verify compliance with residential zoning restrictions that may limit short-term rentals in certain neighborhoods. Find a suitable property by searching residential areas near downtown Paragould or near Arkansas State University's campus extension programs, considering properties with 2-3 bedrooms that can accommodate families or business travelers, with purchase prices typically ranging $80,000-150,000 in the area. Furnish the property with essential amenities including quality mattresses, linens, kitchen appliances, WiFi, cable TV, and local guidebooks featuring attractions like Crowley's Ridge State Park and Lake Frierson State Park, budgeting approximately $8,000-12,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting the property's proximity to local attractions and Interstate 555 access, setting competitive rates around $75-120 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and considering hiring local cleaning services like those available through Paragould area providers, while keeping detailed records for tax purposes and ensuring compliance with Arkansas state tax requirements for short-term rental income.

To identify profitable short-term rental properties in Paragould, Arkansas, focus on locations within 2-3 miles of Arkansas State University campus, near Crowley's Ridge State Park, or close to downtown's historic district and medical facilities like Arkansas Methodist Medical Center. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, reliable WiFi capability, and parking for 2+ vehicles, as these appeal to visiting families, university guests, and medical travelers. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the $75-120 nightly rate range typical for the area, while calculating potential 60-70% occupancy rates during peak university and outdoor recreation seasons. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, noting gaps in amenities or underserved locations, particularly properties lacking modern furnishings or reliable internet. Utilize tools like BiggerPockets for investment analysis, STR Helper for revenue projections, and local resources including the Paragould Regional Chamber of Commerce for tourism data, Greene County property records for acquisition costs, and Facebook groups like "Paragould Community" for local market insights and contractor recommendations.

To obtain an Airbnb/STR permit in Paragould, Arkansas, contact the Paragould City Clerk's office at City Hall located at 300 West Court Street or call (870) 239-8900 to begin the application process. You'll need to submit a completed business license application, property deed or lease agreement, proof of liability insurance (typically $1 million minimum), 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. The application fee is estimated at $50-100 for the business license plus approximately $25-50 for permit processing, with annual renewal fees of around $50. Submit your application along with required documents to the City Clerk's office, schedule any required property inspections with the Building Department, and allow 2-4 weeks for processing and approval. Paragould requires STR operators to maintain current business licenses, provide 24-hour contact information to neighbors, limit occupancy to posted maximums, ensure adequate parking, maintain properties in good condition, and comply with noise ordinances and waste management requirements, with properties subject to periodic inspections and complaint-based reviews.

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 may subject them to health and safety inspections similar to other lodging establishments. Most residential zones in Paragould allow STRs as an accessory use, though some deed-restricted neighborhoods or homeowner associations may have their own limitations. As of recent years, Arkansas state law has generally favored property rights and has limited local governments' ability to completely ban STRs, though municipalities retain authority to regulate them through reasonable licensing, taxation, and safety requirements. Property owners should verify current zoning compliance and obtain necessary permits from the city before operating an STR, as regulations can vary by specific location within city limits and may be subject to periodic updates by the Paragould City Council.

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 events, antique shopping, and the annual King Biscuit Blues Festival spillover crowd from nearby Helena. The area around Arkansas State University Newport's Paragould campus on West Kingshighway draws business travelers, visiting faculty, and families attending university events. The neighborhoods near Crowley's Ridge State Park and Lake Frierson offer excellent potential for outdoor enthusiasts seeking fishing, hiking, and camping experiences. The industrial corridor along Highway 412 near the Paragould Regional Airport serves business travelers visiting major employers like Cargill, Riceland Foods, and various manufacturing facilities. Properties near the medical district around Arkansas Methodist Medical Center attract medical professionals, patients' families, and healthcare-related business travelers. The residential areas around Greene County Tech and the Paragould School District headquarters appeal to education-related visitors and families relocating to the area for employment opportunities.

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 occupancy tax rate to approximately 8.5%. 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 these collected taxes directly to the Arkansas Department of Finance and Administration on behalf of hosts on a monthly basis. Greene County may also impose a local lodging tax of up to 2%, though this varies by municipality. Hosts are required to register with the Arkansas Department of Finance and Administration for a sales tax permit if they are not using Airbnb's collection service or for any additional local taxes not collected by the platform. Exemptions typically include stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and accommodations provided to certain government employees or tax-exempt organizations with proper documentation.

Starting an Airbnb in Paragould, Arkansas requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $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 total around $3,000-5,000. Permits and fees in Arkansas generally cost $500-1,500 depending on local requirements and business license needs. Insurance premiums for short-term rentals run approximately $2,000-3,000 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable typically cost $800-1,200. First six months of operating expenses including utilities ($150-200/month), cleaning services ($75-100 per turnover), supplies and maintenance ($200-300/month), platform fees (3% of bookings), and marketing costs total approximately $4,000-6,000, assuming moderate occupancy rates during the initial period.

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. Successful properties in Paragould's downtown area or near Arkansas State University's satellite campus achieve profit margins of 25-35%, with annual net profits ranging from $3,000-8,000 per property. Key success factors include competitive pricing during hunting season and local events, maintaining 4.8+ star ratings through consistent cleanliness and communication, and targeting business travelers visiting Paragould's manufacturing facilities like Emerson Climate Technologies. Properties within walking distance of downtown restaurants and the Greene County courthouse command premium rates, while those offering amenities like hot tubs or game rooms see 15-20% higher booking rates, though the smaller market size compared to Little Rock or Fayetteville means lower overall volume and seasonal fluctuations can significantly impact annual profitability.

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 can achieve occupancy rates of 65-75% annually, with average daily rates between $75-$120 depending on property size and amenities. Initial investment recovery and profitability usually occurs within 18-24 months, assuming proper property management and marketing strategies. The market benefits from steady demand from university visitors, business travelers to local manufacturers like Hytrol Conveyor Company, and tourists exploring the Arkansas Delta region, though seasonal fluctuations may impact winter bookings by 20-30% compared to peak spring and fall periods.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations for Paragould, Arkansas. Local real estate agents in the area who focus on investment properties include Century 21 Wright Real Estate, Crye-Leike Realtors, and RE/MAX Real Estate Partners, with agents like those at Paragould Realty Group having experience in rental property investments. National services that can assist include Awning (formerly RedAwning), which provides full-service Airbnb property management and acquisition consulting, Mashvisor for real estate analytics and property search, and BiggerPockets for networking with local investors and finding deals. AirDNA offers market data and revenue projections specifically for short-term rentals in the Paragould market, while companies like Vacasa and AvantStay provide property management services that can help investors understand the operational aspects before purchasing. Local property management companies such as Northeast Arkansas Property Management and Jonesboro-based firms also serve the Paragould area and can provide insights into profitable rental properties, with many investors also utilizing platforms like Roofstock and Fundrise for turnkey rental property investments in smaller Arkansas markets.