Is Pea Ridge, Arkansas Good for Airbnb Investment?

To start an Airbnb in Pea Ridge, Arkansas, begin by researching local regulations through the Pea Ridge City Hall (479-451-8442) as the city may require business licenses or special permits for short-term rentals, though Arkansas generally has favorable STR laws. Contact Benton County offices to verify any county-level requirements and check HOA restrictions if applicable. Obtain necessary permits including a business license from Pea Ridge City Hall (estimated $25-50 annually) and register for Arkansas state tax ID for collecting and remitting state sales tax (6.5%) plus local taxes. Find a suitable property by researching areas near Pea Ridge's attractions like the Pea Ridge National Military Park, considering properties within 15-20 minutes of Bentonville/Rogers for higher demand, with average nightly rates ranging $75-150 depending on size and amenities. Furnish the property with essential amenities including WiFi, basic kitchen supplies, linens, towels, and local guidebooks featuring nearby Crystal Bridges Museum and Walmart headquarters tours. Create your Airbnb listing with professional photos highlighting proximity to Northwest Arkansas attractions, competitive pricing around $85-120/night for a 2-bedroom property, and emphasize the quiet, family-friendly Pea Ridge location. Manage the property by establishing cleaning protocols between guests (budget $40-60 per turnover), responding promptly to inquiries, coordinating key exchanges or installing smart locks, and maintaining compliance with Arkansas short-term rental tax requirements through quarterly filings with the Department of Finance and Administration.

To identify profitable short-term rental properties in Pea Ridge, Arkansas, focus on locations within 10-15 minutes of Pea Ridge National Military Park and near Highway 72 for easy access to Bentonville and Rogers, targeting properties that can capitalize on the growing Northwest Arkansas tourism market driven by Crystal Bridges Museum and mountain biking trails. Look for 2-4 bedroom homes with modern amenities, outdoor spaces, and unique features like fire pits or hot tubs, as these appeal to families and groups visiting the area's outdoor attractions. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties in Bentonville ($80-150/night range), while researching competition through Airbnb and VRBO searches within a 20-mile radius to identify gaps in luxury or budget offerings. Utilize STR-specific tools like Rabbu and AllTheRooms for market data, partner with local property management companies familiar with Benton County regulations, and leverage the area's proximity to major employers like Walmart headquarters to target corporate travelers, ensuring your investment can achieve 60-75% occupancy rates typical for the Northwest Arkansas STR market.

To obtain an Airbnb/STR permit in Pea Ridge, Arkansas, contact the Pea Ridge City Hall at 1542 N. Curtis Ave or call (479) 451-8442 to inquire about short-term rental regulations and application procedures. You will likely need to submit a business license application, provide 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 $50-200 annually. Required documents may include a completed STR permit application, Arkansas sales tax permit, fire safety inspection certificate, and zoning compliance verification. The approval timeline is generally 2-4 weeks after submitting a complete application, though this can vary based on inspection scheduling and any required corrections. Pea Ridge specific requirements likely include maintaining the property in residential character, providing adequate parking spaces, posting maximum occupancy limits, maintaining a complaint log, and ensuring the property meets all building and safety codes. Contact the city's planning and zoning department to confirm current regulations as ordinances may have been updated since 2023, and verify if your property is located in a zone that permits short-term rentals.

Short-term rentals (STRs) in Pea Ridge, Arkansas are generally legal but subject to local regulations and zoning restrictions. The city of Pea Ridge has implemented basic requirements for STR operations including business license registration, compliance with residential zoning ordinances, and adherence to occupancy limits typically based on septic and parking capacity. STRs are generally prohibited in certain residential zones or may require conditional use permits depending on the specific zoning district. Property owners must ensure compliance with Arkansas state tax requirements including collection of state and local lodging taxes. Recent changes around 2022-2023 have seen Pea Ridge, like many Arkansas municipalities, implementing more structured oversight of STR operations including potential noise ordinances, parking requirements, and neighbor notification processes. The city requires STR operators to maintain proper insurance coverage and comply with building and fire safety codes. While not completely prohibited, the regulatory framework has become more defined in recent years as the city balances tourism revenue with residential neighborhood character preservation.

The best areas for Airbnb investment in Pea Ridge, Arkansas are primarily concentrated around the Pea Ridge National Military Park vicinity and the downtown historic district along Pickens Road. The area near the national military park attracts significant Civil War history enthusiasts and battlefield tourists year-round, with peak seasons during spring and fall when weather is ideal for outdoor exploration. The downtown corridor benefits from its proximity to local businesses, restaurants, and the annual Pea Ridge Mule Jump celebration which draws visitors each October. Properties near the intersection of Highway 72 and Curtis Avenue offer strategic positioning for business travelers working with local industries including Simmons Foods and other regional employers. The residential areas along Slack Street and Weston Road provide quiet, family-friendly accommodations that appeal to visitors attending events at nearby War Eagle Cavern or exploring the Buffalo National River region. Additionally, properties within a 10-minute drive of the Missouri border capture overflow tourism from Branson entertainment seekers looking for more affordable lodging options, particularly during Branson's busy summer and holiday seasons when hotel rates peak.

Airbnb properties in Pea Ridge, 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 this tax from guests, with monthly remittance due by the 20th of the following month for properties generating over $200 in monthly tax liability. Pea Ridge does not currently impose a separate municipal lodging or occupancy tax as of 2023, though hosts should verify with the city clerk as local ordinances can change. The state tax is collected on the total rental amount including cleaning fees but excludes separately stated taxes, and there are no specific exemptions for short-term rentals. Airbnb may collect and remit state taxes on behalf of hosts in Arkansas through their automated tax collection service, but hosts remain ultimately responsible for compliance and should confirm their registration status with the state. Properties rented for 30 days or longer are generally exempt from the transient lodging tax requirements.

Starting an Airbnb in Pea Ridge, Arkansas requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total approximately $2,000-3,000. Permits and fees in Benton County include business license ($50-100), short-term rental permit if required ($100-300), and potential HOA approvals. Insurance for short-term rentals costs $1,200-2,000 annually, with many hosts using companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, internet, and cable run $300-500 initially. First six months of operating costs including utilities ($150-250/month), cleaning services ($50-75 per turnover), supplies and maintenance ($100-200/month), platform fees (3% of bookings), and property management if used (10-20% of revenue) total approximately $3,000-5,000 depending on occupancy rates and seasonal demand in the Northwest Arkansas market.

Airbnb properties in Pea Ridge, Arkansas typically generate modest returns with average daily rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($40-60 per turnover), utilities ($150-250/month), property management (15-25% of revenue), insurance ($100-200/month), and maintenance ($200-400/month) typically consume 45-60% of gross revenue, leaving net profit margins of 15-25% for most operators. Success factors in this Northwest Arkansas market include proximity to the Razorback Greenway trail system, competitive pricing against nearby Bentonville and Rogers properties, and catering to corporate travelers visiting Walmart headquarters and outdoor enthusiasts exploring the Buffalo National River region. Properties within 10 miles of Crystal Bridges Museum or downtown Bentonville command premium rates, with some hosts like those operating near Lake Atalanta reporting annual profits of $8,000-15,000 on modest 2-3 bedroom homes, while larger properties with hot tubs or unique amenities can achieve 20-30% higher profitability through strategic positioning in the growing Northwest Arkansas tourism and business travel market.

Airbnb investments in Pea Ridge, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to Pea Ridge National Military Park and growing tourism from nearby Bentonville's corporate presence including Walmart headquarters. Properties in Pea Ridge generally achieve profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 45-60% annually. The market benefits from overflow demand from Bentonville and Rogers, where companies like Walmart, Tyson Foods, and J.B. Hunt create consistent business travel demand. Investment properties typically require initial capital of $150,000-250,000 for suitable 2-3 bedroom homes, with monthly gross revenues averaging $1,800-3,200 depending on property size and amenities. The timeframe to break-even on initial investment averages 8-10 years, though cash flow positive operations typically begin within the first 12-18 months of operation when properly managed and marketed to both leisure tourists visiting the historic battlefield and business travelers serving the Northwest Arkansas corridor.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors across markets including Pea Ridge, Arkansas. In the local Northwest Arkansas market, Lindsey & Associates Real Estate and Collier & Associates have agents experienced with investment properties and vacation rentals in the Pea Ridge area since around 2018. RE/MAX Real Estate Results and Crye-Leike Realtors also serve the region with investment-focused agents familiar with Airbnb regulations in Benton County. National services include Awning, which provides end-to-end Airbnb investment services and market analysis, Mashvisor for property analytics and ROI calculations, and BiggerPockets marketplace connecting investors with local professionals. AirDNA offers short-term rental data and market insights for the Pea Ridge area, while Roofstock and Arrived Homes provide turnkey rental property investments. Local property management companies like NWA Property Management and Ozark Mountain Property Management offer services to help investors manage their Airbnb properties in Pea Ridge and surrounding areas.