Is Pearcy, Arkansas Good for Airbnb Investment?

To start an Airbnb in Pearcy, Arkansas, begin by researching local regulations through Garland County and the City of Hot Springs (as Pearcy falls under their jurisdiction), where short-term rentals typically require a business license and may need special permits - contact Garland County Planning Department at (501) 622-3610 for specific zoning requirements and the Arkansas Department of Finance for state tax obligations. Find a suitable property by searching real estate listings in Pearcy's lakefront areas near Lake Ouachita or wooded locations, considering properties with 2-4 bedrooms that appeal to tourists visiting Hot Springs National Park and lake activities, with average property prices ranging $150,000-$400,000 as of 2023. Obtain necessary permits including a Garland County business license ($50-100), Arkansas sales tax permit, and ensure compliance with fire safety codes and septic system regulations common in rural Arkansas areas. Furnish the property with lake-themed or rustic Arkansas decor, essential amenities like Wi-Fi, air conditioning, full kitchen, outdoor seating for lake views, and recreational equipment like kayaks or fishing gear, budgeting $15,000-30,000 for complete furnishing. List your property on Airbnb with professional photos highlighting lake access, proximity to Hot Springs (20 minutes), and outdoor activities, setting competitive rates of $80-200 per night based on local market analysis. Manage the property by establishing relationships with local cleaning services in Hot Springs or Pearcy area, creating a guidebook featuring Lake Ouachita activities, Hot Springs attractions, and local restaurants, implementing self-check-in systems, and maintaining responsive communication with guests while ensuring compliance with Arkansas's 11.5% combined state and local lodging taxes.

To identify profitable short-term rental properties in Pearcy, Arkansas, focus on properties within 5-10 miles of Hot Springs National Park and Lake Ouachita, as these drive the majority of tourist traffic to the area. Target 2-4 bedroom cabins or homes with outdoor amenities like hot tubs, fire pits, decks with lake or mountain views, and proximity to hiking trails, fishing spots, or boat launches. Analyze pricing by researching comparable Airbnb and VRBO listings in Pearcy, Hot Springs, and surrounding Garland County areas, with average nightly rates typically ranging $80-200 depending on size and amenities. Conduct competition research using AirDNA, Mashvisor, or manual searches on booking platforms to identify occupancy rates (typically 40-65% in this market), seasonal demand patterns peaking in spring and fall, and gaps in amenities or property types. Utilize tools like Rabbu, PriceLabs for dynamic pricing, STR Helper for market analysis, and local resources including the Garland County Assessor's office for property values, Hot Springs Village Property Owners Association for area insights, and Arkansas Department of Parks and Tourism data to understand visitor patterns and seasonal trends that drive demand in this outdoor recreation-focused market.

To obtain an Airbnb/STR permit in Pearcy, Arkansas, you'll need to contact the Garland County Planning Department since Pearcy is an unincorporated community within Garland County. Start by visiting the Garland County Courthouse at 501 Ouachita Avenue in Hot Springs or calling their planning office at (501) 622-3610 to inquire about short-term rental regulations and permits. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan or property layout, septic system inspection (if applicable), and fire safety compliance certificate. You'll also need to provide contact information for a local property manager if you're not residing within 50 miles of the property. Application fees generally range from $150-300 initially with annual renewal fees of $75-150. The approval timeline is typically 30-45 days after submitting a complete application, though this may extend to 60 days if inspections are required. Specific Pearcy/Garland County requirements include maintaining occupancy limits based on septic capacity, providing adequate parking (typically 2 spaces minimum), ensuring compliance with county noise ordinances, and registering with the Arkansas Department of Finance and Administration for state tax collection purposes.

Short-term rentals (STRs) are generally legal in Pearcy, Arkansas, as the small unincorporated community in Garland County operates under Arkansas state law, which does not prohibit STRs at the state level. However, STR operations in Pearcy are subject to Garland County regulations, which typically require business licenses and compliance with health and safety codes. The county has implemented some restrictions including occupancy limits, parking requirements, and noise ordinances that STR operators must follow. Properties must meet standard building and fire safety codes, and operators are generally required to collect and remit state and local taxes. Recent changes around 2022-2023 have seen Garland County strengthen enforcement of existing regulations rather than implementing new prohibitions, with increased focus on ensuring proper licensing and tax compliance. While there are no specific prohibited areas within Pearcy itself, operators must verify that their specific property location complies with any applicable zoning restrictions and homeowners association rules if present.

The best areas for Airbnb investment in Pearcy, Arkansas are primarily concentrated around Lake Ouachita and the Hot Springs National Park corridor. The Lake Ouachita area, particularly properties with waterfront access or lake views, attracts year-round tourism due to Arkansas's largest lake offering fishing, boating, swimming, and water sports activities. The Ouachita National Forest vicinity provides excellent opportunities for cabins and vacation rentals targeting outdoor enthusiasts interested in hiking, hunting, and nature photography. Properties near the Jessieville-Pearcy area along Highway 270 benefit from proximity to both Hot Springs (15 minutes away) and Lake Ouachita, capturing visitors to Hot Springs National Park, Oaklawn Racing Casino Resort, and various festivals throughout the year. The rural mountain areas with scenic views and privacy appeal to guests seeking retreat-style accommodations and corporate groups looking for off-site meeting locations. Crystal Springs and the surrounding hillside areas offer potential for luxury cabin rentals targeting couples and families wanting a peaceful getaway while remaining accessible to Hot Springs' attractions, restaurants, and entertainment venues.

Airbnb properties in Pearcy, Arkansas are subject to Arkansas state sales tax of 6.5% on lodging accommodations, which applies to short-term rentals under 30 days. Garland County imposes an additional 2% county lodging tax, bringing the total occupancy tax rate to approximately 8.5%. The City of Pearcy does not currently impose a separate municipal lodging tax as of 2023. These taxes are typically collected by the host at the time of booking and must be remitted monthly to the Arkansas Department of Finance and Administration by the 20th of the following month using Form ST-1. Hosts must register for a sales tax permit before collecting taxes and file returns even if no tax was collected during the period. Exemptions may apply for stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and for certain government or nonprofit organization bookings with proper documentation.

To start an Airbnb in Pearcy, 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 Hot Springs area where Pearcy is located. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs including professional photography, listing creation, and basic marketing materials run $500-$1,500. Permits and fees vary but expect $200-$800 for business licenses, short-term rental permits, and any required inspections from Garland County. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and cable/streaming services cost $300-$600 initially. First six months operating costs including utilities ($150-$250 monthly), cleaning supplies and services ($100-$200 monthly), maintenance reserves ($100-$300 monthly), platform fees to Airbnb and VRBO (3% of bookings), and property management software ($20-$50 monthly) total approximately $2,500-$4,500. Additional considerations include landscaping improvements ($1,000-$3,000) and emergency repair funds ($2,000-$5,000) to ensure guest satisfaction in this popular Arkansas lake region destination.

Airbnb properties in Pearcy, Arkansas, located near Hot Springs National Park, typically generate annual revenues of $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$150 depending on proximity to the lake and park attractions. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within 5 miles of Lake Ouachita or Hot Springs National Park achieve occupancy rates of 60-75% during peak seasons (spring through fall), while more remote locations see 35-50% occupancy. Net profit margins typically range from 20-35% for successful properties, with lakefront cabins and homes with hot tubs or unique amenities performing best. A typical 3-bedroom cabin near Lake Ouachita might generate $28,000 annually with $18,000 in expenses, yielding a $10,000 profit (36% margin), while properties lacking distinctive features or poor locations often struggle to exceed 15% profit margins due to lower occupancy and pricing power in this competitive rural market.

Based on Pearcy, 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 proximity to Hot Springs National Park and Lake Ouachita recreational areas. Properties within 10 miles of major attractions like Garvan Woodland Gardens and Hot Springs tend to achieve higher occupancy rates of 65-75% annually, supporting gross rental yields of 15-22%. Initial profitability usually occurs within 18-24 months for well-positioned properties priced between $150,000-$300,000, with average daily rates of $85-$140 during peak seasons (April-October) and $60-$95 during off-peak periods. The market benefits from consistent tourism demand driven by outdoor recreation, with successful operators reporting net annual returns of $12,000-$28,000 on properties requiring initial investments of $40,000-$80,000 in renovations and furnishing, achieving break-even typically by month 20-28 of operation.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Pearcy, Arkansas, offering comprehensive market analysis and property recommendations. Local real estate agents in the Hot Springs area like Century 21 Garland County Realty and Crye-Leike Realty have experience with vacation rental properties near Lake Ouachita and the surrounding recreational areas. National services include Awning, which provides end-to-end Airbnb investment services, RedAwning for vacation rental property management and acquisition, and AirDNA for market data analysis specific to the Pearcy/Hot Springs region. Local property management companies such as Arkansas Vacation Rentals and Lake Ouachita Property Management can assist with both acquisition and ongoing operations. Additional national platforms like Mashvisor, BiggerPockets, and Roofstock occasionally feature short-term rental opportunities in Arkansas markets, while local investors often work with Coldwell Banker Garland County and RE/MAX Real Estate Partners who understand the seasonal tourism patterns around Lake Ouachita and the Ouachita National Forest that drive rental demand in Pearcy.