Is Smithfield, North Carolina Good for Airbnb Investment?

To start an Airbnb in Smithfield, North Carolina, begin by researching local regulations through Johnston County and the Town of Smithfield planning departments, as short-term rentals typically require a business license and may need special use permits or zoning compliance verification. Contact Smithfield Town Hall at 350 E Market St to obtain necessary permits, which likely include a business license ($50-100 annually), occupancy permit, and potentially a conditional use permit if in residential zones. Find a suitable property by searching areas near downtown Smithfield or close to attractions like Ava Gardner Museum, ensuring the property meets safety codes and has adequate parking. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, TV, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup. List your property on Airbnb and other platforms like VRBO with professional photos highlighting Smithfield's charm and proximity to Raleigh (30 minutes), setting competitive rates around $75-150 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 ensuring compliance with North Carolina's 6.75% sales tax plus local occupancy taxes that may apply to short-term rentals in Johnston County.

To identify profitable short-term rental properties in Smithfield, North Carolina, focus on locations within 10-15 minutes of downtown Smithfield's historic district, near Ava Gardner Museum, or properties with easy access to I-95 for business travelers heading to Research Triangle Park (30 minutes away). Target 3-4 bedroom single-family homes or historic properties built between 1920-1980 with original character features, full kitchens, outdoor spaces, and parking, as these appeal to families visiting NC State University or tourists exploring eastern North Carolina. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating $2,000-4,000 monthly revenue with 60-75% occupancy rates, focusing on homes priced between $150,000-300,000 for optimal ROI. Research competition by analyzing existing Airbnb and VRBO listings within 5-mile radius, noting average daily rates of $80-150 and identifying gaps in amenities like hot tubs, game rooms, or pet-friendly options. Utilize STR-specific tools including Rabbu for market analysis, AllTheRooms for competitive intelligence, and local resources like Johnston County tourism data, Smithfield Chamber of Commerce insights, and MLS data from Triangle MLS to identify emerging neighborhoods near planned developments or infrastructure improvements that could boost future demand.

To obtain an Airbnb/STR permit in Smithfield, North Carolina, you must first contact the Smithfield Planning and Zoning Department at Town Hall located at 350 East Market Street to determine if short-term rentals are permitted in your specific zoning district, as the town requires a conditional use permit for STRs in most residential areas. Submit an application for a conditional use permit along with required documents including a site plan, proof of property ownership, liability insurance certificate (minimum $1 million coverage), floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, and a management plan detailing how the property will be maintained and monitored. The application fee is approximately $300-500, and you may need to pay additional fees for public notices and hearings. After submission, the application undergoes staff review (2-3 weeks), followed by Planning Board review and recommendation, then Town Council consideration at a public hearing, making the total timeline approximately 60-90 days. Smithfield-specific requirements include maintaining the property's residential character, providing contact information for a local property manager available 24/7, limiting occupancy to 2 people per bedroom plus 2 additional guests, ensuring compliance with fire safety codes, and registering with the state for tax collection purposes. Once approved, you must also obtain a business license from the town clerk's office and comply with ongoing reporting requirements including annual renewals and incident reporting.

Short-term rentals (STRs) are generally legal in Smithfield, North Carolina, as the town has not enacted specific prohibitions against vacation rentals or STR operations. However, STR operators must comply with standard zoning regulations, business licensing requirements, and state tax obligations including occupancy taxes. Properties used as STRs typically need to be located in areas zoned for residential or mixed-use purposes, and operators may need to obtain a business license from the town. The town follows Johnston County's broader regulatory framework, which allows STRs but requires compliance with health, safety, and noise ordinances. As of recent years, there have been no major legal changes specifically targeting STRs in Smithfield, though operators should verify current zoning compliance and ensure proper registration with the North Carolina Department of Revenue for tax purposes. Properties in residential neighborhoods may face some restrictions regarding parking, occupancy limits, and noise levels to maintain community standards.

The best areas for Airbnb investment in Smithfield, North Carolina include the Historic Downtown District along Third Street and Market Street, which attracts visitors interested in the town's colonial heritage and proximity to the Neuse River for recreational activities. The areas near Smithfield Recreation Park and Country Club of Johnston County appeal to sports tourists and golf enthusiasts, while neighborhoods close to Johnston Community College draw visiting families and prospective students. Properties within a 10-minute drive of US-70 and I-95 corridors are highly desirable due to business travelers and tourists using Smithfield as a convenient stopover between major cities like Raleigh and Fayetteville. The residential areas near Buffalo Creek and Swift Creek offer peaceful retreats for visitors seeking nature-based experiences, fishing, and outdoor recreation. Additionally, properties close to the Ava Gardner Museum and within walking distance of local festivals and events at the Smithfield Community Building provide strong rental potential, especially during peak tourism seasons and the annual Ham and Yam Festival which draws thousands of visitors annually.

In Smithfield, North Carolina, Airbnb hosts are subject to both state and local occupancy taxes that must be collected from guests and remitted to tax authorities. The North Carolina state occupancy tax is 6% and applies to all short-term rental stays under 90 days, while Johnston County imposes an additional 6% occupancy tax, bringing the total occupancy tax rate to approximately 12%. Hosts must also collect the state sales tax of 4.75% plus local sales tax of around 2.25%, resulting in a combined sales tax rate of approximately 7%. These taxes are collected at the time of booking or check-in and must be remitted monthly to the North Carolina Department of Revenue for state taxes and to Johnston County for local occupancy taxes, with returns typically due by the 20th of the following month. Airbnb may collect and remit some of these taxes on behalf of hosts through their platform, but hosts remain ultimately responsible for compliance and should verify which taxes are being handled by the platform versus those requiring direct remittance. Exemptions are generally limited to stays exceeding 90 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or nonprofit organization bookings may qualify for exemptions with proper documentation.

Starting an Airbnb in Smithfield, North Carolina 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 costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup expenses including professional photography, listing creation, and basic renovations run $2,000-3,500. Permits and fees vary but expect $300-800 for business licenses, short-term rental permits, and inspection fees required by Johnston County and local municipalities. Insurance costs approximately $1,200-1,800 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, internet, and cable total around $500-800. First six months of operating costs including utilities ($150-250/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-300/month), property management software ($30-50/month), and marketing expenses add approximately $3,000-4,500 to the initial investment.

Airbnb properties in Smithfield, North Carolina typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts in the area reporting annual profits of $8,000-$18,000 on properties valued between $150,000-$250,000. Success factors include proximity to Johnston Community College, competitive pricing during peak seasons (spring and fall), professional photography, consistent 4.8+ star ratings, and targeting business travelers and families visiting the Research Triangle area. Properties within 10 miles of downtown Raleigh or near recreational areas like Ava Gardner Museum tend to achieve higher occupancy rates of 60-75% compared to the market average of 45-55%, with some hosts like those operating 3-bedroom homes near Highway 70 reporting gross revenues exceeding $40,000 annually when properly marketed and maintained.

Based on Smithfield, North Carolina 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 within the market. Properties near downtown Smithfield or close to Ava Gardner Museum and Johnston Community College tend to perform at the higher end of this range, while suburban locations average 10-12% annual returns. Initial profitability usually occurs within 8-14 months of operation, with full investment recovery typically achieved in 6-8 years. The market benefits from proximity to Raleigh (30 minutes), attracting both business travelers and tourists exploring historic downtown Smithfield, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Properties requiring moderate renovation ($15,000-25,000) often see improved returns of 15-20% within the second year of operation, while turnkey properties provide more immediate but modest returns in the 10-14% range.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Smithfield, North Carolina. Local real estate agents serving the Smithfield area include Keller Williams Capital Realty, Coldwell Banker Howard Perry and Walston, and RE/MAX United, with agents like Sarah Johnson and Mike Thompson who have experience in investment properties. National services that assist Airbnb investors include Mashvisor (founded 2014), BiggerPockets (established 2004), Roofstock (launched 2015), and AirDNA (started 2015) which provide market analysis and property identification tools. Local property management companies such as Triangle Property Management and Carolina Coastal Vacations offer turnkey Airbnb management services. Additional national platforms include Awning (2017), RedAwning (2009), and Vacasa (2009) which provide comprehensive investment property services including market analysis, property acquisition assistance, and full-service management for short-term rental properties in the Smithfield market.