Is Stillwater, Oklahoma Good for Airbnb Investment?

To start an Airbnb in Stillwater, Oklahoma, begin by researching local regulations through the City of Stillwater Planning Department, as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically restrict rentals to certain residential zones while prohibiting them in areas zoned R-1 (single-family residential). Contact the Stillwater Business License Office at City Hall (723 S Lewis Street) to obtain the required business license, which costs approximately $25-50 annually, and ensure your property meets fire safety codes and has proper smoke detectors and carbon monoxide detectors as required by Oklahoma state law. Find a suitable property by focusing on areas near Oklahoma State University campus or downtown Stillwater, where demand is highest, with average nightly rates ranging from $75-150 depending on size and location, then purchase or lease ensuring your mortgage or lease agreement permits short-term rentals. Furnish the property with essential amenities including Wi-Fi, cable TV, full kitchen appliances, quality bedding, and OSU-themed decor to appeal to visiting families and alumni, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create your listing on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to OSU campus (mention Boone Pickens Stadium and Gallagher-Iba Arena), competitive pricing based on local market research, and detailed house rules regarding noise levels due to residential neighborhood considerations. Manage your property by establishing cleaning protocols between guests, responding to inquiries within one hour when possible, coordinating key exchanges through lockboxes or smart locks, and maintaining relationships with local cleaning services and maintenance contractors, while keeping detailed records for tax purposes as Oklahoma requires reporting of rental income and you may need to collect and remit state sales tax of 4.5% plus local taxes.

For identifying profitable STR properties in Stillwater, Oklahoma, focus on locations within 1-2 miles of Oklahoma State University campus, particularly areas like The Village, Boomer Lake neighborhoods, and properties near Boone Pickens Stadium for game day rentals. Target 3-4 bedroom homes or 2+ bedroom condos with modern amenities, reliable WiFi, parking spaces, and outdoor areas that appeal to visiting families, OSU alumni, and business travelers. Analyze pricing by researching comparable Airbnb listings in Stillwater using AirDNA or Mashvisor, noting that rates typically range $80-200/night with premium pricing during football season (August-December) and graduation periods. Study competition through Airbnb and VRBO searches, identifying gaps in amenities or locations while monitoring occupancy rates of similar properties. Utilize tools like AirDNA for market analytics, Mashvisor for investment analysis, STR Helper for performance tracking, and local resources including Stillwater Chamber of Commerce market reports, OSU event calendars for demand forecasting, and Payne County property records for acquisition research, while connecting with local property management companies familiar with STR regulations and university rental patterns.

To obtain an Airbnb/STR permit in Stillwater, Oklahoma, contact the City of Stillwater Planning Department at City Hall located at 723 S Lewis Street or call (405) 742-8209 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan showing parking areas and property layout, obtain a business license from the City Clerk's office, provide proof of liability insurance (minimum $1 million coverage), and pass required inspections including fire safety and building code compliance. The application fee is approximately $150-200 with an annual renewal fee of $100, and the process typically takes 4-6 weeks from submission to approval. Stillwater requires STR properties to maintain adequate off-street parking (minimum 2 spaces), limit occupancy to 2 people per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 7 AM, provide 24/7 contact information to neighbors and the city, and ensure the property manager or owner responds to complaints within 2 hours. Properties must also comply with all residential zoning requirements, maintain proper waste disposal arrangements, and display the permit number in all advertising materials.

Short-term rentals (STRs) are legal in Stillwater, Oklahoma, but operate under specific regulations established by the city. As of 2023, Stillwater requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit STRs to commercial and mixed-use districts, while generally prohibiting them in single-family residential neighborhoods. The city implemented these regulations around 2020-2021 in response to concerns from residents about noise, parking, and neighborhood character. STR properties must meet safety requirements including smoke detectors, fire extinguishers, and emergency contact information, and operators are required to maintain liability insurance. The city also enforces occupancy limits based on property size and requires that a responsible party be available 24/7 to address any issues. Violations can result in fines and license revocation, and the city has been actively monitoring compliance through complaint-driven enforcement and periodic inspections.

The most promising Airbnb investment areas in Stillwater, Oklahoma center around Oklahoma State University's campus and downtown district, particularly the neighborhoods within 1-2 miles of campus including the Boone Pickens Stadium area, which attracts thousands of visitors during football season and other OSU sporting events throughout the year. The historic downtown Stillwater district offers strong potential due to its walkable entertainment venues, restaurants, and proximity to university activities, making it attractive for both visiting families and business travelers. The residential areas near Gallagher-Iba Arena and around Boomer Lake Park provide excellent opportunities as they combine university proximity with recreational amenities that appeal to visitors year-round. The Perkins Road corridor and neighborhoods near the National Wrestling Hall of Fame also present solid investment potential, as they attract wrestling enthusiasts and sports tourists while remaining close to campus activities. These areas benefit from consistent demand driven by OSU's academic calendar, major sporting events, graduation ceremonies, and the steady flow of prospective students and their families visiting campus throughout the year.

Airbnb properties in Stillwater, Oklahoma are subject to both state and local lodging taxes. The Oklahoma state lodging tax is 5.5% on gross receipts from short-term rentals under 30 days, which Airbnb typically collects and remits directly to the state on behalf of hosts. Stillwater imposes a local hotel/motel tax of approximately 5% on lodging accommodations, bringing the total tax burden to around 10.5%. The city's lodging tax is collected on gross rental receipts and must be remitted monthly by the 20th of the following month to the Stillwater Finance Department. Hosts must register with the city to obtain a lodging tax permit before operating. Some exemptions may apply for stays exceeding 30 consecutive days, which are generally considered long-term rentals rather than transient lodging. Additionally, Stillwater may require business licenses for short-term rental operations, and properties must comply with local zoning regulations and safety requirements.

The total cost to start an Airbnb in Stillwater, Oklahoma is approximately $195,000-$225,000. Property purchase costs around $150,000-$175,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage runs $1,200-$1,800 annually, with $600-$900 needed upfront for six months. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly, requiring $1,200-$1,800 for the first six months. Operating costs for the initial six months including cleaning services, supplies, maintenance, property management software, and marketing total $3,000-$4,500. Additional working capital of $2,000-$3,000 should be reserved for unexpected expenses and vacancy periods during the startup phase.

Airbnb properties in Stillwater, Oklahoma show moderate profitability potential, with average nightly rates ranging from $75-120 for typical 2-3 bedroom properties near Oklahoma State University. Annual gross revenues typically range from $18,000-35,000 for well-managed properties with 60-70% occupancy rates, while expenses including mortgage, utilities, cleaning, maintenance, and Airbnb fees average $12,000-22,000 annually, resulting in net profit margins of 15-25%. Properties within walking distance of OSU campus or downtown perform best, particularly during football season, graduation, and university events when rates can surge to $200+ per night. Success factors include proximity to campus (within 2 miles), modern amenities, reliable WiFi, and responsive hosting, with properties like renovated historic homes near the university district achieving occupancy rates above 75%. The market benefits from consistent demand from visiting parents, university staff, and business travelers, though competition has increased since 2019 with over 150 active listings in the area. Properties purchased specifically for short-term rental investment typically achieve 8-12% annual returns when factoring in appreciation, though seasonal fluctuations require careful cash flow management during slower summer months when student demand decreases.

Airbnb investments in Stillwater, Oklahoma typically generate annual ROI of 12-18% due to consistent demand from Oklahoma State University students, faculty, and visitors attending sporting events and university functions. Cash-on-cash returns generally range from 8-14% annually, with properties near campus commanding premium rates of $80-150 per night during peak periods like football season and graduation. Investment properties in desirable neighborhoods like The Village or near Boone Pickens Stadium often reach profitability within 18-24 months, while properties requiring significant renovation may take 30-36 months to achieve positive cash flow. The market benefits from year-round occupancy rates of 65-75%, with seasonal spikes during OSU events pushing occupancy to 85-95% and nightly rates increasing by 40-60% during home football games and major university events. Properties purchased in the $150,000-250,000 range with 20-25% down payments typically generate monthly cash flows of $800-1,500 after expenses, making Stillwater a moderately attractive market for short-term rental investments compared to larger metropolitan areas.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Stillwater, Oklahoma. Local real estate agents who focus on investment properties in the Stillwater market include Coldwell Banker Select, RE/MAX Professionals, and Keller Williams Realty, with agents like those at Payne County Properties having specific knowledge of the OSU area rental market. National services that can assist with Stillwater Airbnb investments include Mashvisor for market analysis, AirDNA for revenue projections, Awning for property management, RedAwning for booking management, and Vacasa for full-service property management. Local property management companies such as Stillwater Property Management and OSU Area Rentals can provide on-ground support, while investment-focused firms like Roofstock and Fundrise may have Oklahoma properties in their portfolios. Additionally, local mortgage brokers familiar with investment properties and companies like BiggerPockets' marketplace can connect investors with Stillwater-area opportunities, and platforms like Mashvisor and RentSpree provide market analytics specific to the Stillwater short-term rental market.