Is Texarkana, Arkansas Good for Airbnb Investment?

Potentially—Texarkana, Arkansas combines visitor demand with long-term real estate upside.

• Presents a modest but potentially stable opportunity, largely influenced by its unique position straddling two states and its role as a regional hub for commerce and healthcare.
• Current market conditions indicate relatively affordable property values compared to larger metropolitan areas, which can lower initial investment costs.
• Tourism trends in Texarkana are driven primarily by business travel, interstate travelers, and visitors for local events or family, rather than major vacation destination appeal.
• This means a consistent, albeit perhaps not explosive, demand for short-term rentals.
• The investment potential lies in targeting these specific traveler segments and offering competitive pricing, especially for longer stays for business or relocation.
• While not a high-growth market like major tourist destinations, Texarkana could offer a steady return on investment for investors seeking a more conservative and predictable Airbnb venture.

$800–$2,200 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Texarkana, Arkansas typically earn between $800-$2,200 per month.
• Seasonal variations show peak earnings during spring and fall months when temperatures are moderate, with summer bookings remaining steady due to business travel and family visits.
• Properties near the historic downtown area, Texarkana Regional Airport, or major highways command premium rates of $85-$150 per night, while suburban locations average $60-$95 nightly.
• Key factors influencing earnings include proximity to business districts and medical facilities, property amenities like pools or hot tubs, professional photography and listing optimization.
• Occupancy rates typically range from 45-65% depending on location and property quality, with successful hosts maintaining higher occupancy through competitive pricing strategies and exceptional guest experiences.
• Revenue potential is also affected by the city's position as a regional hub for healthcare, manufacturing, and transportation, creating consistent demand from business travelers, medical patients and families.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with properties averaging $85-120 per night and occupancy rates around 65-75% due to the city's position as a regional hub and proximity to attractions like Caddo Lake.
• The average payback period ranges from 7-10 years depending on initial investment and property type, with downtown properties and those near the historic courthouse square performing best.
• Compared to traditional long-term rentals in Texarkana that yield approximately 6-8% ROI with rental rates of $800-1,200 monthly.

Texarkana, Arkansas averages 55–65% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Texarkana, Arkansas typically average around 55-65% annually, with peak seasons occurring during spring (March-May) and fall (September-November) when rates can reach 70-75% due to favorable weather and regional events.
• Summer months see moderate occupancy of 60-65%, while winter months drop to approximately 45-50% as tourism declines.
• The market experiences increased demand during Razorback football season, local festivals, and business travel periods related to the bi-state commercial activity.
• Compared to Arkansas's statewide average of approximately 60-65%, Texarkana performs similarly due to its strategic location and cross-border appeal.
• Nationally, Texarkana's rates are slightly below the average of 65-70% for similar-sized markets, reflecting its position as a secondary market rather than a primary tourist destination.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Texarkana area offers excellent Airbnb potential due to its proximity to the historic State Line Post Office, Perot Theatre, and business district.
• The Spring Lake Park neighborhood provides a desirable residential setting near the popular recreational area and golf course.
• The areas around Arkansas High School and Texas High School benefit from consistent demand during sporting events, graduations, and school-related activities.
• The Highlands neighborhood, with its established homes and proximity to medical facilities, attracts medical professionals and patients' families.
• The Richmond Road corridor offers good accessibility to both Arkansas and Texas sides of the city, appealing to business travelers and visitors to nearby industrial facilities with competitive pricing advantages.
• The areas near Christus St.
• Michael Health System generate consistent demand from medical tourists and traveling healthcare workers.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Texarkana, Arkansas requires short-term rental operators to obtain a business license and register their properties with the city.
• Properties are generally limited to occupancy based on bedroom count plus two additional guests, with a maximum of 10-12 occupants depending on the specific property size and local fire safety codes.
• The city does not mandate owner-occupancy for short-term rentals, allowing both primary residences and investment properties to operate as vacation rentals.
• Zoning restrictions prohibit short-term rentals in certain residential districts, particularly R-1 single-family zones.
• The registration process involves submitting an application with property details, proof of insurance, emergency contact information, and paying annual fees ranging from $100-200.
• Recent regulatory changes implemented within the past two years have included stricter noise ordinances, mandatory 24-hour local contact requirements, enhanced parking provisions requiring one space per bedroom.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Texarkana, Arkansas are subject to several fees and taxes including a state sales tax of 6.5% plus local sales tax of approximately 2-3%.
• The Arkansas Tourism Tax applies at 2% of gross receipts for accommodations.
• Local lodging taxes in Texarkana typically range from 2-4% of gross rental receipts.
• Registration fees for short-term rental permits generally cost between $100-300 annually, with initial application fees ranging from $50-150.
• Business license fees may apply at approximately $25-75 per year.
• Some properties may require additional inspections costing $75-200.