Is West Memphis, Arkansas Good for Airbnb Investment?

To start an Airbnb in West Memphis, Arkansas, begin by researching local zoning laws and regulations through the West Memphis Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact the West Memphis City Clerk's office to apply for a general business license (approximately $50-100 annually) and verify if additional permits are required, while also checking with Crittenden County for any county-level requirements. Find a suitable property by searching areas near the Mississippi River, downtown West Memphis, or near major highways like I-40 and I-55 that attract travelers, ensuring the property meets safety codes and allows short-term rentals according to HOA rules if applicable. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, WiFi, TV, and safety equipment like smoke detectors and fire extinguishers, while considering the proximity to Memphis attractions across the river as a selling point. Create your Airbnb listing with high-quality photos, competitive pricing (typically $60-120 per night in West Memphis as of 2023), and highlight nearby attractions like Southland Casino Racing and easy access to Memphis. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and potentially hiring local cleaning services or property management companies if needed, while keeping detailed records for tax purposes and ensuring compliance with Arkansas state tax requirements for short-term rental income.

To identify profitable short-term rental properties in West Memphis, Arkansas, focus on locations within 15-20 minutes of downtown Memphis attractions like Beale Street and Graceland, as many visitors prefer staying across the river for lower costs while maintaining easy access via I-40 and I-55 bridges. Target 2-4 bedroom single-family homes or duplexes built after 1980 with dedicated parking, updated kitchens, reliable WiFi capability, and outdoor spaces, as these appeal to families and groups visiting Memphis for tourism or business. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue (typically $80-150/night in West Memphis) exceeds long-term rental income by 40-60%, while factoring in Arkansas's 11.5% combined state and local hotel taxes and West Memphis's specific STR regulations. Research competition by analyzing existing Airbnb and VRBO listings within 5-mile radius, identifying gaps in amenities or underserved areas near Southland Casino Racing or industrial zones that attract business travelers. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through West Memphis Board of Realtors, while connecting with property managers familiar with Crittenden County's permit requirements and building codes to ensure compliance and maximize occupancy rates in this emerging market that benefits from Memphis tourism overflow.

To obtain an Airbnb/STR permit in West Memphis, Arkansas, contact the West Memphis Planning and Zoning Department at City Hall located at 205 South Redmond Street or call (870) 732-7500 to initiate the application process. You'll need to submit a completed short-term rental permit application, 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're not local, and pay the required permit fee of approximately $150-200 annually. The city requires STR properties to be located in areas zoned for residential or commercial use, maintain off-street parking for guests, display the permit number in all advertisements, limit occupancy to 2 people per bedroom plus 2 additional guests, and ensure compliance with fire safety codes including smoke detectors in all bedrooms and common areas. Submit your complete application with all supporting documents and fees to the Planning Department, schedule a required property inspection with the Building Inspector, and allow 30-45 days for processing and approval. Once approved, you must renew your permit annually and maintain compliance with all city ordinances, including noise restrictions and waste management requirements.

Short-term rentals (STRs) are generally legal in West Memphis, Arkansas, as the city has not enacted specific prohibitive ordinances against vacation rentals like Airbnb or VRBO as of 2023. However, operators must comply with standard business licensing requirements, zoning regulations that may restrict commercial activities in residential areas, and state tax obligations including sales and lodging taxes. The city follows Arkansas state guidelines which allow STRs but require proper registration and tax collection, with properties needing to meet basic safety and occupancy standards. West Memphis has not implemented the strict regulations seen in larger Arkansas cities like Little Rock or Fayetteville, though operators should verify current zoning compliance in their specific neighborhoods as residential zones may have limitations on commercial use. Recent years have seen increased scrutiny statewide regarding STR operations, but West Memphis has maintained a relatively permissive approach while ensuring compliance with existing municipal codes and state tax requirements.

The best areas for Airbnb investment in West Memphis, Arkansas include the Southland Casino Racing district, which attracts gambling tourists and entertainment visitors year-round, and the Interstate 40/55 corridor near the Memphis bridge, which captures business travelers and tourists crossing between Arkansas and Tennessee. The downtown West Memphis area near Broadway Avenue offers potential due to its proximity to Memphis attractions while providing more affordable accommodation options for budget-conscious travelers visiting Graceland, Beale Street, and FedExForum events. The residential neighborhoods near West Memphis High School and along Missouri Street provide quiet, family-friendly options for extended stays and relocating professionals working in the Memphis metropolitan area. Properties near the Mississippi River waterfront, particularly around Tilden Rodgers Park, appeal to visitors seeking scenic views and outdoor recreation while remaining close to Memphis's major attractions, with the area benefiting from the significant cost savings compared to downtown Memphis hotels while offering easy access via the I-40 bridge.

In West Memphis, Arkansas, Airbnb hosts are subject to both state and local lodging taxes. The Arkansas state tourism tax is 2% on gross receipts from short-term rentals, while Crittenden County imposes an additional 2% hotel/motel tax, bringing the total lodging tax to approximately 4%. West Memphis may also levy a local occupancy tax of around 1-3%, though specific rates can vary. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for Arkansas properties. Airbnb then remits these taxes quarterly to the appropriate state and local tax authorities on behalf of hosts. However, hosts remain responsible for registering with the Arkansas Department of Finance and Administration and obtaining any required local business licenses. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and some jurisdictions may provide exemptions for rentals to permanent residents or government employees, though such exemptions are rare and require proper documentation.

To start an Airbnb in West Memphis, Arkansas, the total initial costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$140,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations or improvements total around $3,000-$5,000. Permits and fees vary but generally include business license ($50-$200), short-term rental permit ($100-$500), and potential HOA approvals. Insurance costs approximately $1,500-$2,500 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable run about $500-$1,000 initially. First six months of operating costs including utilities ($200-$300/month), cleaning services ($75-$150 per turnover), maintenance reserves ($200-$400/month), property management software ($20-$50/month), and marketing expenses total approximately $3,500-$6,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in West Memphis, Arkansas typically generate modest profitability with average nightly rates ranging from $45-75 for standard 2-3 bedroom homes, resulting in monthly gross revenues of $1,200-2,400 assuming 60-70% occupancy rates. Operating expenses including mortgage payments ($800-1,200), utilities ($150-200), cleaning fees ($25-35 per turnover), property management (10-15% of revenue), insurance ($100-150), and maintenance ($200-300) typically consume 70-85% of gross revenue. Properties near the Mississippi River or downtown Memphis attractions command premium rates of $80-120 nightly, while budget properties in residential areas may only achieve $35-55 rates. Successful operators like those managing properties within 15 minutes of Memphis International Airport or Beale Street report net profit margins of 15-25%, with annual returns of $3,000-8,000 on properties valued at $80,000-150,000. Key success factors include strategic location selection near major highways (I-40, I-55), competitive pricing 10-15% below Memphis rates, professional photography, responsive guest communication, and maintaining 4.5+ star ratings. Properties purchased in 2019-2021 for $60,000-100,000 and renovated for $15,000-25,000 have shown the strongest ROI, particularly those targeting business travelers and tourists visiting nearby Graceland or FedExForum events.

Airbnb investments in West Memphis, Arkansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to Memphis, Tennessee and lower property acquisition costs averaging $80,000-$120,000 for suitable rental properties. The market benefits from consistent demand from travelers visiting nearby Memphis attractions, business travelers, and guests attending events at venues like Southland Casino Racing, with average daily rates of $65-$85 and occupancy rates of 60-70% annually. Most investors achieve profitability within 18-24 months, with properties generating monthly gross revenues of $800-$1,400 depending on property size and amenities, while operating expenses typically consume 35-45% of gross income including cleaning, utilities, insurance, and platform fees. The timeframe to full profitability accelerates for investors who purchase properties under $100,000 and maintain occupancy rates above 65%, with some achieving positive cash flow within the first 12 months of operation in this emerging short-term rental market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in West Memphis, Arkansas. Local real estate agents who focus on investment properties in the West Memphis area include Crye-Leike Realtors, which has been serving the Memphis metro area since 1977, and Coldwell Banker Collins-Maury who have expertise in the Arkansas market. RE/MAX Experts and Keller Williams Realty also have agents specializing in investment properties in the region. National services that can assist include BiggerPockets for networking and deal analysis, Mashvisor for market analysis and property search capabilities, and AirDNA for short-term rental market data and performance metrics. Awning provides end-to-end Airbnb investment services including property identification and management, while Roofstock focuses on turnkey rental properties that could be converted to short-term rentals. Local property management companies like RedAwning and Vacasa can provide insights into profitable Airbnb opportunities while offering management services, and investment-focused brokerages such as HomeVestors and local investor groups through the Real Estate Investors Association of Arkansas can provide additional resources for finding profitable Airbnb properties in the West Memphis market.