Airbnb City Guide: The Best Places To Invest in Little Rock, Arkansas

Airbnb Rules and Regulations in Little Rock, Arkansas

As of 2024, Little Rock has implemented a comprehensive ordinance regulating short-term rentals. The new regulations cap the total number of short-term rentals citywide at 500 without specifying their location within the city. Operators are required to obtain a business license and pay an annual home inspection fee of up to $500, which can be waived during the first year if the property is deemed safe by the Little Rock Department of Housing and Neighborhood Programs.

The ordinance also mandates fire alarms, on-call owner availability, and prohibits private parties or special events. Short-term rental stays are limited to a maximum of 29 consecutive days. Operators who accumulate three or more confirmed violations within a calendar year risk losing their business license. While some Airbnb hosts have expressed concerns about the potential impact of these regulations on their businesses, city officials maintain that the ordinance strikes a balance between supporting the short-term rental industry and addressing community concerns.

Little Rock Airbnb Market Data:

• Average Revenue – $27.5K per year
• Average Daily Rate – $144.8 per night
• Average Occupancy Rate – 52%
• Average RevPAR – $75.4
• Average Home Prices – $209,201

1. Top Place to Invest in Little Rock, Arkansas - Hillcrest

Nestled in the heart of Little Rock, Hillcrest is a charming and historic neighborhood that has captured the attention of savvy Airbnb investors. With its unique blend of architectural beauty, convenient location, and vibrant community, Hillcrest offers a compelling investment opportunity for those seeking to capitalize on the growing short-term rental market.

Hillcrest Airbnb Market Data:

• Average Revenue – $26.3K per year
• Average Daily Rate – $128.7 per night
• Average Occupancy Rate – 56%
• Average RevPAR – $72.6

Convenience - 8/10

Hillcrest's central location within Little Rock makes it incredibly convenient for residents and visitors. The neighborhood is situated just minutes from downtown, providing easy access to major highways, public transportation, and a wide array of amenities. From grocery stores and pharmacies to trendy cafes and boutiques, Hillcrest has everything you need within reach.

Tourist Attractions - 7/10

While Hillcrest is primarily a residential area, it is surrounded by many tourist attractions that draw visitors from far and wide. The nearby River Market District is a bustling hub of activity, featuring a farmers market, art galleries, and live entertainment. Other notable attractions include the Clinton Presidential Library, the Arkansas Arts Center, and the Historic Arkansas Museum.

Things to Do - 9/10

One of Hillcrest's greatest strengths is its vibrant community and the abundance of things to do within the neighborhood. Residents and visitors can enjoy a diverse array of locally-owned restaurants, bars, and shops, each with its own unique character and charm. The neighborhood also boasts several beautiful parks, including Allsopp Park, which offers hiking trails, picnic areas, and stunning views of the city.

Average Home Prices - 7/10

According to Zillow, the average home value in Hillcrest as of 2024 is $209,201, representing a 2.9% increase over the past year. While this may seem relatively affordable compared to other major cities, it is important to note that Hillcrest is one of the more expensive neighborhoods within Little Rock. However, the area's strong appreciation rate and high demand, even during off-seasons, make it an attractive option for investors seeking long-term growth potential.

Proximity to Work-Related Travel - 8/10

Hillcrest's central location makes it an ideal base for those who frequently travel for work. The neighborhood is just a short drive from major employers such as the University of Arkansas for Medical Sciences, the Arkansas Children's Hospital, and the Statehouse Convention Center. Additionally, the Bill and Hillary Clinton National Airport is just a 15-minute drive away, making it easy to catch a flight for business or leisure.

X-Factor - 9/10

What sets Hillcrest apart from other neighborhoods in Little Rock is its unique blend of history, architecture, and community spirit. The area is known for its stunning collection of early 20th-century homes, ranging from modest bungalows to grand Colonial Revival mansions. This architectural diversity, combined with the neighborhood's walkability and tight-knit community, creates a truly special atmosphere that is hard to find elsewhere.

2. Top Place to Invest in Little Rock, Arkansas - Oak Forest

Oak Forest, a hidden gem in Little Rock, Arkansas, is quickly becoming a sought-after destination for Airbnb and short-term rental investors. This tranquil neighborhood offers a perfect blend of suburban charm and urban convenience, making it an attractive option for those looking to invest in the growing vacation rental market.

Oak Forest Airbnb Market Data:

• Average Revenue – $23.6K per year
• Average Daily Rate – $134.8 per night
• Average Occupancy Rate – 48%
• Average RevPAR – $65

Convenience - 7/10

Situated just a short drive from downtown Little Rock, Oak Forest provides easy access to the city's major attractions and amenities. The neighborhood is well-connected by public transportation and major highways, making it convenient for both residents and visitors to navigate. While not as centrally located as some other areas, Oak Forest still offers a good balance of accessibility and suburban tranquility.

Tourist Attractions - 6/10

Although Oak Forest is primarily a residential area, it is close to several notable tourist attractions. The nearby Little Rock Zoo is a popular destination for families, while the Arkansas State Capitol and the MacArthur Museum of Arkansas Military History offer fascinating insights into the state's rich history. However, Oak Forest may not be the most tourist-centric location compared to other neighborhoods.

Things to Do - 7/10

Oak Forest boasts a variety of local amenities and activities that cater to both residents and visitors. The neighborhood is home to several parks, including the expansive Oak Forest Park, which features walking trails, playgrounds, and picnic areas. Additionally, the nearby Rodney Parham Road offers a selection of restaurants, cafes, and shops, which STR owners can leverage by partnering with them to offer exclusive discounts for their guests.

Average Home Prices - 8/10

According to Zillow, the median home value in Oak Forest as of 2024 is $187,543, with a modest 1.8% appreciation rate over the past year. This relatively affordable price point, combined with the neighborhood's stable growth, makes it an attractive option for investors seeking to enter the Little Rock market. The area's well-maintained homes and family-friendly atmosphere contribute to its desirability.

Proximity to Work-Related Travel - 6/10

While Oak Forest is not as centrally located as some other neighborhoods in Little Rock, it still offers reasonable access to major work-related destinations. The University of Arkansas at Little Rock is just a short drive away, as are several major hospitals and medical centers. However, the commute may be slightly longer than desired for those frequently traveling to downtown conventions or sports venues.

X-Factor - 7/10

Oak Forest's main appeal lies in its quiet, family-oriented atmosphere and its affordability compared to other neighborhoods in Little Rock. The area's well-maintained homes, spacious yards, and friendly community create a welcoming environment for both residents and visitors alike. While it may not have the same level of historical charm or architectural diversity as some other neighborhoods, Oak Forest's laid-back vibe and suburban tranquility make it a unique and desirable option for certain Airbnb investors.

3. Top Place to Invest in Little Rock, Arkansas - River Mountain

River Mountain, a picturesque neighborhood nestled along the banks of the Arkansas River, has emerged as a top contender for establishing new short-term rental investments in Little Rock. With its stunning natural beauty, convenient location, and growing popularity among visitors, River Mountain offers a unique opportunity for savvy investors looking to capitalize on the burgeoning vacation rental market.

River Mountain Airbnb Market Data:

• Average Revenue – $44.5K per year
• Average Daily Rate – $214 per night
• Average Occupancy Rate – 57%
• Average RevPAR – $121.8

Convenience - 8/10

River Mountain's greatest strength is its convenient location within Little Rock. Situated just minutes from downtown, the neighborhood offers easy access to major highways, public transportation, and a wide range of amenities. From grocery stores and restaurants to shopping centers and entertainment venues, River Mountain has everything you need within a short drive or even a leisurely walk.

Tourist Attractions - 9/10

River Mountain's proximity to some of Little Rock's most popular tourist attractions makes it an ideal base for visitors exploring the city. The nearby River Market District is a bustling hub of activity, featuring a vibrant farmers market, art galleries, and live entertainment. Other notable attractions include the Clinton Presidential Library, the Museum of Discovery, and the Arkansas River Trail, which offers miles of scenic hiking and biking paths.

Things to Do - 8/10

In addition to its convenient access to nearby attractions, River Mountain itself offers a variety of things to do for both residents and visitors. The neighborhood boasts several beautiful parks, including River Mountain Park, which features walking trails, picnic areas, and stunning views of the Arkansas River. The area is also home to a diverse array of locally-owned restaurants, cafes, and shops, each contributing to the neighborhood's unique character and charm.

Average Home Prices - 7/10

According to Zillow, the median home value in River Mountain as of 2024 is $289,754, representing a 3.2% appreciation rate over the past year. While this may be higher than some other neighborhoods in Little Rock, it is important to note that River Mountain's prime location, natural beauty, and strong demand make it a compelling investment opportunity. As the area continues to grow and develop, investors can expect to see steady appreciation and solid rental returns.

Proximity to Work-Related Travel - 8/10

River Mountain's central location within Little Rock makes it an ideal base for those who frequently travel for work. The neighborhood is just a short drive from major employers such as the University of Arkansas for Medical Sciences, the Arkansas Children's Hospital, and the Statehouse Convention Center. Additionally, the Bill and Hillary Clinton National Airport is easily accessible, making it convenient for business travelers and tourists alike.

X-Factor - 9/10

What sets River Mountain apart from other neighborhoods in Little Rock is its unparalleled natural beauty and riverfront location. The area's stunning views, tranquil atmosphere, and abundant recreational opportunities create a unique and desirable environment for residents and visitors. As more people seek out authentic, nature-oriented travel experiences, River Mountain is poised to become an increasingly popular destination for Airbnb and short-term rental guests.

4. Top Place to Invest in Little Rock, Arkansas - Downtown

Downtown Little Rock is a vibrant, thriving area that offers a perfect blend of urban amenities and Southern charm. With its rich history, diverse attractions, and growing popularity among visitors, Downtown presents an enticing opportunity for savvy Airbnb and short-term rental investors looking to capitalize on the city's burgeoning tourism industry.

Downtown Airbnb Market Data:

• Average Revenue – $28.7K per year
• Average Daily Rate – $140.4 per night
• Average Occupancy Rate – 56%
• Average RevPAR – $78.5

Convenience - 9/10

One of Downtown's greatest strengths is its unparalleled convenience. Centrally located and well-connected, the area offers easy access to major highways, public transportation, and the Bill and Hillary Clinton National Airport. Visitors can easily explore the city's top attractions on foot or by using the charming METRO Streetcar system, which links many of Downtown's hotspots.

Tourist Attractions - 8/10

Downtown Little Rock boasts an impressive array of tourist attractions that cater to a wide range of interests. History buffs can delve into the past at the Clinton Presidential Center, the Old State House Museum, or the Historic Arkansas Museum. Art enthusiasts will appreciate the Arkansas Museum of Fine Arts and the numerous galleries scattered throughout the area. The River Market District, with its lively farmers market, shops, and restaurants, is a must-visit destination for foodies and shopaholics alike.

Things to Do - 9/10

From cultural pursuits to outdoor adventures, Downtown offers an abundance of activities for visitors of all ages. Stroll along the picturesque Arkansas River Trail, which connects to the iconic Big Dam Bridge, or explore the Vogel Schwartz Sculpture Garden's captivating artworks. Catch a live performance at the Robinson Center or enjoy a night out in the River Market Entertainment District, where you can savor a drink while wandering between venues. With its diverse mix of museums, parks, and entertainment options, Downtown ensures that there's never a dull moment.

Average Home Prices - 7/10

According to Zillow, the average home value in Downtown Little Rock as of 2024 is $105,000, representing a modest 2.9% appreciation rate over the past year. While prices may be higher than in some other neighborhoods, the area's prime location, strong rental demand, and potential for growth make it an attractive option for investors. As Downtown continues to evolve and attract new businesses and residents, the long-term outlook for property values remains positive.

Proximity to Work-Related Travel - 9/10

Downtown's central location makes it an excellent base for corporate rentals, serving business travelers and those attending conferences or events. The Statehouse Convention Center, a premier venue for trade shows, exhibitions, and corporate gatherings, is conveniently situated in the heart of Downtown. Major hospitals, such as the University of Arkansas for Medical Sciences and the Arkansas Children's Hospital, are also easily accessible. Simmons Bank Arena in nearby North Little Rock is just a short drive away for those in town for sporting events.

X-Factor - 8/10

What sets Downtown apart is its unique blend of history, culture, and Southern hospitality. The area's beautifully preserved 19th-century architecture, modern amenities, and vibrant atmosphere create a unique experience for visitors. From the friendly locals to the mouthwatering cuisine, Downtown Little Rock offers an authentic taste of the South that keeps guests coming back for more. As the city continues to invest in its core, the potential for Downtown to become an even more desirable destination is immense.

5. Top Place to Invest in Little Rock, Arkansas - South End

South End, a hidden gem in the heart of Little Rock, is quickly becoming a sought-after destination for Airbnb and short-term rental investors. With its unique blend of historic charm, convenient location, and growing popularity among visitors, South End offers an exciting opportunity for those looking to capitalize on the city's thriving tourism industry.

South End Airbnb Market Data:

• Average Revenue – $22.7K per year
• Average Daily Rate – $132.5 per night
• Average Occupancy Rate – 47%
• Average RevPAR – $59.9

Convenience - 7/10

South End's location, just a short drive from Downtown Little Rock, offers a good balance of accessibility and neighborhood tranquility. While not as centrally located as some other areas, South End is still well-connected by major roads and public transportation, making it easy for visitors to explore the city's top attractions. The neighborhood also boasts a variety of local amenities, including grocery stores, restaurants, and shops, ensuring that guests have everything they need within reach.

Tourist Attractions - 6/10

Although South End is primarily a residential area, it is close to several notable tourist attractions. The nearby Heifer International Village offers a unique educational experience, showcasing the organization's global efforts to combat poverty and hunger. The Clinton Presidential Center, a popular destination for history buffs, is also just a short drive away. However, South End may not be the most tourist-centric location compared to other neighborhoods.

Things to Do - 7/10

South End offers a variety of local activities and attractions that cater to both residents and visitors. The neighborhood is home to several charming parks, including South End Park and Crump Park, which offer walking trails, playgrounds, and picnic areas. The area also boasts a growing number of locally-owned restaurants, cafes, and shops, each contributing to the neighborhood's unique character and charm. While South End may not have the same abundance of entertainment options as some other areas, it still provides ample opportunities for leisure and relaxation.

Average Home Prices - 8/10

According to Zillow, the median home value in South End as of 2024 is $145,000, with a modest 2.3% appreciation rate over the past year. This relatively affordable price point, combined with the neighborhood's growing popularity and potential for development, makes it an attractive option for investors looking to enter the Little Rock market. As more visitors discover the charms of South End, demand for short-term rentals in the area is likely to increase, providing a solid return on investment for savvy investors.

Proximity to Work-Related Travel - 6/10

While South End is not as centrally located as some other neighborhoods in Little Rock, it still offers reasonable access to major work-related destinations. The University of Arkansas at Little Rock is just a short drive away, as are several major hospitals and medical centers. However, for those frequently traveling to Downtown conventions or sporting events, the commute may be slightly longer than desired.

X-Factor - 8/10

What sets South End apart is its unique blend of historic charm and community spirit. The neighborhood is known for its beautiful early 20th-century homes, many of which have been lovingly restored to their former glory. This architectural character, combined with the area's friendly locals and tight-knit community, creates a welcoming atmosphere that keeps visitors coming back. As more people seek out authentic, off-the-beaten-path experiences, South End is poised to become an increasingly popular destination for Airbnb and short-term rental guests.