Find investment properties and Airbnb opportunities in Hot Springs, Arkansas. Duplexes, vacation rentals, and income properties with strong cap rates.
Our picks for the most notable opportunities, areas, and properties in this market.
Waterfront homes averaging $150–$350/night on Airbnb. Summer occupancy rates above 80%. Top properties gross $40K–$60K/year in rental income.
Walk-to-everything location near Bathhouse Row. Studios and 1-beds gross $20K–$35K/year. High occupancy during racing season, festivals, and weekends.
Duplexes near Central Ave with strong rental demand. Each unit rents $700–$1,100/month. Cap rates of 8–12% are common in this area.
FHA-eligible fourplexes for house-hacking. Live in one unit, rent three. Net positive cash flow from day one in many cases.
Mountain cabins averaging $120–$200/night. Lower acquisition cost than lakefront, with strong weekend demand from Little Rock and Dallas visitors.
HSV offers both long-term and vacation rental opportunities. Golf community homes rent $1,200–$2,000/month long-term. Some areas allow STRs.
Properties near Oaklawn Racing Casino Resort. Extreme seasonal demand during racing season (January–May). Some owners make their annual income in 5 months.
Properties near Henderson State University and National Park College. Consistent demand, 9-month lease cycles, and affordable acquisition.
Small retail strip centers on Highway 7, Albert Pike, and Central Avenue. NNN leases with 7–10% cap rates. Lower management burden than residential.
MHPs in Garland County with lot rents of $200–$350/month. Cap rates of 10–15%. Recession-resistant asset class with growing institutional demand.
Essential tips for navigating this market in Hot Springs.
Hot Springs requires a short-term rental permit for stays under 30 days. Check zoning — not all areas allow STRs. HSV has its own rental restrictions. Verify before buying.
Good cap rates in Hot Springs range from 8–15% depending on property type. Calculate: Net Operating Income / Purchase Price. Anything above 8% is strong for this market.
Standard homeowner's insurance doesn't cover rental properties. You need landlord insurance (long-term) or commercial STR insurance (Airbnb). Budget $1,500–$3,500/year depending on property type.
If you're an out-of-state investor, budget 10–25% of gross rent for property management. Several local companies specialize in STR management with full-service options.
Hot Springs has strong seasonality. Peak STR months: March–October. Racing season (Jan–May) drives downtown demand. Lake properties peak in summer. Plan your cash flow accordingly.
If you're selling investment property elsewhere, a 1031 exchange into Hot Springs real estate defers capital gains tax. Hot Springs' lower prices mean your exchange goes further.
Waterfront homes: $40K–$60K/year. Downtown: $20K–$35K/year. Cabins: $18K–$30K/year. These are gross figures before expenses. Net income typically runs 60–70% of gross.
Yes. Hot Springs requires an STR permit. The process is straightforward but you must verify your property is in an eligible zone. HSV has separate rental rules through the POA.
8–15% is typical depending on property type. Duplexes and MHPs tend toward the higher end. Luxury STRs have lower cap rates but higher gross revenue.
Yes. Several local property management companies specialize in STR and long-term management. Budget 10–25% of gross rent for full-service management.
Excellent. Low acquisition costs, strong tourism (2M+ visitors), diverse rental demand (vacation, long-term, student), and cap rates well above national averages make it one of the best small-market investment destinations.
Tell us what you're looking for and we'll connect you with the right local expert.