Best Neighborhoods for STR Investment

Top Picks

Neighborhoods Ranked for STR Income

#01

Lake Hamilton Waterfront

Avg $250/night • 70% occupancy • Best gross revenue

Highest nightly rates in the market. Dock access, hot tubs, and lake views command premium pricing. Entry point: $300K+. Best for: luxury STR, family vacation homes.

#02

Downtown / Central Avenue

Avg $140/night • 75% occupancy • Best occupancy

Highest occupancy due to year-round tourism. Walking distance to Bathhouse Row. Entry point: $120K+. Best for: studios, 1-2 BR, walkable getaways.

#03

Jessieville / Mountain

Avg $145/night • 60% occupancy • Best margins

Lower acquisition costs, strong cabin demand. Mountain views and privacy. Entry point: $120K+. Best for: cabins, romantic getaways, off-grid experiences.

#04

Hot Springs Village

Avg $160/night • 55% occupancy • Seasonal

Golf and lake lifestyle. Strong seasonal demand (snowbirds, golf trips). Check POA rental restrictions. Entry point: $100K+. Best for: golf groups, extended stays.

#05

Fountain Lake Area

Avg $125/night • 65% occupancy • Family market

Family-friendly area near good schools and lake access. Growing demand from families and reunions. Entry point: $150K+. Best for: family groups, budget-friendly stays.

#06

Lake Catherine

Avg $175/night • 55% occupancy • Emerging

Quieter alternative to Lake Hamilton. Clear water and scenic bluffs. Less developed = less competition. Entry point: $200K+. Best for: couples, fishing, nature retreats.

#07

Oaklawn District

Avg $130/night • 50% occupancy • Seasonal spike

Explosive demand during racing season (Jan-May). Rates can spike 2-3x. Off-season is quiet. Entry point: $80K+. Best for: seasonal investors, budget properties.

#08

Park Avenue / Historic

Avg $165/night • 65% occupancy • Premium

Historic charm near the national park. Victorian homes and walkability. Entry point: $150K+. Best for: couples, history buffs, spa seekers.

FAQ

Common Questions

Which neighborhood has the highest ROI?

Jessieville/mountain cabins often have the best ROI due to low acquisition costs and strong nightly rates. Downtown has the best occupancy. Lake Hamilton has the highest gross revenue.

Where should a first-time investor buy?

Downtown (1-2 BR condo, $120K-$180K) or Jessieville (cabin, $120K-$200K). Both have strong demand, manageable price points, and proven STR performance.

Are any areas restricted for STRs?

Some HSV areas restrict short-term rentals. Verify with the POA. Within Hot Springs city limits, you need an STR permit and must be in an eligible zoning district.

Should I buy near Oaklawn?

Only if you're comfortable with extreme seasonality. Racing season is gold (rates spike 2-3x) but summer and fall are very quiet. Best as a budget-entry play with seasonal income.