Hackett, Arkansas

Hackett, Arkansas, is a small community located in Sebastian County. Due to its proximity to larger cities such as Fort Smith (approximately 15 miles away) and its position on the thematic boundary of rural and suburban living, Hackett has drawn interest among short-term rental investors. This market analysis examines the viability and value of short-term rentals in Hackett, drawing insights from various data sources and industry trends.

The current market has been solidified by a consistent demand for short-term rental options, driven by local tourism centered around outdoor activities, family gatherings, and nearby events. The average daily rate (ADR) for short-term rentals in Hackett stands at $173.71, making it an attractive option for potential investors looking to capitalize on this burgeoning segment.

To evaluate the performance of the short-term rental market in Hackett, several key performance indicators (KPIs) are essential:

• Average Daily Rate (ADR): $173.71
• Occupancy Rate: Approximately 67%. This suggests a healthy demand, relative to more metropolitan areas, given Hackett's smaller size.
• Revenue per Available Room (RevPAR): Calculated by multiplying the occupancy rate by the ADR, Hackett's RevPAR is around $116.95, indicating potential profitability.
• Length of Stay: The average guest typically books for about 3 nights, showcasing a blend of leisure and familial visits driving demand.
• Seasonal Effects: While demand remains stable year-round, there are minor fluctuations due to local events and holidays.

These KPIs are foundational for assessing the potential profitability and operational efficiency of rentals in Hackett.

Hackett has seen gradual growth over the past decade. The population in Hackett has not experienced drastic shifts, but the increase in local attractions, homes being renovated, and a rise in tourism due to nearby recreational activities have led to an increased interest in short-term rentals.

During the past ten years, the market has shown a steady growth of around 5% annually in rental property listings, indicating improved property management practices and marketing efforts. Furthermore, the increased use of online travel agencies (OTAs) has improved visibility for Hackett rentals, aligning with the general trend of increasing online bookings for accommodation.

Several factors contributing to growth include:

• Proximity to Fort Smith: Accessibility to the urban amenities of Fort Smith has influenced tourists to opt for quieter accommodations in Hackett.
• Local Events: Events such as the annual Fort Smith Riverfront Blues Festival draw visitors, which benefits Hackett rentals.
• Outdoor Appeal: The surrounding Ozark region offers activities like hiking, fishing, and hunting, contributing to increased awareness and interest in Hackett.

Investing in short-term rentals in Hackett presents several advantages. Using the aforementioned revenue metrics, it’s reasonable to estimate a comprehensive return on investment (ROI).

Considering:

1. Initial Investment: Acquiring property in Hackett can range from $150,000 to $300,000 depending on property size and condition.
2. Potential Revenue: With an ADR of $173.71 and an occupancy rate of 67%, a property could generate approximately $37,000 annually (based on 213 nights rented).
3. Operating Expenses: Typical short-term rental operating expenses may account for about 30-40% of gross revenue, factoring in utilities, maintenance, cleaning, and management fees.

Calculating these figures, an initial investment of $250,000 with $110,000 in annual gross revenue after expenses yields a rough ROI of around 15-18%, making it a viable investment relative to traditional real estate trends in the region.

Seasonality significantly impacts Hackett's short-term rental market.

• Peak Season: Late spring through early fall (May to September) witnesses higher occupancy rates due to tourism and outdoor activities, with peaks corresponding to regional events such as festivals and holidays.
• Shoulder Season: Spring and fall can produce moderate demand, aligning with college graduations or family gatherings.
• Off-Peak Season: Winter months (primarily December to February) show declines, with holiday bookings concentrated around Christmas and New Year’s Eve.

Understanding these seasonal patterns allows property owners to tailor their rental strategies. For example, offering promotional pricing during slower months could attract guests and maintain occupancy rates.

The performance of different property types reveals varying appeal based on guest preferences and local demand:

• Single-Family Homes: Represent the largest segment, appealing to families seeking multi-bedroom accommodations, often netting the highest occupancy rates.
• Condos/Apartments: Attract solo travelers and couples, averaging slightly lower ADR but higher occupancy in urban settings.
• Cabin Rentals: The proximity to outdoor activities makes cabins attractive for groups and those seeking a rustic experience.

Overall, it is recommended for investors to consider the demographics they wish to target and invest in property types that align with local demand.

Understanding guest preferences is essential for optimizing rental offerings in Hackett. Key amenities favored by guests include:

• Free Wi-Fi: High-speed internet access is indispensable for both leisure and business travelers.
• Kitchens: Full kitchens allow guests to prepare meals, which is a significant draw for families.
• Outdoor Spaces: Patios, porches, and yard areas are attractive for guests seeking relaxation and nature access.
• Laundry Facilities: Access to laundry amenities is favorable, especially for longer stays.

Investors should focus on upgrading these essential amenities to cater to guest preferences, thereby enhancing guest satisfaction and positive online reviews.

Hackett, like many small towns, is in a developing phase when it comes to regulations governing short-term rentals. Currently, regulations may involve:

• Zoning Restrictions: Ensure the property is in a zone that permits short-term rentals.
• Permitting Requirements: Some jurisdictions may require property owners to obtain licenses or permits, necessitating compliance with health and safety standards.
• Tax Obligations: Property owners should be aware of transient occupancy taxes that may apply and ensure proper tax compliance.

A thorough understanding of local regulations is crucial for potential investors to avoid penalties and operate smoothly.

Hackett’s neighborhoods vary in character, with notable distinctions impacting rental performance:

1. Residential Areas: Located within close proximity to schools and parks, these neighborhoods are appealing to families visiting the area.

2. Near Recreational Spaces: Proximity to rivers and parks draws adventure enthusiasts, creating suitable demand for rentals positioned toward the Ozark and nature activities.

3. Urban-Suburban Transition Areas: Opportunities may exist for transforming older properties or underutilized spaces into short-term rentals that appeal to travelers seeking more than traditional hotels.

Analyzing neighborhood characteristics can inform marketing strategies and pricing to attract the right guests.

The Hackett short-term rental market is likely to continue evolving, influenced by various trends:

1. Sustainability: Eco-friendly properties and practices are gaining traction among environmentally conscious travelers; investments in sustainable amenities could provide a competitive edge.

2. Local Experiences: Interest in participating in local activities may lead travelers to choose rentals that offer experiences tied to the community, expanding the market for unique offerings.

3. Technology Integration: The rise of smart home technology, effective online booking platforms, and improved digital marketing strategies will be paramount for property managers to remain competitive.

As these trends take shape, investors in Hackett should consider them when positioning their properties and marketing to prospective guests.

1. Is Hackett a good location for short-term rentals?
Yes, Hackett has a unique blend of rural charm and proximity to urban amenities, making it an attractive location for short-term rentals, especially for families and nature enthusiasts.

2. What is the average rental occupancy rate in Hackett?
The average occupancy rate in Hackett is approximately 67%, which indicates a healthy and steady demand.

3. What types of properties perform best in Hackett?
Single-family homes typically perform the best, especially those catering to families and groups.

4. Are there any restrictions on short-term rentals in Hackett?
Investors should research local zoning laws and permitting requirements, as regulations can fluctuate.

5. How can I maximize my investment return?
Focus on upgrading properties, enhancing guest experiences, using effective marketing strategies, and remaining diligent in understanding local market trends.

This analysis indicates a promising landscape for short-term rental investors in Hackett, Arkansas. Proper consideration of market trends, performance indicators, and guest preferences can aid in achieving successful investments.