Sherwood, AR Airbnb Market Data, Statistics, and Occupancy Rates

Sherwood Short-Term Rental Market Overview

Sherwood, AR is a compact short-term rental market with just 29 active Airbnb listings and an average annual revenue of $16,388 per property. Its occupancy rate of 37% runs well above the Arkansas state average of 26%, signaling healthy local demand relative to supply. With average home values around $357,179 and a balanced revenue-to-price ratio, the market presents an accessible entry point for investors seeking steady — if modest — cash flow near the greater Little Rock metro area.

Key Market Statistics

According to Rabbu market data, the Sherwood short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Sherwood

Investors are drawn to Sherwood for its above-average occupancy relative to the state, affordable home prices, and proximity to Little Rock's economic activity.

Expert Market Assessment

"Sherwood presents a moderate investment opportunity anchored by solid occupancy fundamentals and a manageable competitive landscape. Revenue peaks in July at $1,703 per month, while the softest months — January and February — still deliver around $1,004 to $1,044, creating a seasonal spread that's relatively narrow for a smaller market. The ROI score of 57 out of 100, rated as an "Attractive Opportunity," reflects a market where demand outpaces the state norm but growth momentum is limited. Investors who focus on three-bedroom properties and prioritize amenities that match local guest expectations stand to capture the strongest returns."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Sherwood

Average revenue by month in Sherwood

Revenue in Sherwood peaks in July at $1,703 and bottoms out in February at $1,004, creating a seasonal spread of about $700. The relatively gentle fluctuation suggests the market sustains demand across most of the year, with a noticeable summer bump and a modest winter dip.

Active Airbnb listings by property size in Sherwood

Supply in Sherwood is nearly evenly split, with 9 one-bedroom, 9 two-bedroom, and 10 three-bedroom listings making up the entire 29-unit market. This balanced distribution means no single property size dominates, though the small total count leaves room for new entrants in any category.

Average daily rate (ADR) by property size in Sherwood

ADR scales predictably from $89 for one-bedroom units to $150 for three-bedrooms, a 69% premium that reflects the added space and capacity. The jump from one to two bedrooms ($89 to $123) is particularly sharp, suggesting two-bedroom properties offer a strong rate upgrade at a moderate cost increase.

Average RevPAN by property size in Sherwood

Three-bedroom properties deliver a RevPAN of $66, more than double the $27 earned by one-bedroom units and well ahead of the $39 for two-bedrooms. This gap is driven by both higher ADR and significantly better occupancy, making larger units the clear revenue-per-night leaders in Sherwood.

Average occupancy rates by property size in Sherwood

Three-bedroom listings stand out with a 44% occupancy rate, while one- and two-bedroom properties cluster near 31–32%. For investors prioritizing cash-flow consistency, the three-bedroom segment offers the most reliable booking volume in this market.

Average monthly revenue by property size in Sherwood

Monthly revenue ranges from $1,006 for one-bedroom units to $1,718 for three-bedrooms — a 71% increase that underscores the earning advantage of larger properties. Two-bedroom listings split the difference at $1,371, offering a middle-ground option for investors with smaller budgets.

Average annual revenue by property size in Sherwood

Three-bedroom properties lead annual revenue at $20,623, followed by two-bedrooms at $16,460 and one-bedrooms at $12,083. Given that three-bedroom units earn roughly 70% more than one-bedrooms annually, they represent the strongest return potential for investors willing to take on a slightly larger property.

Most common amenities for Airbnb listings in Sherwood

Every listing in Sherwood offers parking (100%), and kitchens (97%), backyards (86%), and laundry (83–86%) are near-universal — signaling that guests expect a full home-like experience. Pet-friendliness (62%) and dedicated workspaces (62%) are also common, suggesting demand from both remote workers and traveling families.

Understanding Sherwood's ROI Score: 57/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Sherwood's ROI score of 57 out of 100 places it in the "Attractive Opportunity" band, reflecting a market where occupancy stability is above average and the revenue-to-price ratio and supply/demand balance are both in line with typical STR markets. The below-average market growth trend is the primary drag on the score, meaning that while current returns are reasonable, rapid appreciation in STR income isn't the most likely scenario. Investors should pair these metrics with on-the-ground regulatory research and a clear property management plan to make the most of this market's strengths.

Short-Term Rental Regulations in Sherwood

Understanding local STR regulations is essential before investing in Sherwood. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Sherwood, Arkansas may be required to obtain a business license or STR-specific permit before listing a property. Investors should verify current permit and registration requirements directly with the City of Sherwood and Pulaski County offices, as local rules can change.

Key Restrictions

Common restrictions in Arkansas municipalities can include occupancy limits based on bedroom count, minimum stay requirements, noise ordinances, and parking mandates for guests. Some properties may also be subject to HOA covenants that limit or prohibit short-term rentals, so reviewing deed restrictions before purchase is essential.

Tax Obligations

STR hosts in Arkansas are generally subject to state and local sales tax as well as tourism or lodging taxes on short-term stays. Many booking platforms collect and remit a portion of these taxes automatically, but operators should confirm their specific obligations with the Arkansas Department of Finance and Administration.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Sherwood can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Sherwood's STR market is expected to see continued occupancy strength, likely holding in the 35–40% range given its above-average demand profile. Revenue growth may be tempered by a below-average market growth trend, so investors should anticipate stable rather than rapidly accelerating returns. ADR could see modest gains of 2–4% as the small supply base absorbs new demand, but the 171% year-over-year increase in active listings signals that competition is rising and could put pressure on pricing if it continues at that pace."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Sherwood, AR

What is the average Airbnb occupancy rate in Sherwood?

The average Airbnb occupancy rate in Sherwood is currently 37%, which is notably higher than the Arkansas state average of 26%. Occupancy varies by property size — three-bedroom listings lead at 44%, while one- and two-bedroom units average 31% and 32%, respectively. This above-average occupancy suggests consistent demand in the market.

How much do Airbnb hosts make in Sherwood?

On average, Airbnb hosts in Sherwood earn approximately $1,365 per month or $16,388 per year based on the trailing 12 months of booking performance. Earnings vary significantly by property size: one-bedroom listings average around $12,083 annually, two-bedrooms bring in about $16,460, and three-bedroom properties top the market at roughly $20,623 per year. Individual results depend on pricing strategy, property quality, and how well the listing is managed.

Is Sherwood a good market for Airbnb investment?

Sherwood carries an ROI score of 57 out of 100, which Rabbu rates as an "Attractive Opportunity." The market benefits from above-average occupancy stability and a balanced supply-demand dynamic, though the market growth trend is currently below average. With average home values around $357,179 and annual revenues near $16,388, the revenue-to-price ratio is in the average range. Investors focused on three-bedroom properties can potentially capture stronger returns given their higher occupancy and revenue figures.

What is the average daily rate (ADR) for Airbnb in Sherwood?

The average daily rate for Airbnb listings in Sherwood is $126, which is below the Arkansas state average of $192. ADR scales with property size: one-bedroom listings average $89 per night, two-bedrooms come in at $123, and three-bedroom properties command $150 per night. The lower ADR relative to the state average reflects Sherwood's positioning as a more affordable, suburban market.

Are short-term rentals legal in Sherwood?

Short-term rentals are generally permitted in Sherwood, AR, though hosts may need to obtain appropriate business licenses or permits from the city. Local regulations can include requirements around occupancy limits, parking, and noise. It's important to check with the City of Sherwood and review any HOA or neighborhood covenants that may apply to your specific property before listing.

When is peak season for Airbnb in Sherwood?

Peak season in Sherwood runs through the summer months, with July delivering the highest average monthly revenue at $1,703. June ($1,533) and October ($1,529) also perform well. The softest months are January and February, when average revenue dips to around $1,044 and $1,004, respectively. The seasonal spread is relatively moderate, meaning hosts can expect some cash flow even during off-peak periods.

How many Airbnbs are there in Sherwood?

Sherwood currently has 29 active Airbnb listings. The supply is evenly distributed across property sizes, with 9 one-bedroom units, 9 two-bedroom units, and 10 three-bedroom units. Notably, the number of active listings has grown 171% year-over-year, indicating rising investor interest in this market.

How is Airbnb revenue calculated in Sherwood?

The annual and monthly revenue figures for Sherwood are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remaining data up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for Sherwood and surrounding areas
• Occupancy rates, average daily rates, and RevPAN trends by property size
• Monthly and annual revenue metrics based on trailing 12-month booking performance
• Amenity prevalence data across active listings in the market
• Home value benchmarks sourced from Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month performance and market conditions as of April 2026; actual results may differ as conditions evolve. Local regulations, HOA rules, and tax requirements can change — investors should verify current rules before purchasing or listing a property.