How to Start an Airbnb Business in Oklahoma

Oklahoma flies under the radar for most Airbnb investors, which is exactly why the margins are so good. The state welcomed over 36 million domestic visitors in 2023, generating $11.2 billion in tourism spending. That visitor volume rivals more “obvious” STR states — but with a fraction of the host competition and dramatically lower property prices.

Broken Bow has become one of the hottest cabin markets in the central United States. Oklahoma City’s convention scene and Thunder NBA games drive consistent urban demand. Tulsa’s remote worker incentive program (Tulsa Remote) has brought thousands of new residents who initially need short-term housing. And Route 66 nostalgia tourism continues to draw international visitors through the state’s heartland.

Whether you’re looking at luxury cabin builds in the Kiamichi Mountains or rental arbitrage in OKC’s Bricktown district, Oklahoma offers multiple pathways to profitable STR ownership. Here’s the full breakdown.

Why Oklahoma Is a Top Market for Short-Term Rentals

Oklahoma’s STR appeal rests on a combination of affordability, growing tourism, and thin competition:

• Rock-bottom property prices. The median home price in Oklahoma is approximately $195,000 — nearly 50% below the national average. Even in high-demand areas like Broken Bow, cabin lots start around $30,000-$50,000, and turnkey cabins range $250,000-$500,000. Lower entry costs mean faster ROI timelines.
• Broken Bow cabin boom. McCurtain County’s Broken Bow Lake area has seen explosive STR growth, with luxury cabins grossing $60,000-$120,000+ annually. The area draws visitors from Dallas-Fort Worth (a 3-hour drive), Tulsa, and OKC for year-round lake and mountain getaways.
• Major event infrastructure. Oklahoma City hosts the OKC Thunder (NBA), Big 12 tournaments, the National Finals Rodeo (recently relocated events), Oklahoma State Fair, and a robust convention calendar. Tulsa hosts Mayfest, Oktoberfest, the BOK Center concert series, and the Gathering Place draws 3 million+ visitors annually.
• Route 66 heritage tourism. Oklahoma has more driveable miles of Route 66 than any other state. International tourists (especially European and Japanese travelers) specifically target Route 66 attractions, creating demand in smaller towns like Arcadia, Catoosa, and Clinton.
• No statewide STR ban or cap. Oklahoma has not passed restrictive STR legislation. Most cities have adopted moderate, business-friendly approaches to short-term rental regulation.

Oklahoma Short-Term Rental Laws and Regulations

Oklahoma’s regulatory framework for short-term rentals is moderate. The state passed SB 682 in 2019, which limits municipalities’ ability to outright ban STRs, establishing a floor of property rights for hosts. That said, cities retain the authority to impose registration requirements, safety standards, and tax collection obligations.

State-Level Requirements

• Business registration. Oklahoma requires a sales tax permit from the Oklahoma Tax Commission for any business collecting sales tax, which includes STR operators. Register at the Oklahoma Tax Commission website.
• SB 682 property rights protection. Oklahoma law prohibits municipalities from banning short-term rentals outright in residential areas. Cities can regulate safety, noise, parking, and tax compliance but cannot eliminate STRs through zoning alone. This gives operators more certainty than in states where cities can ban STRs at will.
• Fire and safety compliance. Properties must meet Oklahoma’s fire code requirements, including smoke detectors in every bedroom and common area, and carbon monoxide detectors near fuel-burning appliances.

Key City Regulations

Oklahoma City: OKC requires short-term rental operators to obtain a Short-Term Rental Permit from the city’s Development Services department. The permit costs approximately $150 annually and requires compliance with building safety standards, occupancy limits (2 per bedroom plus 2 additional), and a valid sales tax permit. OKC distinguishes between owner-occupied and non-owner-occupied STRs but allows both in most residential zones. Hosts must maintain a local contact available within 60 minutes.

Tulsa: Tulsa’s STR regulations require a Transient Guest Lodging license. The city has been generally welcoming to short-term rentals, particularly given the Tulsa Remote program’s housing needs. Tulsa requires annual registration ($75), compliance with the city’s building and fire codes, and collection of all applicable taxes. Non-owner-occupied STRs must meet additional parking and notification requirements in certain residential zones.

Broken Bow / McCurtain County: McCurtain County has embraced STR growth as an economic driver. The county requires business registration and compliance with county building codes, but regulations are notably lighter than in metro areas. Septic system capacity is the primary regulatory constraint for cabins — the county health department must approve occupancy limits based on septic capacity. Many cabin builders overlook this, leading to compliance issues after construction. Check septic ratings before purchasing or building.

Norman: Home to the University of Oklahoma, Norman generates strong STR demand during football season, move-in/move-out weekends, and OU events. The city requires STR registration and compliance with residential zoning standards. Norman’s regulations are moderate — focused on parking, noise, and safety rather than restricting supply.

Recent Regulatory Changes (2025-2026)

Oklahoma City updated its STR permit process in 2025, streamlining online renewals and adding an expedited review process for operators with clean compliance records. Tulsa has discussed but not yet implemented density caps in specific residential neighborhoods — a proposal that has faced pushback from the hospitality industry and property rights advocates.

At the state level, the Oklahoma Legislature continues to lean pro-property-rights. No restrictive STR legislation advanced in the 2025 session. The general trend favors operators, though individual municipalities may tighten rules incrementally.

Tax Obligations for Oklahoma Airbnb Hosts

Oklahoma’s tax structure involves multiple layers at the state, county, and city level. Understanding all of them is critical to accurate pricing and compliance.

State sales tax (4.5%): Oklahoma imposes a 4.5% state sales tax on short-term rental accommodations. This applies to all stays of less than 30 consecutive days.

City and county sales tax (2-6% additional): Oklahoma municipalities and counties levy their own sales taxes on top of the state rate. Combined sales tax rates vary significantly by location. Oklahoma City’s total combined rate is approximately 8.625%. Tulsa’s combined rate is around 8.517%. Broken Bow’s combined rate is approximately 9%. These combined rates mean guests pay 8.5-9.5% in total sales tax in most STR markets.

Hotel/motel (lodging) tax: Many Oklahoma cities impose a separate hotel/motel tax on short-term accommodations. Oklahoma City charges an additional 5.5% hotel tax. Tulsa charges 5.5%. This lodging tax is separate from and in addition to the sales tax. When you add sales tax + lodging tax, guests in OKC pay approximately 14.1% total in taxes.

State income tax: Oklahoma has a graduated state income tax with a top rate of 4.75% on income over $7,200 (single filers). Net rental profits are subject to state income tax.

Platform collection: Airbnb collects and remits state and local occupancy taxes in Oklahoma for stays booked on their platform. VRBO’s tax collection varies by municipality. Always verify which taxes your platform handles and which you must remit directly.

Best Cities for Airbnb in Oklahoma

Broken Bow / Beavers Bend

Broken Bow has earned its reputation as Oklahoma’s premier STR market. Luxury cabins with hot tubs, game rooms, and mountain views consistently outperform expectations. The area draws heavily from the Dallas-Fort Worth metroplex (3.5 hours south), which provides a massive feeder market of 7.5 million people. ADRs for a well-appointed two-bedroom cabin range $200-$350/night, with premium properties (4+ bedrooms, hot tub, views) commanding $400-$700/night. Annual occupancy runs 55-70% for established properties. A strong two-bedroom cabin can gross $50,000-$70,000 annually, while premium four-plus-bedroom properties regularly break $100,000. The market is getting more competitive, so standout amenities and professional photography matter more each year.

Oklahoma City

OKC’s STR market benefits from diverse demand drivers: Thunder games (41 home games/season), conventions at the Cox Convention Center, Paycom Center events, the Oklahoma State Fair (10 days, 1 million+ attendees), and a growing food and arts scene. The Bricktown entertainment district and Midtown neighborhoods generate the strongest ADRs. A two-bedroom in a desirable OKC neighborhood averages $110-$165/night with 60-68% annual occupancy. Gross revenue for a solid urban unit: $26,000-$38,000. Arbitrage is viable in OKC — two-bedroom apartment leases in Bricktown and Midtown run $1,300-$1,800/month, and the math works if you maintain 60%+ occupancy at competitive rates.

Tulsa

Tulsa punches above its weight in STR demand. The Tulsa Remote program has brought over 3,000 remote workers to the city since 2018, many of whom use short-term rentals for their first 1-3 months. The Gathering Place (a 66-acre riverfront park) draws 3 million+ visitors annually. The BOK Center, Philbrook Museum, and Tulsa’s art deco downtown add cultural appeal. ADRs average $100-$150 for a two-bedroom. Occupancy runs 58-66%. Annual gross: $23,000-$35,000. The Pearl District and Cherry Street neighborhoods command the highest nightly rates. Tulsa’s lower property prices ($180,000-$250,000 for a quality two-bedroom in a desirable area) make the per-dollar return attractive.

Grand Lake / Grove

Grand Lake O’ the Cherokees is Oklahoma’s largest lake destination, drawing boaters, anglers, and families from Tulsa, Joplin, and northwest Arkansas. Lakefront and lake-adjacent properties perform strongly from May through September. ADRs range $150-$300 for lake-access properties. The challenge is seasonality — winter occupancy drops to 20-30% unless you’re near the town of Grove, which has some year-round demand. Annual gross for a well-positioned two-bedroom: $25,000-$40,000. Properties with boat docks and lake views command significant premiums.

Medicine Park / Wichita Mountains

This small resort town near the Wichita Mountains Wildlife Refuge offers a niche but growing STR market. Weekend getaway demand from Lawton and OKC provides steady bookings, and the area’s unique cobblestone architecture and arts community attract a loyal visitor base. ADRs are moderate ($100-$175/night for a cabin or cottage). Occupancy runs 45-55% annually. Gross revenue: $18,000-$28,000. It’s a smaller market, but acquisition costs are very low and competition is minimal.

How Much Do Airbnbs Make in Oklahoma?

Oklahoma’s STR earnings vary enormously based on market segment. The state essentially has two tiers: high-performing destination properties (Broken Bow cabins, lakefront homes) and solid-margin urban units (OKC, Tulsa).

At the top end, Broken Bow cabins with four or more bedrooms, hot tubs, game rooms, and professional staging regularly gross $100,000-$150,000 per year. These are purpose-built vacation properties targeting the DFW getaway market, and the best operators treat them as premium hospitality businesses. A two-bedroom Broken Bow cabin with a hot tub and good views grosses $50,000-$70,000 on average.

Urban properties in OKC and Tulsa produce more modest but consistent returns. A two-bedroom in OKC’s Midtown neighborhood grossing $32,000/year against a $245,000 purchase price delivers a respectable cap rate, especially factoring in Oklahoma’s low property taxes (effective rate around 0.87%).

For arbitrage operators, Oklahoma’s math is compelling. A two-bedroom apartment in Tulsa’s Pearl District leased at $1,200/month and listed at $120/night with 62% occupancy generates roughly $27,200 in gross revenue. After the $14,400 annual lease, cleaning, supplies, platform fees, and taxes, net profit per unit runs $4,000-$7,000. Scale that to five units and you’re looking at a $20,000-$35,000 annual side income — or a full-time business if you push to ten units.

Lake properties (Grand Lake, Lake Eufaula, Lake Texoma) fall between the cabin and urban segments. A lake-access two-bedroom typically grosses $25,000-$40,000 annually, with strong summer months offsetting slower winters.

How to Start Your Oklahoma Airbnb Business

Step 1: Define your market and guest profile. Oklahoma’s STR segments serve very different guests. Broken Bow attracts families and couples from DFW wanting a weekend escape. OKC serves event attendees and business travelers. Tulsa gets remote workers and cultural tourists. Grand Lake draws boaters and anglers. Your furnishing, pricing, and marketing all depend on which guest you’re targeting.

Step 2: Check local regulations and obtain permits. In OKC, apply for a Short-Term Rental Permit through Development Services. In Tulsa, get your Transient Guest Lodging license. In Broken Bow, register with McCurtain County and verify your septic capacity. Smaller cities may have minimal requirements — call the city clerk to confirm.

Step 3: Register for tax collection. Obtain a sales tax permit from the Oklahoma Tax Commission. If your city levies a separate hotel/motel tax, register for that as well. Set up your accounting system to track state sales tax, city sales tax, county sales tax, and lodging tax separately — Oklahoma’s layered tax structure requires precise record-keeping.

Step 4: Form your LLC. File your LLC with the Oklahoma Secretary of State ($100 filing fee). Oklahoma’s formation process is straightforward, typically completed within 3-5 business days online. An LLC protects your personal assets from liability claims related to your rental business.

Step 5: Secure and prepare your property. For arbitrage, negotiate leases that explicitly permit subletting. For purchases, focus on properties that match your target market’s expectations. In Broken Bow, that means hot tubs, fire pits, and views. In OKC, that means walkability to Bricktown or Midtown attractions. In lake markets, proximity to water access is the primary value driver.

Step 6: Invest in standout photography and listing copy. Oklahoma’s growing STR competition — especially in Broken Bow — means your listing needs to stand out visually. Professional photography costs $200-$400 and can increase bookings by 20-40% based on Airbnb’s own data. Write listing descriptions that highlight specific experiences, not generic amenities.

Step 7: Implement dynamic pricing. Oklahoma’s event-driven markets (OKC Thunder games, OU football, state fair) create predictable demand spikes. Tools like PriceLabs or Wheelhouse automate rate adjustments around these events. Manual pricing leaves significant revenue on the table — I’ve seen hosts miss $200+ per night premiums during OU-Texas weekend because they had flat rates set.

Step 8: Build your co-hosting network. If you’re managing properties remotely (common for Broken Bow investors based in DFW), you’ll need reliable local cleaners, handymen, and emergency contacts. Build these relationships before your first booking.

Oklahoma STR Insurance and Liability

Oklahoma’s specific climate and geography create insurance considerations that differ from coastal or mountain states.

Severe weather: Oklahoma sits squarely in Tornado Alley. Your STR insurance must include comprehensive wind and hail coverage. Standard policies may have separate wind/hail deductibles (often 1-2% of the insured value). Review your policy’s severe weather provisions carefully. Some areas of western Oklahoma also face wildfire risk.

Flood risk: Properties near lakes, rivers, or in low-lying areas may require separate flood insurance through the NFIP. Broken Bow properties near the Mountain Fork River and Grand Lake properties along the shoreline should carry flood coverage regardless of whether they’re in a designated flood zone — flash flooding occurs in these areas.

Liability specifics: Hot tubs and fire pits (standard amenities in Broken Bow) increase liability exposure. Ensure your policy specifically covers these amenities. Some insurers charge additional premiums for properties with hot tubs ($200-$400/year extra). Consider requiring guests to sign liability waivers for high-risk amenities.

Dedicated STR insurance in Oklahoma typically runs $1,200-$2,500 annually depending on property value and amenities. Companies like Proper, Safely, and CBIZ all write policies in Oklahoma. For comprehensive coverage guidance, see our resource on Airbnb insurance coverage.

Why 10XBNB Gives You the Edge in Oklahoma

Oklahoma’s STR market is transitioning from early-stage opportunity to structured competition. The days of throwing a listing on Airbnb with phone photos and a generic description and still booking every weekend are ending — particularly in Broken Bow, where new cabins come online every month.

10XBNB’s system teaches you how to compete in maturing markets. Our students learn sophisticated pricing strategies that capture event premiums in OKC and Tulsa, listing optimization techniques that increase visibility in crowded markets, and scaling frameworks that work whether you’re building a cabin portfolio in McCurtain County or stacking arbitrage units in Tulsa’s Pearl District.

The hosts who’ll dominate Oklahoma’s next phase aren’t amateurs — they’re operators who treat STRs as a real business. That’s the 10XBNB approach. Explore where Oklahoma ranks among the best states for Airbnb and see why our students consistently outperform.

Frequently Asked Questions