Broken Bow Short Term Rental Expenses: A Complete Breakdown for Investors

Broken Bow, Oklahoma has become one of the hottest cabin markets in the country. Nestled in the Ouachita Mountains near Beavers Bend State Park, this area draws visitors looking for secluded getaways, outdoor recreation, and luxury cabin experiences. For investors, Broken Bow offers strong revenue potential, but understanding the full expense picture is essential before you buy.

If you are evaluating a short term rental investment in Broken Bow, this guide breaks down every major expense category, from purchase costs and property taxes to the often overlooked line items that can make or break your cash flow.

Purchase Prices: What Cabins Cost in Broken Bow

Broken Bow cabin prices vary widely depending on location, size, age, and amenities. Here is the general range:

• Entry level (2 bedroom cabin): $300,000 to $375,000
• Mid range (3 to 4 bedroom cabin): $375,000 to $500,000
• Luxury/large (5+ bedrooms or premium locations): $500,000 to $600,000+

The sweet spot for most investors is a 3 to 4 bedroom cabin in the $375,000 to $475,000 range. These properties attract the largest guest pool (families, couples’ groups, small friend groups) and tend to generate the best cash on cash returns relative to purchase price.

New construction vs. existing cabins: Broken Bow has seen a wave of new cabin construction in recent years. New builds typically command higher prices but come with modern amenities, lower maintenance costs in the early years, and stronger listing appeal. Existing cabins may offer lower entry prices but could require updates to compete with newer inventory.

Property Taxes: McCurtain County

Broken Bow is located in McCurtain County, Oklahoma. Property taxes here are low by national standards, with an effective rate of approximately 0.8% of assessed value.

Here is what that looks like:

• $350,000 cabin: Approximately $2,800 per year
• $450,000 cabin: Approximately $3,600 per year
• $550,000 cabin: Approximately $4,400 per year

Oklahoma assesses property at varying percentages depending on classification, but the bottom line for investors is that McCurtain County property taxes are manageable and significantly lower than what you would find in many competing STR markets.

Insurance

Insurance for Broken Bow cabins typically runs between $1,800 and $3,000 per year, depending on the property’s value, size, location, and coverage levels.

Key insurance considerations for Broken Bow cabins:

• Standard property insurance covers the structure, contents, and general liability
• Short term rental endorsement is essential. Many standard homeowner policies exclude commercial rental activity. Make sure your policy explicitly covers short term rental use
• Umbrella policy is recommended for STR investors. Guests can get injured on your property (hot tub accidents, deck falls, trail injuries), and an umbrella policy provides an extra layer of protection
• Contents coverage should reflect the actual replacement cost of furnishings, electronics, kitchen equipment, and outdoor items. A well furnished Broken Bow cabin can have $30,000 to $60,000 in contents

Get quotes from insurers who specialize in short term rental properties. Standard homeowner insurance providers often do not understand the STR space and may underprice or exclude critical coverage.

Cleaning Costs

Turnover cleaning is one of your largest variable expenses. In the Broken Bow market, cleaning costs typically range from $100 to $175 per turnover, depending on:

• Cabin size (a 2 bedroom cabin costs less to clean than a 5 bedroom)
• Level of service (basic clean vs. deep clean with laundry)
• Season (summer and holiday weekends may have premium rates)
• Hot tub and outdoor areas (additional cleaning and chemical checks)

On a busy property that turns over 80 to 120 times per year, cleaning costs add up quickly:

• At $125 per turn x 100 turnovers = $12,500 per year
• At $150 per turn x 100 turnovers = $15,000 per year

Some investors include cleaning fees in the nightly rate while others charge a separate cleaning fee to guests. The approach you choose affects your pricing strategy and your listing’s competitiveness on platforms like Airbnb and Vrbo.

Propane Heating: A Critical Broken Bow Expense

This is one of the expenses that catches first time Broken Bow investors off guard. Most cabins in the area use propane for heating, and Oklahoma winters can get cold. Propane costs vary significantly by season and usage:

• Annual propane cost: $1,500 to $3,500 depending on cabin size and winter severity
• Peak winter months (December through February): Propane usage spikes significantly
• Summer months: Minimal propane usage (primarily for gas fireplaces and cooking if applicable)

Tips for managing propane costs:

• Install a smart thermostat that adjusts temperature based on occupancy. No need to heat an empty cabin to 72 degrees
• Use a propane monitoring service that tracks tank levels and schedules refills automatically
• Negotiate annual propane delivery contracts to lock in better rates
• Consider supplemental electric heating in key areas to reduce propane dependency

Propane is one of those expenses that can quietly eat into your margins if you do not manage it proactively.

Hot Tub Maintenance

A hot tub is essentially mandatory for a successful Broken Bow cabin. Guests expect it, and listings without hot tubs see significantly lower booking rates and nightly prices. But hot tubs come with ongoing costs:

• Monthly chemical and maintenance costs: $100 to $200
• Annual total: $1,200 to $2,400
• Draining and deep cleaning: Every 3 to 4 months, or more frequently during peak season
• Repairs and component replacement: Budget $500 to $1,000 per year for pump repairs, heater issues, cover replacement, and general wear

Hot tub maintenance can be handled by your property manager, a dedicated hot tub service company, or yourself if you are local. Regular maintenance prevents costly breakdowns that lead to guest complaints and refund requests.

Property Management Fees

Most out of state Broken Bow investors use a local property management company. Management fees in the Broken Bow market typically range from 18% to 25% of gross rental revenue.

On a property generating $65,000 per year in gross revenue:

• At 20% management fee: $13,000 per year
• At 25% management fee: $16,250 per year

Property managers in Broken Bow typically handle:

• Guest communication and booking management
• Cleaning coordination
• Maintenance and repair coordination
• Listing optimization and pricing
• Tax collection and remittance
• Restocking supplies

Some investors choose to self manage using platforms like Airbnb and hire individual service providers (cleaners, handymen) directly. This reduces costs but requires significantly more time and attention, especially for out of state owners.

Utilities

Beyond propane, your utility expenses include:

• Electricity: $150 to $300 per month depending on season and cabin size
• Water/sewer: $40 to $80 per month (some areas use well water and septic, eliminating this cost)
• Internet/WiFi: $60 to $100 per month. High speed internet is non negotiable for modern STR guests
• Trash removal: $30 to $50 per month or per pickup

Annual utility estimate: $3,500 to $6,000, not including propane.

Revenue Expectations

Understanding expenses only matters in context of what the property earns. Here are the current Broken Bow revenue benchmarks:

Percentile	Annual Gross Revenue
50th percentile	$42,000
75th percentile	$65,000
90th percentile	$95,000

Properties at the higher percentiles tend to have premium locations (Hochatown or near Beavers Bend), modern amenities, professional photography, and optimized listing strategies.

Full Profit and Loss Example: $450,000 Broken Bow Cabin

Here is a realistic P&L for a mid range Broken Bow cabin performing at the 75th percentile:

Revenue:

• Gross rental income: $65,000

Expenses:

• Property management (22%): $14,300
• Mortgage payment (principal + interest, 20% down, 7% rate): $28,800
• Property taxes: $3,600
• Insurance: $2,400
• Cleaning (110 turns x $135): $14,850
• Propane: $2,500
• Utilities (electric, water, internet, trash): $4,800
• Hot tub maintenance: $1,800
• Repairs and maintenance reserve: $2,000
• Supplies and restocking: $1,500
• Platform fees (3% of gross): $1,950

Total expenses: $78,500

Net cash flow before taxes: Negative $13,500

Wait, it loses money?

On paper, yes. But this is where the tax strategy comes in. When you factor in depreciation (especially accelerated depreciation through cost segregation) and the STR tax loophole, that paper loss generates significant tax savings that offset active income. Many investors in the 37% tax bracket save $30,000 to $50,000 in year one from cost segregation alone, turning a modest cash flow negative property into a major tax win.

Additionally, as you pay down the mortgage and as rates potentially adjust over time, cash flow improves. Many Broken Bow cabins become cash flow positive within 2 to 4 years of purchase.

Ready to Invest in Broken Bow?

Broken Bow remains one of the most compelling cabin markets in the country. Strong demand, reasonable entry prices, and a loyal guest base make it an attractive option for both first time and experienced STR investors. The key is going in with eyes open on expenses so there are no surprises.

Contact The Short Term Shop at 800-898-1498 or visit theshorttermshop.com to talk with an agent who specializes in Broken Bow investments. For STR lending options, reach out to The Mortgage Shop.

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Disclaimer

The Short Term Shop is a real estate brokerage, not a certified public accounting firm, tax advisory firm, or financial planning service. Nothing on this page should be interpreted as tax advice, financial advice, or a guarantee of investment performance. Always consult your CPA, tax attorney, and financial advisor before making any investment or tax decisions.

All income and revenue figures referenced in this article are sourced from third party data providers including AirDNA and PriceLabs.co. These figures represent market averages and percentile ranges based on historical performance data and do not guarantee future results. Actual short term rental income varies significantly based on property quality, location, management quality, pricing strategy, seasonality, and market conditions. Your results may differ.