Is Bunker Hill, Kansas Good for Airbnb Investment?

To start an Airbnb in Bunker Hill, Kansas, begin by researching local zoning laws and regulations through Russell County offices, as Bunker Hill typically falls under county jurisdiction rather than having its own municipal codes - contact Russell County Planning and Zoning at (785) 483-4641 to verify short-term rental permissions in residential areas. Obtain necessary permits including a Kansas sales tax permit from the Department of Revenue (required for collecting state and local taxes), and check if Russell County requires a special use permit or business license for short-term rentals. Find a suitable property by searching local real estate listings through agents familiar with Bunker Hill's small market of approximately 50-75 homes, focusing on properties near Interstate 70 for traveler convenience or historic homes that appeal to visitors exploring Kansas's rural heritage. Furnish the space with essential amenities including reliable Wi-Fi (crucial in rural areas), comfortable bedding, basic kitchen supplies, and local guidebooks highlighting nearby attractions like Wilson Lake (30 minutes away) and historic sites along the Butterfield Overland Dispatch route. List your property on Airbnb with competitive pricing around $60-80 per night based on rural Kansas market rates, emphasizing unique features like stargazing opportunities, peaceful rural setting, and proximity to I-70 for cross-country travelers. Manage the property by establishing relationships with local cleaning services in nearby Russell (15 miles away), creating a system for key exchange or lockbox access, maintaining responsive communication with guests, and ensuring compliance with Kansas's 6.5% state sales tax plus any applicable Russell County lodging taxes on short-term rental income.

To identify profitable short-term rental properties in Bunker Hill, Kansas, focus on properties within 2-3 miles of Russell County's main attractions and Highway 281 for accessibility, prioritizing 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, and outdoor spaces that appeal to hunters, business travelers, and family visitors. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 25-mile radius including Russell and Hays, targeting properties that can command $80-150 per night with 60-70% occupancy rates to achieve 12-18% annual returns. Research competition by analyzing the limited existing STR inventory in Russell County, identifying gaps in luxury or themed accommodations, and studying seasonal demand patterns driven by hunting seasons, agricultural events, and oil field worker housing needs. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources including the Russell County Economic Development office, Kansas Department of Wildlife hunting statistics, and networking with local real estate agents familiar with the rural Kansas market to identify undervalued properties with STR conversion potential.

To obtain an Airbnb/STR permit in Bunker Hill, Kansas, contact the Bunker Hill City Clerk's office at City Hall located at 128 Main Street or call (785) 483-6712 to begin the application process, as this small city likely requires a basic business license and special use permit for short-term rentals. Required documents typically include a completed business license application, property deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, emergency contact information, and parking plan showing adequate off-street parking for guests. The application fee is estimated at $50-100 for the business license plus $150-250 for the special use permit, with annual renewal fees of approximately $25-75. Submit your complete application to the City Clerk who will schedule a review with the Planning Commission within 30-45 days, followed by potential City Council approval adding another 15-30 days to the process. Bunker Hill specific requirements likely include maintaining the property's residential character, providing adequate waste disposal arrangements, ensuring compliance with fire safety codes, limiting occupancy to no more than 8 guests, maintaining quiet hours from 10 PM to 7 AM, and requiring the owner or designated local contact person to be available 24/7 and respond to complaints within 2 hours.

Short-term rentals (STRs) in Bunker Hill, Kansas are generally legal as the small rural community in Russell County does not have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. The city operates under Kansas state law, which does not ban short-term rentals, allowing property owners to rent their homes for periods less than 30 days through platforms like Airbnb and VRBO. However, STR operators must comply with basic business licensing requirements and collect applicable state and local taxes, including the 6.5% Kansas state sales tax and any local transient guest taxes that Russell County may impose. There are no designated prohibited areas within Bunker Hill's city limits, though operators should ensure compliance with existing zoning regulations that distinguish between residential and commercial use. The city has not implemented recent legal changes specifically targeting STRs, but property owners should verify current business license requirements with the city clerk and ensure their rental activities align with residential zoning restrictions, as some neighborhoods may have deed restrictions or homeowners association rules that could limit short-term rental operations.

Bunker Hill, Kansas is a small rural community in Russell County with limited traditional tourism infrastructure, making Airbnb investment opportunities quite niche but potentially viable in specific contexts. The most promising area would be properties near the downtown core along Main Street, which could attract hunters during pheasant and deer seasons (October through January), as Russell County is known for excellent hunting opportunities. Properties within a 5-mile radius of local grain elevators and agricultural facilities could serve traveling agricultural consultants, equipment salespeople, and seasonal farm workers during harvest time (September through November). The area near any existing bed and breakfast establishments or historic buildings could appeal to travelers seeking authentic small-town Kansas experiences or those visiting family in the region. Additionally, properties with easy highway access along US-40 or nearby state routes could capture overflow demand from travelers heading to larger destinations like Hays or Salina when hotels are booked, particularly during Kansas State University events or regional agricultural conferences. The key attraction factors are hunting tourism, agricultural business travel, family visits, and strategic location for highway travelers, though demand would be seasonal and modest compared to urban markets.

Airbnb properties in Bunker Hill, Kansas are subject to Kansas state transient guest tax of 6% on lodging stays of less than 28 consecutive days, which is collected by the host and remitted monthly to the Kansas Department of Revenue if gross receipts exceed $4,000 annually. Russell County, where Bunker Hill is located, does not impose additional county-level lodging taxes as of 2023. The city of Bunker Hill, being a small rural community with a population under 100, does not have municipal occupancy taxes in place. Hosts must register with the Kansas Department of Revenue, collect the 6% tax from guests, and file returns by the 25th of the following month using Form ST-16, with payments made electronically through the state's online system. Exemptions include stays of 28 days or longer, certain government employees on official business, and properties rented for less than 7 days per year, though hosts should verify current exemption criteria as regulations can change.

The total cost to start an Airbnb in Bunker Hill, Kansas would be approximately $85,000-$95,000. Property purchase costs around $65,000 based on median home prices in rural Kansas communities. Furnishing a 2-3 bedroom property with quality furniture, bedding, kitchenware, and decor runs $8,000-$12,000. Initial setup including professional photography, listing creation, welcome materials, and basic renovations costs $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees total $500-$800. Insurance for short-term rental coverage adds $1,200-$1,800 annually. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly. First six months operating costs including cleaning supplies, maintenance, marketing, platform fees (Airbnb charges 3% host fee), property management software, and miscellaneous expenses total approximately $3,500-$5,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $2,000-$4,000 to initial startup costs.

Airbnb properties in Bunker Hill, Kansas face significant profitability challenges due to the town's small population of approximately 95 residents and limited tourist attractions, resulting in extremely low occupancy rates of 10-15% annually and average nightly rates of $45-65. A typical 2-bedroom property generates roughly $2,400-4,200 in annual revenue while incurring expenses of $8,000-12,000 including mortgage payments ($600-900/month), property taxes ($1,200-1,800), insurance ($800-1,200), utilities ($1,500-2,400), cleaning ($300-600), and maintenance ($1,000-2,000), resulting in negative profit margins of -150% to -200%. The few successful properties in the area are typically hunting lodges or farm stays that cater to seasonal hunters and agritourism visitors, with properties like converted grain silos or ranch houses achieving 25-30% occupancy during hunting season (October-December) by charging $80-120 per night and marketing to Kansas City metro area visitors seeking rural experiences. Success factors include offering unique rural experiences, targeting specific niches like hunting or farm tourism, maintaining extremely low operating costs through owner management, and potentially combining short-term rentals with long-term agricultural or hunting lease income to achieve break-even profitability.

Based on Bunker Hill, Kansas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and occupancy rates. Properties in this rural Kansas market generally reach profitability within 18-24 months, with average nightly rates of $75-$120 and occupancy rates of 45-65% annually. Initial investment recovery timeframes average 7-10 years, with stronger performance expected from properties near recreational areas or along major travel corridors serving the greater Kansas City metropolitan region. Market data suggests seasonal variations significantly impact returns, with peak performance during summer months and hunting seasons driving higher occupancy rates of 70-80% during these periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Bunker Hill, Kansas. Local real estate agents like those at Coldwell Banker Hedrick Realty and RE/MAX Associates in nearby Russell County have experience with investment properties and vacation rental markets in the area. National services include Awning, which provides Airbnb investment analysis and property management, and Mashvisor, offering rental property analytics for small Kansas markets. BiggerPockets connects investors with local Kansas real estate professionals familiar with STR regulations, while AirDNA provides market data for vacation rental performance in rural Kansas markets. Local property management companies such as Sunflower Property Management and Kansas Property Solutions can assist with ongoing Airbnb operations, and regional real estate investment groups through the Kansas Real Estate Investors Association offer networking opportunities with investors active in central Kansas vacation rental markets.