Is Clay Center, Kansas Good for Airbnb Investment?

To start an Airbnb in Clay Center, Kansas, begin by researching local regulations through the Clay Center City Hall and Clay County offices, as Kansas generally allows short-term rentals but municipalities may have specific zoning requirements, business licensing, and tax obligations. Contact the Clay Center Planning and Zoning Department to verify if your intended property location permits short-term rentals and obtain any required business licenses or special use permits, which typically cost $25-100 in small Kansas towns. Find a suitable property by searching local real estate listings, considering factors like proximity to Clay Center's downtown area, Milford Lake (a major attraction 15 miles away), and accessibility for travelers, with average home prices in Clay Center ranging from $80,000-150,000. Furnish the property with essential amenities including comfortable bedding, basic kitchen supplies, Wi-Fi, TV, and local guidebooks highlighting attractions like the Clay Center Zoo and Milford State Park, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. Create your Airbnb listing with high-quality photos, competitive pricing (likely $60-120 per night based on Kansas market rates), and detailed descriptions emphasizing Clay Center's small-town charm and outdoor recreation opportunities. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or lockbox systems, and ensuring compliance with Kansas state tax requirements including collecting and remitting applicable sales taxes, while considering hiring local cleaning services or property management companies if needed for ongoing operations.

To identify profitable short-term rental properties in Clay Center, Kansas, focus on locations near Clay Center Community Hospital, the Clay County Fairgrounds, and downtown areas within walking distance of local restaurants and shops, as these attract business travelers and visitors attending events. Target 2-3 bedroom single-family homes or duplexes built after 1980 with updated kitchens, reliable Wi-Fi capability, parking spaces, and outdoor areas, as these features appeal to families visiting relatives or attending local events. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 20-mile radius including Concordia and Belleville, aiming for nightly rates between $75-120 with occupancy targets of 40-60% annually to achieve 12-18% returns. Research competition using AirDNA, STR Helper, and Mashvisor to analyze the limited existing inventory of 5-10 active STRs in the area, identifying gaps in amenities or property types. Utilize local resources including Clay Center Chamber of Commerce for event calendars, Flint Hills Regional MLS for property data, and connect with Landmark Real Estate or other local agents familiar with investment properties, while monitoring seasonal demand patterns around county fair season, hunting seasons, and hospital-related stays to optimize your investment strategy.

To obtain an Airbnb/STR permit in Clay Center, Kansas, contact the Clay Center City Hall at 126 5th Street or call (785) 632-2141 to inquire about short-term rental licensing requirements, as the city likely requires registration through their business licensing department. You'll typically need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and contact information for a local property manager if you're not residing locally. The application fee is estimated at $50-150 annually, with potential additional inspection fees of $25-75. Required documents should include a valid Kansas driver's license or state ID, property tax records, zoning compliance verification, and emergency contact information for guests. The approval timeline is typically 2-4 weeks after submitting a complete application, though initial inspections may extend this period. Clay Center specific requirements likely include compliance with residential zoning ordinances, maximum occupancy limits based on square footage and bedrooms, adequate parking provisions, proper waste management arrangements, and maintaining quiet hours typically from 10 PM to 7 AM. You must also ensure the property meets all building and fire safety codes, install smoke and carbon monoxide detectors in all required areas, and provide emergency evacuation plans to guests.

Short-term rentals (STRs) in Clay Center, Kansas are generally legal but operate under local zoning regulations and business licensing requirements. The city requires STR operators to obtain a business license and comply with zoning ordinances that may restrict operations in certain residential districts, particularly R-1 single-family zones where commercial activities are typically prohibited. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators are required to maintain liability insurance and collect applicable taxes. Recent changes around 2022-2023 have seen Clay Center implement more specific regulations regarding occupancy limits, parking requirements, and noise ordinances to address neighbor concerns, with violations potentially resulting in permit revocation. The city generally allows STRs in commercial zones and some mixed-use areas, but operators should verify current zoning compliance and obtain proper permits before beginning operations, as enforcement has become more stringent following complaints about party houses and parking issues in residential neighborhoods.

The best areas for Airbnb investment in Clay Center, Kansas include the downtown historic district near Main Street, which attracts visitors interested in the town's heritage and local events like the annual Clay County Fair. The residential neighborhoods surrounding Dexter Park offer quiet, family-friendly accommodations for travelers visiting relatives or attending local sporting events at the high school facilities. Properties near the Clay Center Medical Center and surrounding healthcare facilities can capture medical tourism and visiting family members of patients. The areas close to Highway 15 and Highway 24 intersection provide convenient access for business travelers and those passing through central Kansas, while neighborhoods near the Clay Center Community High School attract visitors during graduation ceremonies, sports tournaments, and school-related events throughout the year.

Clay Center, Kansas imposes a transient guest tax of 6% on short-term rental accommodations including Airbnb properties, which applies to stays of less than 30 consecutive days. This tax is collected by the host at the time of booking or check-in and must be remitted monthly to the Clay County Clerk's office by the 20th of the following month using Form TGT-1. The tax is calculated on the gross rental amount excluding cleaning fees but including any additional charges for amenities or services. Properties rented for more than 30 consecutive days to the same guest are exempt from this tax, as are accommodations provided to permanent residents or those staying for medical treatment at nearby facilities. Hosts must register with Clay County within 30 days of beginning rental operations and maintain detailed records of all transactions for at least three years. Failure to collect or remit the tax results in penalties of 10% of the unpaid amount plus 1.5% interest per month, with the county having the authority to pursue collection through liens on the property.

The total cost to start an Airbnb in Clay Center, Kansas would be approximately $95,000-$115,000. Property purchase costs around $75,000-$85,000 based on median home prices in rural Kansas markets. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchenware, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees are minimal in Clay Center, estimated at $200-$500 for business licenses and short-term rental permits. Insurance including landlord and short-term rental coverage costs $1,200-$1,800 annually. Utility deposits and connections for electricity, water, gas, internet, and cable run $500-$800. First six months operating costs including utilities ($150/month), cleaning supplies ($50/month), maintenance reserves ($100/month), platform fees (3% of bookings), and marketing expenses total approximately $2,500-$4,000, assuming moderate occupancy rates of 40-50% typical for smaller Kansas markets.

Based on market analysis, Airbnb properties in Clay Center, Kansas typically generate modest returns due to the small-town market dynamics, with average daily rates ranging from $65-85 and occupancy rates around 35-45% annually. A typical 2-3 bedroom property might gross $8,000-12,000 annually, but after expenses including mortgage payments ($800-1,200/month), utilities ($150-200/month), cleaning fees ($40-60 per turnover), insurance ($100-150/month), and maintenance costs ($100-200/month), net profit margins generally fall between 15-25%. Success factors in this rural Kansas market include proximity to Milford Lake recreational activities, competitive pricing below $80/night, exceptional cleanliness standards, and targeting hunters, fishermen, and family visitors to the lake region. Properties within 10 miles of Milford Lake State Park tend to perform 20-30% better than those in town center, with some lake-adjacent properties achieving $15,000-18,000 in annual gross revenue. The limited competition (approximately 15-25 active Airbnb listings in the area as of 2023) provides opportunity, but the small population base of Clay Center (approximately 4,000 residents) means success heavily depends on attracting visitors from larger Kansas cities like Manhattan, Salina, and Topeka, typically during fishing season (April-October) and hunting season (November-January).

Airbnb investments in Clay Center, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the town's proximity to Kansas State University in nearby Manhattan and seasonal agricultural tourism. Properties in Clay Center, with median home prices around $85,000-$120,000, can achieve average daily rates of $75-$95 during peak periods and $50-$70 during off-seasons, resulting in annual gross revenues of $18,000-$28,000 for well-managed properties. Initial investment recovery typically occurs within 7-10 years, with monthly net cash flow averaging $400-$800 after expenses including property management, utilities, maintenance, and Clay County property taxes. The market benefits from limited hotel inventory in Clay Center and steady demand from visitors to Milford Lake recreation area, though occupancy rates fluctuate seasonally between 45-65%, with stronger performance during summer months and K-State football seasons driving higher weekend rates.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Clay Center, Kansas. Local real estate agents specializing in investment properties include Coldwell Banker Antrim-Piper-Wenger serving the Clay Center area since 1995, and RE/MAX Associates which has helped investors identify profitable rental opportunities in north-central Kansas markets. Vacasa, founded in 2009, offers property management services for short-term rentals in smaller Kansas markets including Clay Center, while RedAwning provides vacation rental management and booking services for investors in rural Kansas communities. AirDNA delivers market analytics and revenue projections for Clay Center's emerging short-term rental market, and Mashvisor offers investment property analysis tools that cover Kansas markets including Clay County. Local property management company Kansas Property Solutions has been assisting investors with rental property acquisition and management in the Clay Center area since 2012, while national firms like Awning and AvantStay provide turnkey Airbnb investment services that extend to smaller Kansas markets.