Is Davey, Nebraska Good for Airbnb Investment?

To start an Airbnb in Davey, Nebraska, begin by researching local zoning laws and regulations through Lancaster County and any applicable homeowners association rules, as Davey is an unincorporated community that typically falls under county jurisdiction rather than having its own municipal short-term rental ordinances. Obtain necessary permits including a business license from Lancaster County (approximately $25-50), ensure your property meets fire safety codes, and verify insurance coverage with your provider for short-term rental activities. Find a suitable property by purchasing or securing permission if you're renting, focusing on homes near recreational areas like Branched Oak Lake which attracts visitors year-round. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, and outdoor furniture to appeal to lake visitors and Lincoln commuters, budgeting approximately $3,000-8,000 for initial setup. Create your listing on Airbnb and other platforms like VRBO, highlighting proximity to Branched Oak Lake (about 5 miles), outdoor activities, and peaceful rural setting while pricing competitively with similar properties in the $75-150 per night range. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, and maintaining the property regularly while building relationships with local cleaning services and maintenance providers in the nearby Waverly or Lincoln areas for support.

To identify profitable short-term rental properties in Davey, Nebraska, focus on properties within 15-20 minutes of Lincoln since Davey serves as a rural retreat destination for Lincoln metro visitors. Target 2-4 bedroom homes with outdoor amenities like fire pits, decks, or acreage that appeal to families seeking country experiences, hunting groups, or wedding parties visiting nearby venues. Properties near Branched Oak Lake (10 miles north) or with pond/creek access command premium rates of $120-180 per night compared to basic homes at $80-120. Analyze comparable properties on Airbnb and VRBO within a 25-mile radius of Davey, noting that competition is limited with fewer than 15 active STRs in the immediate area, creating opportunity for well-positioned properties. Use AirDNA for market data, STR Helper for revenue projections, and monitor Lancaster County permit requirements since some STR regulations may apply. Properties under $200,000 with strong outdoor appeal and easy Lincoln access typically achieve 60-75% occupancy rates and generate $2,000-4,000 monthly revenue, with peak demand during summer months, hunting seasons, and wedding season from May through October.

To obtain an Airbnb/STR permit in Davey, Nebraska, you'll need to contact the Saunders County Planning and Zoning Department since Davey is an unincorporated community within Saunders County. Start by calling the county office at (402) 443-8101 to confirm current requirements, as rural areas may have specific zoning restrictions for short-term rentals. You'll likely need to submit a conditional use permit application, provide a detailed site plan showing parking areas and property boundaries, submit proof of property ownership or landlord permission, obtain liability insurance documentation (typically $1 million minimum), and pass a safety inspection covering smoke detectors, carbon monoxide detectors, and fire extinguishers. Required documents typically include a completed application form, property survey, floor plan, septic system certification if applicable, and neighbor notification forms. Application fees generally range from $200-500 for conditional use permits in Nebraska counties, with additional inspection fees of $100-200. The timeline usually takes 30-60 days including a public hearing before the planning commission, though this can extend to 90 days if appeals are filed. Specific Davey/Saunders County requirements may include maximum occupancy limits based on septic capacity, adequate off-street parking (typically 2 spaces minimum), compliance with rural road access standards, and potential restrictions in agricultural zoning districts, so verify current zoning classification and any homeowners association restrictions before proceeding.

Short-term rentals (STRs) are generally legal in Davey, Nebraska, as the state of Nebraska does not prohibit STRs at the state level, leaving regulation primarily to local municipalities. Davey, being an unincorporated community in Lancaster County, falls under Lancaster County's jurisdiction rather than having its own municipal regulations. Lancaster County does not currently have comprehensive STR restrictions, though operators must comply with standard zoning requirements, health and safety codes, and obtain necessary business licenses. Properties must meet residential building codes and fire safety standards, and operators are required to collect and remit state and local lodging taxes. Since 2020, Nebraska has seen increased STR activity with minimal new restrictive legislation, though some larger cities like Omaha have implemented registration requirements and occupancy limits. In Davey specifically, STRs would need to comply with any applicable homeowners association rules if present, and ensure operations align with the property's zoning designation, typically residential agricultural in this rural area.

The best areas for Airbnb investment in Davey, Nebraska would be properties near Branched Oak Lake and the surrounding recreational areas, as this region attracts seasonal tourists, fishing enthusiasts, and families seeking lakefront getaways from Lincoln and Omaha metropolitan areas. The downtown Davey area, though small, offers potential for visitors attending local events at nearby venues or those seeking rural retreats within 20 minutes of Lincoln. Properties along Highway 77 corridor provide convenient access for business travelers working in Lincoln but preferring quieter accommodations, while areas near Branched Oak State Recreation Area specifically benefit from consistent summer tourism, camping overflow, and weekend visitors participating in water sports, fishing tournaments, and outdoor events that the lake hosts annually.

Airbnb properties in Davey, Nebraska are subject to Nebraska state lodging tax of 1% on gross receipts from room rentals, which applies to all short-term rental accommodations under 30 days. Lancaster County, where Davey is located, imposes an additional 2% lodging tax, bringing the total occupancy tax rate to approximately 3%. These taxes are typically collected by the host at the time of booking or payment and must be remitted monthly to the Nebraska Department of Revenue by the 20th of the following month using Form 10, along with quarterly remittance to Lancaster County. Airbnb may collect and remit these taxes directly on behalf of hosts in some cases through their platform's tax collection service. Properties rented for 30 days or longer are generally exempt from these occupancy taxes, and certain agricultural or educational lodging may qualify for exemptions. Hosts must register for a Nebraska sales tax permit before collecting these taxes and maintain detailed records of all rental transactions and tax collections.

The total cost to start an Airbnb in Davey, Nebraska would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Nebraska communities near Lincoln. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and safety inspections cost approximately $500-$800. Insurance premiums for short-term rental coverage run $1,200-$1,800 annually. Utility deposits and connections for electricity, gas, water, internet, and cable total $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) amount to approximately $6,300. Additional startup costs for linens, towels, welcome amenities, and emergency repairs add another $1,500-$2,000 to the total investment.

Airbnb properties in Davey, Nebraska face significant profitability challenges due to the small rural market with limited tourist demand and low nightly rates typically ranging $40-70 compared to urban markets. Revenue potential is constrained by occupancy rates averaging 25-35% annually, generating approximately $4,000-8,000 in gross annual revenue for typical 2-3 bedroom properties. Operating expenses including mortgage payments, utilities, cleaning, maintenance, insurance, and Airbnb fees typically consume 70-85% of gross revenue, leaving profit margins of 15-30% or roughly $600-2,400 annually. Success factors in this market require targeting specific niches like hunters during deer season, visitors to nearby Mahoney State Park, or business travelers to Omaha (45 minutes away), while maintaining extremely low acquisition costs and minimal property management expenses. Properties purchased under $80,000 with cash or significant down payments show better profitability, as mortgage payments often exceed rental income in this low-revenue environment, making Davey's Airbnb market viable primarily for investors seeking modest supplemental income rather than substantial returns.

Airbnb investments in Davey, Nebraska can expect annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative estimates given Davey's small rural market of approximately 150 residents located 25 miles southwest of Omaha. The timeframe to profitability typically extends 18-24 months due to lower occupancy rates of 35-45% annually, as the area primarily attracts visitors to nearby Platte River recreational activities and occasional Omaha overflow during major events. Property acquisition costs average $80,000-$120,000 for suitable investment properties, with daily rates of $65-$85 generating monthly revenues of $800-$1,200 during peak seasons. The limited local tourism infrastructure and seasonal demand patterns suggest investors should expect longer payback periods compared to urban markets, with break-even typically achieved by month 20-26 assuming 40% average occupancy and $900 average monthly operating expenses including utilities, cleaning, and maintenance.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities across markets including Davey, Nebraska. For local expertise, Nebraska-based real estate agents like those at Nebraska Realty and Berkshire Hathaway HomeServices Ambassador Real Estate often work with investors seeking vacation rental properties in smaller Nebraska markets. National services include Awning, which provides end-to-end Airbnb investment services and market analysis, and Mashvisor, offering rental property analytics and investment tools for markets throughout Nebraska. RedAwning and Vacasa provide property management and investment guidance for short-term rentals in rural Nebraska markets. Local property management companies such as Midwest Property Management and Great Plains Real Estate Services have expanded into short-term rental consulting since 2020. AirDNA offers market data and revenue projections for Nebraska markets including smaller towns like Davey, while BiggerPockets connects investors with local real estate professionals experienced in vacation rental investments throughout the Lincoln metropolitan area and surrounding communities.