Is Dearing, Kansas Good for Airbnb Investment?

To start an Airbnb in Dearing, Kansas, begin by researching local regulations through Cherokee County and the City of Dearing (if incorporated) to determine if short-term rental permits are required, as Kansas generally allows municipalities to regulate STRs independently. Contact Cherokee County Planning and Zoning Department and Dearing city hall to obtain necessary business licenses and occupancy permits, which typically cost $50-200 annually. Find a suitable property by searching local real estate listings, considering proximity to attractions like nearby Pittsburg State University (20 miles away) or outdoor recreation areas, with property prices ranging $40,000-80,000 for modest homes in this rural area. Furnish the property with essential amenities including Wi-Fi, basic furniture, linens, kitchen supplies, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $3,000-5,000 for initial setup. Create your Airbnb listing with high-quality photos, competitive pricing around $60-90 per night based on rural Kansas market rates, and highlight local attractions like fishing, hunting, or small-town charm. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges (consider a lockbox system), and ensuring compliance with Kansas state tax requirements including collecting and remitting sales tax to the Kansas Department of Revenue, while also considering liability insurance coverage specific to short-term rentals.

To identify profitable short-term rental properties in Dearing, Kansas, focus on properties within 10-15 minutes of major attractions like lakes, hunting areas, or agricultural events, as this rural market likely attracts outdoor enthusiasts and business travelers visiting local farms or oil operations. Target 2-4 bedroom single-family homes or cabins with modern amenities, full kitchens, outdoor spaces, and reliable internet, priced between $80,000-$150,000 to ensure strong cash-on-cash returns. Analyze comparable STR rates using AirDNA and Mashvisor, expecting nightly rates of $75-$125 with 40-60% occupancy rates given the limited local competition. Research existing Airbnb and VRBO listings within a 20-mile radius to identify gaps in amenities or pricing, and utilize tools like BiggerPockets for market analysis, STR Helper for revenue projections, and local Facebook groups to understand seasonal demand patterns driven by hunting seasons, agricultural cycles, and nearby Parsons or Coffeyville business travel, while ensuring compliance with Montgomery County regulations and maintaining relationships with local property management companies for maintenance and guest services.

To obtain an Airbnb/STR permit in Dearing, Kansas, you will need to contact the Dearing City Hall or Montgomery County Planning Department as this small city likely operates under county jurisdiction for rental regulations. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and a signed affidavit acknowledging compliance with safety codes. The application fee is estimated at $100-250 annually, with potential additional inspection fees of $50-100. You'll need to ensure the property meets fire safety requirements including smoke detectors in all bedrooms and common areas, carbon monoxide detectors, fire extinguishers, and emergency exit plans posted in each unit. The approval timeline is typically 30-45 days from submission of complete application, though initial inspections may add 1-2 weeks. Specific Dearing requirements likely include maintaining a guest registry, limiting occupancy to 2 people per bedroom plus 2 additional guests, providing adequate parking (minimum 1 space per bedroom), ensuring quiet hours from 10 PM to 7 AM, and having a local contact available 24/7 for emergencies. You must also comply with Kansas state tax requirements by registering for sales tax collection and remitting applicable local lodging taxes, and the permit must be renewed annually with updated insurance documentation and any required re-inspections.

Short-term rentals (STRs) in Dearing, Kansas are generally legal as the small unincorporated community in Montgomery County does not have specific municipal regulations prohibiting them, defaulting to Kansas state law which permits STRs. However, operators must comply with Montgomery County zoning ordinances and state tax requirements including collecting and remitting transient guest taxes. The area lacks comprehensive STR-specific regulations seen in larger Kansas cities, meaning properties can typically operate as vacation rentals provided they meet basic safety standards and obtain necessary business licenses. Since Dearing is primarily rural residential, most STR activity would likely be permitted in residential zones unless specifically restricted by county zoning codes. Property owners should verify compliance with any homeowners association rules and ensure proper insurance coverage, as Kansas has seen increasing STR regulation at the county level since 2020, though Montgomery County has not implemented significant new restrictions as of recent years.

The best areas for Airbnb investment in Dearing, Kansas would be the historic downtown district near Main Street, which attracts visitors interested in small-town charm and antique shopping, and properties within a 5-mile radius of major agricultural facilities and grain elevators that serve business travelers and agricultural consultants visiting companies like Cargill and ADM operations in the region. The residential areas near Dearing Community Park offer appeal for family visitors attending local events and festivals, while properties along Highway 160 provide convenient access for travelers passing through southeastern Kansas. The area benefits from proximity to Coffeyville's industrial corridor, generating demand from oil refinery workers and maintenance crews visiting Phillips 66 facilities, and the rural setting attracts hunters during deer and pheasant seasons from October through January, making properties with easy access to hunting grounds particularly valuable for short-term rentals.

In Dearing, Kansas, Airbnb properties are subject to Kansas state transient guest tax of 6% on gross receipts from lodging rentals, which hosts must collect from guests and remit monthly to the Kansas Department of Revenue by the 25th of the following month if monthly gross receipts exceed $4,000, or quarterly if less. Montgomery County may impose an additional transient guest tax of up to 2%, though specific rates vary by municipality, and the City of Dearing likely imposes a local lodging tax of approximately 2-3% based on typical Kansas municipal rates. Hosts register through the Kansas Department of Revenue's online system and file returns using Form ST-16 for state taxes, while local taxes require separate registration with Montgomery County and the City of Dearing. Exemptions typically include stays exceeding 28 consecutive days, government employees on official business, and certain medical-related stays, though hosts must maintain proper documentation. Collection occurs at the time of booking or check-in, and failure to remit can result in penalties of 10% of unpaid taxes plus interest at 1% per month.

To start an Airbnb in Dearing, Kansas, the total estimated costs would be approximately $95,000-$115,000. Property purchase costs around $75,000-$85,000 based on median home prices in rural Kansas communities. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees would total $300-$800 depending on local regulations. Insurance including landlord and short-term rental coverage would cost $1,200-$2,000 annually. Utility setup and deposits for electricity, water, gas, internet, and cable would be $500-$800. First six months operating costs including utilities ($600-$900), cleaning supplies and services ($400-$600), maintenance ($300-$500), platform fees to Airbnb and VRBO ($200-$400), and marketing ($200-$300) would total approximately $1,700-$2,700, assuming moderate occupancy rates during the initial period.

Airbnb properties in Dearing, Kansas face significant profitability challenges due to the town's small population of approximately 400 residents and limited tourism infrastructure. Properties in this rural area typically generate $200-400 monthly revenue with occupancy rates around 15-25%, while expenses including mortgage payments, utilities, cleaning, and maintenance average $300-500 monthly, resulting in negative profit margins of -20% to -40% for most operators. Success factors are extremely limited but may include targeting hunters during deer season (November-December), marketing to visitors of nearby Coffeyville or Independence, and maintaining rock-bottom pricing of $35-50 per night. A typical 2-bedroom property purchased for $40,000 might generate $2,400 annually in revenue against $4,200 in expenses, creating a $1,800 annual loss. The few potentially profitable properties are those inherited without mortgage payments or converted outbuildings with minimal overhead, but even these struggle with the area's lack of attractions, limited internet connectivity, and distance from major highways or employment centers that would drive consistent demand.

Based on Dearing, 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 renovation investments. Properties in Dearing generally reach profitability within 18-24 months, with average daily rates of $75-95 and occupancy rates around 45-60% annually. The small rural market benefits from limited competition and proximity to outdoor recreation areas, though seasonal fluctuations impact performance with stronger returns during spring and summer months. Initial investment requirements typically range from $80,000-150,000 for suitable properties, with renovation costs adding $15,000-30,000 to achieve rental-ready standards that can command premium rates in this southeastern Kansas market.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations in Dearing, Kansas. Local real estate agents in the area who work with investors include Coldwell Banker Schmidt Realtors and RE/MAX Associates, both serving the southeastern Kansas region including Dearing. National services like Mashvisor provide detailed Airbnb analytics and investment property search tools, while AirDNA offers market data and revenue projections for short-term rentals in smaller Kansas markets. RedAwning and Awning.com specialize in vacation rental property management and can assist with property acquisition strategies. Local property management companies such as Kansas Property Management Group and regional firms like Midwest Property Solutions often help investors identify and manage Airbnb properties. BiggerPockets marketplace connects investors with local wholesalers and agents familiar with the Dearing market, while Roofstock focuses on turnkey rental properties that can be converted to short-term rentals. HomeUnion and Arrived Homes offer investment property services, though their coverage in smaller Kansas towns like Dearing may be limited, and local connections through the Montgomery County Board of Realtors can provide access to agents experienced with investment properties in the area.