Is Derby, Kansas Good for Airbnb Investment?

To start an Airbnb in Derby, Kansas, begin by researching local zoning laws and regulations through the Derby Planning Department, as the city may require short-term rental permits and compliance with residential zoning restrictions. Contact Derby City Hall at 611 Mulberry Road to obtain necessary business licenses and verify if short-term rentals are permitted in your specific zone, as some residential areas may have restrictions. Find a suitable property by searching Derby's neighborhoods like Rock Creek or areas near Derby High School, considering proximity to Wichita attractions since Derby is a suburb located about 15 miles south of Wichita. Purchase or lease a property that meets Derby's building codes and safety requirements, then furnish it with quality furniture, linens, and amenities while ensuring compliance with Kansas fire safety regulations including smoke detectors and carbon monoxide detectors. Create your Airbnb listing with professional photos highlighting Derby's small-town charm and proximity to Wichita attractions like the Sedgwick County Zoo and Old Town, setting competitive rates based on Derby's market of approximately $60-90 per night as of 2023. Manage your property by establishing cleaning protocols, coordinating with local cleaning services in Derby, implementing keyless entry systems, and maintaining responsive communication with guests while monitoring reviews and adjusting your strategy based on seasonal demand patterns in the Wichita metropolitan area.

To identify profitable short-term rental properties in Derby, Kansas, focus on locations within 15-20 minutes of Wichita's downtown core, near McConnell Air Force Base, or close to major employers like Spirit AeroSystems and Textron Aviation, as business travelers represent a significant market segment in this area. Target 3-4 bedroom single-family homes built after 1990 with modern amenities, dedicated workspaces, fast WiFi, and parking for 2+ vehicles, as these appeal to both business travelers and families visiting the region. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in Derby and surrounding Wichita suburbs, aiming for nightly rates between $80-140 depending on property size and amenities, with occupancy rates typically ranging 60-75% annually in this market. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or underserved areas, particularly focusing on properties that cater to extended-stay business guests or aviation industry professionals. Utilize tools like Rabbu, BiggerPockets market analysis, and local MLS data through Realtor.com, while connecting with Derby-area real estate agents familiar with investment properties and monitoring city regulations regarding short-term rentals, as Kansas municipalities have varying ordinances that could impact profitability and operational requirements.

To obtain an Airbnb/STR permit in Derby, Kansas, contact the Derby City Planning Department at City Hall located at 611 Mulberry Road or call (316) 788-1519 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan showing parking areas and property layout, obtain a business license from the city clerk's office, and provide proof of liability insurance with minimum $1 million coverage. Required documents also include a floor plan of the rental unit, emergency contact information for a local representative available 24/7, and proof of compliance with fire safety codes including smoke and carbon monoxide detectors. The application fee is typically $150-200 with an annual renewal fee of $100, and processing takes approximately 4-6 weeks once all documents are submitted. Derby requires STR properties to maintain adequate off-street parking (minimum 2 spaces), limit occupancy to 2 people per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 7 AM, and ensure the property meets all residential building codes and zoning requirements for the specific district where the property is located.

Short-term rentals (STRs) are generally legal in Derby, Kansas, as the city has not enacted specific prohibitions against them as of 2023. However, STR operators must comply with standard zoning regulations, business licensing requirements, and health and safety codes that apply to all rental properties in the city. Derby follows typical Kansas municipal guidelines where STRs are treated similarly to other residential rental properties, meaning they must adhere to occupancy limits, parking requirements, and noise ordinances. The city requires proper business registration and tax collection for rental income, and properties must meet basic habitability standards. While there are no specific areas where STRs are explicitly prohibited, they must comply with existing residential zoning restrictions, and operators should be aware that homeowners association rules in certain neighborhoods may impose additional limitations. Derby has not implemented recent major legal changes specifically targeting short-term rentals, but property owners should verify current licensing requirements with the city clerk's office and ensure compliance with state tax obligations through the Kansas Department of Revenue.

The best areas for Airbnb investment in Derby, Kansas include the downtown Derby district near Rock River Rapids and the Derby Recreation Commission facilities, which attracts families and sports teams for tournaments and events year-round. The neighborhoods around Derby High School and the USD 260 district office see consistent demand from visiting educators, coaches, and families attending school events and activities. Areas near the Kansas Star Casino (approximately 15 minutes away) benefit from overflow accommodation needs, particularly during major events and conventions. The residential areas along 63rd Street South and around Derby Square shopping center offer convenient access to retail and dining while maintaining quiet neighborhood appeal for business travelers working in the greater Wichita metropolitan area. Properties near the Derby Soccer Complex and other recreational facilities capitalize on youth sports tourism, with teams and families frequently seeking short-term accommodations during tournaments and competitions, making these locations particularly attractive for investors targeting the sports travel market.

In Derby, Kansas, Airbnb properties are subject to Kansas state transient guest tax of 6% on lodging stays of less than 28 consecutive days, which is collected by the Kansas Department of Revenue. Additionally, Derby imposes a local transient guest tax of 2% on short-term rental accommodations, bringing the total occupancy tax rate to approximately 8%. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Kansas Department of Revenue on behalf of hosts for state taxes, while local Derby taxes may require separate registration and remittance by individual hosts through the city's finance department on a monthly or quarterly basis. Properties rented for 28 days or longer are generally exempt from transient guest taxes, and some jurisdictions may provide exemptions for stays by government employees or certain non-profit organizations, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

To start an Airbnb in Derby, Kansas, the total initial costs would be approximately $195,000-$225,000. Property purchase represents the largest expense at $160,000-$180,000 based on Derby's median home prices as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Derby include business license ($50-$100), potential zoning permits ($200-$500), and any HOA approvals if applicable. Insurance costs run $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $500-$800 initially. First six months of operating costs including utilities ($150-$200 monthly), cleaning services ($75-$100 per turnover), maintenance reserves ($200-$300 monthly), and platform fees (3% of bookings) would total approximately $2,500-$4,000, assuming moderate occupancy rates of 50-60% typical for new Airbnb properties in secondary Kansas markets.

Airbnb properties in Derby, Kansas typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved through properties near Wichita's attractions or business districts that capture overflow demand. Success factors include proximity to McConnell Air Force Base (driving consistent military family bookings), competitive pricing against Wichita hotels, professional photography, and maintaining 4.5+ star ratings. A typical 3-bedroom home purchased for $180,000 in Derby's Brookfield or Tanglewood neighborhoods can generate $28,000 annual revenue with $18,000 in expenses, yielding approximately $10,000 net profit (18% margin), though properties within 15 minutes of Wichita's downtown or airport command premium rates and achieve 25-30% margins due to business traveler demand.

Airbnb investments in Derby, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on average property acquisition costs of $150,000-$220,000 and nightly rates of $75-$120 for 2-3 bedroom properties. The Derby market benefits from proximity to Wichita's employment centers and attractions, generating occupancy rates of 60-75% annually, with investors typically reaching profitability within 18-24 months after accounting for initial setup costs, furnishing, and marketing expenses. Properties near Derby's recreational areas and within 15 minutes of Wichita tend to perform better, with some investors achieving 14-16% ROI when targeting corporate travelers and families visiting the greater Wichita metropolitan area, though seasonal fluctuations can impact returns by 20-30% during slower winter months.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Derby, Kansas. Local real estate agents in the Wichita metro area who focus on investment properties include Keller Williams Signature Partners, RE/MAX Associates, and Coldwell Banker Hedrick Realty, with agents like those at Derby Realty Group having specific knowledge of the local market dynamics. National services that can assist Derby investors include Mashvisor for market analysis and property identification, AirDNA for short-term rental data analytics, and Awning for full-service Airbnb investment management. BiggerPockets marketplace and Roofstock also list investment properties in the Kansas market, while companies like RedAwning and Vacasa provide property management services for Airbnb investments. Local property management companies such as Sunflower Property Management and Kansas Property Solutions can handle day-to-day operations, and investment-focused brokerages like eXp Realty have agents specializing in short-term rental acquisitions throughout the Derby and greater Sedgwick County area.