Is Dorrance, Kansas Good for Airbnb Investment?

To start an Airbnb in Dorrance, Kansas, begin by researching local zoning laws and regulations through Russell County's planning department, as Dorrance typically falls under county jurisdiction rather than having its own municipal codes. Contact Russell County at (785) 483-4641 to verify short-term rental requirements, which may include business licenses, sales tax permits from the Kansas Department of Revenue, and potential occupancy limits. Find a suitable property by searching local real estate listings through companies like Landmark Real Estate or checking with local agents familiar with Dorrance's small residential market, focusing on properties near Highway 232 or close to Wilson Lake recreational areas about 20 miles south. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and rural-appropriate items like extra blankets for Kansas winters and fans for summer heat, sourcing from nearby Hays or Salina retailers like Walmart or local furniture stores. Create your Airbnb listing with high-quality photos emphasizing the peaceful rural setting, proximity to outdoor activities, and small-town charm, setting competitive rates around $60-80 per night based on similar rural Kansas properties. Manage the property by establishing cleaning protocols, coordinating with local cleaning services from nearby Russell or Hays, installing keyless entry systems, and maintaining responsive communication with guests while highlighting local attractions like nearby lakes, hunting opportunities, and the historic downtown area.

To identify profitable short-term rental properties in Dorrance, Kansas, focus on properties within 2-3 miles of Wilson Lake and nearby recreational areas, as this small town of approximately 200 residents primarily attracts visitors for fishing, boating, and outdoor activities during peak season from May through September. Target 2-4 bedroom single-family homes or cabins with lake views, boat parking, fishing amenities, and outdoor spaces, as these features command premium rates of $80-150 per night compared to basic properties at $50-80. Analyze pricing using AirDNA and Mashvisor to track seasonal demand patterns, with occupancy rates typically ranging 40-60% annually but spiking to 70-85% during summer months. Research competition by monitoring existing STR listings within a 10-mile radius including Wilson, Sylvan Grove, and Lucas, noting that limited inventory (typically 5-15 active listings) creates opportunity but also indicates smaller market size. Utilize tools like Rabbu and STR Helper for local market analysis, partner with Salina-based property management companies like Sunflower Property Management for operations, and consider properties priced under $150,000 that can generate $15,000-25,000 annual revenue to achieve 12-18% returns after expenses, while ensuring compliance with Russell County regulations and maintaining strong relationships with local contractors and cleaning services.

To obtain an Airbnb/STR permit in Dorrance, Kansas, you will need to contact the Ellis County Planning and Zoning Department since Dorrance is an unincorporated community in Ellis County, or check with the Dorrance City Clerk if operating within city limits. Begin by submitting a short-term rental application which typically requires a completed application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and a $50-150 application fee. You must also obtain a Kansas sales tax permit from the Kansas Department of Revenue for collecting and remitting state and local taxes. The property must comply with local zoning ordinances, fire safety codes, and building requirements including working smoke detectors, carbon monoxide detectors, and proper egress windows. Schedule required inspections with the county health department and fire marshal, which may cost $75-200 total. The approval process typically takes 30-60 days from submission of complete application materials. Once approved, you'll receive your permit which must be renewed annually for approximately $25-75, and you must maintain current insurance, collect applicable taxes, and comply with occupancy limits and noise ordinances specific to Ellis County regulations.

Short-term rentals (STRs) in Dorrance, Kansas are generally legal as the small unincorporated community in Russell County does not have specific municipal ordinances prohibiting them, defaulting to Kansas state law which permits STRs. However, operators must comply with Russell County zoning regulations and Kansas state requirements including business registration, sales tax collection through the Kansas Department of Revenue, and adherence to health and safety codes. There are no specific prohibited areas within Dorrance itself, though agricultural zoning restrictions may apply to certain properties. Recent changes at the state level since 2019-2020 have required STR operators to register as businesses and collect applicable taxes, while some Kansas municipalities have enacted stricter regulations, though Dorrance's unincorporated status means it relies primarily on county-level governance. Property owners should verify compliance with Russell County's land use regulations and ensure proper licensing and tax registration before operating an STR in the area.

The best areas for Airbnb investment in Dorrance, Kansas would be the historic downtown district near Main Street, which attracts visitors interested in small-town charm and the area's railroad heritage dating back to the 1870s. The residential neighborhoods within walking distance of Wilson Lake (approximately 15 miles south) are particularly attractive due to fishing and boating tourism, especially during summer months when the lake draws visitors from Salina and Hays. Properties near the Dorrance Community Center and school district appeal to families visiting for sports tournaments and school events. The area around Highway 232 offers good accessibility for business travelers working in agriculture and oil services, as Russell County has significant farming and energy sector activity. Additionally, homes near the Dorrance Cemetery and historical sites attract genealogy tourists and history buffs exploring the region's pioneer heritage, while the proximity to larger cities like Russell (20 miles) and Hays (45 miles) makes Dorrance an affordable alternative for visitors attending events at Fort Hays State University or conducting business in the regional agricultural hub.

Airbnb properties in Dorrance, 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 Dorrance is located, does not impose additional county-level lodging taxes as of 2023. The city of Dorrance, being a small rural community with a population under 200, does not have municipal lodging or occupancy taxes. 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, which are considered residential rather than transient, and bookings by certain government entities or non-profit organizations with valid exemption certificates. Property taxes on the Airbnb property itself are assessed separately by Russell County at standard residential rates and are not considered occupancy taxes.

The total cost to start an Airbnb in Dorrance, Kansas would be approximately $95,000-$115,000. Property purchase costs around $65,000-$80,000 based on median home prices in rural Kansas towns. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and decor runs $8,000-$12,000. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$4,000. Permits and fees including business license, short-term rental permit, and inspection fees total $300-$800. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost $500-$1,000. 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) total approximately $6,300. Additional startup costs for welcome amenities, emergency repairs fund, and miscellaneous expenses add another $2,000-$3,000 to ensure smooth operations during the initial period.

Airbnb properties in Dorrance, Kansas face significant profitability challenges due to the town's small population of approximately 180 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 ($800-1,200), utilities ($150-200), cleaning fees ($40-60 per turnover), and maintenance ($100-150 monthly) often exceed income by $500-800 per month. The lack of major attractions, limited internet connectivity, and distance from larger cities like Hays (45 miles) or Salina (60 miles) severely restrict demand. Success factors for the few profitable properties include targeting hunting and fishing enthusiasts during seasonal periods, offering unique rural experiences like farm stays, maintaining extremely low acquisition costs under $50,000, and marketing to travelers seeking authentic Kansas prairie experiences. Properties that achieve profitability typically operate at net margins of 5-15% only during peak hunting seasons (October-December), while most months result in losses, making Dorrance one of the least viable Airbnb markets in Kansas with an estimated 80% of properties operating at annual losses.

Based on Dorrance, 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 for well-appointed properties serving travelers along US Highway 183 and visitors to nearby Wilson Lake recreational areas. The limited competition in Dorrance creates opportunities for consistent 45-65% annual occupancy rates, though seasonal fluctuations occur with peak demand during summer months (May-September) when lake activities drive tourism, while winter months typically see 25-35% occupancy rates, requiring investors to budget for seasonal cash flow variations and maintain 6-8 months of operating reserves for optimal returns.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Dorrance, Kansas, using data analytics and market insights. Local real estate agents in the area who specialize in investment properties include Coldwell Banker Schmidt Realtors and United Country Real Estate, both serving the Russell County region where Dorrance is located. National services like Awning, RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management solutions for Kansas markets. BiggerPockets marketplace and Roofstock also offer investment property listings and resources for small Kansas towns. Local property management companies such as Kansas Property Management Group and Heartland Property Services can assist with ongoing Airbnb operations. Real estate investment firms like HomeVestors and We Buy Ugly Houses occasionally work in rural Kansas markets for fix-and-flip opportunities that could be converted to short-term rentals. Additionally, platforms like Mashvisor and AirDNA provide market analysis tools specifically for Airbnb investment properties in smaller Kansas communities, helping investors evaluate potential returns in markets like Dorrance.