Is Durham, Kansas Good for Airbnb Investment?

To start an Airbnb in Durham, Kansas, begin by researching local zoning laws and regulations through Marion County's planning department, as Durham falls under their jurisdiction, and contact the city clerk to understand any specific short-term rental ordinances, business license requirements, and tax obligations including Kansas state sales tax and any local lodging taxes. Obtain necessary permits including a business license from Marion County, ensure your property meets fire safety codes and building requirements, and consider liability insurance coverage specifically for short-term rentals. Find a suitable property by evaluating locations near attractions like the Durham Rock or within reasonable distance to larger cities like Hillsboro or McPherson for guest appeal, ensuring the property has reliable internet, adequate parking, and meets safety standards. Furnish the space with essential amenities including comfortable bedding, basic kitchen supplies, toiletries, cleaning supplies, and local information guides, while maintaining a clean, welcoming aesthetic that reflects Kansas hospitality. List your property on Airbnb and other platforms like VRBO with high-quality photos, detailed descriptions highlighting nearby attractions and activities, competitive pricing based on similar properties in central Kansas, and clear house rules. Manage your Airbnb by establishing efficient check-in/check-out procedures, maintaining consistent communication with guests, implementing thorough cleaning protocols between stays, monitoring reviews and feedback, keeping detailed financial records for tax purposes, and staying updated on any changes to local regulations in Marion County and Kansas state laws regarding short-term rentals.

To identify profitable short-term rental properties in Durham, Kansas, focus on properties within 2-3 miles of major attractions like the Durham City Park or near Highway 15 for accessibility, targeting 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, and outdoor spaces that can accommodate 4-8 guests. Analyze pricing by researching comparable Airbnb listings within a 10-mile radius, aiming for properties that can generate $80-150 per night with 60-70% occupancy rates, while keeping acquisition costs under $150,000 to maintain healthy profit margins. Conduct competition research using AirDNA and Mashvisor to identify gaps in the market, noting that Durham's small size means limited competition but also smaller demand pools, so consider properties that appeal to visitors attending events at nearby McPherson College or travelers exploring the Smoky Hills region. Utilize tools like Rabbu and PriceLabs for revenue management, partner with local property management companies familiar with Marion County regulations, and leverage the Kansas Tourism Division's data on regional visitor patterns to optimize your investment strategy for this rural market where agricultural tourism and outdoor recreation drive most short-term rental demand.

To obtain an Airbnb/STR permit in Durham, Kansas, you must first contact the Durham City Clerk's office at City Hall located at 110 Main Street or call (620) 732-3223 to inquire about short-term rental regulations, as Durham is a small city that may not have established formal STR permitting processes yet. If permits are required, you'll likely need to submit a business license application, provide proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and completed safety inspection checklist. The application fee is estimated at $50-150 annually, with potential additional inspection fees of $25-75. You must ensure the property meets all building codes, fire safety requirements, and zoning regulations for residential areas. The timeline for approval typically ranges from 2-6 weeks depending on inspection scheduling and document review. Contact the Marion County Health Department at (620) 382-2550 for any required health permits, and check with the Kansas Department of Revenue regarding state tax registration requirements. Since Durham has a population under 3,000, regulations may be minimal, but you should also verify compliance with any homeowner association rules and obtain proper business insurance before hosting guests.

Short-term rentals (STRs) are legal in Durham, Kansas, but the city operates under relatively minimal regulatory oversight typical of smaller Kansas municipalities. Durham, located in Marion County with a population of approximately 100 residents, does not have specific STR ordinances or zoning restrictions prohibiting short-term rentals in residential areas. Property owners can generally operate STRs provided they comply with basic safety requirements, obtain necessary business licenses, and pay applicable taxes including Kansas state sales tax and local lodging taxes if required by Marion County. There are no designated prohibited zones or recent legal changes specifically targeting STRs in Durham, though operators must ensure compliance with general zoning laws, health and safety codes, and any homeowners association restrictions. The regulatory environment remains largely permissive due to the town's small size and limited municipal resources, with enforcement typically complaint-driven rather than proactive, making Durham relatively STR-friendly compared to larger Kansas cities like Lawrence or Overland Park which have implemented more restrictive regulations in recent years.

Durham, Kansas offers limited Airbnb investment opportunities due to its small rural population of approximately 110 residents, but the most promising area would be the historic downtown district near Main Street, which could attract visitors interested in authentic small-town Kansas experiences and those exploring the Flint Hills region. The area around any local grain elevators or agricultural facilities might appeal to business travelers visiting farming operations or agricultural companies during harvest seasons from June through October. Properties near the outskirts of town with rural views could attract urban visitors from Wichita (about 60 miles southeast) or Kansas City seeking weekend retreats and agritourism experiences. The residential areas near any community centers or churches might benefit from family reunions, wedding parties, or religious gatherings that are common in small Kansas communities. However, given Durham's extremely small size and limited tourism infrastructure, investment potential is minimal compared to larger Kansas cities, and any Airbnb property would likely serve primarily as overflow accommodation for events in nearby larger towns like McPherson or Salina.

Durham, Kansas does not currently impose specific lodging or occupancy taxes on Airbnb rentals as of 2024, as the city is a small community in Marion County with a population under 200 residents and lacks the municipal infrastructure typically required for such tax collection systems. However, Airbnb hosts in Durham are still subject to Kansas state sales tax at a rate of 6.5% on short-term rental income, which must be collected from guests and remitted monthly to the Kansas Department of Revenue if gross receipts exceed $1,000 annually. Marion County does not impose additional transient guest taxes, and there are no specific exemptions for short-term rentals under 30 days. Hosts must register for a Kansas sales tax permit, collect the tax from guests, and file returns by the 25th of the month following the reporting period, with payments due at the same time. The state considers short-term rental income as taxable retail sales, and failure to collect and remit these taxes can result in penalties and interest charges from the Kansas Department of Revenue.

Starting an Airbnb in Durham, Kansas requires an estimated total investment of $185,000-$225,000. Property purchase costs around $120,000-$150,000 based on median home prices in rural Kansas communities. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and decor runs $15,000-$25,000. Initial setup including professional photography, listing creation, welcome materials, and basic renovations costs $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees total $500-$1,500. Insurance for short-term rental coverage adds $2,000-$3,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost $1,000-$2,000. First six months of operating costs including utilities ($300/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $4,500. Additional considerations include potential HOA fees, property taxes, and a 10-15% contingency fund for unexpected expenses during the startup phase.

Airbnb properties in Durham, Kansas show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual gross revenue assuming 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-15%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs ($2,000-3,500 yearly). Net profit margins generally fall between 25-35% for well-managed properties, translating to $4,500-9,800 annual profit per unit. Success factors in this rural Kansas market include proximity to local attractions like state parks or lakes, competitive pricing against limited hotel options, exceptional cleanliness standards, and strong guest communication. Properties within 30 minutes of larger cities like Topeka or Kansas City tend to perform better, with some hosts reporting 15-20% higher occupancy rates. A case study from 2023 showed a renovated farmhouse near Durham achieving $32,000 gross revenue with $21,000 net profit after a $15,000 initial investment in furnishing and improvements, demonstrating the market's potential for investors willing to cater to travelers seeking authentic rural experiences.

Airbnb investments in Durham, Kansas can expect annual ROI of 8-12% based on the rural Kansas market dynamics, with cash-on-cash returns typically ranging from 6-10% depending on property acquisition costs and financing structure. Properties in Durham generally achieve profitability within 18-24 months, with average nightly rates of $75-$120 for well-positioned properties near local attractions or business centers. The market benefits from limited competition and lower property acquisition costs averaging $80,000-$150,000, though occupancy rates tend to be seasonal at 45-65% annually. Investors can expect gross rental yields of 10-15% before expenses, with net yields settling around 7-11% after accounting for property management, maintenance, insurance, and local taxes. The timeframe to break-even on initial investment typically occurs within 2-3 years, with stronger performance expected for properties offering unique amenities or targeting the growing agritourism and business traveler segments in the greater Wichita metropolitan area influence zone.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Durham, Kansas. Local real estate agents in the Durham area who work with Airbnb investors include Realty Executives of Topeka (serving the broader region), Coldwell Banker Griffith & Blair, and RE/MAX Associates. National services that help investors find profitable Airbnb properties include AirDNA for market analysis, Mashvisor for property analytics, BiggerPockets for investor networking and deals, Roofstock for turnkey rental properties, and RedAwning for vacation rental market insights. Local property management companies that assist Airbnb investors include Kansas Property Management Solutions and Sunflower State Property Services. Additional national platforms include Awning for Airbnb-focused real estate services, HostGPO for investor resources, and Vacasa for property management and acquisition guidance in emerging markets like Durham.