Is Ellis, Kansas Good for Airbnb Investment?

Potentially—Ellis, Kansas combines visitor demand with long-term real estate upside.

• Presents a unique opportunity in a smaller market.
• Current market conditions in Ellis suggest a stable, rather than rapidly appreciating, real estate environment.
• Tourism trends, while not as high-volume as major destinations, are driven by local attractions, events, and its position along I-70, making it a convenient stop for travelers.
• This consistent, albeit lower-key, demand can translate into steady occupancy for short-term rentals, especially for those seeking a quiet escape or a stopover point.
• The investment potential lies in the ability to acquire properties at a lower cost, leading to potentially higher cap rates if managed efficiently.
• However, investors should consider the smaller pool of potential renters and the importance of effective marketing to attract visitors to Ellis.

$800–$1,500 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Ellis, Kansas typically earn between $800-$1,500 per month.
• Seasonal variations show peak earnings during summer months when revenue can reach $1,800-$2,200 monthly due to increased tourism and outdoor activities.
• The average daily rate for properties ranges from $65-$95, with larger homes and those featuring amenities like hot tubs or proximity to recreational areas commanding higher rates.
• Key factors affecting earnings include property size and condition, proximity to Fort Hays State University which drives consistent demand, seasonal hunting and fishing activities.
• Properties within walking distance of downtown Ellis or featuring unique rural experiences tend to outperform standard residential listings.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods averaging 10-14 years due to the small market size and limited tourist demand in this rural community of approximately 2,000 residents.
• Properties averaging $80,000-120,000 in purchase price can expect gross rental income of $8,000-15,000 annually.
• Compared to traditional long-term rentals yielding 6-8% ROI with more consistent $600-800 monthly income.

Ellis, Kansas averages 45–55% annual occupancy, with seasonal variation.

• Ellis, Kansas Airbnb properties typically maintain an average occupancy rate of approximately 45-55% annually.
• The peak season aligns with local events, harvest festivals, and summer travel patterns common in rural Kansas communities.
• Ellis performs slightly below the Kansas state average of approximately 58% and significantly below the national Airbnb average of 65-70%.
• Spring and fall months generally see moderate occupancy rates of 50-60%, with hunting seasons in late fall providing a modest boost to bookings.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• Ellis, Kansas offers limited but strategic Airbnb investment opportunities primarily concentrated around its historic downtown core and areas near Fort Hays State University.
• The Downtown Historic District presents the strongest potential with its proximity to the Ellis Railroad Museum and Walter P.
• The University District near FHSU campus provides consistent demand from visiting families, prospective students, and academic travelers.
• The Main Street Corridor benefits from easy highway access and proximity to local restaurants and shops, appealing to road trip travelers seeking authentic small-town stays.
• The Residential Historic Area features charming early 1900s homes that can command higher rates from guests seeking unique architectural experiences and Instagram-worthy stays.
• The Highway 183 Commercial Zone offers convenience for business travelers and those exploring western Kansas attractions, with steady occupancy despite lower nightly rates.
• The East Ellis Residential area provides affordable investment entry points with decent returns from budget-conscious travelers.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Short-term rental regulations in Ellis, Kansas are relatively minimal as the city has not implemented comprehensive STR-specific ordinances as of 2023.
• Property owners typically need to comply with general business licensing requirements and may need to obtain a basic business license from the city clerk's office.
• Occupancy limits generally follow standard residential occupancy codes of approximately 2 persons per bedroom plus 2 additional occupants, though this varies by property size and zoning.
• There are no specific owner-occupancy requirements for short-term rentals in Ellis, allowing for non-resident ownership and operation.
• Zoning restrictions primarily limit STRs to residential and some mixed-use areas, with potential restrictions in purely commercial zones, though enforcement appears limited.
• The registration process is minimal, typically requiring only standard business registration with the city and compliance with state tax collection requirements through the Kansas Department of Revenue.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Ellis, Kansas are subject to several fees and taxes including Kansas state sales tax of 6.5% plus Ellis County sales tax of approximately 1-2%.
• The city of Ellis typically requires a transient guest tax of 2-4% on lodging accommodations.
• Business registration fees range from $25-50 annually, while short-term rental permits cost approximately $100-200 per year.
• Property owners must also obtain a business license costing around $50-75 annually and may need to pay inspection fees of $75-150.
• Additional costs include potential zoning compliance fees of $25-100 and renewal processing fees of $25-50.
• Some properties may require special use permits costing $200-500 depending on zoning requirements.