Is Ellsworth, Kansas Good for Airbnb Investment?

To start an Airbnb in Ellsworth, Kansas, begin by researching local zoning laws and regulations through the Ellsworth City Hall, as Kansas municipalities typically regulate short-term rentals at the city level, and contact the Ellsworth County Planning Department to ensure your property is zoned for commercial or mixed-use activities. Obtain necessary permits including a business license from the city (estimated $25-50 annually), sales tax permit from the Kansas Department of Revenue, and potentially a special use permit for short-term rentals if required by local ordinance. Find a suitable property by searching local real estate listings, considering homes near Ellsworth's historic downtown area or properties that showcase the rural Kansas charm, with average home prices ranging $80,000-150,000 in the area. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and local Kansas-themed decor, budgeting approximately $3,000-8,000 for initial furnishing depending on property size. List your property on Airbnb and other platforms like VRBO, highlighting unique features such as proximity to Ellsworth's historic sites, Wilson Lake recreation area (30 miles away), or the peaceful rural setting, with competitive pricing around $60-120 per night based on local market rates. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges (consider a lockbox system), maintaining the property regularly, collecting and remitting Kansas state sales tax (6.5% plus local taxes), and keeping detailed records for tax purposes while building positive reviews to increase bookings in this smaller Kansas market.

To identify profitable short-term rental properties in Ellsworth, Kansas, focus on properties within walking distance of downtown attractions like the Ellsworth Historic District and near Highway 70 for traveler accessibility, as the area sees moderate tourism from history enthusiasts and road trippers. Target 2-3 bedroom single-family homes or historic properties built between 1900-1950 that can accommodate 4-6 guests, with essential features including reliable Wi-Fi, air conditioning, full kitchens, and parking, while properties with unique character like Victorian architecture or farm themes perform better given the rural Kansas setting. Pricing analysis should benchmark against similar properties in Salina and Hays (approximately $80-120/night), accounting for Ellsworth's smaller market size and seasonal fluctuations during summer months and hunting seasons. Competition research reveals limited STR inventory with fewer than 10-15 active listings on major platforms, creating opportunity but requiring careful positioning against local motels and the limited hotel options. Utilize AirDNA for market data, STR Helper for pricing optimization, and local resources like the Ellsworth Chamber of Commerce for event calendars, while monitoring booking patterns around the Ellsworth County Fair, hunting seasons, and summer travel periods when analyzing comparable properties in similar rural Kansas markets like Russell or Lincoln.

To obtain an Airbnb/STR permit in Ellsworth, Kansas, contact the Ellsworth City Clerk's office at City Hall located at 210 N Douglas Avenue or call (785) 472-4161 to begin the application process. You will need to submit a completed business license application, proof of property ownership or lease agreement with landlord consent, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and contact information for a local property manager if you live more than 50 miles away. The application fee is typically $100-150 with an annual renewal fee of $75, and you may need to pay additional inspection fees of $50-75. Required documents include a valid Kansas driver's license or state ID, completed health and safety inspection by the city's building department, and proof of compliance with fire safety codes including smoke detectors and carbon monoxide detectors in all sleeping areas. The approval timeline is generally 30-45 days from submission of complete application, during which the city will conduct a property inspection and review all documentation. Ellsworth requires STR properties to maintain a guest registry, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking spaces, and ensure quiet hours from 10 PM to 7 AM, with the property owner or designated local contact person available 24/7 for any issues that may arise.

Short-term rentals (STRs) in Ellsworth, Kansas are generally legal but operate under limited local regulation as of 2024. The city, with a population of approximately 3,000, does not have comprehensive STR-specific ordinances, meaning they typically fall under existing residential and business licensing requirements. Property owners must comply with standard zoning regulations, safety codes, and may need basic business licenses depending on the scale of operation. There are no specific prohibited areas designated for STRs within city limits, though properties must conform to residential zoning standards. Recent legal changes have been minimal, with the city taking a relatively hands-off approach compared to larger Kansas municipalities, though this could change as STR activity increases. The Kansas state legislature has generally supported property rights regarding short-term rentals, limiting local governments' ability to impose overly restrictive regulations. Property owners should verify current licensing requirements with Ellsworth city hall and ensure compliance with fire safety codes, occupancy limits, and tax obligations including state and local lodging taxes.

The best areas for Airbnb investment in Ellsworth, Kansas would be the historic downtown district near Main Street, which attracts visitors interested in the town's Old West heritage and proximity to attractions like the Hodgden House Museum. The residential neighborhoods within walking distance of Kanopolis State Park (approximately 15 miles south) offer potential for outdoor recreation tourists seeking fishing, boating, and camping alternatives. Areas near the Union Pacific Railroad corridor may capture business travelers and railroad enthusiasts, while properties close to Highway 140 and Interstate 70 access points benefit from travelers passing through central Kansas. The neighborhoods around the Ellsworth County Fairgrounds see seasonal demand during fair events and agricultural gatherings, and properties near local ranching operations may attract agritourism visitors interested in authentic Kansas ranch experiences and cattle drive reenactments that occasionally occur in the area.

Airbnb properties in Ellsworth, 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. Additionally, Ellsworth County may impose a local transient guest tax of up to 2%, though the specific rate varies by jurisdiction and would need to be verified with county officials. The city of Ellsworth does not appear to have a separate municipal lodging tax as of 2023. Hosts must register with the Kansas Department of Revenue, collect taxes from guests at the time of booking or check-in, and file returns by the 25th of the following month using form ST-16. Exemptions typically include stays of 28 days or longer, certain government employees on official business, and some nonprofit organization travelers, though documentation may be required to claim exemptions.

Starting an Airbnb in Ellsworth, Kansas requires approximately $85,000-$95,000 in total initial investment. Property purchase costs around $65,000 based on median home prices in rural Kansas towns like Ellsworth. Furnishing a 2-3 bedroom property costs $8,000-$12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup expenses total $2,500-$3,500 covering professional photography, listing creation, welcome materials, and basic renovations or deep cleaning. Permits and fees range from $500-$800 including business license, short-term rental permit, and any required inspections. Insurance costs $1,200-$1,800 annually for landlord and short-term rental coverage. Utility setup and deposits require $300-$500 for electricity, water, gas, internet, and cable services. First six months operating costs total $4,500-$6,500 including utilities ($150/month), cleaning services ($100/month), maintenance supplies ($75/month), platform fees to Airbnb and VRBO ($200/month), marketing ($50/month), and miscellaneous expenses ($50/month). Additional considerations include property taxes of approximately $800-$1,200 annually and potential HOA fees if applicable.

Airbnb properties in Ellsworth, Kansas typically generate modest returns due to the small market size and limited tourist demand in this rural community of approximately 3,000 residents. Average nightly rates range from $60-90 for typical 2-3 bedroom properties, with occupancy rates averaging 35-45% annually, resulting in gross revenues of $8,000-15,000 per year. Operating expenses including utilities, cleaning, maintenance, insurance, and Airbnb fees typically consume 40-50% of gross revenue, while property taxes and mortgage payments further reduce profitability. Net profit margins generally range from 8-15% for debt-free properties, though leveraged properties may struggle to achieve positive cash flow. Success factors include proximity to Interstate 70 for travelers, unique property features like historic charm or outdoor amenities, competitive pricing below $80/night, and exceptional guest service to generate positive reviews. Properties near local attractions such as the Mushroom Rock State Park or serving as stopover points for cross-country travelers tend to perform better, with some owners reporting annual net profits of $2,000-4,000 on properties valued at $80,000-120,000, though the limited market size and seasonal fluctuations make Ellsworth a challenging location for significant Airbnb investment returns compared to larger Kansas cities or tourist destinations.

Based on Ellsworth, 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 financing structure. Properties in Ellsworth generally reach profitability within 18-24 months, with average nightly rates of $75-$95 and occupancy rates around 45-55% annually due to the town's proximity to recreational areas and hunting destinations. Initial investment costs for suitable properties range from $80,000-$150,000, with monthly operating expenses including utilities, cleaning, and maintenance averaging $400-$600 per property. The market benefits from steady demand from outdoor enthusiasts visiting nearby Kanopolis State Park and Wilson Lake, though seasonal fluctuations occur with peak performance during spring and fall hunting seasons generating 15-20% higher returns during those quarters.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Ellsworth, Kansas. For local expertise, Prairie Land Realty and Ellsworth County Real Estate have agents familiar with the area's rental market dynamics. National services like AirDNA provide market analytics and revenue projections for Kansas markets, while Mashvisor offers investment property analysis tools that cover smaller markets like Ellsworth. RedAwning specializes in vacation rental property acquisitions nationwide and can assist with Kansas properties. Local property management companies such as Smoky Hill Property Management can provide insights into rental demand and property performance. BiggerPockets' marketplace connects investors with local real estate professionals experienced in short-term rental investments throughout Kansas. Awning offers end-to-end services from property identification to management for Airbnb investments in secondary markets. Local mortgage brokers like First National Bank of Ellsworth understand investment property financing in the area, while national lenders such as Lima One Capital specialize in short-term rental property loans across all markets including rural Kansas locations.