Is Florence, Kansas Good for Airbnb Investment?

To start an Airbnb in Florence, Kansas, begin by researching local zoning laws and regulations through Marion County and the City of Florence, as Kansas generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and tax registration with the Kansas Department of Revenue for state sales tax collection. Contact Florence City Hall at (620) 878-4481 to obtain necessary permits, which typically include a business license ($25-50 annually) and potentially a special use permit if operating in residential zones. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX in the Florence area, considering proximity to attractions like the Harvey County East Park or historic downtown Florence, with property prices ranging from $80,000-150,000 for typical homes. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, WiFi, and local guidebooks, budgeting approximately $5,000-10,000 for complete furnishing from retailers like Walmart in nearby Newton or online suppliers. Create your Airbnb listing with professional photos highlighting the property's proximity to the Flint Hills and small-town Kansas charm, setting competitive rates around $60-90 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges, and maintaining compliance with Kansas health and safety standards while building positive reviews to increase bookings in this rural Kansas market.

To identify profitable short-term rental properties in Florence, Kansas, focus on properties within walking distance of the historic downtown district and near the Harvey County fairgrounds, as these areas attract visitors for events and tourism. Look for 2-3 bedroom homes built between 1900-1950 with original character features like hardwood floors and period details, as well as properties with outdoor spaces and parking, since Florence attracts visitors interested in small-town charm and railroad history. Analyze pricing by researching comparable Airbnb listings within a 20-mile radius including Newton and Hillsboro, targeting nightly rates between $75-120 based on property size and amenities, while calculating potential annual revenue against acquisition costs under $150,000 typical for the area. Competition research should focus on the limited existing STR inventory in Florence, examining occupancy rates and guest reviews on platforms like Airbnb and VRBO to identify service gaps such as pet-friendly options or business traveler amenities. Utilize tools like AirDNA for market analysis, Zillow and Realtor.com for property values, the Harvey County assessor's website for tax information, and connect with Florence's city hall to understand local STR regulations, while leveraging the town's proximity to Interstate 35 and its appeal to travelers seeking authentic Kansas experiences and railroad heritage tourism.

To obtain an Airbnb/STR permit in Florence, Kansas, contact the Florence City Clerk's office at City Hall located at 219 Marion Street or call (620) 878-4477 to begin the application process. Required documents typically include a completed business license application, property deed or lease agreement, proof of liability insurance ($1 million minimum coverage), floor plan of the rental property, and contact information for a local property manager if you're not residing locally. The application fee is approximately $50-75 for the initial business license plus an annual renewal fee of $25-50. Submit your application along with all required documentation to the City Clerk, who will schedule a property inspection with the local fire marshal and building inspector within 2-3 weeks. The inspection covers fire safety equipment, occupancy limits, parking availability, and compliance with residential zoning requirements. Florence requires STR properties to maintain quiet hours from 10 PM to 7 AM, provide adequate parking for guests, and display the permit number in all online listings. Once approved following the inspection, permits are typically issued within 4-6 weeks of initial application, and you must renew annually by December 31st. Additional requirements may include registering with the Kansas Department of Revenue for sales tax collection and maintaining a guest registry for city records.

Short-term rentals (STRs) in Florence, Kansas are generally legal but operate under limited local regulation as of 2024. Florence, a small city in Marion County with approximately 400 residents, does not appear to have comprehensive STR-specific ordinances, meaning they likely fall under general residential use and business licensing requirements. The city would typically require basic business licenses and compliance with health and safety codes, fire regulations, and zoning restrictions that may limit STRs to certain residential districts. There are no known prohibited areas specifically for STRs, though properties must comply with existing residential zoning laws. Recent legal changes have been minimal given the city's small size, but operators should verify current business licensing requirements with Florence City Hall and ensure compliance with Kansas state tax collection requirements for transient accommodations, including remitting state and local sales taxes on rental income.

The best areas for Airbnb investment in Florence, Kansas include the historic downtown district near Main Street, which attracts visitors interested in the town's railroad heritage and proximity to the Santa Fe Trail, and neighborhoods within walking distance of the Florence Historical Museum and Harvey House Museum. The area near Highway 50 corridor offers good accessibility for business travelers and tourists exploring the Flint Hills region. Properties close to the Florence Lake and recreational areas appeal to outdoor enthusiasts and families seeking weekend getaways. The residential areas near the school district and community center provide quiet, family-friendly accommodations for visitors attending local events, high school sports tournaments, or exploring nearby Cottonwood Falls and the Tallgrass Prairie National Preserve, which draws eco-tourists year-round.

Florence, Kansas imposes a transient guest tax of 6% on short-term rental accommodations including Airbnbs, which applies to stays of less than 30 consecutive days. This tax is collected by the host at the time of booking or check-in and must be remitted monthly to the Marion County Treasurer's office by the 20th of the following month using Form TGT-1. The tax applies to the total rental amount excluding cleaning fees, and hosts must register with Marion County before operating. There are no exemptions for stays under 30 days, though permanent residents (30+ day stays) are exempt from the transient guest tax. Additionally, Kansas state sales tax of 6.5% applies to short-term rentals, which hosts must collect and remit quarterly to the Kansas Department of Revenue, bringing the total tax burden to approximately 12.5% for guests staying in Florence Airbnb properties.

The total cost to start an Airbnb in Florence, Kansas would be approximately $85,000-$95,000. Property purchase represents the largest expense at around $65,000-$70,000 based on median home prices in rural Kansas markets. Furnishing costs including beds, linens, kitchen essentials, living room furniture, and décor would run $8,000-$12,000 for a complete 2-3 bedroom setup. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and inspection fees cost approximately $500-$800. Insurance including landlord coverage and short-term rental rider adds $1,200-$1,800 annually. Utility deposits and connections for electricity, gas, water, internet, and cable run $800-$1,200. First six months operating costs including utilities ($600), cleaning supplies ($300), maintenance reserves ($500), platform fees on estimated bookings ($400), and marketing ($200) total approximately $2,000. Additional considerations include property taxes of roughly $1,000-$1,500 annually and potential HOA fees if applicable, though most Florence properties are single-family homes without association requirements.

Airbnb properties in Florence, Kansas typically generate modest returns due to the small market size and limited tourist demand in this rural community of approximately 465 residents. Average nightly rates range from $45-75 for entire homes, with occupancy rates around 35-45% annually, resulting in gross revenues of $6,000-12,000 per year for typical 2-3 bedroom properties. 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 net margins to approximately 15-25% of gross revenue. Success factors in Florence include proximity to the Cottonwood River for fishing enthusiasts, competitive pricing below $70/night, and targeting hunters during fall seasons when occupancy can spike to 70-80% for brief periods. Properties near the historic downtown area or with unique features like restored farmhouses tend to outperform standard residential rentals, with some hosts reporting annual net profits of $2,000-4,000 after all expenses, though this represents a relatively low return on investment compared to urban markets in Kansas like Wichita or Lawrence where similar properties might generate 2-3 times higher returns.

Airbnb investments in Florence, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily due to the town's small population of approximately 465 residents and limited tourist attractions compared to major destinations. Properties in Florence, located in Marion County, generally require initial investments of $80,000-$150,000 for suitable rental homes, with average nightly rates of $75-$120 generating monthly revenues of $800-$1,500 depending on occupancy rates of 40-60%. Most investors achieve profitability within 18-24 months, though success heavily depends on marketing to travelers visiting nearby attractions like the Santa Fe Trail or guests attending events at Wichita State University approximately 45 minutes away. The market benefits from lower property acquisition costs and minimal competition, but faces challenges with seasonal demand fluctuations and limited repeat visitor traffic, making it more suitable for investors seeking steady but modest returns rather than high-growth opportunities.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Florence, Kansas. In the Kansas market, investors can work with local real estate agents like Coldwell Banker Schmidt Realtors and RE/MAX Associates who have experience with investment properties in the Florence area. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and Awning for turnkey Airbnb investment properties. Local property management companies such as Kansas Property Management Group and Flint Hills Property Management can assist with ongoing operations. Additional national platforms include BiggerPockets for networking with local investors, Roofstock for online real estate investing, and RedAwning for vacation rental market insights. Regional real estate firms like Berkshire Hathaway HomeServices and Century 21 have agents familiar with investment properties in the Florence market, while companies like Vacasa and RedAwning Property Management offer full-service Airbnb management solutions for investors looking to operate remotely in the Kansas market.