Is Gorham, Kansas Good for Airbnb Investment?

To start an Airbnb in Gorham, Kansas, begin by researching local regulations through Russell County and the City of Gorham offices, as Kansas generally allows short-term rentals but municipalities may have specific zoning requirements or occupancy limits. Contact Gorham City Hall at (785) 637-5311 to inquire about business licenses, which typically cost $25-50 annually, and verify if your property is zoned for short-term rentals. Obtain necessary permits including a general business license from the city and register for Kansas sales tax with the Department of Revenue since you'll need to collect 6.5% state sales tax plus any local taxes. Find a suitable property by searching local real estate listings or consider converting an existing home, focusing on properties near Gorham's grain elevators or along Highway 40 for traveler convenience, with average home prices around $60,000-80,000. Furnish the space with essential amenities including Wi-Fi, basic kitchen supplies, linens, and comfortable furniture, budgeting approximately $3,000-5,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-80 per night based on rural Kansas market rates, highlighting proximity to Wilson Lake (30 miles away) and peaceful rural setting. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, and maintaining the property regularly, considering hiring local cleaning services in nearby Hays or Russell if needed, while ensuring compliance with Kansas innkeeper laws and maintaining proper insurance coverage through your homeowner's policy or specialized short-term rental insurance.

To identify profitable short-term rental properties in Gorham, Kansas, focus on properties within walking distance of downtown Main Street and near recreational areas like the Gorham City Lake, as these locations attract visitors exploring rural Kansas attractions and outdoor activities. Target 2-3 bedroom single-family homes or historic properties built between 1900-1950 that offer authentic small-town charm, with features like original hardwood floors, covered porches, and modern amenities including high-speed internet, full kitchens, and air conditioning. Analyze pricing by researching comparable rentals within a 30-mile radius including Hays and Russell, aiming for 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 examine existing Airbnb and VRBO listings in Ellis County, noting that limited inventory creates opportunities for well-positioned properties targeting travelers visiting Fort Hays State University, Sternberg Museum, or passing through on Highway 40. Utilize tools like AirDNA for market analysis, Zillow and Realtor.com for property values, STR Helper for revenue projections, and connect with Gorham Real Estate agents familiar with investment properties, while monitoring Kansas state and Ellis County regulations for short-term rental compliance requirements.

To obtain an Airbnb/STR permit in Gorham, Kansas, contact the Gorham City Clerk's office at City Hall located at 718 Main Street or call (785) 637-5331 to begin the application process, as this small city likely requires a basic business license and special use permit for short-term rentals. Required documents typically include a completed application form, property deed or lease agreement, proof of liability insurance ($1 million minimum coverage), floor plan of the rental unit, contact information for a local property manager if you're not local, and proof of compliance with fire safety codes. Application fees generally range from $50-150 for the initial permit plus $25-75 for annual renewals, with possible additional inspection fees of $50-100. The timeline is usually 30-60 days from submission to approval, depending on city council meeting schedules and any required inspections. Specific Gorham requirements likely include maintaining the property's residential character, providing adequate parking (minimum 2 spaces), ensuring proper waste management, limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 10 PM to 7 AM, and having a local contact person available 24/7 for any issues that may arise during guest stays.

Short-term rentals (STRs) in Gorham, Kansas are generally legal as the small rural community in Russell County does not have specific municipal ordinances prohibiting them, operating under Kansas state law which allows property owners to rent their homes for short periods. However, STR operators must comply with state tax requirements including collecting and remitting transient guest taxes, and properties must meet basic safety and health standards. As a small town with a population under 400, Gorham has not implemented the detailed zoning restrictions or registration requirements seen in larger Kansas cities, though operators should verify compliance with any county-level regulations and ensure proper business licensing. There have been no recent significant legal changes specific to Gorham regarding STRs, as the community has not seen the tourism pressure that has prompted stricter regulations in places like Lawrence or Overland Park, making it relatively permissive for property owners wanting to operate vacation rentals.

The best areas for Airbnb investment in Gorham, Kansas would be the historic downtown district near Main Street, which attracts visitors interested in the town's railroad heritage and proximity to Wilson Lake recreational activities. The residential neighborhoods along 6th and 7th Streets offer affordable properties with easy access to local amenities and are popular with business travelers visiting agricultural operations and oil industry facilities in the region. Properties near the Gorham City Park and community center appeal to families attending youth sports tournaments and local events, while homes within walking distance of the Gorham Golf Course attract weekend recreational visitors from larger Kansas cities like Hays and Russell who come for affordable golf packages and small-town charm.

Airbnb properties in Gorham, 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. Ellis County, where Gorham is located, does not impose additional county-level lodging taxes as of 2023. The city of Gorham does not currently have a municipal occupancy tax ordinance in place. Hosts must register with the Kansas Department of Revenue, collect the 6% tax from guests at the time of booking or check-in, and file monthly returns by the 25th of the following month using form ST-16. Exemptions include stays of 28 days or longer, government employees on official business, and certain nonprofit organization stays. Properties generating less than $4,000 in annual gross receipts are exempt from collection requirements but guests may still owe use tax directly to the state.

To start an Airbnb in Gorham, Kansas, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$150,000 based on median home prices in rural Kansas communities. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees are minimal in small Kansas towns, estimated at $200-$500 for business licenses and short-term rental permits. Insurance costs approximately $1,200-$1,800 annually for landlord and short-term rental coverage. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs including cleaning supplies, maintenance, marketing, platform fees, and miscellaneous expenses total approximately $2,000-$3,000. Property taxes and ongoing maintenance should also be factored at roughly $2,000-$3,000 for the initial six-month period, bringing the comprehensive startup investment to the estimated range.

Airbnb properties in Gorham, Kansas face challenging profitability conditions due to the town's small population of approximately 334 residents and limited tourism infrastructure. Properties in this rural western Kansas community typically generate annual revenues between $8,000-$15,000, with average daily rates around $65-85 and occupancy rates of 25-35% annually. Operating expenses including utilities, cleaning, maintenance, insurance, and platform fees typically consume 60-70% of gross revenue, resulting in net profit margins of 15-25% before mortgage costs. Success factors include targeting travelers along US Highway 40, hunters during pheasant season, and visitors to nearby attractions like Castle Rock or those passing through to Colorado ski destinations. Properties that differentiate themselves with unique rural experiences, such as farm stays or stargazing opportunities, can achieve slightly higher rates of $90-110 per night. However, the limited local demand means most successful operators rely heavily on transient traffic and seasonal hunting tourism, with many properties remaining vacant for extended periods during winter months, making long-term profitability dependent on low acquisition costs and minimal debt service.

Airbnb investments in Gorham, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the town's proximity to agricultural operations and occasional business travelers visiting grain elevators and farming operations. Properties in Gorham, with median home prices around $85,000-$120,000, can achieve profitability within 18-24 months when targeting nightly rates of $65-$85, though occupancy rates average 35-45% annually due to the rural location and limited tourist attractions. The market benefits from minimal competition and low property acquisition costs, but investors should expect seasonal fluctuations with higher demand during harvest seasons (September-November) and lower occupancy during winter months, making break-even typically achievable by month 20-26 with proper property management and marketing to agricultural workers and regional business visitors.

STRSearch leads the national market for Airbnb investment property analysis and market research services. In Gorham, Kansas, investors can work with local real estate agents like those at Hays Real Estate Group and Century 21 Western Realty who serve the Ellis County area and understand short-term rental regulations. National services include Mashvisor for property analysis, AirDNA for market data, and RedAwning for vacation rental property listings. Local property management companies such as Sunflower Property Management and High Plains Property Services can assist with ongoing operations. Real estate investment platforms like Roofstock and BiggerPockets connect investors with Kansas properties, while companies like AvantStay and Vacasa offer full-service management solutions for short-term rentals in smaller Kansas markets. Local banks such as First National Bank of Hays provide financing options for investment properties in the region.