Is Havana, Kansas Good for Airbnb Investment?

To start an Airbnb in Havana, Kansas, begin by researching Montgomery County's zoning regulations and contacting the city clerk's office to understand local short-term rental requirements, as Kansas allows municipalities to regulate these properties independently. Obtain necessary business licenses from both the city of Havana and Montgomery County, register for Kansas sales tax with the Department of Revenue (typically 6.5% state rate plus local taxes), and secure appropriate insurance coverage that includes short-term rental liability. Find a suitable property by searching local real estate listings, considering proximity to attractions like the Coffeyville area or outdoor recreation spots, ensuring the property meets safety codes and has adequate parking. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, WiFi, and local guidebooks highlighting nearby attractions like the Elk City Lake or historic sites in the region. Create your Airbnb listing with high-quality photos, competitive pricing (likely $50-80 per night based on rural Kansas markets), and detailed descriptions emphasizing the peaceful rural setting and proximity to outdoor activities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the property regularly, and keeping detailed records for tax purposes while ensuring compliance with any noise ordinances or occupancy limits that Havana may enforce.

For identifying profitable short-term rental properties in Havana, Kansas, focus on properties within 2-3 miles of key attractions like the Havana Historical Museum or near recreational areas along the Caney River, as this small town of approximately 100 residents relies heavily on rural tourism and hunting/fishing visitors. Target 2-3 bedroom single-family homes or cabins built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as guests prefer self-contained properties for extended stays averaging 3-5 nights. Conduct pricing analysis using AirDNA or Mashvisor to benchmark against similar rural Kansas markets like Sedan or Cedar Vale, aiming for $75-120 per night depending on property size and amenities, with seasonal adjustments for hunting seasons (fall/winter) commanding 20-30% premiums. Research competition within a 15-mile radius using Airbnb and VRBO searches, noting that limited inventory in Havana creates opportunities but requires marketing to Wichita (45 miles) and Tulsa (60 miles) metro areas. Utilize tools like STR Helper for market analysis, connect with Montgomery County tourism boards, monitor Kansas hunting/fishing license sales data through KDWPT, and leverage Facebook groups focused on Kansas rural tourism to identify demand patterns and optimal property characteristics for this niche market.

To obtain an Airbnb/STR permit in Havana, Kansas, contact the Montgomery County Planning and Zoning Department at 620-331-2510 or visit their office at 300 1st Street in Independence, Kansas, as Havana falls under county jurisdiction. You'll need to submit a completed short-term rental application form, property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), septic system inspection certificate if applicable, and fire safety inspection report. The application fee is approximately $150 with an annual renewal fee of $75, and you must also obtain a Kansas sales tax permit from the Department of Revenue. Required documents include a notarized affidavit of compliance with county health codes, parking plan showing adequate off-street parking, and contact information for a local property manager if you're an absentee owner. The approval process typically takes 30-45 days after submission of complete documentation, and properties must comply with Montgomery County's rural zoning requirements including maximum occupancy limits of 2 persons per bedroom plus 2 additional guests, quiet hours from 10 PM to 7 AM, and maintenance of septic systems to county standards. Annual inspections are required for permit renewal, and all STR income must be reported to Kansas Department of Revenue with applicable state and local taxes collected from guests.

Short-term rentals (STRs) are legal in Havana, Kansas, as the small city does not have specific ordinances prohibiting them, operating under Kansas state law which generally permits STRs unless locally restricted. Havana, with a population of approximately 100 residents, has no formal zoning restrictions or registration requirements for STRs, though operators must comply with basic state tax obligations and safety standards. The city has not implemented recent legal changes regarding STRs, likely due to its rural nature and limited tourism demand, and there are no specifically prohibited areas within the city limits. Property owners can operate STRs in residential zones without special permits, though they should verify compliance with Montgomery County regulations and Kansas Department of Revenue requirements for tax collection, as the state requires STR operators to collect and remit sales and transient guest taxes.

The best areas for Airbnb investment in Havana, Kansas include the historic downtown district near Main Street, which attracts visitors interested in small-town charm and antique shopping, particularly during the annual Havana Fall Festival and summer community events. The residential neighborhoods within walking distance of Havana Community Unit School District are ideal for families visiting for school events, graduations, and sports tournaments throughout the year. Properties near the Spoon River area offer appeal to outdoor enthusiasts and hunters, especially during fall hunting seasons when demand peaks. The areas close to Route 78 and Route 97 intersection provide convenient access for business travelers and those visiting nearby Peoria (about 30 minutes away) who prefer quieter, more affordable accommodations outside the city. Additionally, neighborhoods near local churches and community centers see increased demand during wedding seasons and family reunions, as Havana serves as a central location for extended families gathering from across central Illinois.

Airbnb hosts in Havana, Kansas are subject to Kansas state transient guest tax of 6% on gross rental receipts, which applies to lodging rentals of less than 28 consecutive days. Montgomery County, where Havana is located, does not impose additional local lodging taxes as of 2023. The state tax is collected either by the host directly from guests or through Airbnb's automated tax collection service, which began collecting Kansas transient guest taxes in 2019. Hosts who collect taxes directly must register with the Kansas Department of Revenue, file monthly returns by the 25th of the following month, and remit payments electronically through the state's tax portal. Airbnb automatically collects and remits these taxes on behalf of hosts in participating jurisdictions, appearing as a separate line item on guest invoices. Exemptions include rentals to permanent residents (28+ consecutive days), certain government employees on official business, and properties rented for more than 28 consecutive days to the same guest, though hosts must maintain proper documentation to claim exemptions and may need to provide exemption certificates for qualifying stays.

To start an Airbnb in Havana, Kansas, the total costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in rural Kansas communities. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permits, and inspection fees would total $500-$1,500 depending on local regulations. Insurance including landlord and short-term rental coverage would cost $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable would be $500-$1,000. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing would total approximately $6,000-$8,000, assuming moderate occupancy rates for a rural Kansas market.

Airbnb properties in Havana, Kansas face significant profitability challenges due to the small market size and limited tourism demand in this rural community of approximately 100 residents. Average nightly rates typically range from $40-70, with occupancy rates averaging 15-25% annually, generating gross revenues of $2,200-4,300 per year for a typical 2-bedroom property. Operating expenses including utilities ($1,200), insurance ($800), cleaning fees ($600), maintenance ($500), and Airbnb fees (3% host fee plus guest service fees) typically total $3,500-4,200 annually, resulting in razor-thin profit margins of -10% to 15%. Success factors in this market include targeting niche guests such as hunters during deer season (November-December), motorcycle tourists traveling Route 160, or visitors to nearby Pratt County attractions, with properties featuring outdoor amenities like fire pits or RV hookups performing marginally better. Most profitable properties are owner-occupied homes offering spare rooms rather than dedicated rental units, as this reduces fixed costs, though even these typically generate only $500-1,500 in annual profit after expenses, making Havana a challenging market for sustainable Airbnb investment compared to larger Kansas cities like Wichita or Lawrence.

Airbnb investments in Havana, Kansas are expected to generate annual ROI of 8-12% based on the limited tourism infrastructure and rural market conditions in this small community of approximately 100 residents. Cash-on-cash returns typically range from 6-10% annually, with initial property acquisition costs averaging $45,000-$75,000 for suitable rental properties. The timeframe to profitability is estimated at 18-24 months, considering the seasonal nature of tourism in rural Kansas and the need to establish market presence. Properties near Havana's proximity to larger Kansas attractions like the Flint Hills or within driving distance of Wichita (approximately 45 miles) tend to perform better, with occupancy rates averaging 35-45% annually. The market benefits from lower competition and property costs compared to urban areas, though revenue per night typically ranges from $65-$95, requiring strategic marketing to outdoor enthusiasts and travelers seeking authentic rural Kansas experiences.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Havana, Kansas, using data analytics and market insights. Local real estate agents like Coldwell Banker Hedrick Realty and RE/MAX Associates in nearby Topeka (approximately 45 minutes from Havana) have experience with investment properties and can assist with Airbnb acquisitions in the rural Kansas market. Roofstock and Mashvisor are national online platforms that provide investment property analysis and can help identify potential Airbnb opportunities in smaller Kansas markets like Havana. AirDNA offers short-term rental market data and analytics that can help investors evaluate the profitability of properties in the Havana area, while BiggerPockets connects investors with local professionals and provides educational resources for Airbnb investing. Local property management companies such as Kansas Property Management Group can handle day-to-day operations of Airbnb properties, and national services like RedAwning and Vacasa provide full-service Airbnb management solutions that extend to smaller markets in Kansas.