Is Hays, Kansas Good for Airbnb Investment?

To start an Airbnb in Hays, Kansas, begin by researching local regulations through the City of Hays Planning Department, as Kansas generally allows short-term rentals but municipalities may have specific zoning requirements and occupancy limits. Contact Hays City Hall at 785-628-7350 to verify if you need a business license or special permits, and check with Ellis County for any county-level requirements. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near Fort Hays State University or downtown Hays for higher demand. Obtain necessary permits including a business license from the city (estimated $25-50 annually) and ensure compliance with fire safety codes and building inspections. Purchase comprehensive insurance that covers short-term rentals, as standard homeowner's policies typically exclude commercial activities. Furnish the property with quality basics including Wi-Fi, linens, kitchen essentials, and local guidebooks featuring attractions like the Sternberg Museum and Historic Fort Hays. Create your Airbnb listing with professional photos highlighting unique features and proximity to FHSU campus, pricing competitively around $60-120 per night based on local market rates. Manage bookings through Airbnb's platform or consider local property management companies, establish cleaning protocols between guests, and maintain responsive communication with visitors while highlighting local attractions like the Ellis County Historical Society and nearby Wilson Lake recreation areas.

To identify profitable short-term rental properties in Hays, Kansas, focus on locations within 1-2 miles of Fort Hays State University campus and downtown areas near Main Street, as these attract visiting families, university guests, and business travelers. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these appeal to longer-stay guests common in smaller markets. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the limited existing STR inventory, typically ranging $75-150/night, while analyzing occupancy rates of competitors through direct observation and booking calendar monitoring. Research competition by examining all active Airbnb and VRBO listings within a 5-mile radius, noting their amenities, pricing strategies, and guest reviews to identify market gaps. Utilize local resources including the Hays Convention and Visitors Bureau for event calendars, Fort Hays State University's academic calendar for peak demand periods, and the Ellis County Assessor's office for property values and tax information, while connecting with local real estate agents familiar with investment properties and rental regulations in Hays city limits.

To obtain an Airbnb/STR permit in Hays, Kansas, you must first contact the Hays City Hall at 1507 Main Street or call (785) 628-7350 to inquire about their short-term rental licensing requirements, as the city implemented regulations around 2019-2020. You'll need to submit a completed business license application, provide proof of property ownership or lease agreement with landlord consent, submit a floor plan of the rental property, provide proof of liability insurance (typically $1 million minimum), and pass a safety inspection that includes smoke detectors, carbon monoxide detectors, and fire extinguishers. The application fee is approximately $50-100 annually, with additional inspection fees of around $75-150. Required documents also include a site plan showing parking availability, contact information for a local property manager if you're not local, and compliance with zoning requirements (STRs are typically allowed in residential zones with restrictions on the number of guests and parking). The timeline is usually 30-45 days from application submission to permit approval, provided all inspections pass and documentation is complete. Hays requires STR operators to maintain occupancy limits based on bedroom count, provide adequate off-street parking, maintain quiet hours from 10 PM to 7 AM, and register with the Kansas Department of Revenue for tax collection purposes.

Short-term rentals (STRs) are generally legal in Hays, Kansas, as the city has not enacted specific prohibitions against vacation rentals or short-term accommodations. However, STR operators must comply with standard zoning regulations, business licensing requirements, and health and safety codes that apply to all rental properties in the city. Properties used as short-term rentals are typically subject to the same occupancy limits, parking requirements, and noise ordinances as other residential uses, and operators may need to obtain a business license from the city. While there are no specific STR-only restrictions or prohibited zones identified in Hays' municipal code as of recent years, property owners should verify compliance with residential zoning districts and any homeowners association rules that might apply. The city has not implemented recent changes specifically targeting short-term rentals, but operators should maintain proper insurance, collect applicable taxes, and ensure their properties meet all building and fire safety standards required for rental accommodations.

The best areas for Airbnb investment in Hays, Kansas include the downtown historic district near Main Street and 8th Street, which attracts visitors to Fort Hays State University events, local festivals, and business travelers visiting the regional medical facilities and government offices. The neighborhoods surrounding Fort Hays State University campus, particularly areas within walking distance of the university, offer strong rental potential due to visiting families during graduation ceremonies, prospective student visits, and academic conferences throughout the year. The Ellis County Fairgrounds vicinity becomes highly desirable during the annual Wild West Festival in July and other county fair events, creating seasonal demand spikes. Areas near the Hays Regional Airport and along Interstate 70 corridor appeal to business travelers and those passing through western Kansas, while neighborhoods close to HaysMed hospital attract medical tourists and families of patients requiring extended stays. The residential areas near Frontier Park and the Hays Aquatic Center draw families visiting for youth sports tournaments and recreational activities, making properties in these locations particularly attractive for short-term rental investments.

In Hays, Kansas, Airbnb properties are subject to both state and local lodging taxes. The Kansas state transient guest tax is 6% on gross receipts from lodging rentals under 28 days, which applies to short-term rentals like Airbnbs. Ellis County imposes an additional transient guest tax of approximately 2-3% on lodging accommodations. The City of Hays may also levy a local lodging tax of around 2-5% depending on current municipal ordinances. These taxes are typically collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits state taxes to the Kansas Department of Revenue on behalf of hosts in participating jurisdictions. However, hosts may need to register separately with Ellis County and the City of Hays to collect and remit local taxes directly, usually on a monthly or quarterly basis. Exemptions generally apply to stays exceeding 28 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may also be exempt from these occupancy taxes.

To start an Airbnb in Hays, Kansas, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $140,000-$160,000 based on median home prices in Hays. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Kansas generally cost $500-$1,500 depending on local requirements and business license needs. Insurance for short-term rentals runs $1,200-$2,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), and marketing expenses ($150/month) add roughly $6,300. Additional considerations include property taxes, HOA fees if applicable, and a recommended cash reserve of $5,000-$10,000 for unexpected expenses and vacancy periods.

Airbnb properties in Hays, Kansas typically generate modest returns with average daily rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance ($200-400 monthly) typically consume 45-60% of gross revenue. Properties near Fort Hays State University perform strongest during the academic year and graduation periods, with some hosts reporting annual profits of $8,000-15,000 on 2-3 bedroom homes purchased for $80,000-140,000, yielding net profit margins of 15-25%. Success factors include proximity to the university, downtown location, competitive pricing during peak events like homecoming and graduation, professional photography, and maintaining high cleanliness standards. A case study from 2022-2023 showed a renovated 3-bedroom home near campus generating $28,000 in annual revenue with $18,000 in expenses, netting $10,000 profit, though seasonal fluctuations during summer months can reduce occupancy to 30-40%, making year-round profitability challenging without strategic pricing and marketing to business travelers and regional visitors.

Airbnb investments in Hays, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by Fort Hays State University student demand and regional business travelers. Properties near the university campus or downtown area can achieve occupancy rates of 65-75% annually, with average daily rates between $75-$110 depending on property size and amenities. Initial profitability usually occurs within 18-24 months after accounting for startup costs, furnishing, and marketing expenses, while properties purchased below $150,000 tend to perform better due to lower carrying costs. The market benefits from limited hotel inventory and consistent demand from university events, sports tournaments, and agricultural business visitors, though seasonal fluctuations occur during summer months when student occupancy decreases by approximately 30-40%.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities including in Hays, Kansas. Local real estate agents in Hays who work with investors include Coldwell Banker American Dream, RE/MAX of Hays, and Century 21 Western Realty, with agents like those at Weigel Realty and Riedel Real Estate having experience in investment properties. National services that help investors find Airbnb properties include Mashvisor, which provides rental analytics and property search tools, AirDNA for market data and revenue projections, Awning for turnkey Airbnb investments, Roofstock for rental property investments, and BiggerPockets for investor networking and deal sourcing. Additional local services in the Hays area include property management companies like Hays Property Management and investment-focused brokerages such as Realty Executives, while national platforms like Vacasa and RedAwning offer property management services for short-term rentals once properties are acquired.