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 if your property is zoned for short-term rentals in residential areas. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX in Hays, focusing on areas near Fort Hays State University or downtown for higher demand, with average property prices ranging $80,000-$150,000 for starter homes. Obtain necessary permits including a Kansas sales tax license through the Department of Revenue and potentially a City of Hays business license, while ensuring compliance with fire safety codes and occupancy limits typically set at 2 people per bedroom plus 2 additional. Furnish the property with essential amenities including Wi-Fi, basic kitchen supplies, linens, and furniture, budgeting approximately $3,000-$8,000 for a complete setup, and consider local suppliers like Furniture Mall of Kansas or online retailers. List your property on Airbnb and VRBO with competitive pricing around $60-$120 per night based on Hays market rates, highlighting proximity to Fort Hays State University, Sternberg Museum, and local attractions. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, and maintaining the property regularly while tracking income for tax purposes and remitting Kansas sales tax quarterly at the current rate of 6.5% plus local taxes.

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 reliable internet, as Hays lacks luxury hotel options making well-appointed STRs competitive. Analyze pricing by researching Airbnb and VRBO listings in the $80-150 nightly range, considering seasonal demand peaks during university events, graduation, and summer sports camps at FHSU. Competition research should focus on the limited existing STR inventory, typically 15-25 active listings city-wide, with opportunities in underserved areas like near Hays Medical Center for medical tourism. Utilize AirDNA for market analytics, monitor Fort Hays State University's event calendar for demand forecasting, check Hays city regulations for STR compliance requirements, and leverage local real estate agents familiar with investment properties, while considering that cap rates of 8-12% are achievable given Hays' affordable property prices ranging from $80,000-200,000 for suitable STR investments.

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 short-term rental licensing requirements, as the city implemented STR regulations around 2019-2020. You'll need to submit a completed short-term rental application form along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you're not local, and a site plan showing parking availability. The application fee is approximately $100-150 with an annual renewal fee of $75-100, and you may need to pay additional inspection fees of $50-75. The approval timeline typically takes 30-45 days after submitting a complete application, during which the city will conduct a safety inspection to ensure compliance with fire codes, occupancy limits, and zoning requirements. Hays-specific requirements include maintaining a maximum occupancy of 2 people per bedroom plus 2 additional guests, providing adequate off-street parking (typically 1 space per bedroom), ensuring the property meets all building and fire safety codes, maintaining a 24/7 contact person for noise or emergency issues, and registering with the Kansas Department of Revenue for state tax collection purposes.

Short-term rentals (STRs) are generally legal in Hays, Kansas, as the city has not enacted specific prohibitions against them as of 2024. However, STR operators must comply with standard zoning regulations, business licensing requirements, and health and safety codes that apply to all rental properties. The city requires STR operators to obtain proper business licenses and ensure compliance with fire safety, occupancy limits, and parking requirements. Properties must meet residential zoning standards, and some neighborhoods may have homeowners association restrictions that could limit STR operations. Recent years have seen increased scrutiny of STRs in Kansas municipalities, with some cities like Lawrence and Manhattan implementing more stringent regulations, but Hays has maintained a relatively permissive approach while ensuring basic safety and zoning compliance. Operators should verify current licensing requirements with the Hays city clerk's office and ensure their properties meet all applicable building and safety codes before beginning STR operations.

The best areas for Airbnb investment in Hays, Kansas include the downtown historic district near Main Street, which attracts visitors to local events, restaurants, and the Ellis County Historical Society Museum, and neighborhoods within walking distance of Fort Hays State University campus, particularly areas south and east of the university that cater to visiting families, prospective students, and academic conference attendees. The Vine Street corridor and surrounding residential areas offer good potential due to proximity to both downtown amenities and the university, while properties near the Hays Medical Center on Canterbury Drive can capture medical tourism and visiting family members of patients. Areas around the Hays Regional Airport and along Interstate 70 corridors are attractive for business travelers and those attending events at the Gross Memorial Coliseum, and neighborhoods near the Ellis County Fairgrounds benefit from seasonal events and agricultural conferences that bring visitors to the area throughout the year.

In Hays, Kansas, Airbnb properties are subject to Kansas state transient guest tax of 6% on gross receipts from lodging rentals under 28 consecutive days, which is collected by the Kansas Department of Revenue and must be remitted monthly by hosts who register for a transient guest tax account. Additionally, Ellis County may impose a local transient guest tax of up to 2%, though the exact rate varies by jurisdiction within the county. The City of Hays also levies a local lodging tax of approximately 2-3% on short-term rental accommodations. Hosts are responsible for collecting these taxes from guests at the time of booking or check-in and must remit payments to the respective tax authorities - state taxes to the Kansas Department of Revenue and local taxes to Ellis County and City of Hays tax offices. Registration requirements typically include obtaining tax permits before operating and filing returns even during periods of no activity. Exemptions generally apply to rentals exceeding 28 consecutive days, government employees on official business, and certain nonprofit organization stays, though documentation may be required to claim exemptions.

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 decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations or improvements total around $3,000-$5,000. Permits and fees in Kansas are relatively minimal at $200-$500 for business licenses and short-term rental permits where required. Insurance costs approximately $1,200-$2,000 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 services, maintenance, supplies, platform fees, and marketing total approximately $4,000-$6,000. Additional considerations include property taxes of roughly $2,000-$3,000 annually and potential HOA fees of $100-$300 monthly in some neighborhoods, though many properties in Hays are not subject to HOA restrictions.

Airbnb properties in Hays, Kansas typically generate modest returns with average nightly rates ranging from $65-$95, resulting in monthly revenues of $1,200-$2,100 for properties with 60-70% occupancy rates. Operating expenses including utilities ($150-$200/month), cleaning fees ($25-$35 per turnover), property management (10-15% of revenue), insurance ($100-$150/month), and maintenance ($200-$300/month) typically consume 45-55% of gross revenue. Properties near Fort Hays State University command premium rates during academic year and graduation periods, with some hosts reporting annual profits of $8,000-$15,000 on modest 2-3 bedroom homes purchased for $80,000-$120,000, yielding profit margins of 15-25%. Success factors include proximity to the university, professional photography, consistent 4.8+ star ratings, and targeting parents visiting students or business travelers, though the limited tourism market and seasonal demand fluctuations present challenges for year-round profitability compared to major metropolitan markets.

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 of $75-95 for entire homes and $45-65 for private rooms. Initial profitability usually occurs within 18-24 months, assuming a 20-25% down payment on properties valued between $80,000-150,000. The market benefits from limited hotel inventory and consistent demand from university events, sporting activities, 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 helps investors identify profitable short-term rental properties across markets including Hays, Kansas. In the local Hays market, real estate agents like those at Coldwell Banker American Dream, RE/MAX of Hays, and Century 21 Gold Key Realty have experience with investment properties and can assist with Airbnb acquisitions. National services include BiggerPockets for networking and deal analysis, Mashvisor for rental property analytics and market data, AirDNA for short-term rental performance metrics, and Roofstock which occasionally features Kansas properties. Local property management companies such as Hays Property Management and Ellis County Property Services can provide insights into rental markets and may assist with investment property identification. Additional national platforms like Awning, RedfinNow, and LoopNet offer investment property search capabilities, while companies like Vacasa and RedAwning provide market analysis for short-term rental investments. Local mortgage brokers and investment groups in the Hays area, including those connected to Fort Hays State University's business community, may also offer specialized services for real estate investors looking to enter the Airbnb market in this college town of approximately 21,000 residents.