Is Hays, Kansas Good for Airbnb Investment?

Potentially—Hays, Kansas combines visitor demand with long-term real estate upside.

• Presents a unique investment opportunity with a focus on stable, localized demand rather than mass tourism.
• Current market conditions in Hays are characterized by a steady economy, primarily driven by Fort Hays State University, local businesses, and regional healthcare services.
• This creates a consistent demand for short-term rentals from visiting academics, students' families, temporary workers, and medical professionals.
• Tourism trends in Hays, while not on the scale of major metropolitan areas, benefit from its strategic location on I-70, attracting travelers passing through, as well as visitors for local events, hunting.
• Property values in Hays are significantly more affordable compared to larger cities, which can lead to a lower initial investment and potentially higher cash-on-cash returns.
• The investment potential largely hinges on catering to specific niches, such as university-related stays or transient travelers, and effectively managing occupancy rates throughout the year.

$800–$1,500 per month based on location, season, and property quality.

• Based on available market data and regional rental patterns, Airbnb hosts in Hays, Kansas typically earn between $800-$1,500 per month.
• Seasonal variations show peak earnings during summer months and university events at Fort Hays State University, with revenues increasing 20-30% during these periods.
• Single-bedroom units generally earn $800-$1,100 monthly, while larger 3-4 bedroom properties can generate $1,200-$1,800 monthly during peak seasons.
• Key factors affecting earnings include proximity to the university campus, property condition and amenities, local events and conferences, and competition from traditional hotels.
• Occupancy rates typically range from 45-65% annually, with successful hosts maintaining higher rates through competitive pricing, quality furnishings, and responsive guest communication.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods averaging 7-10 years due to the city's stable rental market driven by Fort Hays State University and healthcare sector employment.
• Properties near the university campus or downtown area command nightly rates of $75-120, with occupancy rates around 60-70% annually.
• Compared to traditional long-term rentals in Hays that generate 6-8% ROI with monthly rents of $800-1,200, short-term rentals offer 2-4 percentage points higher returns but require significantly more active management.

Hays, Kansas averages 45–55% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Hays, Kansas typically average around 45-55% annually, with significant seasonal variations driven by Fort Hays State University's academic calendar and local events.
• Peak occupancy occurs during the fall semester (August-November) at approximately 65-75%, coinciding with university activities, homecoming, and graduation ceremonies.
• Winter months (December-February) experience the lowest occupancy at around 30-40%, recovering slightly in spring (March-May) to 50-60% as university activities resume and weather improves.
• These rates generally underperform both Kansas state averages of 55-65% and national Airbnb averages of 60-70%, primarily due to Hays' smaller market size, limited tourism infrastructure.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown historic district near Main Street offers the strongest Airbnb potential in Hays due to its walkability to restaurants, shops, and cultural attractions.
• The Fort Hays State University area, particularly neighborhoods within a mile radius of campus, provides consistent demand from visiting families, prospective students, and university events.
• The Vine Street corridor and surrounding residential blocks attract guests seeking quiet, family-friendly accommodations while remaining close to downtown amenities.
• Neighborhoods near the Hays Medical Center create demand from medical travelers and visiting families.
• The areas around Frontier Park and the Ellis County Historical Society appeal to leisure travelers and families, providing steady bookings at $55-85 per night.
• Properties near the Hays Regional Airport and along Interstate 70 corridors capture business travelers and road trip guests, though at slightly lower rates of $50-75 nightly.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Hays, Kansas currently requires short-term rental operators to obtain a business license and register their properties with the city.
• Occupancy limits are generally set at two persons per bedroom plus two additional guests, with a maximum of eight occupants total regardless of property size.
• The city does not mandate owner-occupancy requirements, allowing both resident and non-resident property owners to operate short-term rentals.
• Zoning restrictions primarily limit short-term rentals to R-1, R-2, and commercial districts, while prohibiting them in certain residential zones near the university campus to maintain neighborhood character.
• The registration process involves submitting an application with property details, proof of insurance, emergency contact information.
• Recent regulatory changes implemented around 2022-2023 include stricter noise ordinances, mandatory posting of house rules regarding parking and quiet hours, requirements for 24-hour local contact availability.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Hays, Kansas are subject to several fees and taxes including the state transient guest tax of 6% on gross receipts, Ellis County transient guest tax of approximately 2-3%.
• Property owners must obtain a business license from the city costing approximately $25-50 annually, register with the Kansas Department of Revenue for sales tax collection.
• Additional costs include potential homeowner association fees if applicable, liability insurance requirements, and quarterly or annual tax filings.
• Fire safety inspections may be required annually at costs of $50-100, and some properties may need health department permits costing $75-150.
• The total effective tax rate on short-term rental income typically ranges from 12-14% when combining all applicable lodging and transient guest taxes.