Is Hershey, Nebraska Good for Airbnb Investment?

To start an Airbnb in Hershey, Nebraska, begin by researching local zoning laws and regulations through Lincoln County's planning department, as Hershey falls under their jurisdiction, and contact the village clerk to understand any specific short-term rental ordinances that may require business licenses or special permits. Obtain necessary permits including a Nebraska sales tax permit from the Department of Revenue since you'll need to collect lodging taxes, and check if Lincoln County requires any additional business permits or health department approvals for rental properties. Find a suitable property by searching local real estate listings, considering proximity to Lake McConaughy which attracts many visitors, and ensure the property meets safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality, durable furniture focusing on comfort and functionality, including essentials like linens, towels, kitchen supplies, WiFi, and local amenities information, while considering the area's outdoor recreation focus by providing items like coolers or beach chairs. List your property on Airbnb and other platforms like VRBO with professional photos highlighting the proximity to Lake McConaughy and outdoor activities, competitive pricing research based on similar properties in the area (likely $75-150 per night depending on size and amenities), and detailed descriptions emphasizing local attractions. Manage the property by establishing cleaning protocols between guests, creating a system for key exchange or lockbox access, maintaining responsive communication with guests, and keeping detailed records for tax purposes while building relationships with local cleaning services and maintenance contractors in the Ogallala-Hershey area for ongoing property management needs.

To identify profitable short-term rental properties in Hershey, Nebraska, focus on properties within 2-3 miles of Lake McConaughy and nearby recreational areas, as this drives the primary tourism demand from May through September. Target 2-4 bedroom homes or cabins with lake views, outdoor amenities like decks or fire pits, and modern kitchens, as guests typically stay 2-4 nights for fishing and boating trips. Analyze comparable properties on Airbnb and VRBO showing average daily rates of $120-180 during peak season and $80-120 off-season, with occupancy rates around 60-70% in summer months. Research existing competition by monitoring approximately 15-25 active STR listings within a 10-mile radius, noting their pricing strategies, amenities, and guest reviews to identify market gaps. Utilize tools like AirDNA for market analytics, STR Helper for revenue projections, and local resources including the Keith County Visitors Bureau for tourism data, while connecting with Ogallala-based property management companies who service the Hershey area and can provide insights on seasonal demand patterns, cleaning costs averaging $75-100 per turnover, and local regulations that currently allow STRs with minimal restrictions.

To obtain an Airbnb/STR permit in Hershey, Nebraska, contact the Lincoln County Planning and Zoning Department at 301 North Jeffers Street, North Platte, NE 69101, as Hershey falls under county jurisdiction. Submit a completed short-term rental application form along with a site plan showing the property layout, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, septic system inspection certificate if applicable, and fire safety inspection report. The application fee is approximately $150 with an additional $75 annual renewal fee. Required documents also include a floor plan indicating maximum occupancy, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. The approval process typically takes 30-45 days after submission of complete application materials. Hershey-specific requirements include maintaining the property's residential character, limiting occupancy to 2 people per bedroom plus 2 additional guests, providing adequate waste disposal arrangements, and ensuring compliance with county septic and well water regulations. Properties must pass annual safety inspections and maintain current Nebraska sales tax permits for collecting lodging taxes.

Short-term rentals (STRs) in Hershey, Nebraska are generally legal as Nebraska state law does not prohibit STRs, and Hershey, being a small unincorporated community in Lincoln County with a population of approximately 600 residents, likely operates under county jurisdiction rather than having its own municipal STR regulations. Lincoln County does not appear to have specific STR restrictions as of 2024, meaning property owners can typically operate vacation rentals subject to standard zoning laws and state tax requirements including Nebraska's lodging tax. However, operators must comply with Nebraska Department of Health and Human Services regulations for any rental accommodations and may need to register with the Nebraska Department of Revenue for tax purposes. There have been no significant recent legal changes specifically targeting STRs in this rural area, though operators should verify current zoning compliance with Lincoln County and ensure proper insurance coverage, as agricultural and residential zoning in rural Nebraska communities like Hershey may have specific use restrictions that could affect STR operations.

The best areas for Airbnb investment in Hershey, Nebraska would be the historic downtown district near Main Street, which attracts visitors interested in the town's agricultural heritage and small-town charm, particularly during harvest season and local festivals. The residential neighborhoods within walking distance of Hershey High School and community center offer potential for family visitors attending school events, sports tournaments, and graduation ceremonies. Properties near the North Platte River corridor appeal to outdoor enthusiasts, hunters, and fishermen, especially during peak seasons from spring through fall. The area around local churches and community halls sees increased demand during wedding seasons and family reunions, as Hershey serves as a gathering point for extended families in the region. Additionally, properties with easy access to Highway 30 and Interstate 80 attract business travelers and those passing through to larger destinations like North Platte, offering convenience for short-term stays while maintaining the quiet, rural atmosphere that many guests seek as an alternative to standard hotel accommodations.

Airbnb properties in Hershey, Nebraska are subject to Nebraska state lodging tax of 1% on gross receipts from room rentals, which applies to all short-term rental accommodations under 30 days. Lincoln County, where Hershey is located, does not impose additional county lodging taxes as of 2023. The state tax is collected by the property owner/host and must be remitted monthly to the Nebraska Department of Revenue if monthly collections exceed $3,000, or quarterly if collections are less than $3,000. Hosts must register for a Nebraska sales tax permit and file Form 10 along with payment by the 20th of the month following the collection period. Exemptions include rentals to permanent residents (30+ days), rentals to government employees on official business, and certain agricultural worker housing. Airbnb may collect and remit these taxes automatically for hosts in some cases through their platform, but hosts remain ultimately responsible for compliance and should verify that taxes are being properly collected and remitted.

To start an Airbnb in Hershey, Nebraska, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in rural Nebraska communities. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations would be $3,000-$5,000. Permits and fees including business license, lodging permits, and potential zoning approvals would cost $500-$1,500 depending on local Lincoln County requirements. Insurance including short-term rental coverage and liability protection would be $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable would cost $1,000-$2,000. First six months operating costs including utilities ($600/month), cleaning supplies and services ($300/month), maintenance reserves ($200/month), marketing ($100/month), and platform fees would total approximately $7,200. Additional considerations include potential property management software subscriptions and emergency repair funds that could add another $2,000-$5,000 to initial costs.

Airbnb properties in Hershey, Nebraska face significant profitability challenges due to the town's small population of approximately 600 residents and limited tourist attractions, resulting in average daily rates of $45-65 compared to $85-120 in larger Nebraska markets like Omaha or Lincoln. Properties typically generate $8,000-15,000 in annual revenue with occupancy rates of 35-45%, while expenses including mortgage payments, utilities, cleaning fees, insurance, and platform commissions average $12,000-18,000 annually, creating negative cash flows for most operators. The market lacks consistent demand drivers, with occasional visitors related to agricultural business or family visits providing sporadic bookings primarily during summer months. Success factors for the few profitable properties include targeting long-term stays for traveling workers, maintaining extremely low acquisition costs under $80,000, and operating debt-free to minimize fixed expenses. Properties that achieve profitability typically serve as secondary income sources for local residents who can perform their own maintenance and cleaning, reducing operational costs by 40-50%. The limited competition of 3-5 active listings in the area provides some pricing power, but the fundamental challenge remains insufficient demand to support sustainable short-term rental businesses, with most successful operators pivoting to monthly rentals for temporary workers in the agricultural sector rather than traditional vacation rentals.

Based on Hershey, Nebraska's small rural market characteristics and limited tourism infrastructure, Airbnb investments would likely generate modest returns of 4-7% annual ROI, with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. The timeframe to profitability would typically extend 18-24 months due to lower occupancy rates (estimated 35-50% annually) and average daily rates of $65-85, as rural Nebraska markets generally lack the demand drivers seen in major tourist destinations or metropolitan areas. Properties would need to be priced competitively and marketed to travelers passing through on Highway 30 or visitors to nearby attractions, with seasonal variations significantly impacting performance during winter months when agricultural and recreational activities decline.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Hershey, Nebraska, using data analytics and market insights. Local real estate agents like Nebraska Realty Group and Cornhusker Real Estate have experience with investment properties in the area, while national services such as Awning, RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management. AirDNA offers market data and revenue projections for short-term rentals in Nebraska markets, and Mashvisor provides investment property analysis tools that can evaluate Airbnb potential in smaller markets like Hershey. Local property management companies such as Midwest Property Solutions and Nebraska Property Management can assist with ongoing operations, while national platforms like BiggerPockets connect investors with local experts and financing options. Real estate investment firms like HomeVestors and local Nebraska-based investment groups often have knowledge of profitable rental opportunities in rural markets throughout the state.