Is Hugoton, Kansas Good for Airbnb Investment?

To start an Airbnb in Hugoton, Kansas, begin by researching local zoning laws and regulations through the Stevens County Planning Department and Hugoton City Hall, as Kansas municipalities typically regulate short-term rentals through zoning ordinances and business licensing requirements. Contact the City of Hugoton at (620) 544-4317 to inquire about specific permit requirements, which likely include a business license ($25-50 annually), sales tax permit through the Kansas Department of Revenue, and potential occupancy permits. Find a suitable property by searching local real estate listings through companies like Midwest Land Group or consulting with Hugoton-area realtors, focusing on properties in residential zones that allow commercial activity or mixed-use areas near downtown Hugoton or Highway 25. Furnish the property with essential amenities including reliable internet (through services like Nex-Tech or AT&T available in the area), comfortable bedding, kitchen essentials, and local touches highlighting Hugoton's agricultural heritage and proximity to attractions like the Hugoton Nature Area. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-90 per night based on rural Kansas market rates, emphasizing unique selling points like stargazing opportunities, hunting access, or business traveler accommodations for the local natural gas industry. Manage the property by establishing cleaning protocols, coordinating with local cleaning services, installing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Kansas innkeeper laws and collecting required state and local taxes through the Kansas Department of Revenue's streamlined sales tax system.

To identify profitable short-term rental properties in Hugoton, Kansas, focus on properties within walking distance of the Hugoton Preserve or near the town center along Highway 25, as these locations attract visitors to this small agricultural community of approximately 3,800 residents. Target 2-3 bedroom single-family homes or ranch-style properties with modern amenities, full kitchens, and outdoor spaces that appeal to business travelers visiting the natural gas industry facilities and agricultural operations that dominate the local economy. Analyze pricing by researching comparable rentals in nearby Liberal, Kansas (30 miles away) and Guymon, Oklahoma, as Hugoton has limited STR inventory, with nightly rates likely ranging $60-120 depending on property size and amenities. Competition research should focus on the few existing Airbnb and VRBO listings in Stevens County, examining occupancy patterns during peak agricultural seasons (spring planting and fall harvest) and hunting seasons when demand increases. Utilize AirDNA for market analysis, Mashvisor for investment calculations, and local resources like the Hugoton Chamber of Commerce and Stevens County economic development office to understand visitor patterns, while monitoring oil and gas industry activity through Kansas geological surveys since energy sector workers often require temporary housing.

To obtain an Airbnb/STR permit in Hugoton, Kansas, you must first contact the Hugoton City Hall at 115 S Main Street or call (620) 544-4317 to inquire about short-term rental regulations, as the city may require a business license and zoning compliance verification. Submit an application for a business license along with required documents including proof of property ownership or lease agreement, liability insurance certificate (typically $1 million minimum), floor plan of the rental property, and completed safety inspection checklist covering smoke detectors, carbon monoxide detectors, and fire extinguishers. The application fee is estimated at $50-100 for the business license, with potential additional fees of $25-50 for inspections. You must also verify that your property is located in a zone that permits short-term rentals by checking with the Stevens County Planning and Zoning Department, and may need to obtain a sales tax license from the Kansas Department of Revenue for collecting and remitting state and local taxes. The approval timeline typically takes 2-4 weeks after submitting complete documentation, and you must comply with occupancy limits based on property size, provide adequate parking spaces, maintain quiet hours typically from 10 PM to 7 AM, and display your permit number in all rental listings. Annual renewal is usually required with updated insurance documentation and compliance verification.

Short-term rentals (STRs) are generally legal in Hugoton, Kansas, as the city does not appear to have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. Like most small Kansas municipalities, Hugoton likely follows state regulations and basic zoning requirements that would allow STRs in residential areas, though operators would need to comply with standard business licensing requirements, health and safety codes, and potentially collect and remit local lodging taxes if applicable. There are no known prohibited areas specifically for STRs within Hugoton city limits, though properties would need to meet basic residential zoning compliance. Recent legal changes have been minimal at the municipal level, with Kansas state law generally supporting property owner rights to operate STRs unless specifically restricted by local ordinance. Property owners should verify current business license requirements with Stevens County and ensure compliance with fire safety codes and any applicable tax obligations, but the regulatory environment remains relatively permissive for STR operations in this rural southwestern Kansas community of approximately 3,900 residents.

The best areas for Airbnb investment in Hugoton, Kansas are primarily concentrated around the downtown historic district near Main Street and Kansas Avenue, which attracts visitors interested in the town's agricultural heritage and proximity to the Hugoton Gas Field. The residential neighborhoods within a 5-block radius of the city center offer good investment potential due to their accessibility to local businesses, restaurants, and the annual Stevens County Fair held each summer. Properties near the Hugoton Sports Complex and municipal facilities on North Main Street are attractive for sports tournament visitors and families attending youth baseball and softball events. The area around Hugoton High School and the adjacent park system draws visitors during graduation seasons and school-related activities. Additionally, neighborhoods close to Highway 25 and the intersection with Highway 56 provide convenient access for business travelers working in the natural gas industry, agricultural equipment sales, and cattle operations that are prevalent in Stevens County, making these locations ideal for short-term rentals targeting the steady flow of industry professionals who visit the area year-round.

Airbnb properties in Hugoton, Kansas are subject to Kansas state transient guest tax of 6% on lodging stays of less than 28 consecutive days, which is collected by the host and remitted monthly to the Kansas Department of Revenue if gross receipts exceed $4,000 annually. Stevens County imposes an additional 2% transient guest tax on short-term rentals, bringing the total occupancy tax rate to approximately 8%. Hugoton city may impose a local lodging tax of 1-2%, though specific rates vary by municipal ordinance. Hosts must register with the Kansas Department of Revenue and obtain a sales tax account, collecting taxes at the time of booking or check-in and remitting payments by the 25th of the following month along with required tax returns. The state provides online filing through their customer service center portal, while county and city taxes may require separate registration and remittance procedures through local tax offices. Exemptions typically include stays of 28 days or longer, government employees on official business, and certain nonprofit organization bookings, though documentation requirements apply for claiming exemptions.

To start an Airbnb in Hugoton, Kansas, expect total costs around $85,000-$95,000. Property purchase represents the largest expense at approximately $65,000-$75,000 based on median home prices in rural Kansas towns. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,000. Permits and fees vary but expect $300-$800 for business licenses, short-term rental permits, and city compliance requirements. Insurance premiums for short-term rental coverage run $1,200-$1,800 annually, with first-year payment upfront. Utility deposits and connections for electricity, gas, water, internet, and cable total approximately $500-$800. First six months operating costs including utilities ($150/month), cleaning supplies ($50/month), maintenance reserves ($100/month), platform fees (3% of bookings estimated at $200/month), and marketing budget ($100/month) total roughly $3,600. Additional considerations include property taxes, HOA fees if applicable, and emergency repair funds, making the comprehensive startup investment range from $85,000-$95,000 depending on property condition and furnishing quality choices.

Airbnb properties in Hugoton, Kansas show moderate profitability potential with average nightly rates ranging from $65-85 for typical 2-3 bedroom homes, generating approximately $1,200-2,100 monthly revenue at 50-65% occupancy rates driven by oil and gas workers, hunters, and travelers passing through western Kansas. Operating expenses typically include mortgage payments ($600-900), utilities ($150-200), cleaning fees ($40-60 per turnover), property management (15-25% of revenue), insurance ($100-150), and maintenance ($200-300 monthly), resulting in net profit margins of 15-25% for well-managed properties. Success factors include proximity to Hugoton Reservoir for fishing enthusiasts, competitive pricing below $80/night to attract budget-conscious travelers, and catering to extended-stay guests working in the natural gas industry around Hugoton Gas Area. A typical 3-bedroom property purchased for $85,000 in 2022 generates approximately $18,000 annual revenue with $14,500 in expenses, yielding $3,500 annual profit or roughly 4% cash-on-cash return, though properties near recreational areas or with unique amenities like RV parking can achieve 20-30% higher profitability due to Hugoton's location along hunting corridors and its role as a regional hub for energy sector temporary housing.

Based on Hugoton, Kansas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and occupancy rates. Properties in Hugoton generally reach profitability within 18-24 months, with average nightly rates of $75-$95 and occupancy rates around 45-55% annually due to the town's proximity to natural gas operations and agricultural activities that drive transient worker demand. Initial investment costs are relatively low at $80,000-$120,000 for suitable properties, while monthly operating expenses including utilities, cleaning, and maintenance typically run $800-$1,200, making the market attractive for investors seeking steady returns in rural Kansas markets with lower competition compared to major metropolitan areas.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking to enter the Airbnb market in Hugoton, Kansas. Local real estate agents in the area include Hugoton Realty and Stevens County Real Estate, who have experience with investment properties in this southwestern Kansas market. National services like Awning, RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management services that cover smaller Kansas markets including Hugoton. BiggerPockets marketplace and Roofstock occasionally feature investment properties in rural Kansas markets, while AirDNA and Mashvisor offer market analysis tools to evaluate Airbnb profitability in Hugoton's limited but potentially underserved vacation rental market. Local property management companies such as High Plains Property Management and regional firms like Kansas Property Solutions can assist with ongoing Airbnb operations, though investors may need to work with Dodge City or Garden City-based agents who service the broader Stevens County area for more specialized short-term rental expertise.