Is Leavenworth, Kansas Good for Airbnb Investment?

To start an Airbnb in Leavenworth, Kansas, begin by researching local zoning laws and regulations through the Leavenworth City Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to certain areas or require conditional use permits. Contact the Leavenworth County Health Department to understand any health and safety requirements, and check with the Kansas Department of Revenue for state tax obligations including transient guest tax collection. Find a suitable property by searching residential areas that allow short-term rentals, focusing on neighborhoods near Fort Leavenworth, downtown historic district, or areas with tourist appeal, ensuring the property meets fire safety codes and has adequate parking. Obtain necessary permits including a City of Leavenworth business license (approximately $25-50 annually), register with the Kansas Department of Revenue for sales tax purposes, and secure appropriate insurance coverage that includes short-term rental liability. Furnish the property with quality furniture, linens, kitchen essentials, and amenities that appeal to military families visiting Fort Leavenworth and tourists exploring the historic area, ensuring compliance with local occupancy limits typically 2 people per bedroom plus 2 additional guests. List your property on Airbnb and other platforms with professional photos highlighting proximity to Fort Leavenworth (established 1827) and historic attractions, set competitive pricing based on local market rates of $75-150 per night depending on property size and location. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and keeping detailed records for tax purposes while ensuring compliance with noise ordinances and parking regulations that are strictly enforced in residential neighborhoods.

To identify profitable short-term rental properties in Leavenworth, Kansas, focus on locations within 2-3 miles of Fort Leavenworth military base and downtown historic district, as these areas generate consistent demand from military personnel, families, and tourists visiting the First City Museum and historic sites. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces, as military families and extended-stay guests prefer these features. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates between $80-150 depending on size and location, with occupancy rates typically ranging 60-75% in this market. Research competition by monitoring active Airbnb and VRBO listings within a 5-mile radius, noting their pricing strategies, amenities, and guest reviews to identify gaps in the market. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com to evaluate potential ROI, while connecting with Leavenworth-area property managers and real estate agents who understand military housing allowances and seasonal demand patterns driven by PCS moves and family visits.

To obtain an Airbnb/STR permit in Leavenworth, Kansas, you must first contact the Leavenworth City Planning Department at City Hall located at 100 N 5th Street to determine if short-term rentals are permitted in your zoning district, as the city requires a conditional use permit for STR operations. Submit an application for a conditional use permit along with a detailed site plan, proof of property ownership or lease agreement, liability insurance documentation showing minimum $1 million coverage, a floor plan of the rental unit, parking plan demonstrating adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. The application fee is approximately $350-500, and you'll need to pay additional fees for public notice publication estimated at $150-200. The process includes a public hearing before the Planning Commission, which typically occurs 4-6 weeks after application submission, followed by City Commission review if approved, extending the total timeline to 8-12 weeks. Leavenworth requires STR properties to maintain current business licenses, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking spaces, maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertising, with annual renewal required along with inspection compliance and any neighbor complaint documentation.

Short-term rentals (STRs) in Leavenworth, Kansas operate under a restrictive regulatory framework established by the city in recent years. The city requires STR operators to obtain a special use permit and business license, with properties limited to owner-occupied dwellings or properties where the owner lives within a certain distance. STRs are prohibited in certain residential zoning districts and must comply with occupancy limits, parking requirements, and noise ordinances. The city implemented these regulations around 2019-2020 following concerns from residents about neighborhood disruption and housing availability. Properties must meet safety inspections, maintain liability insurance, and operators face penalties for violations including permit revocation. The regulations particularly restrict STRs in historic downtown areas and near Fort Leavenworth to preserve neighborhood character, while allowing limited operations in designated zones with proper permitting and compliance with all municipal codes.

The best areas for Airbnb investment in Leavenworth, Kansas include the Historic Downtown District, which attracts tourists visiting the First City Museum, antique shops, and historic sites along the Missouri River, generating consistent weekend and holiday bookings. The Fort Leavenworth area offers strong potential due to military personnel, visiting families, and contractors needing temporary housing, providing steady year-round occupancy. The Riverfront District near the Missouri River appeals to outdoor enthusiasts and tourists seeking scenic views and recreational activities like fishing and boating. The area around the Leavenworth National Cemetery draws visitors paying respects and attending memorial events, creating predictable seasonal demand. Properties near downtown's festival venues benefit from events like Oktoberfest and summer concerts that drive short-term rental demand. The residential neighborhoods between 4th Street and Metropolitan Avenue offer affordable investment opportunities while remaining close to major attractions, making them attractive to budget-conscious travelers and families visiting the area's historical sites and military installations.

Airbnb properties in Leavenworth, Kansas are subject to both state and local lodging taxes, with the Kansas state transient guest tax at 6% and Leavenworth County imposing an additional transient guest tax of approximately 2-3%, bringing the total occupancy tax rate to roughly 8-9% on short-term rental stays of less than 28 consecutive days. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the Kansas Department of Revenue and Leavenworth County on behalf of hosts, though individual hosts may need to register with the state and obtain a sales tax permit if they handle their own tax collection. The state requires monthly remittance by the 25th of the following month, while county taxes follow similar timelines, and exemptions generally apply to stays exceeding 28 consecutive days, certain government employees on official business, and properties rented for more than 30 days to the same tenant, with hosts needing to maintain proper documentation and potentially file periodic returns even when Airbnb handles collection.

To start an Airbnb in Leavenworth, Kansas, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections from Leavenworth city authorities. Insurance costs run $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $500-$800. First six months operating costs including utilities ($600/month), cleaning services ($100-150 per turnover), supplies and maintenance ($200/month), platform fees (3% of bookings), and marketing expenses typically total $4,000-$6,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Leavenworth, 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/month), property management (15-25% of revenue), insurance ($100-200/month), and maintenance ($200-400/month) typically consume 45-60% of gross revenue. Properties near Fort Leavenworth and historic downtown areas perform better, with some hosts reporting net profit margins of 15-25% annually, while suburban properties often struggle with 5-15% margins. Success factors include competitive pricing, professional photography, quick response times, and targeting military families and business travelers visiting the fort, with properties featuring military-friendly amenities and flexible check-in policies showing higher occupancy rates around 75-80% compared to the market average of 55-65%.

Airbnb investments in Leavenworth, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to Fort Leavenworth military base which creates consistent demand from military personnel, visiting families, and contractors. Properties near the historic downtown area and within 10 miles of the base command premium rates of $80-120 per night with occupancy rates around 65-75%, while standard residential properties average $60-90 nightly with 55-65% occupancy. Initial investment recovery typically occurs within 7-10 years, with most investors reaching profitability within 18-24 months after accounting for mortgage payments, property management fees of 15-25%, and maintenance costs. The market benefits from stable military presence, limited hotel inventory, and growing interest in the area's historical attractions, though seasonal fluctuations occur with lower demand during winter months reducing annual returns by 2-3 percentage points compared to peak performance periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Leavenworth, Kansas. Local real estate agents who focus on investment properties in the Leavenworth area include Keller Williams Realty Partners and RE/MAX Associates, with agents like those at Coldwell Banker Hedrick Real Estate having experience in the Kansas City metro rental market. National services that help investors find Airbnb properties include Mashvisor, which provides rental property analytics, AirDNA for market data and investment analysis, and Roofstock which occasionally features short-term rental opportunities. BiggerPockets connects investors with local professionals, while companies like Awning and RedAwning offer property management and investment guidance services. Local property management companies such as Kansas City Property Management Group and Sunflower Property Management can assist with ongoing operations, and mortgage brokers like First National Bank of Kansas and Capitol Federal Savings Bank provide financing options for investment properties in the Leavenworth market.