Is Manhattan, Kansas Good for Airbnb Investment?

To start an Airbnb in Manhattan, Kansas, begin by researching local zoning laws and regulations through the City of Manhattan Planning Department, as short-term rentals may require special permits or be restricted in certain residential zones. Contact the Riley County Health Department to obtain necessary health permits if required, and register your business with the Kansas Department of Revenue for tax purposes. Find a suitable property by searching rental listings on sites like Zillow or Apartments.com, ensuring the lease allows subletting, or consider purchasing property in areas near Kansas State University where demand is typically higher. Furnish the space with essential items including quality bedding, kitchen appliances, WiFi, and local guidebooks, budgeting approximately $3,000-$8,000 for a one-bedroom setup. Create your Airbnb listing with professional photos, competitive pricing around $60-$120 per night depending on size and location, and highlight proximity to K-State campus and local attractions like the Flint Hills Discovery Center. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and consider hiring local cleaning services like Manhattan Cleaning Company for turnovers. Ensure compliance with Kansas state tax requirements by collecting and remitting applicable sales taxes, and maintain proper insurance coverage by informing your insurance provider about short-term rental activities or obtaining specialized Airbnb host insurance.

To identify profitable short-term rental properties in Manhattan, Kansas, focus on locations within 2-3 miles of Kansas State University campus, particularly in the Aggieville district and historic downtown areas, as these attract visiting parents, prospective students, and business travelers year-round. Target 2-4 bedroom properties built after 1980 with modern amenities, parking availability, and outdoor spaces, as these command premium rates of $80-150 per night compared to older properties averaging $50-80. Conduct pricing analysis using AirDNA and Mashvisor to identify properties with potential gross yields of 8-12%, while monitoring seasonal demand spikes during K-State football games, graduation, and university events when rates can increase 200-300%. Research competition by analyzing existing Airbnb and VRBO listings within a 1-mile radius, focusing on properties with 4.5+ star ratings and 90%+ occupancy rates to understand successful positioning strategies. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Manhattan-based property management companies like Flint Hills Property Management and consulting Kansas State University's visitor accommodation reports to understand peak demand periods and optimal property locations near campus facilities and popular venues.

To obtain an Airbnb/STR permit in Manhattan, Kansas, you must first contact the Manhattan City Planning Department at City Hall located at 1101 Poyntz Avenue to determine current zoning compliance, as short-term rentals are typically restricted to certain zoning districts and may require a conditional use permit. Submit an application including property deed, site plan, floor plan showing maximum occupancy, proof of property insurance with minimum $1 million liability coverage, contact information for a local property manager if you're not local, and parking plan demonstrating adequate off-street parking. Required documents also include a business license application, sales tax permit from Kansas Department of Revenue, and neighbor notification forms for properties within 200 feet. Application fees typically range from $150-300 for the conditional use permit plus $50-75 for business license, with additional inspection fees of approximately $100. The approval process generally takes 6-8 weeks including a Planning Board hearing and potential City Commission review, during which time you must post public notice signs on the property and attend required hearings. Manhattan requires STR operators to maintain occupancy limits based on bedroom count plus two additional guests, provide 24/7 local contact information, maintain guest registry for city inspection, ensure compliance with fire safety codes including smoke detectors and emergency exits, and collect and remit city transient guest tax of 6% plus state sales tax of 6.5%.

Short-term rentals (STRs) are legal in Manhattan, Kansas, but operate under specific regulations established by the city. The city requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use districts, while residential areas have more limited permissions. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators must provide emergency contact information to the city. Manhattan implemented these regulations around 2018-2019 following concerns about neighborhood impacts and housing availability, particularly given the city's proximity to Kansas State University. The city limits the number of guests based on bedroom count and parking availability, requires a minimum 2-night stay, and prohibits events or parties. Recent changes have included stricter enforcement of noise ordinances and enhanced inspection requirements, with the city conducting periodic reviews of STR impacts on residential neighborhoods and housing stock availability for long-term residents.

Manhattan, Kansas offers several promising areas for Airbnb investment, with the Aggieville district being the top choice due to its proximity to Kansas State University, attracting parents visiting students, alumni during homecoming, and football game attendees throughout the fall season. The Downtown Manhattan area presents strong potential with its historic charm, local events at the Flint Hills Discovery Center, and business travelers visiting the nearby National Bio and Agro-Defense Facility. The Westloop Shopping District appeals to longer-stay guests seeking modern amenities and easy access to retail and dining, while areas near Manhattan Regional Airport capture business travelers and those attending conferences at K-State. The residential neighborhoods surrounding the university, particularly those within walking distance of Bill Snyder Family Stadium, see high demand during football season and graduation periods, with properties often booking months in advance for major university events and generating premium rates during peak times.

In Manhattan, Kansas, Airbnb hosts are subject to both state and local lodging taxes. The Kansas state transient guest tax is 6.5% and applies to all short-term rental accommodations under 28 days. Additionally, Manhattan imposes a local transient guest tax of 6% on lodging stays. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the Kansas Department of Revenue and the City of Manhattan on behalf of hosts. Hosts must still register with both the state and city tax authorities and may need to file periodic returns even when Airbnb collects the taxes. The combined effective tax rate is approximately 12.5% on the rental amount. Exemptions typically include stays over 28 consecutive days, certain government employees on official business, and some nonprofit organization travelers, though documentation may be required. Hosts should verify their registration status with the Kansas Department of Revenue and Manhattan's finance department to ensure compliance with all filing requirements.

The total cost to start an Airbnb in Manhattan, Kansas is approximately $285,000-$320,000. Property purchase costs around $180,000-$200,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor runs $15,000-$25,000. Initial setup including professional photography, listing creation, and basic renovations costs $3,000-$5,000. Permits and fees including business license, short-term rental permit, and city registration total approximately $500-$1,500. Insurance for short-term rental coverage adds $2,000-$3,000 annually. Utility deposits and connections for electricity, gas, water, internet, and cable cost $1,000-$2,000. First six months of operating costs including utilities ($600/month), cleaning services ($150 per turnover, estimated 8 turnovers monthly), maintenance and supplies ($300/month), property management software ($50/month), and marketing expenses ($200/month) total approximately $8,400-$12,000. Additional working capital for unexpected repairs, vacancy periods, and initial marketing push should include an extra $5,000-$10,000 buffer.

Airbnb properties in Manhattan, Kansas typically generate annual revenues between $15,000-$35,000 for well-positioned units, with average daily rates ranging from $65-$120 depending on proximity to Kansas State University and property amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near K-State campus, particularly during football season and graduation periods, achieve occupancy rates of 65-80% with profit margins of 25-35%, while those in residential areas typically see 45-60% occupancy and 15-25% margins. Success factors include strategic location within 2 miles of campus, modern furnishings targeting visiting families and university guests, responsive communication, and competitive pricing during peak academic calendar events. A typical 2-bedroom property purchased for $180,000 and generating $28,000 annually in revenue with $18,000 in expenses yields approximately $10,000 net profit, representing a 5.6% return on investment before considering property appreciation, with the most successful operators like those managing multiple units near Aggieville reporting profit margins exceeding 30% through economies of scale and premium positioning.

Airbnb investments in Manhattan, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, significantly lower than major metropolitan markets due to limited tourism demand and lower nightly rates averaging $75-120. Properties in Manhattan generally achieve profitability within 18-24 months, with the presence of Kansas State University providing consistent demand from visiting families and short-term academic stays. The market benefits from relatively low property acquisition costs ($150,000-300,000 for suitable properties) and minimal competition, though seasonal fluctuations around university events and football games can impact occupancy rates which typically range from 45-65% annually. Investment success depends heavily on proximity to the university campus and property management efficiency, with most investors seeing break-even points around month 20-26 after accounting for initial renovation costs, furnishing, and local regulatory compliance.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Manhattan, Kansas. Local real estate agents in Manhattan who specialize in investment properties include Realtors from Coldwell Banker Hedrick Real Estate, RE/MAX Associates, and Century 21 who understand the Kansas State University rental market dynamics. National services like AirDNA provide market data and analytics for Manhattan's short-term rental potential, while Mashvisor offers investment property analysis tools for the area. Local property management companies such as Flint Hills Property Management and Manhattan Property Services can assist with Airbnb operations once properties are acquired. BiggerPockets connects investors with local Kansas real estate professionals, and Roofstock focuses on turnkey rental properties that could be converted to short-term rentals. Regional investment groups and meetups through the Kansas Real Estate Investors Association provide networking opportunities with other investors active in the Manhattan market. Local mortgage brokers and lenders familiar with investment property financing in Riley County can facilitate purchases, while companies like RedAwning and Vacasa offer full-service Airbnb management once properties are operational.