Is Montezuma, Kansas Good for Airbnb Investment?

To start an Airbnb in Montezuma, Kansas, begin by researching local zoning laws and regulations through Gray County Planning and Zoning Department, as Montezuma typically requires short-term rentals to comply with residential zoning restrictions and may require a business license from the city clerk's office. Obtain necessary permits including a Kansas sales tax permit from the Department of Revenue since you'll need to collect state sales tax (currently 6.5% plus local taxes), and check if Montezuma requires a specific short-term rental permit or home occupation permit. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX, focusing on homes near Montezuma's main attractions like the Santa Fe Trail or downtown area, with properties typically ranging from $50,000-$150,000. Furnish the property with essential amenities including Wi-Fi, basic kitchen supplies, linens, and furniture suitable for travelers, keeping in mind the rural setting may require satellite internet options. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-$100 per night based on local market rates, highlighting proximity to historical sites and outdoor activities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the property regularly, and ensuring compliance with Kansas health and safety standards, while considering hiring local cleaning services or property management companies if you're not local to Montezuma.

To identify profitable short-term rental properties in Montezuma, Kansas, focus on properties within walking distance of the downtown historic district and near major highways like US-56 for traveler convenience, as this small town of approximately 1,000 residents primarily attracts visitors passing through or attending local events. Target 2-3 bedroom single-family homes or historic properties built in the early 1900s that can be renovated to highlight prairie charm, with features like covered porches, original hardwood floors, and modern amenities including high-speed internet and full kitchens. Pricing analysis should consider that nightly rates typically range from $75-120 due to limited local demand, with higher rates possible during harvest season (September-November) and hunting seasons when agricultural workers and hunters visit the area. Competition research will reveal minimal existing STR inventory, creating opportunity but also indicating limited market size, so analyze occupancy rates of properties in nearby larger towns like Dodge City (45 minutes away) and Liberal (30 minutes away) to gauge regional demand patterns. Utilize AirDNA for market data, STR Helper for revenue projections, and local resources including the Montezuma Chamber of Commerce and Gray County economic development office to understand seasonal visitor patterns, upcoming events, and agricultural cycles that drive temporary housing demand in this rural Kansas market.

To obtain an Airbnb/STR permit in Montezuma, Kansas, contact the Montezuma City Clerk's office at City Hall located at 305 N Aztec Avenue or call (620) 846-2428 to begin the application process. Required documents typically include a completed business license application, property deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and proof of compliance with fire safety codes. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. Submit your application along with all required documentation and fees to the City Clerk, after which the city will schedule a property inspection within 2-3 weeks to ensure compliance with zoning regulations, occupancy limits, parking requirements, and safety standards. Montezuma requires STR properties to maintain adequate off-street parking (minimum 2 spaces), comply with residential zoning restrictions, limit occupancy to 2 people per bedroom plus 2 additional guests, and provide 24/7 contact information for noise or emergency complaints. The entire approval process typically takes 4-6 weeks from application submission, and permits must be renewed annually by December 31st with updated insurance documentation and any necessary re-inspections.

Short-term rentals (STRs) in Montezuma, Kansas are generally legal but operate under limited local regulation as of 2024. The city, located in Gray County with a population of approximately 1,000 residents, does not appear to have comprehensive STR-specific ordinances, meaning they likely fall under general residential use and business licensing requirements. Property owners typically need to obtain basic business licenses and comply with standard zoning regulations, fire safety codes, and health department requirements. There are no known prohibited areas specifically for STRs within the city limits, though properties must comply with existing residential zoning restrictions. Recent legal changes have been minimal, as smaller Kansas municipalities like Montezuma have been slower to adopt the detailed STR regulations seen in larger cities, instead relying on existing property use and business operation frameworks. The Kansas state legislature has generally supported property rights regarding short-term rentals, and Gray County does not impose additional restrictions beyond standard property regulations.

The best areas for Airbnb investment in Montezuma, Kansas would be the historic downtown district near Main Street, which attracts visitors interested in the town's Old West heritage and proximity to the Santa Fe Trail, and neighborhoods within walking distance of Stanton County Lake, drawing fishing and outdoor recreation enthusiasts year-round. The area near the Montezuma courthouse and civic center benefits from business travelers attending county meetings and legal proceedings, while properties close to US Highway 56 offer convenience for travelers passing through on the historic Santa Fe Trail route. The residential areas near Montezuma High School can capitalize on visiting families for school events and sports tournaments, and locations within a few blocks of local restaurants and the Montezuma Museum provide easy access to the town's limited dining and cultural attractions, making them appealing to tourists exploring southwestern Kansas history and those attending regional agricultural conferences or cattle industry events.

Airbnb properties in Montezuma, 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. Gray County, where Montezuma is located, does not impose additional county-level lodging taxes as of 2023. The city of Montezuma does not currently have a municipal occupancy tax ordinance in place. Hosts must register with the Kansas Department of Revenue, collect the 6% tax from guests at the time of booking or check-in, and file returns by the 25th of the following month using form ST-16. Exemptions include stays of 28 days or longer, government employees on official business, and certain nonprofit organization stays. Properties generating less than $4,000 in annual gross receipts are exempt from collection requirements but guests may still owe use tax directly to the state.

Starting an Airbnb in Montezuma, Kansas requires approximately $85,000-$95,000 in total initial investment. Property purchase costs around $65,000 based on median home prices in rural Kansas towns like Montezuma. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor runs $8,000-$12,000. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$3,000. Permits and fees including business license, short-term rental permits, and inspection fees total $500-$800. Insurance for short-term rental coverage adds $1,200-$1,800 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), and marketing expenses ($150/month) total approximately $6,300. Additional considerations include property taxes estimated at $1,300 annually and potential HOA fees if applicable.

Airbnb properties in Montezuma, Kansas face significant profitability challenges due to the town's small population of approximately 1,000 residents and limited tourism infrastructure. Properties in this rural southwest Kansas community typically generate annual revenues between $8,000-$15,000, with average daily rates of $45-65 and occupancy rates around 25-35% annually. Operating expenses including utilities, cleaning, maintenance, insurance, and platform fees typically consume 60-70% of gross revenue, resulting in net profit margins of 15-25% before mortgage costs. Success factors include targeting oil field workers, hunters during pheasant season, and travelers passing through on Highway 56, with properties featuring basic amenities and competitive pricing performing better than luxury offerings. A typical 3-bedroom home purchased for $45,000 and generating $12,000 annually in revenue would yield approximately $3,600 in net profit after $8,400 in expenses, representing an 8% return on investment before financing costs, making Montezuma a marginal market for Airbnb investment compared to larger Kansas cities like Wichita or Kansas City suburbs.

Based on Montezuma, 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 renovation investments. Properties in this rural Kansas market generally reach profitability within 18-24 months, with average nightly rates of $75-$95 and occupancy rates around 45-55% annually. The lower property acquisition costs in Montezuma (average $80,000-$120,000 for investment properties) help offset the moderate occupancy rates, while proximity to outdoor recreation areas and hunting destinations provides steady seasonal demand. Investors can expect gross rental yields of 10-14% before expenses, with net yields settling around 7-9% after accounting for property management, maintenance, utilities, and platform fees, making the timeframe to full investment recovery approximately 10-14 years in this emerging short-term rental market.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Montezuma, Kansas. For local expertise, Prairie Real Estate Group and Sunflower Realty have agents familiar with Gray County's vacation rental potential, while Kansas Investment Properties specializes in income-generating real estate throughout southwestern Kansas. National services like Awning, RedAwning, and Vacasa provide market analysis and property management for Airbnb investments in smaller Kansas markets. AirDNA and Mashvisor offer data analytics specifically for short-term rental profitability analysis in rural Kansas communities like Montezuma, established around 2015-2018 as the Airbnb market expanded beyond major cities. Local property management companies such as High Plains Property Management and Gray County Rentals can assist with ongoing operations, while national firms like AvantStay and Hostfully provide technology and management solutions for investors targeting the hunting, fishing, and agricultural tourism market that drives demand in this area of Kansas.