Is Newton, Kansas Good for Airbnb Investment?

To start an Airbnb in Newton, Kansas, begin by researching local zoning laws and regulations through the Newton City Planning Department, as Kansas municipalities typically regulate short-term rentals at the city level rather than state level. Contact Newton City Hall at 201 E 6th Street to inquire about specific permit requirements, business licenses, and any restrictions on short-term rentals in residential areas. Obtain necessary permits which may include a business license, occupancy permit, and potentially a special use permit depending on your property's zoning classification. Find a suitable property by researching Newton's neighborhoods, focusing on areas near Bethel College, downtown Newton, or near major employers like Excel Industries, considering properties that comply with local zoning for short-term rentals. Purchase or lease the property ensuring it meets all building codes and safety requirements mandated by Harvey County and Kansas state regulations. Furnish the property with quality furniture, linens, kitchen essentials, and safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers as required by Kansas fire safety codes. Install necessary amenities like high-speed internet, cable TV, and ensure the property has adequate parking as Newton may have specific parking requirements for rental properties. List your property on Airbnb and other platforms with professional photos and detailed descriptions highlighting Newton's attractions like Sand Creek Trail and proximity to Wichita. Implement a management system including guest communication, cleaning protocols between stays, maintenance schedules, and consider hiring local cleaning services in Newton for turnover efficiency. Ensure compliance with Kansas tax requirements by registering for state sales tax collection and remitting the appropriate taxes to the Kansas Department of Revenue, while also checking if Harvey County or Newton imposes additional lodging taxes on short-term rentals.

To identify profitable short-term rental properties in Newton, Kansas, focus on locations near Bethel College, Harvey County Fairgrounds, and the historic downtown district along Main Street, as these areas attract visitors for college events, county fairs, and local festivals. Target 2-3 bedroom single-family homes or duplexes built after 1980 with updated kitchens, reliable HVAC systems, and parking availability, as Newton's visitor base typically consists of families and small groups attending local events or passing through on Highway 50. Conduct pricing analysis by researching comparable properties within a 25-mile radius including Wichita suburbs, aiming for nightly rates between $75-120 depending on property size and amenities, with potential gross yields of 8-12% annually given Newton's lower property acquisition costs ranging from $80,000-150,000. Research competition using AirDNA and Mashvisor to analyze the limited existing STR inventory in Newton, focusing on occupancy rates during peak periods like Bethel College graduation, Harvey County Fair in July, and regional sports tournaments. Utilize tools such as BiggerPockets for market analysis, connect with Coldwell Banker or RE/MAX agents familiar with Newton's rental market, and consult Harvey County planning department regarding STR regulations, while leveraging the city's proximity to Wichita (25 miles) to capture overflow demand during major events at Intrust Bank Arena or Century II.

To obtain an Airbnb/STR permit in Newton, Kansas, contact the Newton City Planning Department at City Hall located at 201 E 6th Street or call (316) 284-6240 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement with landlord consent, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you live more than 50 miles away, and payment of applicable fees. The application fee is estimated at $150-200 with an annual renewal fee of approximately $100-125, and you may need additional inspections costing $75-100. Newton requires STR operators to obtain a business license, comply with residential zoning restrictions (typically limited to owner-occupied properties or specific zoning districts), maintain occupancy limits based on bedrooms and square footage, provide adequate parking spaces, post the permit number in rental listings, and ensure 24/7 local contact availability for noise or emergency issues. The approval timeline is generally 4-6 weeks after submitting a complete application, pending any required inspections by the fire department and building code enforcement. Properties must meet all building and fire safety codes, and operators must collect and remit local lodging taxes if applicable.

Short-term rentals (STRs) are legal in Newton, Kansas, but operate under specific regulations established by the city. Newton requires STR operators to obtain a business license and comply with zoning restrictions that primarily limit short-term rentals to commercial and mixed-use districts, while generally prohibiting them in single-family residential neighborhoods. The city implemented these regulations around 2019-2020 following concerns about neighborhood impacts and housing availability. Current restrictions include occupancy limits based on property size, parking requirements, noise ordinances, and mandatory registration with the city. Properties must meet safety standards including smoke detectors and emergency exits, and operators are required to provide local contact information for guests. The city has been monitoring the impact of STRs on the local housing market and neighborhood character, with periodic reviews of the ordinance to address any emerging issues. Violations can result in fines and license revocation, and the city maintains an active enforcement program to ensure compliance with STR regulations.

The best areas for Airbnb investment in Newton, Kansas include the downtown historic district near Main Street, which attracts visitors interested in the city's railroad heritage and proximity to the Santa Fe Depot and Harvey County Historical Museum. The neighborhoods around Bethel College are excellent for accommodating visiting families, prospective students, and academic conference attendees throughout the year. Areas near Newton Medical Center and the industrial corridor along Highway 50 cater to medical professionals, business travelers, and workers visiting companies like Excel Industries and Hesston Corporation. The residential areas around Athletic Park and Sand Creek Trail appeal to sports tournament families and outdoor recreation visitors. Properties within walking distance of the Newton Recreation Commission facilities benefit from youth sports tournaments and events that draw families from across central Kansas, while locations near the Kansas State Fairgrounds in nearby Hutchinson (30 minutes away) can capitalize on fair season and major events that create overflow demand for accommodations.

Newton, Kansas imposes a transient guest tax of 6% on short-term rental accommodations including Airbnb properties, which applies to stays of less than 30 consecutive days. This tax is collected by the host at the time of booking or check-in and must be remitted to the City of Newton Finance Department on a monthly basis by the 20th of the following month using the city's transient guest tax return form. Additionally, Kansas state sales tax of 6.5% applies to lodging accommodations, and Harvey County may impose an additional transient guest tax of up to 2%, bringing the total potential tax burden to approximately 14.5%. Hosts are required to register with the city to obtain a transient guest tax license before operating, and failure to collect and remit these taxes can result in penalties and interest charges. Exemptions typically include stays of 30 days or longer, accommodations provided to permanent residents, and certain government or charitable organization bookings, though hosts must maintain proper documentation to support any claimed exemptions.

To start an Airbnb in Newton, Kansas, the total initial costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $140,000-$160,000 based on median home prices in Newton. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Kansas generally cost $500-$1,500 including business licenses and potential city permits. Insurance premiums for short-term rentals run $2,000-$3,500 annually, with the first year paid upfront. Utility deposits and connections cost approximately $500-$800. First six months operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total around $3,600. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected repairs, bringing the comprehensive startup investment to the upper end of the estimated range.

Airbnb properties in Newton, Kansas typically generate modest returns with average nightly rates ranging from $65-85 for entire homes and $35-50 for private rooms, resulting in monthly revenues of $800-1,200 for properties with 50-60% occupancy rates. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($80-120 monthly), insurance ($150-200 monthly), and maintenance costs typically consume 40-50% of gross revenue, leaving profit margins of 15-25% before mortgage payments. Success factors in this mid-sized Kansas market include proximity to Bethel College, competitive pricing below Wichita rates (30 miles north), and targeting business travelers to local manufacturing facilities like Excel Industries and Hustler Turf Equipment. A typical 3-bedroom home purchased for $120,000-150,000 can generate $10,000-14,000 annually in net income after expenses, with properties near downtown or the college campus performing 20-30% better than suburban locations. The market benefits from limited hotel inventory and steady demand from college visitors, business travelers, and families attending local events, though seasonal fluctuations occur during summer months when college activity decreases.

Based on Newton, Kansas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near Newton's downtown area or close to Bethel College tend to perform better, with investors commonly seeing 9-11% annual returns. Initial profitability usually occurs within 18-24 months for well-positioned properties, though this can extend to 30-36 months for properties requiring significant renovations. The market benefits from steady demand from business travelers visiting local manufacturing facilities like Excel Industries and Hustler Turf Equipment, plus college-related visitors, though seasonal fluctuations occur during summer months when student activity decreases. Cash-on-cash returns of 8-9% are achievable with 20-25% down payments on properties in the $80,000-$150,000 range, which represents the typical investment property price point in Newton's market as of 2024.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Newton, Kansas. In the Newton area, local real estate agents like those at Coldwell Banker Antrim-Piper Wenger and RE/MAX Associates have experience with investment properties and can assist with Airbnb acquisitions. National services include Awning (formerly RedAwning) which provides market analysis and property management for short-term rentals, AirDNA for market data and analytics, Mashvisor for investment property analysis, and Roofstock which specializes in single-family rental investments that can be converted to Airbnb properties. Local property management companies such as Newton Property Management and regional firms like Sunflower Property Management can provide insights into profitable rental markets. BiggerPockets, while primarily an educational platform, connects investors with local professionals in Kansas markets. Additionally, national real estate investment firms like HomeVestors and local Kansas-based investment groups often have knowledge of properties suitable for short-term rental conversion in smaller markets like Newton.