Is Onaga, Kansas Good for Airbnb Investment?

To start an Airbnb in Onaga, Kansas, begin by researching local regulations through the Pottawatomie County Planning and Zoning Department and Onaga City Hall, as Kansas generally allows short-term rentals but local municipalities may have specific requirements including business licenses, occupancy permits, and zoning compliance. Obtain necessary permits including a Kansas business license, local business permit from Onaga (estimated cost $25-50), and ensure your property meets fire safety codes and health department standards. Find a suitable property by searching local real estate listings, considering proximity to attractions like Tuttle Creek State Park (30 minutes away) or Kansas State University in Manhattan (45 minutes), with average property prices in Onaga ranging from $80,000-150,000 for suitable homes. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and local guidebooks, budgeting approximately $5,000-10,000 for complete furnishing. List your property on Airbnb and VRBO platforms with professional photos, competitive pricing around $75-125 per night based on rural Kansas markets, and highlight nearby outdoor activities and small-town charm. Manage your listing by establishing cleaning protocols, coordinating with local cleaning services (likely $40-60 per turnover), setting up automated messaging systems, maintaining responsive communication with guests, and ensuring compliance with Kansas state tax requirements including collecting and remitting applicable sales taxes to the Kansas Department of Revenue.

To identify profitable short-term rental properties in Onaga, Kansas, focus on properties within walking distance of Tuttle Creek State Park and Lake (approximately 15 miles away) as this drives most tourism traffic to the area, with single-family homes featuring 2-4 bedrooms, full kitchens, outdoor spaces, and parking being most desirable for families and fishing groups. Analyze pricing by researching comparable Airbnb listings in Manhattan (20 miles south) and Junction City areas, targeting properties that can command $80-150 per night during peak fishing and hunting seasons (spring through fall), while maintaining 60-70% occupancy rates. Competition research should examine existing STRs within a 30-mile radius including Manhattan's college-driven market and lake-adjacent properties, identifying gaps in pet-friendly or group accommodations. Property features should emphasize outdoor amenities like fire pits, grills, boat parking, and fishing equipment storage, with homes built after 1980 preferred for lower maintenance costs. Utilize AirDNA for market analysis, Mashvisor for investment calculations, and local resources like the Pottawatomie County tourism board and Kansas Department of Wildlife fishing reports to understand seasonal demand patterns, while networking with local real estate agents familiar with lake-area properties and vacation rental regulations in this rural Kansas market.

To obtain an Airbnb/STR permit in Onaga, Kansas, contact the Onaga City Hall at 785-889-4612 or visit their office at 527 Leonard Avenue to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed business license application, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and contact information for a local property manager if you live more than 50 miles away. Required documents typically include a valid driver's license, property tax records, fire safety inspection certificate, and zoning compliance verification. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. The approval timeline is generally 30-60 days from submission of complete application materials. Specific Onaga requirements may include maximum occupancy limits based on bedrooms and square footage, mandatory smoke and carbon monoxide detectors, adequate parking spaces for guests, compliance with residential zoning restrictions, and maintaining a guest registry. You must also provide neighbors within 200 feet written notification of your intent to operate a short-term rental and ensure the property meets all building and health codes before receiving final permit approval.

Short-term rentals (STRs) in Onaga, Kansas are generally legal as the small city of approximately 700 residents does not have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. However, operators must comply with Kansas state regulations and Pottawatomie County requirements, which typically include business licensing, tax collection, and basic safety standards. The city follows standard zoning laws that may restrict commercial activities in purely residential areas, so STR operators should verify their property's zoning classification allows transient lodging. There have been no recent major legal changes specific to Onaga regarding STRs, though operators must collect and remit Kansas state transient guest tax of 6% and any applicable local taxes. Given Onaga's rural nature and limited tourism infrastructure, STR activity is minimal, and the city has not felt pressure to implement restrictive regulations like larger Kansas municipalities such as Lawrence or Kansas City have done in recent years.

The best areas for Airbnb investment in Onaga, Kansas would be the historic downtown district near Main Street, which attracts visitors interested in small-town charm and antique shopping, and properties near Tuttle Creek State Park (approximately 15 miles southeast), which draws outdoor enthusiasts for fishing, boating, and camping activities year-round. The residential areas close to the Pottawatomie County fairgrounds benefit from seasonal events and agricultural gatherings that bring temporary visitors to the area. Properties within walking distance of local restaurants and the few remaining historic buildings appeal to travelers seeking authentic rural Kansas experiences and those visiting family in the region. The area near Highway 16 offers convenience for business travelers and those passing through to larger cities like Manhattan or Topeka, making it suitable for short-term stays.

Airbnb properties in Onaga, 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 by the 25th of the following month if monthly collections exceed $40. Pottawatomie County, where Onaga is located, does not impose additional lodging taxes as of 2023, and the city of Onaga does not have a municipal transient guest tax ordinance. Hosts must register with the Kansas Department of Revenue, collect the tax from guests at the time of booking or check-in, maintain records of all transactions, and file returns using Form ST-16 even if no tax was collected during the reporting period. Exemptions include stays of 28 days or longer, certain government employees on official business, and nonprofit organizations in specific circumstances, though hosts should verify exemption eligibility and maintain proper documentation.

The total cost to start an Airbnb in Onaga, Kansas would be approximately $85,000-$95,000. Property purchase costs around $65,000-$75,000 based on median home prices in small Kansas towns like Onaga. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,000. Permits and fees including business license, short-term rental permit, and tax registration would total $300-$500. Insurance including landlord and short-term rental coverage would cost $1,200-$1,800 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable would be $500-$800. First six months operating costs including utilities ($600), cleaning supplies ($200), maintenance ($400), platform fees ($300), and marketing ($200) would total approximately $1,700. Property taxes for six months would add another $800-$1,200 to the initial investment.

Airbnb properties in Onaga, Kansas face significant profitability challenges due to the town's small population of approximately 700 residents and limited tourism infrastructure. Properties in this rural market typically generate $200-400 monthly revenue with occupancy rates around 15-25%, while expenses including mortgage payments, utilities, cleaning, and maintenance often range $800-1,200 monthly, resulting in negative profit margins of -60% to -80% for most operators. Success factors are extremely limited but may include targeting hunters during deer season (November-December), fishing enthusiasts visiting nearby Tuttle Creek Lake, or travelers seeking budget accommodations between Manhattan and Topeka. Properties that achieve marginal profitability typically charge $45-65 per night and focus on unique rural experiences or serve as overflow accommodation during Kansas State University events in nearby Manhattan, though even successful properties rarely exceed 5-8% profit margins due to the market's inherent limitations and seasonal demand fluctuations.

Airbnb investments in Onaga, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are modest due to the small rural market size of approximately 700 residents and limited tourist demand. Properties in this Pottawatomie County town, primarily single-family homes priced between $80,000-$150,000, can expect average daily rates of $75-$95 with occupancy rates around 35-45% annually, resulting in gross rental income of $8,000-$12,000 per year. After accounting for expenses including property management (10-15%), utilities, maintenance, insurance, and platform fees, net annual returns typically fall in the $4,000-$7,000 range. Investors can expect to reach profitability within 18-24 months, with break-even occurring faster for cash purchases compared to leveraged investments, though the limited market size and seasonal demand fluctuations present challenges for consistent bookings throughout the year.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in markets like Onaga, Kansas. For local expertise, investors can work with Kansas-based real estate agents from Coldwell Banker Hedrick Real Realty in nearby Manhattan or Berkshire Hathaway HomeServices in Topeka who understand the regional vacation rental market dynamics. National services include Awning, which provides end-to-end Airbnb investment services including property identification and management, and Mashvisor, an analytics platform that helps investors evaluate rental property potential in smaller Kansas markets. RedAwning offers property sourcing and management services for short-term rentals in rural markets, while AirDNA provides market data and investment analysis for vacation rental properties in emerging markets like the Flint Hills region where Onaga is located. Local property management companies such as Kansas Vacation Rentals and Sunflower State Property Management can assist with both acquisition advice and ongoing operations, and investors should also consider working with RE/MAX or Century 21 agents in the Pottawatomie County area who have experience with investment properties and understand the tourism patterns around nearby Tuttle Creek Lake and state parks that drive short-term rental demand.