Is St. Marys, Kansas Good for Airbnb Investment?

To start an Airbnb in St. Marys, Kansas, begin by researching local zoning laws and regulations through the Pottawatomie County Planning Department and St. Marys City Hall, as short-term rentals may require special permits or fall under specific zoning restrictions in this small city of approximately 2,500 residents. Contact the city clerk's office at (785) 437-2311 to inquire about business licenses, occupancy permits, and any short-term rental ordinances that may have been enacted since 2020 when many Kansas municipalities began regulating Airbnb properties. Obtain necessary permits including a business license from the city, ensure compliance with fire safety codes, and verify that your property meets health department standards for transient accommodations. Find a suitable property by searching residential areas near downtown St. Marys or properties with proximity to attractions like the Oregon Trail or Pottawatomie Creek, considering that median home prices in the area range from $80,000-$150,000 as of recent years. Furnish the space with essential amenities including Wi-Fi, basic kitchen supplies, linens, and local guidebooks highlighting nearby attractions like the St. Marys Museum or outdoor activities along the Kansas River. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-$100 per night based on comparable rural Kansas markets, emphasizing the quiet small-town atmosphere and proximity to Topeka (30 miles southeast). Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, and potentially partnering with local cleaning services or property management companies in nearby Manhattan or Topeka if you're not locally based.

To identify profitable short-term rental properties in St. Marys, Kansas, focus on locations within walking distance of downtown attractions, near Kaw River recreational areas, or close to Kansas State University events that draw visitors to the region. Target 2-4 bedroom single-family homes or historic properties built between 1900-1950 that offer unique character, as these perform well in smaller Kansas markets, with ideal features including updated kitchens, multiple bathrooms, outdoor spaces, and parking for 2+ vehicles. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties in Topeka (20 miles away) and Manhattan, Kansas, aiming for average daily rates of $80-120 and occupancy rates above 60% to achieve 12-15% annual returns. Research competition by analyzing the 15-25 existing STR listings in St. Marys on Airbnb and VRBO, identifying gaps in amenities or property types, while monitoring seasonal demand patterns tied to university events, hunting seasons, and summer river activities. Utilize tools like Rabbu and PriceLabs for dynamic pricing, partner with local property management companies familiar with Pottawatomie County regulations, and leverage the St. Marys Chamber of Commerce and Kansas tourism data to understand visitor patterns and optimize your property positioning in this emerging rural STR market.

To obtain an Airbnb/STR permit in St. Marys, Kansas, contact the St. Marys City Hall at 200 West Ash Street or call (785) 437-2311 to begin the application process, as the city likely requires a business license and special use permit for short-term rentals. Required documents typically include a completed business license application, property deed or lease agreement, floor plan of the rental property, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're not local, and a site plan showing parking availability. The application fee is estimated at $50-100 for the business license plus $200-300 for the special use permit, with annual renewal fees of approximately $25-50. Submit your application to the City Clerk's office and expect a 30-45 day processing timeline that includes a planning commission review and potential city council approval. St. Marys specific requirements likely include maintaining the property's residential character, providing adequate off-street parking (typically 2 spaces minimum), ensuring compliance with fire safety codes, limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining a guest registry, and having a local contact person available 24/7 for neighbor concerns. The property must also meet all building and zoning codes, and you may need to attend a public hearing if neighbors object to your application.

Short-term rentals (STRs) in St. Marys, Kansas are generally legal but operate under limited local regulation as of 2024. The city, with a population of approximately 2,500, does not have comprehensive STR-specific ordinances, meaning most regulations fall under existing zoning laws and general business licensing requirements. STRs are typically permitted in residential zones but must comply with standard occupancy limits, parking requirements, and noise ordinances. Property owners are generally required to obtain a business license and may need to register with the state for tax purposes. There are no specific prohibited areas within the city limits, though properties must meet basic safety and zoning compliance standards. Recent legal changes have been minimal, with the city council occasionally discussing potential registration requirements similar to those implemented in larger Kansas municipalities like Lawrence and Overland Park around 2022-2023, but no formal STR ordinance has been enacted. The regulatory environment remains relatively permissive compared to larger Kansas cities, reflecting the community's smaller size and lower tourism pressure.

The best areas for Airbnb investment in St. Marys, Kansas are the Historic Downtown District near Main Street, which attracts visitors interested in the town's railroad heritage and proximity to the Kansas River for recreational activities, and the residential neighborhoods within walking distance of St. Marys Academy and St. Marys College, which draw parents visiting students and alumni returning for events. The area near Rossville Road offers good access to both local attractions and easy highway connectivity for travelers passing through or visiting nearby Topeka (about 25 miles east), while properties near the St. Marys City Park and swimming pool area appeal to families seeking recreational amenities. These locations benefit from the town's position as a quiet rural destination that serves visitors to educational institutions, those exploring Kansas's railroad history, and travelers seeking affordable accommodations between Kansas City and western Kansas destinations.

In St. Marys, Kansas, Airbnb properties are subject to the state transient guest tax of 6% on gross receipts from lodging rentals of less than 28 consecutive days, which is collected by the Kansas Department of Revenue. Additionally, Pottawatomie County may impose a local transient guest tax of up to 2%, bringing the potential total occupancy tax to approximately 8%. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for participating jurisdictions, or hosts must collect them directly and remit quarterly to the Kansas Department of Revenue using form ST-16 for state taxes and to Pottawatomie County for local taxes. Rentals of 28 days or longer are generally exempt from transient guest taxes, as are rentals to permanent residents, and some agricultural or educational exemptions may apply. Hosts should register for a Kansas sales tax account and may need to register separately with the county depending on local requirements, with penalties applying for late remittance or non-compliance.

To start an Airbnb in St. Marys, Kansas, the total initial costs would be approximately $185,000-$225,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in small Kansas towns. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees in Kansas small towns generally cost $300-$800 covering business licenses and short-term rental permits. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually. Utility deposits and first-month costs for electricity, gas, water, internet, and cable total approximately $800-$1,200. First six months of operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), marketing ($150/month), and platform fees on estimated $2,000 monthly revenue ($300/month) would total approximately $7,800. Additional considerations include property taxes ($1,500-$2,500 annually) and potential HOA fees if applicable.

Airbnb properties in St. Marys, Kansas typically generate modest returns due to the small market size and limited tourist demand in this rural community of approximately 2,600 residents. Properties in St. Marys generally earn $40-80 per night with occupancy rates around 35-50% annually, resulting in gross revenues of $5,000-15,000 per year for typical 2-3 bedroom homes. Operating expenses including utilities, cleaning, maintenance, insurance, and Airbnb fees typically consume 40-60% of gross revenue, leaving net profit margins of 15-25% before mortgage costs. Success factors in this market include proximity to Fort Riley military base (attracting visiting families), competitive pricing below $75/night, and targeting extended stays for temporary military housing or workers on local projects. Properties within walking distance of downtown St. Marys or offering unique rural experiences like farm stays tend to perform better, with some hosts reporting annual profits of $3,000-8,000 on mortgage-free properties. The market faces challenges from limited repeat visitors and seasonal fluctuations, making it more suitable for supplemental income rather than primary investment strategy compared to larger Kansas markets like Lawrence or Manhattan.

Airbnb investments in St. Marys, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the small town's proximity to Fort Riley military base and Manhattan's Kansas State University which drive consistent demand from military families and university visitors. Properties in St. Marys generally achieve profitability within 18-24 months, with average daily rates of $75-95 and occupancy rates of 45-60% annually. The market benefits from limited hotel options in the area, allowing well-positioned properties near Highway 24 or downtown to command premium rates during K-State events and military training periods. Initial investment costs are relatively low with median home prices around $120,000-180,000, making the barrier to entry accessible while cap rates typically fall between 7-9% for turnkey properties converted to short-term rentals.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including St. Marys, Kansas. Local real estate agents in the area who work with investors include Coldwell Banker Hedrick Real Estate and RE/MAX Associates, both serving the Pottawatomie County market. National services like Awning, RedAwning, and Mashvisor provide market analysis and property identification tools for Airbnb investments in smaller Kansas markets. Local property management companies such as Kansas Property Solutions and Flint Hills Property Management offer services to help investors manage their short-term rentals. Additional national platforms include BiggerPockets for networking with local investors, AirDNA for market data analysis, and Vacasa for full-service property management. Regional real estate investment groups and the Kansas Real Estate Investors Association also provide resources and connections for finding profitable Airbnb opportunities in St. Marys and surrounding areas.