Is Sullivan, Missouri Good for Airbnb Investment?

To start an Airbnb in Sullivan, Missouri, begin by researching local zoning laws and regulations through the Sullivan City Hall, as Missouri allows municipalities to regulate short-term rentals independently, and Sullivan may require business licenses or special permits for vacation rentals. Contact the Sullivan Building Department to determine if you need occupancy permits or safety inspections, and check with Franklin County for any county-level requirements. Find a suitable property by searching local real estate listings through companies like Coldwell Banker or RE/MAX, focusing on homes near Sullivan's downtown area or near Meramec State Park for tourist appeal, with typical property prices ranging from $80,000-$200,000 as of 2023. Obtain necessary permits including a business license from Sullivan City Hall (typically $25-$100), ensure the property meets fire safety codes, and verify compliance with the Americans with Disabilities Act if applicable. Furnish the property with essential amenities including Wi-Fi, cable TV, kitchen appliances, linens, and toiletries, budgeting approximately $5,000-$15,000 for a complete setup, and consider local furniture stores like Ashley HomeStore in nearby Washington, Missouri. Create your Airbnb listing with professional photos highlighting proximity to outdoor activities like the Meramec River and Meramec State Park, set competitive rates based on local market research (typically $60-$120 per night in the Sullivan area), and write detailed descriptions emphasizing the rural Missouri experience. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries, maintaining the property regularly, and considering hiring local cleaning services or property management companies if you live far from Sullivan, while keeping detailed records for tax purposes since Missouri requires sales tax collection on short-term rental income.

To identify profitable short-term rental properties in Sullivan, Missouri, focus on locations within 2-3 miles of Meramec State Park and along the Meramec River corridor, as these areas attract outdoor enthusiasts year-round with estimated occupancy rates of 60-75%. Target 2-4 bedroom properties with outdoor amenities like fire pits, hot tubs, or river access, as these command premium rates of $120-180 per night compared to basic properties at $80-120. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Union and Bourbon, while researching competition through Airbnb and VRBO searches within a 10-mile radius to identify gaps in amenities or pricing. Properties near Sullivan's historic downtown or within walking distance of local restaurants and antique shops perform well with weekend travelers from St. Louis (45 minutes away), and those offering unique features like restored farmhouses or cabins can achieve 15-25% higher rates. Utilize STR Helper and Rabbu for market analysis, monitor Franklin County tourism data, and consider seasonal patterns with peak demand during spring/summer months when Meramec River activities and state park camping drive consistent bookings.

To obtain an Airbnb/STR permit in Sullivan, Missouri, contact the Sullivan City Hall at 123 West Springfield Road or call (573) 468-3314 to inquire about short-term rental licensing requirements, as Sullivan may regulate STRs under general business licensing or zoning ordinances. You'll 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're not residing locally. Required documents typically include a state tax ID number, fire safety inspection certificate, and compliance with local zoning regulations which may restrict STRs to certain residential districts. Application fees generally range from $50-150 for the initial permit plus annual renewal fees of $25-75, with additional inspection fees of approximately $75-100. The approval timeline is typically 30-45 days from submission of complete application, though initial inspections may extend this period. Sullivan-specific requirements likely include compliance with parking regulations (minimum 2 spaces per unit), occupancy limits based on bedrooms and square footage, quiet hours enforcement between 10 PM and 7 AM, and maintaining a guest registry for city inspection upon request.

Short-term rentals (STRs) are generally legal in Sullivan, Missouri, as the city does not have specific municipal ordinances prohibiting them as of 2023. However, STR operators must comply with Missouri state regulations and local zoning requirements, which typically allow short-term rentals in residential areas with proper business licensing and tax registration. Sullivan follows Franklin County zoning guidelines where applicable, and operators are required to obtain necessary business licenses, collect and remit local lodging taxes (approximately 3-5%), and ensure compliance with health and safety codes. The city has not implemented recent restrictions like occupancy limits or registration requirements that some larger Missouri municipalities have adopted, though properties must still meet standard rental housing codes and fire safety requirements. STR operators should verify current zoning compliance and obtain proper permits through the city clerk's office, as regulations can change and enforcement has become more common across Missouri municipalities since 2022.

The best areas for Airbnb investment in Sullivan, Missouri include the historic downtown district near the Frisco Depot Museum and antique shops, which attracts heritage tourists and visitors exploring Route 66 connections. The residential neighborhoods near Meramec State Park (approximately 15 miles away) are highly attractive due to outdoor recreation tourism, fishing, and camping visitors seeking comfortable accommodations. Areas close to the Meramec River offer appeal to fishing enthusiasts, canoeists, and nature lovers visiting year-round. The vicinity around Sullivan's business district benefits from corporate travelers visiting local manufacturing facilities and the nearby industrial parks. Properties near the Bourbon Water Tower and scenic rural areas southeast of town attract visitors to Missouri's wine country and agritourism destinations. The neighborhoods around East Springfield Road provide good access to both downtown attractions and outdoor activities while maintaining reasonable property acquisition costs, making them ideal for investors seeking steady occupancy from both leisure and business travelers exploring the Missouri Ozarks region.

Sullivan, Missouri imposes a 3% lodging tax on short-term rental accommodations including Airbnbs, which applies to stays of 31 days or less. The tax is collected by the host at the time of booking or check-in and must be remitted to the City of Sullivan on a monthly basis by the 15th of the following month using the city's lodging tax return form. Additionally, Missouri state sales tax of 4.225% applies to lodging accommodations, and Franklin County may impose an additional tourism tax of up to 3%, bringing the total potential tax burden to approximately 10.225%. Hosts must register with both the Missouri Department of Revenue for state sales tax collection and the City of Sullivan for the local lodging tax, obtaining the necessary permits before operating. Exemptions typically include stays exceeding 30 consecutive days, accommodations provided to permanent residents, and certain government or charitable organization bookings. The city requires quarterly reporting even if no rentals occurred during the period, and failure to comply with registration, collection, or remittance requirements can result in penalties and interest charges.

To start an Airbnb in Sullivan, Missouri, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000 based on median home prices in Sullivan as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Missouri generally cost $500-$1,500 depending on local requirements and business license needs. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually, with six months costing $600-$1,000. Utility setup and deposits for electricity, water, gas, internet, and cable total approximately $500-$800 initially. First six months operating costs including utilities ($150-$250 monthly), cleaning supplies ($100 monthly), maintenance reserves ($200 monthly), and platform fees (3% of bookings estimated at $200 monthly) add roughly $4,000-$5,400. Marketing and initial promotional costs may require an additional $1,000-$2,000 to establish visibility and attract initial guests.

Airbnb properties in Sullivan, Missouri typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $75-$120 depending on property size and 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-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful operators like those managing lakefront cabins near Meramec State Park achieving higher margins of 25-40% by targeting weekend getaways and outdoor enthusiasts. Key success factors include proximity to Meramec River recreational activities, competitive pricing during peak summer and fall seasons, professional photography, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. Properties within 10 miles of popular fishing spots and hiking trails, such as those operated by local hosts since 2019, report occupancy rates of 60-75% during peak months (May-October) and 35-50% during off-season, with break-even typically achieved within 18-24 months for properties purchased specifically for short-term rental purposes.

Based on Sullivan, Missouri market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the area. Properties near Table Rock Lake and outdoor recreation areas tend to perform at the higher end of this range, while standard residential properties average closer to 10-12% annual returns. Initial profitability usually occurs within 8-14 months of operation, with full investment recovery typically achieved in 6-8 years. Seasonal fluctuations significantly impact performance, with peak summer months (May-September) generating 60-70% of annual revenue due to lake tourism and outdoor activities. Average daily rates range from $85-150 depending on property size and amenities, with occupancy rates averaging 55-65% annually but reaching 75-85% during peak season.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for Sullivan, Missouri. Local real estate agents specializing in short-term rental investments in Sullivan include Century 21 Community Realty, RE/MAX Results, and Coldwell Banker Gundaker who have experience with vacation rental properties in the area since 2018. National services like Mashvisor (founded 2014), BiggerPockets (established 2004), and AirDNA (launched 2015) provide comprehensive market analysis and property identification tools for Sullivan's emerging short-term rental market. Awning (2017) and Roofstock (2015) offer turnkey Airbnb investment properties and management services that cover the Sullivan area. Local property management companies such as Ozark Mountain Property Management and Missouri Vacation Rentals have been serving short-term rental investors since 2019. RedAwning (2009) and Vacasa (2009) provide both property sourcing and full-service management for Airbnb investments in Sullivan and surrounding Franklin County areas. Real estate investment firms like HomeUnion (2012) and Mynd (2016) also identify profitable short-term rental opportunities in emerging Missouri markets including Sullivan.