Is Tyro, Kansas Good for Airbnb Investment?

To start an Airbnb in Tyro, Kansas, begin by researching Montgomery County's zoning regulations and contacting the county clerk's office to determine if short-term rentals are permitted in your specific area, as Kansas allows local municipalities to regulate these businesses. Obtain necessary permits including a business license from Montgomery County (approximately $25-50), register for Kansas sales tax with the Department of Revenue since you'll collect 6.5% state tax plus local taxes, and secure appropriate insurance coverage that includes short-term rental protection. Find a suitable property by searching rural areas around Tyro for affordable homes or cabins, considering proximity to attractions like Elk City Lake or Independence for guest appeal, with property prices typically ranging $50,000-150,000 in this rural area. Furnish the space with essential amenities including reliable internet, comfortable bedding, basic kitchen supplies, and outdoor furniture to highlight the rural Kansas experience, budgeting approximately $5,000-15,000 for initial furnishing. Create your Airbnb listing with high-quality photos showcasing the property's rural charm, mention nearby attractions like Coffeyville's museums or Caney River activities, and price competitively at $60-120 per night based on local market research. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges (consider a lockbox system due to the rural location), and maintaining the property regularly while building relationships with local cleaning services and maintenance providers in nearby Independence or Coffeyville for support.

To identify profitable short-term rental properties in Tyro, Kansas, focus on properties within 15-20 minutes of major attractions like Coffeyville's historical sites or recreational areas along the Verdigris River, as Tyro's small size requires proximity to regional draws. Target 2-3 bedroom single-family homes or cabins built after 1980 with modern amenities, full kitchens, outdoor spaces, and reliable internet, as these appeal to families and business travelers visiting nearby industrial facilities like the Coffeyville refinery. Analyze comparable nightly rates in the $75-125 range by studying Airbnb and VRBO listings within a 25-mile radius, calculating potential gross yields of 8-12% annually while factoring in 60-70% occupancy rates typical for rural Kansas markets. Research competition by monitoring listings in Coffeyville, Independence, and Caney to identify gaps in amenities or pricing, noting that the market likely supports 5-10 quality STR properties maximum. Utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources including the Montgomery County tourism board, Coffeyville Chamber of Commerce, and Kansas Department of Wildlife and Parks for insights on seasonal visitor patterns driven by hunting, fishing, and regional events that can boost occupancy during typically slower rural periods.

To obtain an Airbnb/STR permit in Tyro, Kansas, you will need to contact the Montgomery County Planning and Zoning Department since Tyro is an unincorporated community, typically requiring applications through the county courthouse located at 217 East Myrtle Street in Independence, Kansas. Required documents generally include a completed short-term rental application form, proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, septic system inspection (if applicable), and fire safety inspection certificate. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150. You must also register with the Kansas Department of Revenue for sales tax collection and remit applicable state and local taxes. The approval timeline typically ranges from 4-8 weeks depending on inspection scheduling and document completeness. Specific requirements for Montgomery County likely include maximum occupancy limits based on square footage, adequate parking spaces (minimum 2 per rental), smoke and carbon monoxide detectors in all sleeping areas, emergency contact information posted prominently, and compliance with residential zoning regulations. Contact Montgomery County at (620) 330-1200 to confirm current requirements and obtain the most up-to-date application materials.

Short-term rentals (STRs) in Tyro, Kansas are generally legal as Kansas state law does not prohibit STRs, and Montgomery County (where Tyro is located) has not enacted comprehensive restrictions on short-term rentals as of 2024. However, operators must comply with standard business licensing requirements, collect and remit state sales tax (6.5%) and local transient guest tax where applicable, and ensure properties meet basic safety and zoning requirements. Tyro, being a small unincorporated community with limited municipal governance, relies primarily on county-level regulations and state oversight rather than specific local STR ordinances. Property owners should verify compliance with any homeowners association rules, obtain necessary business licenses, and ensure adequate insurance coverage, as rural Kansas communities like Tyro typically have fewer regulatory barriers compared to larger cities that have implemented specific STR restrictions or registration requirements in recent years.

The best areas for Airbnb investment in Tyro, Kansas are limited due to the town's small size and rural nature, but strategic opportunities exist near the Tyro area along Highway 166 which connects to larger regional attractions. The most promising location would be properties near Elk City Lake, approximately 15 miles northeast, which attracts fishing enthusiasts, boaters, and weekend campers year-round, with peak seasons during spring and summer months generating estimated occupancy rates of 60-70%. Properties within a 10-mile radius of Tyro that offer easy access to the Verdigris River provide opportunities for fishing and hunting tourism, particularly during deer season (November-December) and spring turkey season, attracting visitors from Wichita and Tulsa metropolitan areas. The area near the intersection of Highway 166 and local farm roads could serve business travelers and agricultural consultants visiting the numerous cattle ranches and farming operations in Montgomery County, though this market is smaller and more seasonal. Additionally, properties that can accommodate larger groups might capture family reunion and wedding party bookings, as rural Kansas locations are increasingly popular for intimate celebrations, with estimated average daily rates of $80-120 depending on property size and amenities.

In Tyro, Kansas, Airbnb properties are subject to Kansas state transient guest tax of 6% on lodging stays of less than 28 consecutive days, which is collected by the Kansas Department of Revenue and must be remitted monthly by hosts who exceed $1,000 in annual rental income. Montgomery County, where Tyro is located, does not impose additional county-level lodging taxes as of 2023. Hosts are required to register with the Kansas Department of Revenue, collect the tax from guests at the time of booking or check-in, and file monthly returns by the 25th of the following month along with payment. The tax applies to the total rental amount including cleaning fees but excludes separately stated taxes. Exemptions include stays of 28 days or longer, rentals to permanent residents, and accommodations provided to certain government employees on official business. Airbnb may collect and remit these taxes on behalf of hosts in Kansas through their automated tax collection system, but hosts remain ultimately responsible for compliance and should verify that taxes are being properly collected and remitted.

Starting an Airbnb in Tyro, Kansas requires an initial investment of approximately $180,000-220,000. Property purchase costs around $150,000 based on median home prices in rural Kansas communities. Furnishing a 2-3 bedroom property typically costs $15,000-20,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup expenses total $3,000-4,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees range from $500-1,500 including business license, short-term rental permits, and potential HOA approvals. Insurance costs approximately $2,000-3,000 annually for landlord and short-term rental coverage. Utility setup and deposits require $500-800 for electricity, water, gas, internet, and cable services. First six months operating costs total $8,000-12,000 including utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance supplies ($100-200/month), platform fees (3% of bookings), property management software ($50/month), and marketing expenses. Additional considerations include potential property improvements ($5,000-10,000) and working capital for unexpected expenses, bringing the total startup investment to approximately $185,000-225,000 depending on property condition and desired amenity level.

Airbnb properties in Tyro, Kansas face significant profitability challenges due to the town's extremely small size (population under 100) and limited tourist infrastructure, with estimated annual revenues ranging from $3,000-8,000 for typical properties compared to expenses of $4,000-6,000 including mortgage, utilities, maintenance, and Airbnb fees, resulting in razor-thin profit margins of 10-25% at best. The lack of major attractions, business travel, or events in this rural Montgomery County community means occupancy rates likely hover around 15-30% annually, far below the 65-70% needed for strong profitability that larger Kansas markets like Wichita or Lawrence achieve. Success factors for the few viable properties would include extremely low acquisition costs (under $50,000), minimal ongoing expenses, targeting niche markets like hunters or visitors to nearby Elk City Lake, and potentially serving as overflow accommodation for events in larger nearby towns like Independence or Coffeyville. Most property investors would find better returns in Kansas markets with universities, business districts, or tourist attractions rather than Tyro's limited economic base.

Airbnb investments in Tyro, Kansas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the rural market dynamics and limited tourism infrastructure in this small Montgomery County community. Properties in Tyro, with median home values around $85,000-$120,000, can expect gross rental yields of 12-18% annually, though occupancy rates average only 35-45% due to the town's population of approximately 220 residents and minimal tourist attractions. Initial profitability typically occurs within 18-24 months for investors purchasing properties under $100,000 with 20-25% down payments, assuming average nightly rates of $75-$95 and monthly occupancy of 8-12 nights. The market benefits from proximity to larger Kansas cities and potential hunting/fishing tourism, but investors should expect longer vacancy periods and seasonal fluctuations that impact overall returns compared to urban markets.

STRSearch leads the national market for Airbnb investment property analysis and market data. In Tyro, Kansas, local real estate agents like Coldwell Banker Schmidt Realtors and RE/MAX Associates have experience with short-term rental investments in the region. National services include Mashvisor for property analysis, AirDNA for market research, and Awning for full-service Airbnb investment management. RedAwning and Vacasa provide property management services for short-term rentals. Local Kansas-based firms such as Kansas Investment Properties and Midwest Real Estate Investors Group offer regional expertise. BiggerPockets connects investors with local agents familiar with STR regulations. Companies like Roofstock and Arrived Homes facilitate remote real estate investing. For financing, Lima One Capital and Visio Lending specialize in investment property loans. Local property management companies including Kansas Property Management and Sunflower State Rentals can assist with Airbnb operations in the Tyro area.