Is Ulysses, Kansas Good for Airbnb Investment?

To start an Airbnb in Ulysses, Kansas, begin by researching local zoning laws and regulations through the Grant County Planning Commission and Ulysses City Hall, as Kansas municipalities typically regulate short-term rentals through zoning ordinances and business licensing requirements. Contact the Ulysses City Clerk's office to obtain necessary business licenses and permits, which may include a general business license, sales tax permit from the Kansas Department of Revenue, and potentially a special use permit for short-term rentals. Find a suitable property by working with local real estate agents familiar with Ulysses' residential areas, focusing on properties near attractions like the Ulysses Aquatic Center or downtown area, ensuring the property meets fire safety codes and ADA compliance if required. Furnish the space with essential amenities including Wi-Fi, kitchen appliances, linens, and local touches that reflect Kansas hospitality, purchasing supplies from nearby stores in Ulysses or Garden City. Create your Airbnb listing with professional photos highlighting the property's proximity to local attractions and agricultural heritage, setting competitive rates based on similar properties in southwest Kansas (estimated $60-120 per night for a typical home). Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services, implementing keyless entry systems, and maintaining responsive communication with guests while complying with Kansas state tax collection requirements for short-term rental income.

To identify profitable short-term rental properties in Ulysses, Kansas, focus on properties within walking distance of downtown attractions, near Ulysses Lake for recreational appeal, or close to major highways like US-160 for traveler convenience. Target 2-3 bedroom single-family homes or ranch-style properties with outdoor spaces, updated kitchens, and reliable internet, as these appeal to families visiting the area and business travelers working in agriculture or oil industries. Analyze pricing by researching comparable Airbnb listings within 25 miles including Garden City and Liberal, aiming for nightly rates between $75-120 while keeping acquisition costs under $150,000 to maintain healthy profit margins. Study competition on Airbnb and VRBO within Grant County, noting that limited inventory creates opportunity but also indicates smaller demand, so focus on properties that can attract guests year-round rather than seasonal visitors. Utilize tools like AirDNA for market analysis, Mashvisor for investment calculations, and local resources including the Ulysses Chamber of Commerce for event calendars, Grant County economic development data for business travel patterns, and Kansas Department of Wildlife for outdoor recreation trends that drive tourism to the area.

To obtain an Airbnb/STR permit in Ulysses, Kansas, contact the Ulysses City Hall at 316 N. Main Street or call (620) 356-1404 to inquire about short-term rental regulations and permit requirements. You will likely need to submit a business license application, provide proof of property ownership or lease agreement, submit a site plan or floor plan of the property, obtain liability insurance documentation, and complete a safety inspection checklist covering smoke detectors, carbon monoxide detectors, and fire extinguishers. Required documents typically include a completed application form, property deed or lease, driver's license, proof of insurance, and utility bills. The application fee is estimated between $50-150 with potential annual renewal fees of $25-75. The approval timeline is approximately 2-4 weeks depending on inspection scheduling and document review. Ulysses may require compliance with residential zoning restrictions, parking requirements for guests, occupancy limits based on property size, and adherence to noise ordinances. Contact the Grant County Health Department at (620) 356-4430 for any additional health and safety requirements, and ensure compliance with Kansas state tax obligations by registering with the Kansas Department of Revenue for sales tax collection on rental income.

Short-term rentals (STRs) are generally legal in Ulysses, Kansas, as the city does not have specific municipal ordinances prohibiting them as of 2023. However, operators must comply with standard business licensing requirements and zoning regulations that may restrict STRs in certain residential areas. Kansas state law allows municipalities to regulate STRs, and while Ulysses hasn't enacted comprehensive STR-specific regulations like larger Kansas cities such as Lawrence or Overland Park, property owners should verify compliance with local zoning codes, particularly in residential districts where commercial activities may be limited. The city requires basic business licenses for rental operations, and STR properties must meet standard health and safety codes. Recent trends in Kansas show increasing municipal regulation of STRs, with cities implementing registration requirements, occupancy limits, and parking restrictions, though Ulysses has remained relatively permissive compared to urban areas facing housing shortage concerns.

The best areas for Airbnb investment in Ulysses, Kansas would be the downtown historic district near Main Street, which attracts visitors interested in the town's agricultural heritage and serves business travelers visiting local grain elevators and farming operations. The residential neighborhoods near Ulysses High School and the community center offer family-friendly accommodations for sports tournaments, school events, and family reunions. Properties near the Ulysses Municipal Airport area appeal to agricultural consultants, crop insurance adjusters, and seasonal workers during harvest time from companies like Cargill and ADM who frequently visit the region's grain facilities. The area around Grant County Courthouse attracts legal professionals, government contractors, and people conducting business with county offices. Neighborhoods near the medical district around Bob Wilson Memorial Grant County Hospital draw medical professionals, traveling nurses, and families of patients seeking longer-term stays than traditional hotels offer.

In Ulysses, 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 host and remitted monthly to the Kansas Department of Revenue if gross receipts exceed $4,000 annually. Grant County, where Ulysses is located, does not impose an additional county lodging tax, and the city of Ulysses does not currently have a municipal occupancy tax ordinance in place as of 2023. Hosts must register with the Kansas Department of Revenue, collect the 6% tax from guests at the time of booking or check-in, and file returns by the 25th of the month following the tax period using Form ST-16. Exemptions include stays of 28 days or longer, government employees on official business, and certain nonprofit organization stays, though hosts should verify exemption eligibility through proper documentation before waiving the tax.

The total cost to start an Airbnb in Ulysses, Kansas would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in rural Kansas markets. Furnishing a 2-3 bedroom property completely would cost $15,000-$25,000 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 $3,000-$5,000. Permits and fees including business license, short-term rental permits, and tax registrations would cost $500-$1,500 depending on local regulations. Insurance including landlord and short-term rental coverage would be $2,000-$3,000 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable would cost $1,000-$2,000. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance ($200/month), platform fees (3% of bookings), and marketing would total $8,000-$12,000 assuming moderate occupancy rates of 40-60% typical for smaller Kansas markets.

Airbnb properties in Ulysses, Kansas, face challenging profitability conditions due to the town's small population of approximately 6,000 and limited tourism infrastructure. Properties in this rural western Kansas community typically generate $200-400 monthly revenue with occupancy rates around 15-25%, significantly lower than Kansas state averages of 45-60%. Operating expenses including utilities ($80-120/month), cleaning fees ($40-60 per turnover), property management (10-15% of revenue), insurance ($100-150/month), and maintenance ($50-100/month) often consume 70-85% of gross revenue, leaving profit margins of 15-30% at best. Success factors include targeting agricultural workers, oil field contractors, and hunters during pheasant season (October-January), with properties near grain elevators or industrial facilities performing marginally better. A typical 3-bedroom home listed at $75-95/night might achieve $2,400-4,800 annual revenue against $2,000-3,500 in expenses, yielding $400-1,300 net profit annually. The limited market demand, driven primarily by business travelers and seasonal hunters rather than leisure tourism, makes Ulysses a marginal market for Airbnb investment compared to larger Kansas cities like Wichita or Lawrence where properties can achieve 3-5x higher occupancy rates and revenue per available room.

Based on Ulysses, Kansas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and occupancy rates. Properties in this rural Kansas market generally reach profitability within 18-24 months, with average nightly rates of $75-120 for well-maintained 2-3 bedroom properties. The limited competition in Grant County creates opportunities for consistent bookings from travelers visiting nearby attractions, oil field workers, and hunting enthusiasts, though seasonal fluctuations can impact returns with stronger performance during hunting seasons (fall/winter) and summer travel periods. Initial investment recovery typically occurs within 3-4 years assuming 40-60% annual occupancy rates and proper property management, with gross rental yields averaging 10-15% annually before expenses.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Ulysses, Kansas. Local real estate agents in the area include Coldwell Banker Schmidt Realtors with offices serving southwest Kansas, and RE/MAX Associates which has agents familiar with investment properties in Grant County. Century 21 also operates in the region through affiliated offices in nearby Dodge City and Garden City. National services that can assist include Mashvisor, which provides Airbnb analytics and property search tools, RedAwning for vacation rental market analysis, and AirDNA for short-term rental data insights. BiggerPockets marketplace connects investors with local agents experienced in rental properties, while Roofstock focuses on turnkey rental investments. Local property management companies like Western Kansas Property Management and High Plains Realty can provide insights into profitable rental markets. Additional national platforms include Awning for Airbnb-focused real estate services, Vacasa for market analysis, and local mortgage brokers like First National Bank of Kansas and Community National Bank who understand investment property financing in rural Kansas markets.