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, occupancy permit, and potentially a special use permit for short-term rentals, with fees typically ranging $50-200. Find a suitable property by working with local real estate agents familiar with Ulysses' residential areas, focusing on properties near attractions like the Grant County Museum or downtown area, with average home prices around $80,000-150,000. Furnish the property with essential amenities including quality bedding, kitchen supplies, Wi-Fi, and local guidebooks highlighting nearby attractions like the Santa Fe Trail and local restaurants. Create your Airbnb listing with professional photos showcasing the property's proximity to local attractions and emphasizing the small-town Kansas experience, setting competitive rates around $60-100 per night based on comparable properties in southwest Kansas. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management software to handle bookings, communicate with guests, and maintain compliance with any ongoing reporting requirements to the city of Ulysses.

To identify profitable short-term rental properties in Ulysses, Kansas, focus on properties within walking distance of downtown attractions, near Ulysses Lake for outdoor recreation access, or close to Highway 160 for traveler convenience, as these locations typically command higher occupancy rates. Target 2-3 bedroom single-family homes or ranch-style properties with updated kitchens, reliable Wi-Fi capability, parking spaces, and outdoor amenities like patios or fire pits that appeal to families and business travelers visiting the agricultural hub. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 25-mile radius, aiming for nightly rates between $75-120 based on property size and amenities, while calculating potential monthly revenue against mortgage, utilities, and maintenance costs. Research competition by analyzing existing STR listings in Grant County, noting their occupancy calendars, guest reviews, and pricing strategies, particularly focusing on properties serving agricultural workers, wind energy technicians, and tourists exploring southwest Kansas. Utilize tools like AirDNA for market data, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources including the Ulysses Chamber of Commerce for tourism trends, Grant County economic development data for business travel patterns, and Kansas Department of Wildlife and Parks information for seasonal recreation demands around Ulysses Lake.

To obtain an Airbnb/STR permit in Ulysses, Kansas, contact the Ulysses City Clerk's office at City Hall located at 123 North Main Street or call (620) 356-1404 to begin the application process. Required documents typically include a completed business license application, property deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and proof of compliance with fire safety codes. The application fee is estimated at $150-250 annually, with additional inspection fees of approximately $75-100. Submit your application along with all required documentation and payment to the City Clerk's office, after which the city will schedule a property inspection within 10-14 business days. The inspection will verify compliance with building codes, fire safety requirements, parking availability, and occupancy limits. Once approved, the permit is typically issued within 21-30 days of application submission. Ulysses requires STR properties to maintain adequate off-street parking, limit occupancy to no more than 2 guests per bedroom plus 2 additional guests, display the permit number in all advertising, and maintain a local contact person available 24/7 for any issues. Annual renewal is required with updated insurance documentation and compliance verification.

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 Wichita or Lawrence, property owners should verify compliance with local zoning codes, obtain necessary business licenses, and ensure adherence to health and safety standards. The city may require STRs to operate under general business permit requirements, and operators should be aware that residential zoning districts might have restrictions on commercial activities. Recent trends in Kansas show increasing municipal attention to STR regulation, so Ulysses may develop more specific ordinances in the future, particularly regarding registration requirements, occupancy limits, and neighbor notification procedures.

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 the grain elevators and agricultural facilities that dominate the local economy. The residential neighborhoods near Ulysses High School and the community center offer good potential due to their proximity to local events and sports tournaments that bring families to town. Areas close to Highway 160 provide convenient access for travelers passing through southwestern Kansas and those visiting nearby attractions like the Santa Fe Trail remnants. The neighborhoods around Grant County Hospital attract medical professionals and families of patients requiring extended stays. Properties near the Ulysses Country Club and recreational facilities appeal to visitors attending golf tournaments and community events, while areas close to the agricultural research facilities and cooperative extensions draw researchers, agricultural consultants, and seasonal workers who need temporary housing during planting and harvest seasons.

In Ulysses, Kansas, Airbnb properties are subject to Kansas state transient guest tax of 6% on gross receipts from lodging rentals of less than 28 consecutive days, which is collected by the host and remitted monthly to the Kansas Department of Revenue if monthly collections exceed $40. Grant County, where Ulysses is located, does not impose additional county-level lodging taxes as of 2023. The City of Ulysses may impose local transient guest taxes up to 2% under Kansas statute, though specific rates vary by municipal ordinance and hosts must register with local tax authorities for collection and remittance. Exemptions typically include stays of 28 days or longer, certain government employees on official business, and properties rented for less than 3 days per month, though hosts should verify current local ordinances as tax rates and collection procedures can change annually through city council actions.

To start an Airbnb in Ulysses, Kansas, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$140,000 based on median home prices in rural Kansas markets. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Kansas rural areas are generally minimal at $200-$500, covering business licenses and potential zoning approvals. Insurance costs run $1,200-$2,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility deposits and connections total approximately $500-$800 for electricity, gas, water, internet, and cable services. First six months of operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $8,000-$12,000, assuming moderate occupancy rates of 40-50% typical for rural Kansas markets in 2024.

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 southwest Kansas community typically generate $200-400 monthly revenue with occupancy rates around 15-25%, significantly below the national average of 48%. 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 costs often consume 70-85% of gross revenue, leaving profit margins of 15-30% at best. Success factors include targeting oil field workers, agricultural contractors, and hunters during pheasant season (October-January), with properties near Highway 160 performing marginally better due to traveler convenience. 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. Properties offering amenities like high-speed internet for remote workers or outdoor equipment storage for hunters show 20-30% higher occupancy rates, though the overall market remains constrained by Ulysses' geographic isolation and limited economic drivers beyond agriculture and energy sectors.

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. The small rural market of Ulysses, with approximately 6,000 residents, sees moderate demand from business travelers visiting local agriculture operations, oil field workers, and occasional recreational visitors to nearby attractions. Properties purchased in the $80,000-$120,000 range can expect nightly rates of $65-$85 with occupancy rates around 45-55% annually, generating gross rental income of $10,000-$16,000 per year. After accounting for expenses including utilities, cleaning, maintenance, insurance, and platform fees totaling approximately 40-50% of gross income, net annual returns typically reach $5,000-$9,000. Most investors achieve profitability within 18-24 months of operation, with break-even occurring around month 14-18 depending on initial renovation costs and marketing effectiveness. The timeframe to full ROI realization extends 8-12 years given the smaller market size and limited tourism infrastructure compared to major Kansas cities like Wichita or Kansas City.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Ulysses, Kansas and surrounding areas. Local real estate agents in the region include Coldwell Banker Schmidt Realtors with offices serving Grant County, and Century 21 Wheat State Realty which covers southwestern Kansas markets including Ulysses. RE/MAX Associates and Keller Williams also have agents familiar with investment properties in the area. National services that assist Airbnb investors include Mashvisor for market analysis and property search, BiggerPockets for networking and deal sourcing, Roofstock for turnkey rental properties, and AirDNA for short-term rental market data. RedAwning and Awning provide property management and optimization services for short-term rentals. Local property management companies like Garden City Property Management and Southwest Kansas Property Services can assist with Airbnb operations in the Ulysses market. Rabbu and AvantStay also offer institutional-level short-term rental acquisition and management services that may extend to smaller Kansas markets.