Is Wallace, Kansas Good for Airbnb Investment?

To start an Airbnb in Wallace, Kansas, begin by researching local zoning laws and regulations through the Wallace City Hall, as this small rural community may have specific ordinances regarding short-term rentals, though many Kansas towns under 1,000 residents have minimal restrictions. Contact Wallace County for any county-level permits and check with the Kansas Department of Revenue for state tax requirements, including sales tax registration for lodging services. Find a suitable property by working with local real estate agents familiar with Wallace's limited housing market, focusing on properties near Highway 40 or with historical significance given the town's frontier heritage. Obtain necessary permits including a business license from Wallace City Hall (estimated cost $25-50), fire safety inspection if required, and register for Kansas sales tax collection. Furnish the property with comfortable, durable furniture emphasizing the western Kansas theme, ensuring reliable internet service through providers like Nex-Tech or AT&T, and stock essentials for travelers passing through on Interstate 70. Create your Airbnb listing highlighting Wallace's proximity to Monument Rocks, the geographic center of the contiguous United States, and western Kansas attractions, setting competitive rates around $60-80 per night based on the rural market. Manage the property by establishing relationships with local cleaning services in nearby Sharon Springs or Goodland, coordinate with Wallace's volunteer fire department for emergency contacts, and maintain the property regularly given the harsh Kansas weather conditions including wind and potential severe storms.

To identify profitable short-term rental properties in Wallace, Kansas, focus on properties within walking distance of the Wallace County Museum and along Highway 40 corridor where travelers frequently stop, as this small town of approximately 60 residents relies heavily on road trip tourism and history enthusiasts. Target 2-3 bedroom single-family homes or historic properties built in the early 1900s that can accommodate 4-6 guests, with essential features including reliable high-speed internet, air conditioning, full kitchens, and parking spaces, while properties with unique historical character or railroad themes perform exceptionally well given Wallace's heritage as a railroad town. Pricing analysis should benchmark against similar rural Kansas markets like Oakley or Goodland, typically ranging $80-120 per night with higher rates during summer months and hunting seasons, while monitoring occupancy rates of 40-60% annually due to seasonal tourism patterns. Competition research reveals limited STR inventory with fewer than 5 active listings in the immediate area, creating opportunities for well-positioned properties, though you'll compete with motels in nearby larger towns like Sharon Springs. Utilize AirDNA for market analysis, STR Helper for revenue projections, Mashvisor for property analysis, and monitor local Facebook groups and the Wallace County website for tourism trends, while partnering with the Wallace County Museum and local businesses can provide valuable guest referral opportunities in this niche but potentially profitable micro-market.

To obtain an Airbnb/STR permit in Wallace, Kansas, contact the Wallace City Clerk's office at City Hall located at 313 Main Street or call (785) 891-3621 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 smoke and carbon monoxide detectors. The application fee is estimated at $50-100 annually, with additional inspection fees of approximately $75. Submit your application along with all required documents and fees to the City Clerk, who will schedule a safety inspection within 2-3 weeks. The inspection will verify compliance with fire safety codes, occupancy limits, parking requirements, and zoning regulations specific to Wallace's residential districts. Once approved, the permit is typically issued within 30-45 days of application submission. Wallace requires STR operators to maintain guest registries, limit occupancy to posted maximums, provide 24-hour contact information to neighbors, and ensure quiet hours from 10 PM to 7 AM. Annual renewal is required by December 31st each year, and operators must collect and remit applicable city and state taxes on all rental income.

Short-term rentals (STRs) in Wallace, Kansas are generally legal as the small rural community in Logan County does not have specific municipal ordinances prohibiting them, operating under Kansas state law which allows property owners to rent their homes for short periods. However, STR operators must comply with standard business licensing requirements, collect and remit state and local sales taxes (currently 6.5% state sales tax plus any applicable local taxes), and ensure properties meet basic safety and health standards. Wallace, with a population of approximately 60 residents, has not implemented the restrictive zoning regulations or permit systems seen in larger Kansas cities like Lawrence or Overland Park, though operators should verify compliance with Logan County regulations and any applicable fire safety codes. There have been no recent significant legal changes specific to Wallace regarding STRs as of 2024, but the Kansas Legislature has periodically considered statewide regulations that could impact local operations, and property owners should ensure they maintain proper insurance coverage and comply with any homeowners association restrictions if applicable.

The best areas for Airbnb investment in Wallace, Kansas include the downtown historic district near US Highway 40, which attracts travelers on the historic transcontinental route and visitors to the Fort Wallace Museum, and properties near the Wallace County fairgrounds that benefit from annual events and agricultural gatherings. The area around Lake Scott State Park, though technically outside Wallace proper, draws outdoor enthusiasts and families seeking recreational activities including fishing, hiking, and camping. Properties along Interstate 70 corridor capture business travelers and road trip tourists passing through this western Kansas community. The residential neighborhoods near the Wallace County courthouse and main commercial strip offer steady demand from visiting family members, contractors working on wind energy projects that have expanded in western Kansas since 2010, and hunters during pheasant and deer seasons. These locations benefit from Wallace's position as a regional hub for surrounding rural communities and its historical significance as a frontier town, with companies like Westar Energy and various agricultural businesses bringing periodic business travelers to the area.

In Wallace, 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. Wallace County may impose an additional local transient guest tax of up to 2%, though the exact rate varies by municipality within the county. Property owners must register with the Kansas Department of Revenue to obtain a transient guest tax account number and file monthly returns by the 25th of the following month, remitting taxes collected from guests. Airbnb may collect and remit these taxes on behalf of hosts through their platform in Kansas, but hosts remain ultimately responsible for compliance. Exemptions typically include stays of 28 days or longer, certain government employees on official business, and some nonprofit organization stays, though documentation is required. Local city ordinances in Wallace may require additional business licenses or impose separate occupancy taxes, and hosts should verify current rates and requirements with both state and local tax authorities as rates and regulations can change.

To start an Airbnb in Wallace, Kansas, the total estimated costs would be approximately $95,000-$115,000. Property purchase represents the largest expense at around $75,000-$85,000 based on the median home price in rural Kansas communities. Furnishing costs would range from $8,000-$12,000 to create an attractive, comfortable space with quality furniture, bedding, kitchen essentials, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be approximately $2,000-$3,000. Permits and fees including business license, short-term rental permits, and inspection fees would cost around $500-$800. Insurance for short-term rental coverage would be approximately $1,200-$1,800 annually, with the first year costing about $1,500. Utilities setup and deposits for electricity, water, gas, internet, and cable would require approximately $800-$1,200. First six months of operating costs including utilities ($600-$900), cleaning supplies and services ($1,200-$1,800), maintenance and repairs ($800-$1,200), marketing ($300-$500), and platform fees would total approximately $3,500-$5,000, bringing the complete startup investment to the estimated range.

Airbnb properties in Wallace, Kansas, a small rural town with approximately 60 residents, face significant profitability challenges due to extremely limited demand and tourism infrastructure. Properties in this market typically generate annual revenues between $2,000-$8,000, with average daily rates of $40-$70 when bookings occur, but occupancy rates rarely exceed 15-25% annually. Operating expenses including utilities, cleaning, maintenance, insurance, and platform fees typically range from $3,000-$6,000 annually, resulting in negative to marginal profit margins of -20% to 5% for most properties. Success factors are limited but may include targeting niche markets such as hunters during pheasant season, travelers on Highway 40, or visitors to nearby attractions like Monument Rocks, with properties offering unique rural experiences or outdoor amenities performing slightly better. The market lacks sufficient visitor volume to support sustainable short-term rental businesses, with most successful hosts treating their properties as supplemental income rather than primary investments, and many properties remaining vacant for extended periods throughout the year.

Based on Wallace, 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 Wallace generally reach profitability within 18-24 months, with average nightly rates of $75-$120 for well-positioned rentals near local attractions or highway access points. The small-town market benefits from limited hotel inventory and travelers seeking authentic rural experiences, though seasonal fluctuations can impact performance with stronger returns during summer months (May-September) when occupancy rates reach 65-75% compared to winter months at 35-45%. Initial investment recovery typically occurs within 3-4 years assuming 20-25% down payment scenarios, with gross rental yields averaging 10-14% annually before expenses, making Wallace a moderate-return market suitable for investors seeking steady cash flow rather than rapid appreciation.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Wallace, Kansas, offering market analysis and property recommendations. Local real estate agents in Wallace who specialize in investment properties include Century 21 agents serving the western Kansas region and independent brokers familiar with the area's tourism patterns near Monument Rocks and other attractions. National services like AirDNA provide market data and analytics for Wallace's short-term rental potential, while Mashvisor offers investment property analysis tools for the Kansas market. BiggerPockets connects investors with local Kansas real estate professionals experienced in vacation rental investments. RedAwning and Vacasa provide property management services that can help investors evaluate potential Airbnb properties in Wallace. Local property management companies in nearby Hays and Garden City often extend services to Wallace for investors seeking turnkey solutions. RE/MAX agents in western Kansas frequently work with out-of-state investors looking for affordable Airbnb properties in rural markets like Wallace. Roofstock and other online real estate platforms occasionally feature investment properties in small Kansas towns, while local banks like First National Bank of Kansas provide financing expertise for investment properties in the region.