Kansas doesn’t make the highlight reels of Airbnb investing, and operators here like it that way. The Kansas side of Kansas City alone — particularly Overland Park and the Legends District in Kansas City, KS — pulls steady occupancy from corporate travelers, sports fans, and families visiting the region. Wichita is the largest city in the state with a cost of entry so low that first-time hosts can get a property cash-flowing within 60 days. And Lawrence, home to the University of Kansas, delivers football and basketball weekend spikes that rival much more famous college towns.
What makes Kansas genuinely compelling is the gap between cost and revenue. You can acquire or lease a property here for 50-60% less than comparable markets in Colorado or Missouri, while tapping into the same regional travel demand. That spread creates operating margins that more glamorous states struggle to match. If you’re exploring rental arbitrage or buying your first investment property, Kansas deserves serious consideration.
Why Kansas Is a Top Market for Short-Term Rentals
Kansas sits at the geographic center of the United States, and that location creates travel patterns most investors overlook. Interstate 70 carries 25,000+ vehicles daily through the state, connecting Denver to Kansas City. I-35 runs north-south, linking Wichita to both Oklahoma City and the Twin Cities. This highway infrastructure generates road-trip demand that feeds STRs in every major Kansas city.
The economics are hard to argue with. Wichita’s median home price hovers around $195,000. Topeka sits even lower at roughly $155,000. Compare that to the national median of $390,000+, and you begin to see why Kansas operators achieve break-even occupancy rates as low as 35-40%. That means even during slow months, you’re covering costs while higher-demand periods generate pure profit.
Kansas also benefits from something harder to quantify: low competition. AirDNA data shows that active STR listings per capita in Kansas remain well below the national average. Fewer operators chasing the same guests means stronger occupancy and less pressure to discount rates. For new hosts, entering a market before it reaches saturation is one of the most reliable paths to building a defensible business.
Major demand drivers include Sporting Kansas City matches at Children’s Mercy Park, Kansas Speedway events (NASCAR, IndyCar), University of Kansas athletics in Lawrence, Wichita’s aircraft manufacturing sector (Spirit AeroSystems, Textron Aviation), and a growing convention scene at venues like the Century II Performing Arts & Convention Center.
Kansas Short-Term Rental Laws and Regulations
Kansas takes a generally permissive approach to short-term rentals at the state level, though individual municipalities have their own frameworks. Compared to coastal states with aggressive STR restrictions, Kansas gives operators more room to build — but compliance still matters. Getting caught operating without proper licenses or tax registration creates problems that are entirely avoidable.
State-Level Requirements
Kansas state law requires STR operators to:
- Register with the Kansas Department of Revenue for sales tax collection
- Collect and remit Kansas state sales tax (6.5%) plus applicable local sales taxes on stays under 29 consecutive days
- Obtain a Kansas business tax registration
- Comply with the Kansas Residential Landlord and Tenant Act where applicable
- Maintain smoke detectors and carbon monoxide detectors per state fire code
- Report all rental income for state and federal income tax purposes
Kansas does not have a separate statewide transient guest tax — instead, STRs fall under the general sales tax framework. However, many counties and cities add their own transient guest taxes on top of sales tax, which can significantly increase the total tax burden. Always check both state and local obligations.
Key City Regulations
Kansas City, KS (Wyandotte County/Unified Government): Operating under the Unified Government of Wyandotte County, Kansas City KS requires a business license for STR operations. The Unified Government levies a transient guest tax in addition to the base sales tax. Properties must meet local building and safety codes. The regulatory environment here is moderate — not as permissive as smaller Kansas cities, but significantly less restrictive than the Missouri side of Kansas City. Hosts in the Legends District and near the Speedway benefit from event-driven demand without the heavier regulations across the state line.
Wichita: Kansas’s largest city requires STR operators to hold a standard business license. Wichita’s zoning code permits short-term rentals in most residential areas without a special use permit, though the city council has periodically discussed tighter regulations. The Wichita-Sedgwick County Metropolitan Area Planning Department handles any zoning questions. Wichita also charges a local transient guest tax that hosts must collect — Airbnb handles this for most listings, but verification is essential.
Lawrence: Home to the University of Kansas, Lawrence requires a city business license and compliance with local zoning. The city’s proximity to KU’s campus means STR demand spikes dramatically during basketball season, football weekends, and graduation. Lawrence has explored requiring STR-specific registration, and proposed ordinances have surfaced in recent city commission meetings. As of early 2026, standard business licensing plus tax compliance remains the baseline requirement.
Overland Park: This affluent Johnson County suburb is one of Kansas’s strongest STR markets for corporate and family travel. Overland Park requires a standard city business license. The city’s strict property maintenance codes apply to STRs, meaning hosts need to keep properties in excellent exterior and interior condition. Johnson County’s additional sales tax makes the total tax rate on lodging one of the highest in the state — factor this into your pricing.
Recent Regulatory Changes (2025-2026)
Kansas has not enacted major statewide STR legislation comparable to Iowa’s preemption law, but the trend favors continued permissiveness. The 2025 Kansas legislative session saw bills introduced that would standardize STR definitions across municipalities, though none passed before the session ended. Lawrence’s city commission debated a registration requirement with annual renewals, but tabled the proposal after pushback from property owners.
The most significant 2026 development involves Johnson County (Overland Park, Olathe, Lenexa) exploring a unified transient guest tax collection system that would simplify compliance for multi-property operators. This would reduce the administrative burden of tracking different rates across adjacent cities — a genuine quality-of-life improvement for hosts operating across the Kansas City metro area.
Tax Obligations for Kansas Airbnb Hosts
Kansas tax obligations for STR operators stack in layers, and the combined rate catches some new hosts off guard.
State Sales Tax: Kansas charges 6.5% state sales tax on all transient accommodations (stays under 29 days). This is one of the higher base rates nationally. Airbnb and VRBO collect and remit this in most Kansas jurisdictions.
County and City Sales Tax: Local sales taxes add another 1% to 4% depending on location. Overland Park’s combined rate reaches approximately 10.6% when you include state, county, and city components. Wichita’s combined rate is roughly 8.5%. These local taxes may or may not be collected by platforms — you must verify for each property.
Transient Guest Tax: Some Kansas cities levy a separate transient guest tax (sometimes called a bed tax) on top of sales tax. In Wyandotte County, this adds 2%. In Douglas County (Lawrence), it adds 2%. This tax typically requires separate registration and remittance even when platforms collect sales tax.
Income Tax: Kansas state income tax ranges from 3.1% to 5.7%. All net rental income (gross revenue minus deductible expenses) must be reported. Deductible expenses mirror federal rules: cleaning, supplies, utilities, insurance, management software, depreciation, and the cost of furnishings. Kansas also allows a standard deduction or itemized deductions on state returns.
One thing that trips up Kansas operators: the state’s sales tax applies to cleaning fees charged to guests, not just the nightly rate. If you charge a $75 cleaning fee, sales tax applies to that too. Structure your pricing accordingly.
Best Cities for Airbnb in Kansas
Kansas’s STR markets cluster around three distinct demand profiles: metro corporate/event travel (Kansas City area), mid-size city business travel (Wichita), and college-town seasonal demand (Lawrence). Each requires different strategies and delivers different return profiles.
Kansas City, KS / Overland Park
The Kansas side of the KC metro represents the state’s highest-volume STR market. Overland Park specifically draws corporate travelers visiting Sprint (now T-Mobile), Garmin, Black & Veatch, and the cluster of financial services firms along College Boulevard. The Legends District in Kansas City, KS benefits from the Kansas Speedway, Sporting KC, and the Legends Outlets shopping center.
Average daily rates across the KC-KS metro run $120-$165, with occupancy between 60% and 72%. Two-bedroom properties in Overland Park targeting business travelers generate $2,600-$3,400/month in gross revenue. Properties near the Speedway see major spikes during NASCAR weekends — rates can triple for a well-positioned listing during race week.
Wichita
As the state’s largest city, Wichita offers the most consistent year-round demand. The aviation industry is the primary driver — Spirit AeroSystems, Textron Aviation (Cessna/Beechcraft), and Airbus all have significant operations here, generating steady midweek business travel. The Keeper of the Plains, Botanica Wichita, and the Wichita Art Museum draw leisure visitors, while the Intrust Bank Arena hosts concerts and sporting events.
ADR in Wichita runs $95-$135, lower than the KC metro but offset by some of the cheapest operating costs in any meaningful STR market. A well-positioned two-bedroom generates $1,800-$2,600/month gross. The real advantage here is margin: with rent on a suitable property running $800-$1,100/month, arbitrage operators can achieve 40-50% net margins.
Lawrence
Lawrence is a pure play on University of Kansas demand. KU basketball is the engine — Allen Fieldhouse consistently sells out, and fans travel from across the state and beyond for home games. Football season adds another layer, and events like graduation, orientation, and homecoming create predictable demand spikes throughout the academic year.
ADR averages $110-$145, but basketball weekends push rates to $200-$350 depending on the opponent. Annual occupancy runs 50-62%, with significant variation between the academic year (strong) and summer (weak). Smart Lawrence hosts target summer conferences at KU, visiting faculty, and wedding groups to fill the gap. Monthly gross revenue for a two-bedroom averages $2,000-$2,800.
Topeka
The state capital flies under everyone’s radar, but Topeka has a quiet STR opportunity worth exploring. State government generates consistent midweek demand from legislators, lobbyists, and state employees traveling for meetings. The Kansas Expocentre hosts events year-round, and the Brown v. Board of Education National Historic Site draws history-focused travelers.
ADR here is the lowest among major Kansas markets at $80-$115, but property costs are correspondingly low. Monthly gross revenue typically runs $1,400-$2,100 for a two-bedroom. The play in Topeka is volume through low-cost arbitrage — the margins work even at lower rates because lease costs are minimal.
| City | Avg Daily Rate | Occupancy Rate | Monthly Revenue (2BR) | Median Home Price |
|---|---|---|---|---|
| KC Metro (KS side) | $120-$165 | 60-72% | $2,600-$3,400 | ~$275,000 |
| Wichita | $95-$135 | 58-68% | $1,800-$2,600 | ~$195,000 |
| Lawrence | $110-$145 | 50-62% | $2,000-$2,800 | ~$245,000 |
| Topeka | $80-$115 | 48-58% | $1,400-$2,100 | ~$155,000 |
How Much Do Airbnbs Make in Kansas?
Kansas STR revenue won’t make headlines, but the return on investment tells a different story. When you’re paying $900/month in rent for an arbitrage property that grosses $2,400/month, your cash-on-cash return outperforms most “hot” markets where operators pay three times as much for marginally higher revenue.
The revenue distribution across Kansas follows a clear pattern. Metro Kansas City properties (Kansas side) generate the highest absolute dollars, driven by corporate demand and event traffic. Wichita delivers the best margins due to rock-bottom costs. Lawrence produces the most volatile but potentially highest per-night revenue during basketball season. Topeka offers consistent low-maintenance income at the smallest scale.
Annual gross revenue benchmarks for Kansas STR operators:
- Entry-level (1BR, Topeka/Wichita): $16,000-$24,000
- Mid-range (2BR, any major market): $26,000-$38,000
- Premium (3BR+, Overland Park/Lawrence): $38,000-$52,000
- Unique stays (ranch, lake house): $45,000-$70,000+
Dynamic pricing makes a measurable difference here. Hosts who adjust rates for Sporting KC matches, KU basketball games, NASCAR weekends, and local festivals report 18-25% higher annual revenue than those using flat pricing. In Lawrence specifically, the difference between capturing and missing basketball weekend pricing can be $3,000-$5,000 annually — from a single property.
One factor working in Kansas hosts’ favor: the state’s relatively low property tax rates (effective rate around 1.3-1.4%) keep annual holding costs down compared to states like Texas or New Jersey. This directly improves your net operating income whether you own or lease.
How to Start Your Kansas Airbnb Business
Building a Kansas STR operation follows a logical sequence. Here’s how to move from idea to income without the missteps that cost new hosts time and money.
Step 1: Pick Your Model and Market. Kansas accommodates all three primary STR models: ownership, rental arbitrage, and co-hosting. Arbitrage is particularly effective here because lease rates are low enough that even moderate occupancy generates profit. Choose your city based on the demand profile that matches your availability — corporate-heavy markets (Overland Park, Wichita) need less hands-on management than event-driven markets (Lawrence) that require active pricing adjustments.
Step 2: Run the Numbers Ruthlessly. Before committing to any property, model three scenarios: optimistic (70% occupancy), realistic (55% occupancy), and pessimistic (40% occupancy). Your property must be cash-flow positive in the realistic scenario and at least break even in the pessimistic case. Include every expense: rent or mortgage, utilities, internet, cleaning, supplies, insurance, platform fees (typically 3% on Airbnb), local taxes, and a 5% reserve for maintenance and repairs.
Step 3: Secure Your Property. For arbitrage, approach landlords with a professional proposal that explains your STR business, highlights the benefits to them (guaranteed rent, better property care, professional liability coverage), and addresses their concerns. Offer a premium above market rent — typically 10-15% — to sweeten the deal. In Kansas, landlord receptiveness to arbitrage is higher than average because many property owners are familiar with the model through KC metro operators.
Step 4: Handle Legal and Tax Setup. File for a Kansas LLC (about $165 filing fee through the Kansas Secretary of State). Register with the Kansas Department of Revenue for sales tax. Obtain your city business license. If operating in a city with a separate transient guest tax, register for that as well. Open a dedicated business bank account to keep personal and business finances clean.
Step 5: Furnish and Photograph. Budget $2,500-$5,500 to furnish a two-bedroom for STR use. Kansas guests appreciate practical, comfortable spaces — you don’t need designer furniture, but you do need quality mattresses, reliable Wi-Fi, a stocked kitchen, and keyless entry. Professional photography runs $150-$300 in most Kansas markets and pays for itself within the first two bookings through higher conversion rates.
Step 6: Launch and Optimize. Start with aggressive pricing (10-15% below comparable listings) to build your first 5-10 reviews quickly. Reviews are currency on Airbnb — a new listing with zero reviews loses bookings to established competitors even at lower prices. Once you hit Superhost eligibility, raise rates to market level. Implement dynamic pricing through PriceLabs or Wheelhouse from day one.
Step 7: Build Systems for Scale. From your first property, document every process: guest communication templates, cleaning checklists, maintenance vendor contacts, pricing rules. These become the operating manual that lets you replicate the model across additional properties without a proportional increase in your time commitment. Most successful Kansas operators reach three to five properties within their first year.
Kansas STR Insurance and Liability
Kansas sits in Tornado Alley, and that geographic reality shapes your insurance strategy in ways that don’t apply to coastal or mountain-state operators. Standard renter’s or homeowner’s policies exclude STR activity, leaving you exposed to the exact risks you can’t afford to self-insure.
General Liability: A $1 million commercial general liability policy runs $700-$1,400 annually per property in Kansas. This covers guest injuries on your property — slips, falls, allergic reactions to cleaning products, you name it. Given Kansas’s relatively plaintiff-friendly courts, skipping this coverage is reckless.
Property and Contents: Covers your furnishings and personal property against damage, theft, and natural disasters. In Kansas, make sure your policy explicitly covers tornado, hail, and wind damage — some policies exclude or cap wind damage, which defeats the purpose in a state where severe storms are an annual certainty. Replacement cost coverage (not actual cash value) is worth the premium difference.
Umbrella Coverage: If you’re operating multiple properties, an umbrella policy adds an extra layer of liability protection beyond your individual property policies. A $1 million umbrella typically costs $200-$400 annually and covers scenarios where a claim exceeds your base policy limits.
Airbnb’s Host Protection Insurance and AirCover provide baseline coverage, but they come with limitations and a claims process that experienced hosts describe as frustrating. Your own policy is your primary protection. For detailed coverage considerations, review our analysis of how insurance applies to Airbnb operations.
Carriers with strong Kansas STR coverage include Proper Insurance (STR-specific), Farmers Insurance (good Midwest presence), and CBIZ. Get three quotes minimum and compare deductibles, coverage limits, and exclusion lists — the cheapest premium often has the most gaps.
Why 10XBNB Gives You the Edge in Kansas
Kansas rewards methodical operators, not lucky ones. The hosts consistently generating $3,000+ monthly per property aren’t doing anything mysterious — they’ve mastered market analysis, pricing optimization, listing conversion, and operational efficiency. Those are learnable skills, but learning them through trial and error burns through cash and time that you can’t recover.
10XBNB’s training system compresses years of operator experience into a structured program. The rental arbitrage framework is especially relevant for Kansas, where low lease costs make arbitrage one of the highest-ROI business models available. The program covers exactly how to identify properties, pitch landlords, structure agreements, and scale from one unit to a portfolio.
Beyond the training itself, 10XBNB’s operator community provides something you can’t get from courses alone: real-time market intelligence. Midwest operators in the network share insights on Kansas City demand patterns, Wichita corporate travel trends, and Lawrence event calendars. That kind of localized knowledge directly translates to better property selection, smarter pricing, and fewer costly mistakes.
In a state where competition is still building, the operators who systematize their approach first will own the market when it matures. Kansas isn’t going to stay under the radar forever — the numbers are too good. Positioning yourself now, with the right systems in place, creates an advantage that compounds over time.
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Frequently Asked Questions
Do I need a license to run an Airbnb in Kansas?
Kansas does not have a statewide STR license, but most cities require a general business license. Wichita, Kansas City KS, Overland Park, and Lawrence all require business registration. You also need a Kansas sales tax registration from the Department of Revenue. Some cities are exploring STR-specific permits, so check your local municipality’s current requirements before listing.
What is the total tax rate for Kansas Airbnbs?
The total tax rate on Kansas short-term rentals combines state sales tax (6.5%), local sales tax (1-4% depending on location), and in some cities a transient guest tax (typically 2%). Total rates range from roughly 8.5% in Wichita to over 12% in parts of Johnson County. Airbnb collects state and most local sales taxes automatically, but transient guest taxes may require separate registration and remittance.
Is Wichita or Kansas City better for Airbnb investing?
It depends on your goals. Kansas City (KS side) generates higher absolute revenue ($2,600-$3,400/month for a 2BR) due to corporate demand and events, but property costs and taxes are higher. Wichita offers lower revenue ($1,800-$2,600/month) but significantly better margins because operating costs are 30-40% lower. For first-time operators prioritizing cash-on-cash return, Wichita is often the smarter entry point. For operators building a larger portfolio, the KC metro offers more scale potential.
Can I do rental arbitrage in Kansas?
Yes. Kansas has no state laws prohibiting rental arbitrage. The key requirement is explicit written permission from your landlord to sublet the property as a short-term rental. Kansas landlords tend to be more receptive to arbitrage proposals than those in coastal markets, partly because the concept is well-established in the Kansas City metro area. Offer above-market rent and professional liability coverage to strengthen your pitch.
When is peak Airbnb season in Kansas?
Kansas peak season varies by market. The Kansas City metro sees its strongest demand from March through November, driven by Sporting KC (March-October), NASCAR/racing events (spring and fall), and corporate travel. Lawrence peaks during KU basketball season (November-March) and football season (September-November). Wichita maintains steadier year-round demand due to its aviation industry base, with slight dips in December-January. Statewide, the slowest period is typically late December through early February.
How much does it cost to start an Airbnb in Kansas?
Startup costs for a Kansas rental arbitrage operation typically run $4,000-$8,000, which includes first month’s rent plus security deposit ($1,500-$2,500), furnishing ($2,500-$5,500 for a 2BR), professional photography ($150-$300), LLC formation ($165), and initial supplies ($200-$400). Property purchase requires significantly more capital — a typical down payment on a $195,000 Wichita property would be $39,000 at 20% down, plus furnishing and setup costs.
Kansas may not have the cachet of vacation rental hotspots, but its fundamentals — low cost of entry, diversified demand, and favorable regulations — create an environment where disciplined operators thrive. The state’s STR market is still in its growth phase, meaning the hosts who build systems and establish reputations now will hold a structural advantage for years. Compare Kansas to other high-performing markets in our guide to the best states for Airbnb to see where it fits in your portfolio strategy.
