Why Missouri Is a Top Market for Short-Term Rentals
Missouri occupies a sweet spot that most STR operators overlook. The state sits at the geographic center of the country, making it drivable from a massive population base. Over 40 million people live within a six-hour drive of either St. Louis or Kansas City. That proximity fuels a weekend trip culture that fills Airbnbs 52 weeks a year without depending on a single tourism season.
The numbers back this up. Missouri welcomed 43.5 million domestic visitors in 2023, generating $22.7 billion in tourism spending. What separates Missouri from flashier markets is the consistency. You will not see the extreme peaks and valleys that define beach or ski destinations. Business travel to Kansas City and St. Louis stays steady. Branson draws 8 million visitors annually to its theater and entertainment district. Lake of the Ozarks pulls boaters, fishermen, and families from April through October. Each of these markets creates its own demand engine.
Cost of entry is where Missouri truly shines for new operators. The median home price in Missouri sits around $230,000, and in secondary markets like Springfield, Columbia, and the Lake of the Ozarks area, you can find quality properties under $200,000. Lease rates for rental arbitrage are equally favorable. A three-bedroom house in Kansas City might run $1,300 to $1,700 per month, while the same property can generate $3,000 to $4,500 per month in STR revenue during strong months.
Missouri also has no statewide ban on short-term rentals and relatively moderate regulatory environments in most cities. Compared to states like New York or California, the barriers to entry are dramatically lower. You can be operational within 30 to 45 days of deciding to start, which is rare in more regulated markets.
The sports calendar alone drives significant STR demand. Kansas City has the Chiefs (Super Bowl champions) and Royals. St. Louis has the Cardinals and Blues. College football and basketball across Mizzou, and the annual SEC tournament and conference events fill hotels and vacation rentals across the state. A two-bedroom near Arrowhead Stadium can book at $300 to $500 per night during playoff weekends.
Missouri Short-Term Rental Laws and Regulations
Missouri is among the more STR-friendly states in the country. There is no statewide licensing requirement specifically for short-term rentals, and the state legislature has generally resisted efforts to impose blanket restrictions. That said, major cities have their own rules that you must understand before listing.
State-Level Requirements
Missouri does not require a state-level STR permit or license. However, all operators must collect and remit Missouri sales tax on short-term accommodations. You need to register with the Missouri Department of Revenue to obtain a Sales Tax License (also called a Retail Sales License). This is free and can be done online through the MyTax Missouri portal.
Missouri law treats short-term rentals as transient accommodations when the stay is fewer than 31 consecutive days. This classification triggers sales tax and potentially local transient guest tax obligations. The state has not passed preemption legislation (meaning cities retain full authority to regulate STRs), but it also has not enabled cities to impose onerous restrictions.
All rental properties must meet basic habitability standards under Missouri landlord-tenant law, including working plumbing, heating, electrical systems, and structural soundness. While these standards apply to long-term rentals by default, short-term rental operators should ensure compliance to avoid liability issues.
Kansas City Regulations
Kansas City requires STR operators to obtain a Vacation Rental Dwelling Unit License through the city’s Neighborhoods and Housing Services Department. The license costs $500 per unit and must be renewed annually. Properties must pass a housing inspection before the license is issued. Kansas City defines short-term rentals as stays of fewer than 30 consecutive days.
Key requirements include maintaining a local contact person available 24/7 within a one-hour response window, carrying minimum liability insurance of $500,000, and posting the license number on all platform listings. The city limits non-owner-occupied STR licenses based on neighborhood density. Owner-occupied rentals (where you rent out a portion of your primary residence) face fewer restrictions.
St. Louis City Regulations
The City of St. Louis (separate from St. Louis County) requires a Short-Term Rental Permit through the Building Division. The annual permit fee is $100. Properties must pass a building inspection and maintain fire safety equipment. St. Louis distinguishes between hosted stays (owner present) and unhosted stays (owner absent), with unhosted rentals requiring additional safety measures including posted evacuation routes and emergency contact information.
St. Louis has not implemented density caps or neighborhood restrictions as of early 2026, making it one of the more accessible urban STR markets in the Midwest. Properties in the Central West End, Soulard, and Tower Grove neighborhoods have particularly strong performance records.
Branson and Taney County Regulations
Branson operates under Taney County jurisdiction for most STR purposes. The city does not require a specific STR permit, though you need a Branson business license ($50 annually). Taney County requires collection of the county transient guest tax. Properties in the Branson city limits must comply with the city’s property maintenance code. Many STRs in the Branson area are located in unincorporated Taney County, where regulations are minimal beyond state tax obligations.
Recent Regulatory Changes (2025-2026)
Kansas City increased its enforcement budget in 2025 and began using automated platform scraping to identify unlicensed STRs. The city issued over 200 violation notices in the second half of 2025. St. Louis County (distinct from St. Louis City) introduced a new STR registration ordinance in late 2025 that requires operators in unincorporated areas to register and pay a $75 annual fee. Springfield adopted its first STR-specific ordinance in 2025, requiring a basic permit and annual safety inspection for properties renting fewer than 30 days.
Tax Obligations for Missouri Airbnb Hosts
Missouri’s STR tax structure involves state, county, and city layers. Missing any layer creates compliance risk that can escalate quickly.
State Sales Tax: Missouri charges a 4.225% state sales tax on transient accommodations (stays under 31 days). This applies to the total rental charge including cleaning fees and other mandatory charges. Airbnb collects and remits this state sales tax automatically for Missouri hosts.
Local Sales Tax: Counties and cities add their own sales tax on top of the state rate. In Kansas City (Jackson County), the combined local sales tax adds approximately 4.6%, bringing the total to about 8.825%. In St. Louis City, the local additions total roughly 5.454%, making the combined rate about 9.679%. These rates vary by exact location within each jurisdiction. Airbnb collects some but not all local taxes in Missouri, so verify your specific obligations through the Missouri Department of Revenue.
Transient Guest Tax: Many Missouri cities and counties levy a separate transient guest tax (sometimes called a hotel or tourism tax) that is distinct from sales tax. Kansas City charges a 7.5% convention and tourism tax on accommodations. St. Louis City charges 7.5% as well. Branson and Taney County charge a 4% transient guest tax. These taxes are typically NOT collected by Airbnb and must be registered for, collected, and remitted by the host directly.
Income Tax: Missouri has a graduated state income tax topping out at 4.8% for income above $8,968 (2025 rates). Your STR net income flows through to your Missouri individual return. Missouri does not have city-level income taxes, which simplifies things compared to states like Michigan or Ohio.
Business Personal Property Tax: Missouri counties assess personal property tax on business assets including STR furnishings, appliances, and equipment. You must file an annual Declaration of Personal Property with your county assessor by March 1. The tax rate varies by county but typically runs 0.5% to 1.5% of assessed value. This is an often-missed obligation that can result in back-tax assessments.
Best Cities for Airbnb in Missouri
Missouri offers four distinct STR market types: major metro (KC and STL), tourism hub (Branson), lake/resort (Lake of the Ozarks), and college town (Columbia). Each has different economics and demand profiles.
Kansas City
Kansas City has emerged as one of the hottest STR markets in the Midwest, fueled by the Chiefs dynasty, a booming food scene (it was named a top food city by multiple publications in 2024 and 2025), and aggressive downtown development. ADR ranges from $130 to $220 for a well-positioned two-bedroom, with occupancy averaging 67 to 75%.
The strongest submarkets are the Crossroads Arts District, Westport, the Country Club Plaza area, and the River Market. Properties within 2 miles of Arrowhead Stadium command premium event-night rates. Annual gross revenue for a two-bedroom in a prime KC neighborhood runs $38,000 to $58,000. The $500 licensing fee is significant but manageable against those revenue numbers.
Kansas City’s appeal extends beyond sports. The city hosts the American Royal (livestock and BBQ competition), the Plaza Art Fair, and a growing convention calendar. Business travel tied to Cerner, Hallmark, Sprint (now T-Mobile), and the federal government creates consistent midweek demand.
St. Louis
St. Louis offers perhaps the best entry-point economics in any major Midwestern city. Property prices and lease rates in neighborhoods like Soulard, Tower Grove, and the Central West End are substantially below comparable Kansas City neighborhoods. A two-bedroom lease in Soulard might run $1,100 to $1,500 per month, while STR revenue can hit $2,800 to $4,200 monthly.
ADR averages $110 to $185, with occupancy running 60 to 70%. Cardinals baseball creates a reliable demand baseline from April through October (81 home games), and the Blues, St. Louis City SC (MLS), and downtown conventions supplement. Annual gross revenue for a two-bedroom ranges from $30,000 to $48,000.
The St. Louis market has less competition than Kansas City. Fewer operators means better search placement on platforms and less downward pressure on pricing. The $100 permit fee is the lowest among Missouri’s major cities. For operators looking to build a portfolio through rental arbitrage, St. Louis is arguably the best starting market in the state.
Branson
Branson is Missouri’s dedicated tourism engine. The city draws approximately 8 million visitors annually to its 50+ live entertainment theaters, Silver Dollar City theme park, and Table Rock Lake recreation. Unlike most tourism markets, Branson has three distinct peak seasons: spring break (March to April), summer (June to August), and the holiday season (November to December, when Branson’s Christmas shows and light displays draw massive crowds).
ADR ranges from $120 to $200 for a two-bedroom, with occupancy averaging 62 to 72%. Properties near the Branson Strip (Highway 76) or with Table Rock Lake access outperform. Annual gross revenue runs $28,000 to $45,000 for a two-bedroom. The key to Branson is recognizing that your guest demographic skews older and more family-oriented than urban markets. Clean, comfortable properties with easy parking and clear directions outperform trendy design-forward listings.
Lake of the Ozarks
Lake of the Ozarks is a 54,000-acre reservoir with 1,150 miles of shoreline, more than the California coast. It draws roughly 5 million visitors annually, primarily from a May through September season, though fishing and fall foliage extend demand into October and November.
ADR varies widely based on lake access. Lakefront properties with dock space command $200 to $400 per night in peak summer. Properties without direct water access average $100 to $160. Occupancy runs 55 to 68% annually, heavily concentrated in summer months. A lakefront two-bedroom with a dock can gross $35,000 to $55,000 annually.
The Ozarks market rewards operators who invest in amenities like boat docks, hot tubs, fire pits, and game rooms. These add-ons can increase nightly rates by $50 to $100. The market is competitive, with over 3,000 active listings, but properties with standout lake access and outdoor living spaces consistently outperform.
| City/Area | Avg. Daily Rate | Occupancy Rate | Est. Annual Revenue (2BR) | Entry Difficulty |
|---|---|---|---|---|
| Kansas City | $130-$220 | 67-75% | $38,000-$58,000 | Medium ($500 license) |
| St. Louis | $110-$185 | 60-70% | $30,000-$48,000 | Low ($100 permit) |
| Branson | $120-$200 | 62-72% | $28,000-$45,000 | Low |
| Lake of the Ozarks | $100-$400 | 55-68% | $35,000-$55,000 | Medium (amenity dependent) |
How Much Do Airbnbs Make in Missouri?
Missouri STR revenue is characterized by accessibility. You do not need a $500,000 property or a $3,000 monthly lease to build a profitable operation here. The lower cost structure means better margins, which means faster scaling for operators who reinvest.
Statewide, the median Missouri STR grosses $26,000 to $36,000 annually. Top performers in Kansas City and Lake of the Ozarks push past $55,000. The variance between average and top-quartile operators comes down to the same factors it always does: professional presentation, dynamic pricing, responsive hosting, and strategic market selection.
Missouri’s rental arbitrage economics are particularly strong. A typical Kansas City arbitrage deal looks like this: $1,500 per month lease, $800 per month in operating expenses (cleaning, supplies, software, insurance), and $3,500 to $4,800 per month in gross STR revenue. That yields $1,200 to $2,500 in monthly net income per property. Scale to three properties and you are looking at $43,000 to $90,000 in annual net income from arbitrage alone.
Branson offers a different revenue model. Because the market has three distinct peak periods (spring, summer, holidays), revenue distribution is more even than a typical seasonal market. A well-managed Branson property might earn $4,000 to $6,000 per month during peak periods and $1,500 to $2,500 during off-peak, creating a smoother annual cash flow curve. That predictability is attractive for operators who prefer consistency over the high peaks and deep valleys of pure vacation markets.
One Missouri-specific revenue opportunity: college events. Mizzou in Columbia, Missouri State in Springfield, and several smaller colleges create weekend demand spikes around football games, graduation, parents’ weekends, and homecoming. A property near Mizzou’s campus can book at 2 to 3 times its normal rate during football weekends, adding $5,000 to $10,000 in annual revenue from just 6 to 8 event weekends.
How to Start Your Missouri Airbnb Business
Missouri’s relatively light regulatory environment makes the startup process faster than most states. Here is the sequence that minimizes delays and maximizes your time-to-first-booking.
- Pick your market based on your model. If you are doing arbitrage, Kansas City and St. Louis offer the best lease-to-revenue ratios with year-round demand. If you are buying, Lake of the Ozarks and Branson offer strong appreciation potential alongside rental income. If you want to co-host for other owners, all four major markets have property owners who need professional management. Match your capital, location, and risk tolerance to the right market.
- Form your LLC. File with the Missouri Secretary of State ($50 online filing fee). Missouri LLCs are straightforward with no annual report requirement for the first year. Get your EIN from the IRS (free, instant online). Open a business bank account and business credit card to keep finances clean from day one.
- Register for taxes. Register on MyTax Missouri for your Sales Tax License. Register with your county or city for the transient guest tax (this is separate from sales tax). Set calendar reminders for filing deadlines. Missouri sales tax is due monthly or quarterly depending on your volume. Transient guest tax schedules vary by jurisdiction.
- Secure your property. For arbitrage, target landlords in neighborhoods adjacent to event venues, downtown cores, or hospital complexes (travel nurse demand). Present a professional package: your LLC documentation, proof of $500,000+ liability insurance, a clear maintenance plan, and an offer of 5 to 10% above asking rent. For purchases, run the numbers using actual market data from AirDNA or AllTheRooms before making an offer.
- Get licensed. If you are in Kansas City, apply for the Vacation Rental Dwelling Unit License ($500, inspection required). In St. Louis City, get the Short-Term Rental Permit ($100). In Branson, get a city business license ($50). In Lake of the Ozarks (unincorporated areas), you may not need a local license beyond your state tax registration, but verify with the county.
- Set up your property. Budget $3,500 to $8,000 for furnishing a two-bedroom. Missouri guests across all markets appreciate practical amenities: solid WiFi, a fully stocked kitchen, comfortable beds, and clear check-in instructions. In Branson and the Ozarks, add outdoor amenities (deck furniture, grill, fire pit). In KC and STL, focus on walkability guides and restaurant recommendations.
- Launch across multiple platforms. List on Airbnb, VRBO, and Booking.com simultaneously. Missouri vacation markets (Branson, Ozarks) have strong VRBO presence from families. Urban markets (KC, STL) lean more toward Airbnb and Booking.com from business travelers. Use a channel manager (Hospitable, Guesty, or OwnerRez) to avoid double bookings. Price 15 to 20% below comparable listings for your first 5 bookings to build reviews.
- Automate and scale. Once your first property is running at 60%+ occupancy with 4.7+ ratings, start looking for your second. Missouri’s low entry costs mean scaling to 3 to 5 properties is achievable within 12 to 18 months for a focused operator. Use the cash flow from property one to fund the setup of property two.
Missouri STR Insurance and Liability
Missouri does not mandate specific insurance for STR operators at the state level, but Kansas City’s $500,000 minimum liability requirement sets a practical floor that all Missouri hosts should meet regardless of location.
Standard homeowner’s or renter’s insurance will not cover STR activity. You need a dedicated vacation rental policy or a commercial dwelling endorsement. Expect to pay $1,000 to $2,200 annually for a two-bedroom property in Missouri, which is below the national average due to lower property values and moderate natural disaster risk.
Coverage priorities for Missouri hosts:
- General liability: Minimum $1 million recommended. Covers guest injuries, property damage claims, and legal defense costs. Missouri follows a pure comparative negligence standard, meaning even if a guest is partially at fault for an injury, you could still be liable for your percentage of responsibility.
- Property damage: Coverage for guest-caused damage, vandalism, and theft. Properties in Lake of the Ozarks should ensure coverage extends to docks, boat lifts, and outdoor structures.
- Tornado and severe weather: Missouri sits in Tornado Alley. Standard policies cover wind damage, but verify your tornado and hail damage coverage is adequate. Deductibles for wind and hail events are sometimes higher than standard deductibles.
- Loss of income: Replacement of booking revenue if your property is damaged and unrentable. Particularly valuable during peak season when a week of lost bookings in Branson or the Ozarks could mean $2,000+ in lost revenue.
- Umbrella policy: Once you operate 2+ properties, consider a $1 million to $2 million umbrella policy. The incremental cost is typically $300 to $600 annually and provides peace of mind as your portfolio grows.
Airbnb’s AirCover is supplemental at best. Do not rely on it as your primary protection. For a detailed comparison of what platform coverage includes and excludes, read our guide on Airbnb insurance coverage.
Why 10XBNB Gives You the Edge in Missouri
Missouri’s accessible entry costs attract a lot of first-time operators, which means the market is filling with hosts who are figuring things out as they go. That creates an opportunity for anyone who starts with a proven system instead of trial and error.
10XBNB teaches the specific skills that separate profitable Missouri operations from breakeven ones: how to negotiate arbitrage leases in competitive Kansas City neighborhoods, how to price for Branson’s triple-peak seasonal pattern, how to build a Lake of the Ozarks listing that stands out among 3,000+ competitors, and how to structure your LLC and tax setup to keep more of what you earn.
The program’s community includes operators running properties across Missouri’s major markets. When Kansas City changes its licensing enforcement approach or a new STR ordinance drops in Springfield, you hear about it from people on the ground, not from a news article published three weeks later. That real-time intelligence is worth more than any static guide.
Missouri is a state where smart operators can build a 5 to 10 property portfolio within two years, starting with minimal capital. Having the right playbook from day one compresses that timeline and reduces the costly mistakes that derail most new hosts. See how Missouri compares to other opportunity states in our best states for Airbnb analysis.
Ready to Launch Your Missouri Airbnb Business?
Learn the exact system successful hosts use to build profitable rentals.
Frequently Asked Questions
Do I need a license to run an Airbnb in Kansas City?
Yes. Kansas City requires a Vacation Rental Dwelling Unit License for all short-term rentals (stays under 30 days). The license costs $500 per unit annually and requires a property inspection before approval. You must also carry at least $500,000 in liability insurance and maintain a local contact person available within one hour. Operating without a license can result in fines and orders to cease rental activity.
What taxes do Missouri Airbnb hosts need to pay?
Missouri Airbnb hosts pay a 4.225% state sales tax (collected automatically by Airbnb) plus local sales taxes that vary by city and county (typically adding 3% to 5.5%). On top of sales tax, most Missouri cities charge a separate transient guest tax. Kansas City and St. Louis both charge 7.5%. Branson and Taney County charge 4%. These transient guest taxes are usually NOT collected by Airbnb and must be remitted by the host directly. You will also owe Missouri state income tax (up to 4.8%) on your net rental profits.
Is Branson or Lake of the Ozarks better for an Airbnb investment?
It depends on your investment model and risk tolerance. Branson has more consistent year-round demand due to its three peak seasons (spring, summer, holidays) and lower entry costs. Lake of the Ozarks has higher revenue potential for lakefront properties with docks and amenities, but the season is more concentrated (May through September) and upfront costs are higher. For rental arbitrage or a first property, Branson is typically easier. For property purchase with long-term appreciation goals, a well-located Lake of the Ozarks property with direct water access has historically delivered stronger total returns.
Can I do rental arbitrage in St. Louis?
Yes. St. Louis is one of the best arbitrage markets in the Midwest due to low lease rates, a $100 annual STR permit fee, and no density restrictions on short-term rentals. You need written landlord permission to sublet, the city STR permit, and registration for state and local taxes. A typical St. Louis arbitrage deal involves a $1,100 to $1,500 monthly lease generating $2,800 to $4,200 in monthly STR revenue. Neighborhoods with the strongest arbitrage economics include Soulard, Tower Grove South, the Central West End, and the Grove.
How much does it cost to start an Airbnb in Missouri?
For a rental arbitrage model in Missouri, expect $5,000 to $12,000 in total startup costs. This breaks down to first month rent plus deposit ($2,600 to $3,400), furnishing ($3,500 to $8,000), licensing and permits ($50 to $500 depending on city), insurance ($1,000 to $2,200 annual, prorated), professional photography ($250 to $400), and initial supplies ($300 to $500). For property purchase, add your down payment and closing costs to the furnishing and licensing expenses. Missouri has among the lowest startup costs for STR operators in the country.
What is the transient guest tax in Missouri?
The transient guest tax in Missouri is a local tax charged on short-term accommodations, separate from sales tax. Rates vary by city: Kansas City charges 7.5%, St. Louis City charges 7.5%, Branson and Taney County charge 4%, and Springfield charges 5%. This tax is typically not collected by platforms like Airbnb, meaning hosts must register with their local taxing authority, collect the tax from guests, and remit it on the required schedule (usually monthly or quarterly). Failure to collect and remit can result in back-tax assessments plus penalties and interest.
For Missouri business formation and licensing resources, visit the Missouri Secretary of State Business Services portal.
