Airbnb Kansas City, Missouri: Market Data, Laws & Investor Guide

Kansas City, Missouri is quickly becoming one of the hottest spots in the U.S. to start an Airbnb business in 2024. Located in the heart of the Midwest, this vibrant city offers a perfect blend of affordability, growth potential, and strong tourism appeal that make it an ideal choice for savvy short-term rental entrepreneurs.

In recent years, Kansas City has experienced a remarkable surge in popularity and economic growth. The city's metropolitan area population now exceeds 2.2 million residents, reflecting an impressive 6.7% increase since the 2010 census. This expanding population fuels a robust demand for temporary housing from travelers, business professionals, and new residents alike.

Tourism is also booming in Kansas City, with over 25 million annual visitors exploring the city's world-class attractions, thriving arts scene, and legendary barbecue. Major events like the NFL Draft, which brought over 300,000 attendees in 2023, are putting Kansas City in the national spotlight and driving substantial Airbnb demand. With tourism numbers projected to keep rising, short-term rental owners are well-positioned to capitalize on this growing market.

Compared to coastal cities, Kansas City offers a significantly lower cost of entry for Airbnb startups. The median home price is just $231,000 as of June 2024, nearly 40% below the national median. This affordability allows hosts to purchase prime rental properties and enjoy healthy profit margins.

Kansas City's Airbnb market has shown impressive resilience, with occupancy rates and average daily rates remaining strong despite economic headwinds. As of May 2024, the average Airbnb occupancy rate in Kansas City was a robust 67%, indicating a steady demand for short-term rentals.

For entrepreneurs seeking a profitable and fast-growing market to launch an Airbnb business, Kansas City stands out as a top contender in 2024. With its affordability, booming tourism, and strong economic fundamentals, this Midwestern gem offers outstanding potential for short-term rental success.

Kansas City Short-Term Rental Market Analysis

Kansas City's short-term rental market has shown impressive resilience and growth in recent years. According to AirDNA, a leading provider of short-term rental data, Kansas City's key metrics for 2024 are as follows:

• Occupancy rate: 67%
• Average daily rate: $133
• Annual revenue: $32,525

Comparing this data to the previous year, Kansas City has experienced:

1. 5% increase in occupancy rate
2. 3% increase in average daily rate
3. 5% increase in monthly revenue

Kansas City's short-term rental market growth can be attributed to the city's thriving tourism industry. In 2022, visitor spending reached $7.7 billion, surpassing pre-pandemic levels by 5%. The city's popularity as a destination continues to rise, with a 6.7% increase in metropolitan area population since 2010.

Several key events and festivals throughout the year contribute to Kansas City's strong tourism and short-term rental demand:

1. Brookside Art Annual (May 3-5, 2024)
2. Cinco de Mayo Fiesta (May 3-5, 2024)
3. NASCAR at Kansas Speedway (May 4-5, 2024)
4. Country Stampede (June 27-29, 2024)
5. Kansas City Irish Fest (Aug. 30 - Sept. 1, 2024)

According to Airbnb listings, Kansas City offers a variety of monthly rentals, catering to the needs of digital nomads, traveling professionals, and those seeking longer stays. The availability of these mid-term rentals indicates a strong demand for extended stays in the city.

In conclusion, Kansas City's short-term rental market is thriving, with increasing occupancy rates, average daily rates, and monthly revenues. The city's growing popularity as a destination, combined with its diverse events calendar and strong mid-term rental market, make it an attractive option for short-term rental investors.

Best Neighborhoods in Kansas City for an Airbnb Business

When searching for the ideal location to start an Airbnb business in Kansas City, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. By analyzing data from reputable sources like AirDNA and Mashvisor, as well as leveraging local knowledge, we've identified the top 5 neighborhoods for starting an Airbnb in Kansas City.

1. Crossroads Arts District

The Crossroads Arts District is a vibrant, creative hub known for its art galleries, boutiques, and restaurants. Its central location and unique charm make it a popular choice for tourists and locals alike.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $135
3. Airbnb Seasonality: High season from May to October
4. Estimated Annual Revenue: $33,507

According to Zillow, the median home value in the Crossroads Arts District is $315,000 as of July 2024. For the best return on investment, consider investing in a 2-bedroom property, as they tend to generate higher revenue and occupancy rates.

2. River Market

The River Market neighborhood, located just north of downtown, is a historic area known for its farmers market, antique shops, and diverse dining options. Its proximity to downtown attractions makes it an attractive choice for Airbnb guests.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $120
3. Airbnb Seasonality: Consistent demand throughout the year
4. Estimated Annual Revenue: $28,470

The median home value in the River Market area is $280,000 as of July 2024, according to Zillow. 1-bedroom properties tend to perform well in this neighborhood, offering a solid return on investment.

3. Westport

Westport is a historic neighborhood known for its lively bar scene, unique shops, and proximity to the Country Club Plaza. Its vibrant atmosphere and central location make it a popular choice for younger travelers.

1. Average Occupancy Rate: 70%
2. Average Daily Rate: $130
3. Airbnb Seasonality: High season from May to September
4. Estimated Annual Revenue: $33,215

The median home value in Westport is $350,000 as of July 2024, according to Zillow. 2-bedroom properties tend to generate the highest revenue and occupancy rates in this neighborhood.

4. 18th & Vine Jazz District

The 18th & Vine Jazz District is a historic area known for its rich jazz heritage, museums, and cultural attractions. Its unique character and proximity to downtown make it an appealing choice for travelers seeking an authentic Kansas City experience.

1. Average Occupancy Rate: 62%
2. Average Daily Rate: $110
3. Airbnb Seasonality: High season from June to August
4. Estimated Annual Revenue: $24,890

According to Mashvisor, the median property price in the 18th & Vine Jazz District is $180,000 as of July 2024. 1-bedroom properties tend to offer the best return on investment in this neighborhood.

5. Brookside

Brookside is a charming, family-friendly neighborhood known for its tree-lined streets, boutique shops, and popular farmers market. Its laid-back atmosphere and proximity to the Country Club Plaza make it an attractive choice for families and older travelers.

1. Average Occupancy Rate: 60%
2. Average Daily Rate: $140
3. Airbnb Seasonality: High season from May to October
4. Estimated Annual Revenue: $30,660

The median home value in Brookside is $400,000 as of July 2024, according to Zillow. 3-bedroom properties tend to generate the highest revenue and occupancy rates in this neighborhood, catering to families and larger groups.

When selecting a neighborhood to start an Airbnb business in Kansas City, consider your target audience, budget, and investment goals. By analyzing data and understanding the unique characteristics of each area, hosts can make informed decisions and maximize their chances of success in the competitive Kansas City short-term rental market.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Kansas City

To set competitive prices for your Kansas City Airbnb, consider factors such as location, property type, amenities, seasonality, and market demand. Analyze comparable listings in your area to gauge the average nightly rates and adjust your pricing accordingly. Implement dynamic pricing strategies to capitalize on peak travel periods and events, while offering discounts during slower seasons to maintain occupancy.

According to Airbnb data, the top-performing listings in Kansas City share several key amenities that contribute to their success:

1. High-speed wifi for remote work
2. Well-equipped kitchens with modern appliances
3. Dedicated workspaces or home offices
4. Outdoor spaces like patios, balconies, or yards
5. Unique design elements or themed decor
6. Enhanced cleaning protocols and contactless check-in
7. Pet-friendly accommodations with amenities like dog beds and bowls
8. Family-friendly features such as cribs, high chairs, and baby gates
9. Luxury touches like high-end linens, toiletries, and welcome baskets

To maximize revenue, consider incorporating these in-demand amenities into your listing. Invest in quality furnishings, upgrade your kitchen and bathroom, and create inviting outdoor spaces. Highlight unique selling points in your listing description and photos to attract more bookings.

In Kansas City, the most popular property types for short-term rentals are:

Single-family homes:

• Median property price: $231,000 (June 2024)
• Potential monthly revenue: $2,500-$4,000
• Best-performing bedroom count: 3-4 bedrooms

Apartments and condos:

• Median property price: $180,000-$250,000 (July 2024)
• Potential monthly revenue: $1,800-$3,000
• Best-performing bedroom count: 1-2 bedrooms

Townhouses:

• Median property price: $200,000-$300,000 (July 2024)
• Potential monthly revenue: $2,000-$3,500
• Best-performing bedroom count: 2-3 bedrooms

Private rooms in shared homes:

• Median property price: N/A (rent varies)
• Potential monthly revenue: $800-$1,500
• Best-performing bedroom count: 1 bedroom

Single-family homes and townhouses with 3-4 bedrooms tend to generate the highest revenue due to their ability to accommodate larger groups and families. However, apartments and condos with 1-2 bedrooms are also in high demand, especially in downtown and tourist-heavy areas.

To maximize your Airbnb revenue in Kansas City, focus on acquiring properties in prime locations, incorporating sought-after amenities, and providing exceptional guest experiences. By staying attuned to market trends and guest preferences, you can position your listing for success in this thriving short-term rental market.

Understanding Kansas City Short-Term Rental Regulations

Kansas City, Missouri has implemented specific regulations for short-term rentals to manage the growing market and balance the needs of the local community. A short-term rental in Kansas City is defined as renting out a property, or a part of it, for less than 30 consecutive days. The city has recently updated its ordinances, restricting new non-resident short-term rentals in residential zones, while allowing previously approved rentals to continue.

To operate legally, short-term rental owners in Kansas City must obtain a license and pay a $200 registration fee, which is subject to annual adjustments based on the Consumer Price Index. STR owners must submit various documents, including proof of ownership or a consent form from the owner, a tax clearance certificate, and a declaration of compliance with safety, legal, and tax regulations. The property must also meet specific zoning and density requirements set by the city.

STR operators in Kansas City are subject to a 7.5% local accommodation tax on all bookings, in addition to any state taxes. The city takes the enforcement of its Airbnb/STR regulations seriously, imposing fines on operators running unlicensed rentals and requiring booking platforms to delist unregistered or deregistered STRs.

To start an STR business in Kansas City, ensure that your property is in a zone that permits STRs and meets the city's density requirements, apply for a permit, submit required documents, and register for the local accommodation tax. For more information on STR permit requirements or regulations, contact the Neighborhood Services Department at the City of Kansas City at (816) 513-3226 or str@kcmo.org.

Read our full STR regulations guide for more detailed information on Kansas City short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Kansas City Airbnb Host

Starting an Airbnb business in Kansas City can be a rewarding venture, but it requires careful planning, dedication, and a deep understanding of the local market. By focusing on providing exceptional guest experiences, incorporating in-demand amenities, and staying compliant with local regulations, hosts can set themselves up for success in this thriving Midwestern city.

Popular Amenities and Design Themes in Kansas City

To attract guests and stand out in the competitive Kansas City market, consider incorporating these popular amenities and design themes:

• Locally-inspired decor showcasing Kansas City's rich history and culture
• Outdoor spaces with comfortable seating and BBQ grills for entertaining
• High-speed wifi and dedicated workspaces for remote workers and business travelers
• Fully-equipped kitchens with modern appliances and locally-sourced coffee and snacks
• Pet-friendly accommodations with amenities like dog beds, bowls, and nearby park recommendations

How to Attract Kansas City Customers

To attract customers to your Kansas City Airbnb, focus on:

• Creating a compelling listing with high-quality photos, detailed descriptions, and competitive pricing
• Highlighting your property's unique selling points, such as proximity to popular attractions or unique amenities
• Leveraging social media and targeted advertising to reach potential guests
• Partnering with local businesses, such as restaurants or tour operators, to offer exclusive discounts or packages to your guests
• Providing exceptional customer service and promptly addressing guest inquiries and concerns

Potential Challenges and Guidelines for Success

While operating an Airbnb in Kansas City can be lucrative, hosts should be aware of potential challenges and risks, such as:

• Navigating the city's evolving short-term rental regulations and ensuring compliance with licensing, zoning, and tax requirements
• Managing noise complaints and maintaining positive relationships with neighbors in residential areas
• Dealing with unexpected maintenance issues or guest damages to the property
• Adapting to seasonal fluctuations in demand and adjusting pricing accordingly

To mitigate these challenges and run a successful Airbnb, Kansas City hosts recommend:

• "Invest in regular property maintenance and have a reliable handyman on call for unexpected issues. This helps minimize guest complaints and maintain a high rating." - John D., Kansas City Airbnb host on BiggerPockets
• "Be proactive in communicating with your neighbors and provide them with your contact information in case of any concerns. Building positive relationships can go a long way in preventing potential issues." - Sarah M., Kansas City Airbnb host on Facebook
• "Stay up-to-date on Kansas City's short-term rental regulations and join local host groups to stay informed about any changes or updates. Attend city council meetings and voice your concerns if necessary." - Mark R., Kansas City Airbnb host on Reddit

By following these guidelines and staying attuned to the unique challenges and opportunities of the Kansas City market, hosts can maximize their chances of success and build a thriving Airbnb business in this dynamic Midwestern city.

Using BNBCalc to Find Profitable Properties in Kansas City, Missouri

Investing in a short-term rental property in Kansas City, Missouri can be a lucrative venture, but it requires careful research and analysis to ensure profitability. BNBCalc is a powerful tool that can help aspiring Airbnb business owners navigate the process of finding and analyzing potential properties in Kansas City, maximizing their chances of success.

1. Analyze Properties Using BNBCalc

To analyze properties using BNBCalc, start by entering the property address, purchase price, and other relevant details into the platform. BNBCalc will then provide a detailed breakdown of the property's potential revenue, expenses, and cash flow, taking into account factors like occupancy rates, average daily rates, and local regulations.

2. Benchmark Comparable Rentals

BNBCalc allows users to compare their potential property to other nearby rentals in the area. By analyzing the performance of comparable listings, investors can gain valuable insights into pricing strategies, amenities, and design choices that can help them maximize their rental income and stay competitive in the Kansas City market.

3. Determine the Right Price and Property Size

Using BNBCalc's data-driven insights, investors can determine the optimal number of bedrooms, bathrooms, and purchase price for their Kansas City Airbnb. The platform's algorithms take into account local market trends, seasonality, and other factors to provide personalized recommendations that can help maximize revenue and occupancy rates.

4. Make an Offer

Once you've found a property that meets your investment criteria and shows strong potential returns on BNBCalc, it's time to make an offer. BNBCalc's partnered STR lender, Brian Bockholdt at Alliant Credit Union, can help you get prequalified for financing at competitive rates, allowing you to move quickly and confidently when making an offer on your ideal Kansas City Airbnb property.

5. Use Our Tax Calculator

BNBCalc's built-in tax calculator can help Kansas City Airbnb investors determine potential tax deductions, including bonus depreciation, which can significantly reduce their tax liability and improve overall profitability. By inputting your property details and financial information, BNBCalc can provide a clear picture of your potential tax savings and help you optimize your investment strategy.

6. Come Up with a Buy Box

When creating a buy box for your Kansas City Airbnb investment, focus on properties that offer:

• Prime location in popular neighborhoods like Crossroads Arts District, River Market, or Westport
• Proximity to major attractions, dining, and entertainment options
• Unique design elements or historic charm that sets the property apart
• Potential for value-add improvements or renovations to increase rental income
• Strong cash flow and return on investment based on BNBCalc's analysis

By using BNBCalc to analyze properties, benchmark comparable rentals, determine the right price and property size, and calculate potential tax savings, investors can create a well-defined buy box that helps them identify the most promising Airbnb investment opportunities in Kansas City, Missouri.

Ready to start your Airbnb journey in Kansas City? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Kansas City Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.