Kansas City, Missouri, has become a popular destination for short-term (Airbnb) rentals in recent years. The city’s affordability, unique attractions, and investor-friendly regulations have made it an attractive location for property owners looking to enter the short-term rental market. In this blog post, we’ll take a closer look at the short-term rental market in Kansas City, MO, using data points provided by Chalet, Zillow, and SmartAsset.
Market Trends in Kansas City, MO
According to Zillow, the median home value in Kansas City, MO, is $230,526. The city’s housing market has appreciated by 6.80% in the past year, making it an attractive location for real estate investors.
Chalet data shows that there are currently 1,603 active Airbnb rentals in Kansas City, MO, with an average daily rate of $206.80. The occupancy rate for short-term rentals is 54%, indicating that there is a healthy demand for these properties. The annual revenue for short-term rentals in Kansas City, MO, is $33,200.
Financial Considerations for Short-Term (Airbnb) Rental Investors
One important consideration for investors is the gross yield of their short-term rental property. According to Chalet data, the average gross yield for short-term rentals in Kansas City, MO, is 14.40%. This is higher than the national average of 9.20%, making it an attractive location for real estate investors.
Another financial consideration for investors is property taxes. According to SmartAsset, the average property tax in Kansas City, MO, is 1.43%. This is lower than the national average of 1.55%, making it an attractive location for real estate investors looking to minimize their expenses.
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Other facts
Kansas City, MO, is the largest city in the state of Missouri, with a population of over 500,000 people. Located in the western part of the state, Kansas City, MO, is a thriving cultural and economic hub, attracting visitors from all around the world.
Median Household Income: According to the US Census Bureau, the median household income in Kansas City, MO, is $59,940, which is higher than the national median of $62,843.
Climate: Kansas City, MO, has a humid continental climate with four distinct seasons. Summers are hot and humid, while winters are cold and snowy. Spring and fall are mild and comfortable.
Population Size: The population of Kansas City, MO, is estimated to be 500,000 people, making it the largest city in the state of Missouri.
Sports Teams: Kansas City, MO, is home to several professional sports teams, including the Kansas City Chiefs (NFL), the Kansas City Royals (MLB), and Sporting Kansas City (MLS).
Colleges: There are several colleges and universities located in Kansas City, MO, including the University of Missouri-Kansas City, Rockhurst University, and Avila University.
Crime Rate: According to NeighborhoodScout, the crime rate in Kansas City, MO, is higher than the national average, with a crime rate of 60 per 1,000 residents.
Visitors: Visitors to Kansas City, MO, come from all around the world, with the majority coming from the United States. According to Visit KC, the total number of visitors to Kansas City, MO, was 27.6 million in 2019.
Tourist Attractions: Kansas City, MO, is home to several popular tourist attractions, including the National World War I Museum and Memorial, the Kansas City Zoo, and the Nelson-Atkins Museum of Art.
Peak Season: The peak season in Kansas City, MO, is typically from May to September when the weather is warm and pleasant, and many outdoor events take place.
Regulatory Environment for Short-Term Rentals
Another important factor for Airbnb rental investors is the regulatory environment in the city. Fortunately, Kansas City, MO, is investor-friendly when it comes to short-term rentals. While there are regulations in place, they are not as strict as in other cities, allowing investors to operate their short-term rental properties with minimal interference.
Conclusion
In conclusion, the Airbnb rental market in Kansas City, MO, is experiencing healthy growth, with an increase in supply and healthy demand. The city’s affordable housing market, unique attractions, and investor-friendly regulations make it an attractive location for real estate investors. With an average gross yield of 14.40% and lower-than-average property taxes, Kansas City, MO, is an ideal location for investors looking to enter the short-term rental market.
