Baxter Springs, Kansas, is a small city located in the southeastern part of the state, nestled near the borders of Missouri and Oklahoma. Historically a key location during the westward expansion in the 19th century, Baxter Springs has seen changes in its economic landscape over the decades. The current population is around 4,000 residents, which contributes to a tightly-knit community atmosphere.

The short-term rental market in Baxter Springs caters primarily to visitors looking for unique local experiences, historical tourism, and outdoor recreation. The market remains relatively small but is gaining attention from investors looking to leverage affordable property prices and a growing interest from travelers.

As of October 2023, the average daily rate (ADR) for short-term rentals is approximately $106.60, which offers insights into the pricing strategies and revenue potential of properties in the area.

When evaluating Baxter Springs’ short-term rental market, several key performance indicators (KPIs) are crucial for potential investors:

• Average Daily Rate (ADR): $106.60
• Occupancy Rate: The current occupancy rate averages around 55%, which indicates moderate demand. This can fluctuate seasonally and based on specific local events.
• Revenue per Available Room (RevPAR): This metric is critical as it combines both ADR and occupancy. With an ADR of $106.60 and a 55% occupancy rate, the RevPAR would approximate $58.63.
• Length of Stay: The average length of stay in Baxter Springs for short-term rentals is approximately 2-3 nights, often correlating with weekend visits.

Investors should consider these KPIs when deciding on pricing and operational strategies to optimize returns.

Baxter Springs has undergone a modest population and economic growth trajectory over the past decade, aligning with broader trends in rural America. Factors influencing the demand for short-term rentals include:

• Population Stability: While there has not been significant overall population growth, the stable population contributes to a consistent demand for local services, including short-term accommodations.

• Tourism Development: Increased emphasis on promoting local attractions, such as historical sites and nature parks, has resulted in more tourists visiting the area, positively affecting rental demand.

• Real Estate Trends: The average property prices in Baxter Springs have witnessed a slight appreciation over the past ten years, though the growth has been moderate compared to urban centers. The historical context attracts a specific demographic of visitors interested in heritage tourism.

Given these insights, the potential for continued growth in the short-term rental market exists, especially as local tourism efforts intensify.

Investors eyeing Baxter Springs can find opportunities for cost-effective property acquisition with potential lucrative returns. The current market conditions show that properties can be purchased at reasonable prices, often below the national average for comparable homes.

In Baxter Springs, the short-term rental market exhibits clear seasonal trends, significantly influenced by local events and seasonal weather patterns.

• Spring and Summer: Demand peaks during warmer months, particularly from May to September. Outdoor activities, local festivals, and family vacations drive higher occupancy rates during these months.

• Fall: The months of October and November often witness a decrease in traveler numbers as school routines resume and the weather turns cooler. However, the fall season also offers opportunities for events tied to local harvest seasons or Halloween festivities.

• Winter: December experiences a flurry of activity around holiday gatherings, although January and February typically see lower occupancy.

Investors should strategically plan their marketing efforts and pricing strategies based on these patterns to maximize occupancy.

Diverse property types come to market in Baxter Springs, each offering unique advantages and attracting different traveler demographics.

• Single-Family Homes: Often preferred by families for their space and amenities. They typically yield higher occupancy during holidays and family-oriented events.

• Apartments and Studios: Attractive to couples or solo travelers seeking budget-friendly options. This segment performs well during the spring and fall seasons.

• Vacation Homes: Luxury rentals remain moderate in demand, appealing primarily to affluent visitors seeking leisure retreats. Investors in this sector should ensure premium amenities to justify higher price points.

The choice of property type can have a substantial impact on rental success, and potential investors should evaluate their investments based on their target guest demographic.

An understanding of guest preferences is crucial for maximizing the success of short-term rental ventures in Baxter Springs.

The regulatory environment surrounding short-term rentals in Baxter Springs should be closely monitored by potential investors. While specific regulations can vary by locality, some general considerations include:

• Licensing Requirements: Property owners might be required to register their short-term rental businesses with the city or county. This can include obtaining licenses or undergoing inspections.
• Tax Regulations: Owners should also familiarize themselves with local tax laws, including transient occupancy taxes that may be imposed on short-term rental guests.
• Zoning Restrictions: It’s essential to understand the zoning laws applicable to short-term rentals to avoid potential legal challenges.

Staying informed about regulatory changes can protect your investment and ensure compliance with city ordinances.

When evaluating investment options in Baxter Springs, it's essential to consider neighborhood dynamics. Areas closer to downtown tend to perform better due to the proximity to local attractions and amenities.

Key neighborhoods include:

• Downtown Baxter Springs: Offers access to shops, restaurants, and historical sites, making it attractive to tourists. Properties here may command higher nightly rates based on location alone.

• Residential Areas: Typically quieter and more family-oriented, these neighborhoods generally appeal to longer-stay guests or those seeking a more relaxed atmosphere.

Conducting thorough neighborhood research ensures informed purchasing decisions that cater to specific traveler needs and preferences.

The market outlook for short-term rentals in Baxter Springs is cautiously optimistic. Continued efforts to promote local tourism can fuel interest and demand in the rental market. The focus on historical tourism and rural escapes aligns with a growing trend among travelers seeking off-the-beaten-path experiences.

As remote work becomes more permanent for some, destinations like Baxter Springs could garner additional interest as viable options for temporary stays. Investors looking to enter the market should keep an eye on tourism trends and developments in local infrastructure that could affect accessibility and appeal.