Earn Tax-Free Rent When Kansas City Hosts the World Cup in 2026 with the Augusta Rule

Do you own your home? With Kansas City hosting the World Cup in 2026, you can realize tax-free income by renting all or a part of your home to visiting fans. Unprecedented demand for short-term rentals in the Kansas City area and an obscure tax loophole intersect to allow homeowners to make significant income with no tax consequences as long as certain rules are followed. We can help you make the most of this once in a lifetime opportunity.

The World Cup in Kansas City

The World Cup is coming to GEHA Field at Arrowhead Stadium in 2026, an event that promises to be a historic milestone for both the city of Kansas City and the broader Midwest region. This momentous occasion marks the first time that a World Cup quarterfinal will be held in the Midwest, a region that has long been passionate about soccer but has yet to host such a prestigious event. Kansas City, known for its vibrant culture and enthusiastic sports fans, is set to make history as the smallest US metropolitan area ever to host a World Cup match, showcasing its capability to organize and celebrate international sporting events on a grand scale.

Matches are scheduled to take place from June 16th through July 11th, 2026. The atmosphere in the city will undoubtedly be electric, as local residents and visitors alike come together to celebrate the spirit of the game. In addition to the scheduled matches at GEHA Field, Kansas City is also hosting a FIFA Fan Festival at the National WWI Museum and Memorial. This festival will serve as a hub for fans from all over the globe, providing them with a chance to engage in various activities, enjoy live entertainment, and immerse themselves in the culture of the World Cup.

Event organizers are forecasting a staggering 650,000 visitors will ascend on the Kansas City metropolitan area during this time. This influx of visitors is expected to significantly impact the local economy, providing a boost to hotels, restaurants, and various businesses throughout the region. For context, that number is more than the entire population of the city of Kansas City, MO. Local authorities are preparing for this surge, ensuring that infrastructure and services are in place to accommodate the influx of soccer fans and tourists who will be eager to experience the World Cup atmosphere.

So, what does this mean for homeowners in the Kansas City area? This is where an overlooked piece of the tax code, known as the Augusta Rule, comes into play.

The Augusta Rule

There is an underutilized provision of tax law known as the Augusta Rule - Internal Revenue Code 280A(g) - that permits property owners to receive tax-free rental income for renting out all or part of their homes. As long as the home is rented no more than 14 days per year, none of the rental income is taxable to the owner. I don't like to use the word 'loophole' as a tax professional, because most 'loopholes' have a lot of exceptions and caveats. But this is legitimately a loophole. The only conditions for tax exemption are that the home must be your primary or second home and it may not be rented for more than 14 days per year.

The rule got its nickname from the city of Augusta, Georgia, where support for the code change originated. In the 1970s, the Masters Tournament was drawing large crowds that could not be served by the limited hotel capacity of Augusta at the time. To encourage homeowners to open their doors for visitors seeking short-term stays during the Tournament, Georgia lawmakers lobbied to have the short-term rental income excluded from federal income tax. In 1976, their lobbying paid off, and all US taxpayers suddenly had a legitimate loophole for making money without paying tax.

Understanding the rule is the first step—next is planning how to apply it in real life.

How to Take Advantage of This Opportunity

If you own your home, there are several ways you can profit from the World Cup and the Augusta Rule. First, verify your space is eligible for listing under your local zoning codes and HOA rules. Then create a listing. Short-term rental platforms like AirBNB and VRBO make listing your space extremely easy. Keep in mind that you want the price to reflect anticipated demand, so don't get locked into a rental arrangement that is below the market. And don't forget that you cannot rent your home for more than 14 days a year if you want the income to be tax-free. You may decide that it's worth it to pay the taxes and generate income from your unused space. We can help with that too.

Here are a few examples of how Kansas City homeowners might use the Augusta Rule to their advantage during the World Cup:

Scenario 1: You have unoccupied space that you can rent out for two weeks. Maybe you have a guest room. Maybe you're an empty-nester and you haven't repurposed your children's bedrooms. Maybe you have a storage room that you can clean out in the next 40 weeks. Prices are expected to rise drastically as availability shrinks. Individual rooms could go for more than $500 per night as demand surpasses supply.

Scenario 2: You decide to take a free 2-week vacation and rent out your home to soccer fans during the Worlds Cup. Some projections suggest that whole houses could yield more than $5,000 per week with some listings currently as high as $15,000.

Scenario 3: You have an RV instead of a second home. Make sure your local codes allow it, and rent out your RV for two weeks while it sits in your driveway. An RV could rent for as much as a whole house. All you have to do is hook up the water and electric and clean it out.

Homeowners who operate short-term event rentals are not the only taxpayers that can take advantage of the law. Business owners use the Augusta Rule to rent meeting space in the owner's home. The business is allowed to deduct the rent paid, and the owner does not have to include the rent received in income. The rent must be for a legitimate business purpose, such as monthly board meetings, and the amount must be considered reasonable compared to the market.

Kansas City’s role as a World Cup host city is a once-in-a-lifetime opportunity for local homeowners. By combining the unprecedented demand for short-term rentals with the unique tax advantages of the Augusta Rule, you can open your home to the world, create unforgettable experiences for visitors, and generate meaningful tax-free income at the same time. Whether you’re planning to rent out a guest room, your entire home, or even an RV, a little preparation now could pay off in a big way when the world comes to Kansas City in 2026. If you’d like to explore how this strategy fits into your financial picture, our team is here to guide you every step of the way.