Is Carbon, Wyoming Good for Airbnb Investment?

To start an Airbnb in Carbon County, Wyoming, begin by researching local zoning laws and regulations through the Carbon County Planning Department, as rural Wyoming counties typically have fewer restrictions than urban areas but may require special use permits for short-term rentals in certain zones. Contact the Wyoming Department of Revenue to obtain a sales tax license since you'll need to collect state sales tax (currently 4%) plus any local taxes on rental income. Find a suitable property by working with local real estate agents familiar with Carbon County's market, focusing on areas near attractions like Saratoga Hot Springs, the Sierra Madre Mountains, or historic Rawlins, with properties typically ranging from $150,000-$400,000 depending on location and size. Obtain necessary permits including a business license from the county clerk, ensure the property meets safety codes through the local building department, and consider getting a fire safety inspection. Furnish the property with durable, western-themed décor appropriate for the area's outdoor recreation focus, including essentials like quality bedding, kitchen supplies, WiFi, and outdoor gear storage. List your property on Airbnb and VRBO with professional photos highlighting Wyoming's natural beauty and nearby activities like fishing, hunting, and hot springs. Manage the property by establishing relationships with local cleaning services in Saratoga or Rawlins, create a guidebook featuring local attractions like Hobo Hot Springs and the Carbon County Museum, set competitive pricing (typically $80-200/night depending on property size and season), and maintain responsive communication with guests while ensuring compliance with Wyoming's 4% state lodging tax collection requirements.

To identify profitable short-term rental properties in Carbon County, Wyoming, focus on locations near outdoor recreation areas like Medicine Bow National Forest, Saratoga Hot Springs, and the North Platte River, as well as proximity to major highways like I-80 for traveler convenience. Target properties with 2-4 bedrooms, outdoor amenities like hot tubs or fire pits, mountain or river views, and features that appeal to hunters, fishermen, and outdoor enthusiasts such as gear storage and pet-friendly accommodations. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($75-150 typical for the area) and occupancy rates (30-50% annually), while researching comparable properties within 25-mile radius on Airbnb and VRBO to understand seasonal demand patterns, particularly during hunting seasons (September-November) and summer recreation months. Competition research should include analyzing existing STR listings in Saratoga, Rawlins, and Riverside to identify gaps in amenities or property types, while utilizing tools like Rabbu, AllTheRooms, and local MLS data through Wyoming Regional MLS, plus connecting with Carbon County tourism boards and local real estate agents familiar with STR regulations and seasonal tourism patterns to ensure compliance with local zoning laws and maximize investment potential.

To obtain an Airbnb/STR permit in Carbon County, Wyoming, contact the Carbon County Planning and Zoning Department at their courthouse in Rawlins at 415 West Pine Street or call (307) 328-2651 to begin the application process. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a site plan showing parking and access, obtain liability insurance with minimum $1 million coverage, pass a fire safety inspection, and provide contact information for a local property manager if you're an absentee owner. Required documents include a valid Wyoming business license, sales tax permit from the Wyoming Department of Revenue, completed septic and well inspection if applicable, and neighbor notification forms. The application fee is approximately $150-250 with annual renewal fees around $100-150, plus inspection fees of $75-125. The approval timeline typically takes 30-60 days from submission of complete application, including time for inspections and neighbor notification period. Carbon County specific requirements include maintaining occupancy limits based on septic capacity, providing adequate off-street parking (typically 2 spaces minimum), ensuring compliance with rural addressing for emergency services, and adhering to noise ordinances particularly important in rural settings. Annual renewals require updated insurance documentation and may include periodic re-inspections.

Short-term rentals (STRs) are generally legal in Carbon County, Wyoming, as the state maintains a business-friendly regulatory environment with minimal statewide restrictions on vacation rentals. Carbon County itself does not appear to have comprehensive county-wide STR regulations as of 2023, leaving most oversight to individual municipalities within the county. The primary incorporated areas like Rawlins, Saratoga, and Encampment may have their own local ordinances regarding business licenses, zoning compliance, and safety requirements, but these tend to be relatively permissive compared to other states. Property owners typically need to obtain standard business licenses and ensure compliance with local zoning laws, fire safety codes, and building regulations. There are no known prohibited areas specifically for STRs in Carbon County, though properties must generally comply with residential zoning requirements and any applicable homeowners association rules. Recent legal changes have been minimal, with Wyoming maintaining its pro-business stance toward the vacation rental industry, though individual municipalities may periodically update their business licensing requirements or zoning ordinances.

The best areas for Airbnb investment in Carbon County, Wyoming are Rawlins, Saratoga, and the Sierra Madre Mountains region. Rawlins serves as the county seat and offers opportunities due to business travelers visiting the Wyoming State Penitentiary, railroad workers, and travelers along Interstate 80, with consistent year-round demand from government employees and contractors. Saratoga is highly attractive for its natural hot springs resort tourism, particularly the Saratoga Hot Springs Resort area, drawing visitors seeking wellness retreats and outdoor recreation, with peak seasons during summer and fall when fishing, hunting, and hiking activities surge. The Sierra Madre Mountains district, including areas near Encampment and Riverside, attracts outdoor enthusiasts for world-class fishing on the North Platte River, elk and deer hunting during fall seasons, snowmobiling and cross-country skiing in winter, and summer camping and hiking, making it ideal for seasonal rental properties targeting adventure tourists and sportsmen willing to pay premium rates for remote, scenic accommodations.

In Carbon County, Wyoming, Airbnb properties are subject to Wyoming's state lodging tax of 4% on gross receipts from accommodations, which applies to rentals of less than 30 consecutive days. Additionally, Carbon County imposes a local lodging tax of 2%, bringing the total lodging tax rate to approximately 6%. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Wyoming Department of Revenue on a monthly basis for properties enrolled in their Voluntary Collection Agreement program. For hosts not using Airbnb's collection service, they must register with the Wyoming Department of Revenue, collect taxes from guests, and remit payments monthly by the 20th of the following month using Form WY-1. Exemptions generally include rentals to permanent residents (30+ consecutive days), certain government employees on official business, and accommodations provided to individuals receiving medical treatment, though documentation may be required to qualify for these exemptions.

To start an Airbnb in Carbon, Wyoming, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at approximately $180,000-$220,000 based on median home prices in rural Wyoming counties like Carbon. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Carbon County include business license ($100-$300), potential zoning permits ($200-$500), and state lodging tax registration ($50-$100). Insurance costs run $1,500-$2,500 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, gas, internet, and cable total approximately $1,000-$2,000. First six months operating costs including utilities ($600-$900 monthly), cleaning supplies and services ($200-$400 monthly), maintenance reserves ($300-$500 monthly), Airbnb platform fees (3% of bookings), and marketing expenses total roughly $8,000-$12,000, assuming moderate occupancy rates typical for rural Wyoming markets.

Airbnb properties in Carbon, Wyoming show moderate profitability potential with average daily rates ranging from $85-120 for typical 2-3 bedroom properties, generating approximately $18,000-28,000 in annual revenue based on 60-70% occupancy rates driven by outdoor recreation tourism and proximity to Medicine Bow National Forest. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs averaging $2,000-3,500 yearly. Net profit margins generally range from 25-35% for well-managed properties, with successful hosts like those operating cabins near Saratoga Hot Springs achieving higher margins through premium pricing ($150-200/night) and extended stays targeting fishing and hunting seasons. Key success factors include strategic location near recreational attractions, professional photography, responsive guest communication, and seasonal pricing optimization that capitalizes on peak summer months (June-September) and hunting seasons, while properties closer to Rawlins or along Interstate 80 benefit from business traveler demand, though competition from hotels limits pricing power in these markets.

Airbnb investments in Carbon, Wyoming typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to outdoor recreation activities and seasonal tourism patterns. Properties near Rawlins and the Medicine Bow National Forest command higher occupancy rates of 45-60% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, though the limited population base of approximately 15,000 residents means success heavily depends on capturing transient workers from nearby energy projects and seasonal hunters/fishermen. Market data suggests properties purchased under $200,000 with renovation budgets of $15,000-25,000 achieve the strongest returns, while luxury properties above $300,000 face longer payback periods of 3-4 years due to limited high-end demand in this rural Wyoming market.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations in Carbon, Wyoming. Local real estate agents in the area include Carbon County Realty and Wyoming Mountain Properties, both of which have experience with investment properties and vacation rentals in the region. National services like Awning, Mashvisor, and AirDNA provide market analytics and property identification tools specifically for Airbnb investors looking in smaller Wyoming markets. RedAwning and Vacasa offer property management services that can help investors identify and manage profitable short-term rentals in Carbon County. Local property management companies such as High Country Property Management and Wyoming Vacation Rentals also assist investors in finding and operating Airbnb properties in the area. Additionally, platforms like BiggerPockets and Roofstock occasionally feature Wyoming investment properties, while local mortgage brokers and investment advisors familiar with the Carbon County market can provide financing and strategic guidance for Airbnb property acquisitions.