Is Casper, Wyoming Good for Airbnb Investment?

To start an Airbnb in Casper, Wyoming, begin by researching local regulations through the City of Casper Planning Department, as Wyoming generally has fewer restrictions than major cities but Casper may require business licenses and compliance with zoning ordinances for short term rentals.

Launch checklist

• Contact Casper's Business License Division to obtain necessary permits, which typically cost $25 to 50 annually, and ensure your property meets fire safety codes and health department standards.
• Find a suitable property in desirable areas like downtown Casper near the North Platte River or close to Casper Mountain, with average home prices around $200,000 to 300,000, focusing on 2 to 3 bedroom properties that appeal to oil industry workers, outdoor enthusiasts.
• Furnish the space with durable, comfortable furniture emphasizing Wyoming's western aesthetic, including essentials like quality bedding, kitchen appliances, WiFi, and outdoor gear storage, budgeting approximately $8,000 to 15,000 for complete furnishing.
• List your property on Airbnb with professional photos highlighting mountain views and proximity to attractions like the National Historic Trails Interpretive Center, setting competitive rates around $75 to 125 per night based on local market analysis.
• Manage your listing by maintaining quick response times, coordinating cleaning between guests through local services like Casper Cleaning Company, implementing keyless entry systems.

To identify profitable short term rental properties in Casper, Wyoming, focus on locations near major attractions like Casper Mountain, the North Platte River, and downtown business district.

What to prioritize

• Target 2 to 4 bedroom single family homes or condos built after 1990 with modern amenities, outdoor spaces, parking, and mountain or river views, as these appeal to both business travelers and outdoor enthusiasts visiting for fishing, hiking, and skiing.
• Analyze pricing by researching comparable Airbnb and VRBO listings in Casper, aiming for properties under $200,000 that can generate $100 to 150 per night during peak seasons (summer and hunting seasons).
• Conduct competition research by monitoring occupancy rates and pricing of existing STRs within a 5 mile radius, noting that Casper has limited hotel inventory which creates opportunities for well positioned rentals.
• Utilize tools like AirDNA for market analysis, Mashvisor for investment calculations, and local resources including the Casper Area Economic Development Alliance for tourism data.

To obtain an Airbnb/STR permit in Casper, Wyoming, you must first contact the Casper Planning Department at City Hall located at 200 North David Street to determine if short term rentals are permitted in your specific zoning district, as Casper requires a conditional use permit for STRs in most residential areas.

Documents and approvals

• Submit an application for a conditional use permit along with a site plan showing your property layout, proof of property ownership or lease agreement, a detailed description of your proposed STR operation, contact information for a local property manager if you're not local.
• Required documents typically include a completed application form, property deed or lease, site plan drawn to scale, neighborhood notification list, and a $350 to 500 application fee.
• The process involves submitting your application, staff review (2 to 3 weeks), public notification to neighbors, a Planning and Zoning Commission hearing (typically scheduled 4 to 6 weeks after application), and final approval or denial.
• The entire timeline usually takes 6 to 10 weeks from application to final decision.
• Casper specific requirements include maintaining adequate off street parking (typically 2 spaces minimum), ensuring compliance with fire safety codes, providing 24/7 local contact information to the city and neighbors, limiting occupancy based on bedroom count and square footage.

Short term rentals (STRs) are legal in Casper, Wyoming, as the city does not have specific ordinances prohibiting or heavily regulating vacation rentals as of 2024.

Core operating requirements

• Wyoming state law generally allows property owners to rent their homes for short periods, and Casper follows this permissive approach without requiring special permits or licenses for STR operations.
• The city primarily regulates STRs through existing zoning laws and general business licensing requirements, meaning operators must comply with residential zoning restrictions and obtain basic business licenses.
• There are no designated prohibited areas specifically for STRs within city limits, though properties must comply with standard residential use guidelines and homeowners association rules where applicable.
• Recent years have seen minimal legal changes regarding STR regulation in Casper, with the city maintaining a relatively hands off approach compared to larger tourist destinations.

The best areas for Airbnb investment in Casper, Wyoming include the Historic Downtown District, which attracts business travelers visiting the central business core and tourists exploring local museums and cultural sites; the Platte River corridor near Casper Mountain, popular with outdoor enthusiasts accessing hiking, skiing. The oil and gas industry presence also creates consistent demand for extended stay business travelers throughout the city, while Casper's position as a regional hub for central Wyoming makes it attractive for visitors exploring nearby attractions like Alcova Reservoir and the Oregon Trail sites.

In Casper, Wyoming, Airbnb properties are subject to both state and local lodging taxes.

Taxes and filing responsibilities

• The Wyoming state lodging tax is 4% on gross receipts from lodging accommodations, which applies to all short term rentals including Airbnbs.
• Natrona County, where Casper is located, imposes an additional lodging tax of approximately 2 to 3% on short term rental accommodations.
• The City of Casper also levies a local lodging tax of around 2% on transient accommodations.
• These taxes are typically collected from guests at the time of booking and must be remitted monthly to the appropriate tax authorities state taxes to the Wyoming Department of Revenue, county taxes to Natrona County, and city taxes to Casper's finance department.
• Airbnb may collect and remit some of these taxes automatically through their platform for participating jurisdictions, but hosts are ultimately responsible for ensuring compliance.
• Properties rented for 30 days or longer are generally exempt from these transient occupancy taxes, and some jurisdictions may have minimum revenue thresholds before tax obligations begin.
• Hosts must register with each taxing authority, obtain the necessary permits or licenses, and file regular returns even if no tax is owed during a particular period.

To start an Airbnb in Casper, Wyoming, expect total costs around $285,000 to $315,000.

Cost breakdown

• Property purchase represents the largest expense at $220,000 to $250,000 based on median home prices in the area.
• Furnishing costs typically range $15,000 to $25,000 for a complete 2 to 3 bedroom setup including furniture, appliances, linens, and décor.
• Initial setup costs including professional photography, listing creation, and basic renovations run $3,000 to $5,000.
• Permits and fees vary but budget $500 to $1,500 for business licenses, short term rental permits, and inspection fees.
• Insurance premiums for short term rental coverage cost approximately $2,000 to $3,000 annually.
• Utility deposits and connections total around $500 to $800.
• First six months operating costs including utilities ($150 to $200/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses add roughly $3,000 to $4,000.
• Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Casper, Wyoming typically generate annual revenues between $15,000 to $35,000 for entire homes, with average daily rates ranging from $75 to $120 depending on property size and amenities.

Profitability indicators

• Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($30 to 50 per turnover), property management (15 to 25% if outsourced), utilities ($150 to 300 monthly), insurance ($1,200 to 2,000 annually), and maintenance costs.
• Net profit margins typically range from 15 to 35% for well managed properties, with higher margins achieved by hosts who self manage and maintain high occupancy rates of 50 to 70%.
• Success factors in Casper include proximity to Casper Mountain recreation areas, downtown business district access for corporate travelers visiting companies like Devon Energy and Anadarko.
• A typical 3 bedroom home purchased for $200,000 in 2019 and generating $28,000 annually in Airbnb revenue with $18,000 in expenses would yield a 5% cash on cash return plus property appreciation.

Airbnb investments in Casper, Wyoming typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10%, primarily driven by the city's proximity to outdoor recreation areas like Casper Mountain and business travelers supporting the energy sector.

Return planning figures

• Properties near downtown or outdoor activity hubs command average daily rates of $85 to 120, with occupancy rates of 45 to 60% annually, leading to gross rental yields of 10 to 15% before expenses.
• Initial profitability usually occurs within 18 to 24 months for well positioned properties, with total returns reaching break even on initial investment within 7 to 10 years.
• The market benefits from limited hotel inventory and seasonal demand from tourists visiting nearby attractions like Independence Rock and Pathfinder Reservoir, though winter months typically see 30 to 40% lower occupancy rates.
• Properties requiring minimal renovation in established neighborhoods like Country Club or Evansville areas tend to achieve faster profitability timelines of 12 to 18 months due to lower upfront capital requirements and consistent demand from corporate housing needs.

STRSearch is a national platform that helps investors identify profitable short term rental properties across markets including Casper, Wyoming.

Companies and resources

• In the Casper area, local real estate agents like those at Century 21 BHJ Realty, RE/MAX Capitol Properties, and Coldwell Banker The Property Exchange have experience with investment properties and can assist with Airbnb acquisitions.
• National services include Mashvisor, which provides rental property analytics and market data for Wyoming markets, and BiggerPockets, which connects investors with local professionals and market insights.
• AirDNA offers short term rental market analysis for the Casper region, while Awning provides end to end Airbnb investment services including property identification and management.
• Local property management companies like High Plains Property Management and Wyoming Property Solutions can assist with identifying suitable investment properties and provide ongoing management services.
• RedAwning and Vacasa also operate in Wyoming markets and can provide insights into profitable Airbnb opportunities, while national investment firms like Roofstock and HomeUnion occasionally feature Wyoming rental properties in their portfolios.