Is Cody, Wyoming Good for Airbnb Investment?

To start an Airbnb in Cody, Wyoming, begin by researching local regulations through the City of Cody Planning Department, as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow vacation rentals in residential areas with proper permits. Contact Park County for any additional county-level requirements and ensure compliance with Wyoming state tax obligations including lodging tax collection. Find a suitable property by working with local real estate agents familiar with Cody's market, focusing on areas near Yellowstone National Park entrances or downtown attractions, with properties typically ranging from $200,000-$800,000 depending on size and location. Apply for necessary permits including a City of Cody business license (approximately $50-100 annually), fire safety inspection, and ensure the property meets building codes and has adequate parking. Furnish the property with western-themed decor appealing to tourists visiting Yellowstone, including essential amenities like Wi-Fi, full kitchen, quality bedding, and outdoor furniture for the region's outdoor recreation focus. Create your Airbnb listing with professional photos highlighting proximity to Yellowstone (typically 30-50 miles from park entrances), local attractions like the Buffalo Bill Center of the West, and outdoor activities, setting competitive rates around $100-300 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services, implementing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Cody's noise ordinances and occupancy limits typically set at 2 people per bedroom plus 2 additional guests.

To identify profitable short-term rental properties in Cody, Wyoming, focus on locations within 2-3 miles of Yellowstone National Park's east entrance, downtown Cody near the Buffalo Bill Center of the West, and properties with mountain or river views along the Shoshone River. Target 2-4 bedroom cabins, lodges, or western-themed homes built after 1990 with amenities like hot tubs, fireplaces, full kitchens, and outdoor spaces that can accommodate 4-8 guests year-round. Analyze pricing using AirDNA and Mashvisor to identify properties generating $150-300+ per night during peak season (June-September) with 60-80% occupancy rates, while ensuring purchase prices allow for 15-25% annual returns after expenses. Research competition by studying similar properties within 5 miles, noting their booking rates, amenities, and guest reviews on Airbnb and VRBO, particularly focusing on properties near Yellowstone entrances and downtown attractions. Utilize local resources including Park County property records, Cody Chamber of Commerce tourism data, Wyoming MLS systems, and connect with local property managers like Cody Guest Houses or Yellowstone Country Rentals to understand seasonal demand patterns, permitting requirements, and operational costs specific to this gateway tourism market that peaks during Yellowstone's operating season.

To obtain an Airbnb/STR permit in Cody, Wyoming, you must first contact the Cody Planning and Zoning Department at City Hall located at 1338 Sheridan Avenue to determine if short-term rentals are permitted in your specific zoning district, as the city requires conditional use permits for STRs in most residential areas. You'll need to submit a conditional use permit application along with a site plan showing parking areas, a floor plan of the rental unit, proof of property ownership or authorization from the owner, a business license application, and evidence of liability insurance coverage of at least $1 million. The application fee is approximately $350 for the conditional use permit plus $50 for the business license, and you must also pay for public notice advertising costs of around $200. The process typically takes 6-8 weeks as it requires review by city staff, notification of neighboring property owners within 200 feet, and approval by the Planning and Zoning Commission at a public hearing. Cody-specific requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring the property meets all building and fire codes, providing a local contact person available 24/7 for emergencies, limiting occupancy to 2 people per bedroom plus 2 additional guests, and renewing the permit annually by December 31st with updated insurance documentation and compliance verification.

Short-term rentals (STRs) are legal in Cody, Wyoming, with the city implementing regulations in 2021 that require STR operators to obtain a business license and comply with specific operational standards. The city allows STRs in most residential zones but requires a conditional use permit for properties in certain residential districts, with restrictions including occupancy limits based on bedroom count, parking requirements of one space per bedroom, and mandatory contact information for a local representative available 24/7. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators must collect and remit local lodging taxes. Recent changes in 2022-2023 have included stricter enforcement of noise ordinances and enhanced penalties for non-compliance, while the city has maintained a relatively permissive approach compared to other Wyoming municipalities, though some residential neighborhoods have expressed concerns about density and community character that may lead to future zoning adjustments.

The best areas for Airbnb investment in Cody, Wyoming are the Historic Downtown District, which attracts tourists visiting the Buffalo Bill Center of the West and attending the nightly Cody Stampede Rodeo from June through August, generating consistent summer revenue from cultural tourism and western heritage seekers. The Yellowstone Avenue corridor near the west entrance to Yellowstone National Park (50 miles away) is highly attractive due to its proximity to one of America's most visited national parks, with peak season running May through September when millions of visitors pass through Cody as a gateway destination. The Shoshone River area offers scenic waterfront properties that appeal to fishing enthusiasts, outdoor recreation tourists, and visitors seeking authentic western ranch experiences, particularly during hunting seasons in fall. The residential neighborhoods near the Cody Regional Airport capture business travelers and corporate visitors to local energy companies and agricultural businesses, providing year-round occupancy potential beyond the tourist season. Properties within walking distance of the Irma Hotel and main shopping district benefit from proximity to restaurants, western shops, and the famous Irma Hotel gunfight shows, making them ideal for tourists who prefer not to drive while exploring the town's western attractions and museums.

Airbnb properties in Cody, Wyoming are subject to both state and local lodging taxes that hosts must collect and remit. The Wyoming state lodging tax is 4% on gross receipts from short-term rentals under 30 days, collected by the Wyoming Department of Revenue with quarterly remittance required by the last day of the month following each quarter. Park County imposes an additional 4% lodging tax on short-term accommodations, bringing the total tax rate to approximately 8%, with county taxes typically remitted monthly to the Park County Treasurer's office by the 15th of the following month. The City of Cody may impose an additional municipal lodging tax of 2-3%, making the total potential tax burden 10-11% depending on the specific location within city limits. Hosts must register with both state and local tax authorities, collect taxes from guests at the time of booking or check-in, maintain detailed records of all transactions, and file regular returns even if no rentals occurred during the reporting period. Exemptions typically apply to stays of 30 days or longer, rentals to permanent residents, and certain government or non-profit organization bookings, though hosts should verify current exemption criteria with the Wyoming Department of Revenue and Park County tax assessor as rates and regulations may change annually.

To start an Airbnb in Cody, Wyoming, expect total costs of approximately $485,000-$565,000. Property purchase represents the largest expense at $400,000-$450,000 based on median home prices in the Cody area as of 2023-2024. Furnishing costs typically range $25,000-$35,000 for a complete 3-bedroom property including beds, linens, kitchen essentials, living room furniture, and outdoor amenities. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations average $8,000-$12,000. Permits and fees in Park County include business licenses, lodging permits, and potential HOA approvals totaling $1,500-$3,000. Insurance costs for short-term rental coverage run $2,500-$4,000 annually, with six months costing $1,250-$2,000. Utilities including electricity, gas, water, internet, and cable average $300-$450 monthly, totaling $1,800-$2,700 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, platform fees (3% of bookings), and marketing average $8,000-$15,000 depending on occupancy rates. Additional considerations include potential property management fees (20-30% of revenue) and seasonal fluctuations in Cody's tourism market, with peak seasons during summer months and Yellowstone National Park visitation periods driving higher occupancy and rates.

Airbnb properties in Cody, Wyoming demonstrate strong seasonal profitability with average annual revenues ranging from $35,000-$65,000 for well-positioned properties, driven primarily by Yellowstone National Park tourism from May through September. Properties within 10 miles of the park entrance typically achieve 70-85% occupancy during peak season with nightly rates of $180-$350, while shoulder seasons see rates drop to $120-$200 with 40-50% occupancy. Operating expenses average 35-45% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance costs. Successful properties like those in the Beck Lake area or near the rodeo grounds achieve profit margins of 25-35% annually, with break-even typically occurring by year 2-3 for properties purchased specifically for short-term rental. Key success factors include proximity to Yellowstone's east entrance, professional photography showcasing mountain views, amenities like hot tubs or fire pits, and responsive guest communication, with top-performing hosts like those managing cabins near Pahaska Tepee reporting gross yields of 12-18% on property investment when accounting for appreciation and rental income combined.

Airbnb investments in Cody, Wyoming typically generate annual ROI of 12-18% due to the city's proximity to Yellowstone National Park and strong seasonal tourism demand from May through September. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak summer months and $80-120 during shoulder seasons. Most investors achieve profitability within 18-24 months, particularly for 2-4 bedroom properties located within 10 miles of Yellowstone's east entrance. The market benefits from limited hotel inventory and consistent visitor traffic of approximately 4 million annual Yellowstone tourists, with occupancy rates typically reaching 70-85% during summer months and 35-50% in winter. Properties purchased in the $300,000-500,000 range with 20-25% down payments commonly generate $35,000-55,000 in annual gross rental income, though investors should account for seasonal fluctuations and higher maintenance costs due to Wyoming's harsh winters.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment opportunities in markets like Cody, Wyoming. Local real estate agents in the Cody area who focus on investment properties include Jackson Hole Real Estate Associates, which covers the greater Yellowstone region, and Century 21 BHJ Realty, which has extensive knowledge of Park County vacation rental markets. National services that help investors find Airbnb properties include Mashvisor, which provides rental property analytics and market data, AirDNA for short-term rental market insights, and Roofstock, which specializes in turnkey rental properties. BiggerPockets offers networking and educational resources for real estate investors, while companies like Awning and RedAwning provide property management services for short-term rentals in Wyoming markets. Local property management companies such as Yellowstone Vacation Rentals and Cody Country Accommodations can assist with both property acquisition advice and ongoing management of Airbnb investments in the Cody market, leveraging their understanding of seasonal tourism patterns and local regulations.