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 tourism market, focusing on areas near Yellowstone National Park entrances, downtown historic district, or scenic locations that attract visitors year-round. Obtain necessary permits including a City of Cody business license (approximately $50-100 annually), fire safety inspection if required, and register for Wyoming Department of Revenue for tax collection purposes. Furnish the property with western-themed decor appealing to tourists visiting for Yellowstone, rodeos, and outdoor activities, ensuring amenities like high-speed internet, full kitchen, comfortable bedding, and outdoor spaces for the area's outdoor recreation focus. Create your Airbnb listing with professional photos highlighting proximity to Yellowstone (50 miles), Buffalo Bill Center of the West, and outdoor activities, pricing competitively with Cody's average rates of $100-200 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with Wyoming's harsh winters, and consider hiring a local property management company if you're not residing in Cody, while maintaining responsive communication with guests and staying updated on the city's evolving short-term rental regulations.

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's historic district near the Buffalo Bill Center of the West, and areas with mountain or river views along the Shoshone River. Target 2-4 bedroom properties built after 1980 with rustic or western charm, full kitchens, outdoor spaces like decks or patios, hot tubs, and reliable high-speed internet, as these features command premium rates from tourists visiting between May and September. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates of $150-300 depending on size and amenities, with occupancy rates typically ranging 60-75% during peak season. Research competition by studying existing STR listings within a 5-mile radius, identifying gaps in amenities or pricing, and monitoring seasonal demand patterns through platforms like VRBO and Airbnb. Utilize tools such as AirDNA for market analytics, Mashvisor for investment analysis, BiggerPockets for networking with local investors, and consult with Cody-area real estate agents familiar with STR regulations, as Park County has specific zoning requirements and the city of Cody requires business licenses for short-term rentals.

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. Submit an application for a conditional use permit along with a site plan, floor plan showing the rental unit, proof of property ownership, a detailed operational plan describing guest management and parking arrangements, and contact information for a local property manager if you live more than 50 miles away. Required documents include a completed application form, property deed or lease agreement, liability insurance certificate with minimum $1 million coverage, septic system inspection (if applicable), and neighbor notification forms. The application fee is approximately $350 for the conditional use permit plus $75 for the business license, with additional fees for public hearing notices estimated at $200. The timeline typically takes 6-8 weeks from application submission, including a mandatory public hearing before the Planning and Zoning Commission and potential City Council review. Cody-specific requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring the property meets all fire safety codes, limiting occupancy to 2 people per bedroom plus 2 additional guests, providing 24/7 local contact information to guests and neighbors, and renewing the permit annually along with the city business license.

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 regulations limit STRs to no more than two per property owner within city limits and require properties to meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. STRs are prohibited in areas zoned exclusively for single-family residential use unless they receive a conditional use permit, and operators must provide contact information to neighbors and the city for complaint resolution. The city charges an annual license fee of approximately $100 and requires compliance with parking requirements, noise ordinances, and occupancy limits based on bedroom count. Recent changes in 2022 strengthened enforcement mechanisms and clarified that violations can result in license revocation, reflecting Cody's approach to balance tourism revenue with neighborhood preservation concerns.

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, offering walkable access to restaurants, shops, and western entertainment. The Yellowstone Avenue corridor is highly desirable due to its proximity to Yellowstone National Park's east entrance (53 miles away), making it ideal for park visitors seeking convenient lodging during the peak summer season from May through September. The Shoshone River area provides scenic waterfront properties that appeal to fishing enthusiasts, outdoor recreationists, and guests seeking peaceful retreats with mountain views. The residential neighborhoods near the airport and Beck Lake offer quieter alternatives while maintaining reasonable access to downtown attractions and serve business travelers visiting local energy companies like Devon Energy and Halliburton. Properties near the Cody Country Chamber of Commerce area benefit from proximity to visitor services and the Paul Stock Aquatic Center, attracting families and sports teams during swimming competitions and tournaments throughout the year.

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 hosts and remitted quarterly to the Wyoming Department of Revenue by the 20th of January, April, July, and October. Park County imposes an additional 2% lodging tax on short-term accommodations, which must be collected by hosts and remitted monthly to Park County by the 20th of the following month. The City of Cody levies a 4% local lodging tax on accommodations rented for less than 30 consecutive days, bringing the total combined tax rate to approximately 10% for most Airbnb stays. Hosts must register with both the state and local jurisdictions, obtain the necessary permits, and file returns even if no rentals occurred during the reporting period. Exemptions typically apply to stays of 30 days or longer, which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt rentals to permanent residents or government employees on official business.

To start an Airbnb in Cody, Wyoming, expect total costs around $485,000-$565,000. Property purchase represents the largest expense at $400,000-$450,000 based on median home prices in the area. Furnishing costs typically range $25,000-$35,000 for a complete 3-bedroom setup including beds, linens, kitchen essentials, living room furniture, and décor to create an appealing guest experience. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies run approximately $2,000-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections. Insurance costs increase significantly for short-term rentals, expect $3,000-$4,500 annually compared to standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly in Wyoming. First six months operating costs encompass utilities ($1,800-$2,400), cleaning services between guests ($150-$200 per turnover assuming 50% occupancy), maintenance and repairs ($2,000-$3,000), platform fees to Airbnb and VRBO (typically 3-5% of bookings), marketing expenses ($500-$1,000), and miscellaneous supplies and amenities ($1,000-$1,500), totaling approximately $8,000-$12,000 for the initial six-month period.

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 including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance average 35-45% of gross revenue. Successful properties like renovated cabins near the Shoshone River or modern homes in residential areas achieve profit margins of 25-35% annually, with key success factors including professional photography, responsive guest communication, local activity partnerships, and amenities like hot tubs or fire pits that command premium pricing. Properties purchased in 2019-2021 for $300,000-$500,000 have seen both appreciation and strong rental performance, though newer investors face higher acquisition costs and increased competition as the market has expanded significantly since 2020.

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 factor in seasonal fluctuations and higher maintenance costs due to Wyoming's harsh winter climate.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties and provides comprehensive market analysis for Airbnb investments in Cody, Wyoming. Local real estate agents serving the Cody market include Jackson Hole Real Estate Associates, which expanded operations to cover the Cody area around 2019, and Cody Country Real Estate, established in 2015, both offering specialized vacation rental investment services. National companies like Awning (founded 2017), Mashvisor (2014), and AirDNA (2015) provide detailed Airbnb market analytics and property identification services for the Cody market. RedAwning, a vacation rental management company operating since 2009, offers both property acquisition consulting and management services in Wyoming markets including Cody. Local property management companies such as Yellowstone Vacation Rentals (established 2016) and Big Horn Basin Properties (2018) provide end-to-end services from property identification to management for Airbnb investors. Additional national platforms include Roofstock (2015), which occasionally features Cody properties, and BiggerPockets, which connects investors with local Cody-area real estate professionals specializing in short-term rental investments through their marketplace established in 2004.